Shopping Centers Today

JUL 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

Issue link: https://sct.epubxp.com/i/997085

Contents of this Issue

Navigation

Page 16 of 59

J U L Y 2 0 1 8 / S C T 17 assists them with the order. "With 95 percent of our core RH business driven by members, we can con- fidently declare our move from a promotional to a membership model a success," said Chairman and CEO Gary G. Friedman in a report released in March. Adjusted net rev- enues of $669.7 million represented an increase of 13 percent from the year before, according to the report. "Membership has enhanced our brand, streamlined our operations and vastly improved the customer experience." The outlook for this sector is not as rosy as it once was, however, because overall growth is slowing as a result of changes in demographics and in the ways people shop and the places where they live. "Younger consumers are increasingly shopping online for the convenience of home delivery," said Weinswig, "and many Millennials and empty nesters alike are choosing to live in more densely populated urban centers that are not conducive to bulk shopping. These demograph- ic changes will boost the number of customers looking to buy 'little and often,' and small stores close to home are the most obvious choice for such purchases. If this trend continues, warehouse clubs may need to adjust to smaller basket sizes, especially in the grocery category; work harder than ever to bring compelling nonfood ranges to their customers; and lever- age technical advances to maintain a large customer base." Thus, these warehouse clubs must, like virtually every retailer in this digital age, reinvent themselves as necessary. n offering live-streaming video services to those who subscribe to the premier package and to cash-back points. In May footwear retailer DSW launched a program to entice DSW Rewards members to upgrade, earn- ing additional points on their pur- chases and reaping such perks as free shipping. The VIP Club, as the new program is called, offers a point for every dollar spent and a $5 discount per $100 in spending. Home-furnishings retailer Restoration Hardware introduced its RH Members Program (formerly called the RH Grey Card) in 2016. For an annual fee of $100, members can save 25 percent on full-priced items and an additional 20 percent on sale items, as well as enjoying direct access to a concierge who From 2001 to 2016, U.S. warehouse-club revenue grew 6.2 percent, outpacing the overall retail industry

Articles in this issue

Archives of this issue

view archives of Shopping Centers Today - JUL 2018