In a survey conducted by The Integer Group and MARC Research, 90% of shoppers admitted to purchasing items not on their shopping list. The majority said it was due to sales, promotions, or coupons, but 28% also said that they just like to pamper themselves every now and then. Interestingly, this behavior endured even through the recession.
Retailers that pay attention to shopping trends like these are definitely worth investors' time, but what about the ones that don't?
So where will shoppers go to get their impulsive fix instead? For a good discount, TJX's
Since the end of 2007, all of these companies (except for J.C. Penney) have beaten the S&P 500. Obviously a lot more goes into running a successful retailer than simply offering luxury goods and/or sales, but what it comes down to is a company's ability to know who its audience is and what they want. With that in mind, I think Nordstrom and its smart shift to digital and mobile will continue to do well.
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