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Recession is a time for reinvention

June 23rd, 2009 · No Comments · Economics, Product Markets

The NYTimes does a nice job of outlining how major retail chains are reinventing their business models during this recession.

For example, at Macy’s ….

Under the new system it will not be unusual for a local Macy’s to stock the merchandise customers request, be it wide-width shoes or Sean John suits, and for those offerings to be different from the ones in a Macy’s store 100 miles away.

“I think what Macy’s is embarking on is perhaps the largest transformation in our company in a couple of decades,” said Terry J. Lundgren, president and chief executive.

The Macy’s change is just one example of a wide range of initiatives retailers are pursuing as they struggle to cope with an economy where sales are lower than they were just a few years ago.

Two concepts (at least) seem to be colliding here. In recessions the demon creative destruction is invariably let loose, and the retailers are obviously aware that it’s chasing them hard.

In addition, user experience designers will recognize a pattern of personalization to local tastes, something that always improves a customer’s experience. It is not often that one size fits all.

~alex

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