EXPERT OPINION

The recession has shaken many retailers, and, according to NPD Group chief analyst Marshal Cohen, it just might be the wake-up call many of them will need to survive when the economy rebounds. With consumers fundamentally changed, retailers must make changes to the way they do business now and in the future. “I think what we’ve got right now is a do or die moment in retail,” says Cohen. “I say that because online is being more and more embraced by the consumer, and it has leapfrogged forward this year thanks to bad weather and value pricing. People are much more comfortable using it for pre-search before they buy, and we need to recognize that the experience of retail has changed.” Change may be a good thing. “Has the process of selling shoes and accessories really changed since the 1600s? With the exception of the Internet, nothing about it has changed, and it has to be changed. Footwear and accessories retailers need to be the leaders in this, because they stand to lose the most the fastest. How can you compete when everyone is selling the same product at different prices?”

So, what needs to change first? “It comes down to customer service,” Cohen says. “Specialty retail used to be special, but how is it special today? We’ve lost a lot of the relationship between the customer and the retailer. Everyone used to have their favorite store, but now we all just have our favorite brands. Who carries that brand doesn’t matter.”

Retailers would also benefit from asking themselves a few simple questions. “How do you deliver the product to the consumer, even before they need it or want it? How are you going to educate them to tell them it’s the right product for them?” Cohen asks. “Your customer is thinking about buying a new car or maybe a wide screen TV, and the retailers selling those products are who we’re competing against, not even your direct competition. You have to find ways to connect to the consumer and make them realize they need and want their product. Two years ago, consumers saw something they wanted and they bought it. But now they ask themselves if they really need it and how they’re going to pay for it. There’s a whole new dynamic, in that the consumer is already resistant to making the purchase, so you need to find out not only how to get them into the store, but once you’ve interacted with them how you can close the deal.”

With consumers already thinking about their bottom lines, retailers need to appeal to their practical sides. “You have to make them understand that what they’re buying is an investment, that they’re going to use it day-in and day-out. If I buy an outfit, I may wear it once a week for eight weeks, and then it goes into the back of the closet. But with a pair of shoes or a handbag, they may wear the same thing every day. Or conversely, they can create whole new outfits by wearing the same suit with different accessories, which is much more bang for the buck. But who sells with a focus on this? No one. And they should. Because retailers are either going to change, or they’ll be out. The stakes are high, and this is the time to change.”

Cohen has appeared on NBC’s “Today Show,” “Good Morning America,” “The CBS Morning News,” CNN and CNBC. Major publications, including The Wall Street Journal, The New York Times, BusinessWeek and Women’s Wear Daily turn to him for commentary about fashion and retail trends.

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