WESTLAKE VILLAGE, Calif., Oct. 11 /PRNewswire/ -- Neiman Marcus and Nordstrom lead customer satisfaction rankings among upscale department stores in three of the largest U.S. metropolitan shopping areas, and JCPenney, Kohl's and Macy's rank highest among midscale stores, according to the J.D. Power and Associates 2007 Department Store Experience Study(SM) released today. (Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a) The inaugural study measures customer satisfaction with midscale and upscale department stores in three metropolitan areas: Atlanta, Los Angeles and New York.(1) Customer satisfaction is measured across four key factors (listed in order of importance): sales staff, store facility, merchandise and pricing. "While customers primarily decide where to shop based on appealing fashions and styles of merchandise, the sales staff has the greatest influence on the overall department store experience," said Michael De Vere, executive director of emerging industries at J.D. Power and Associates. Atlanta Metropolitan Area In the Atlanta area, Nordstrom ranks highest in customer satisfaction among upscale stores with a score of 766 on a 1,000-point scale. Among midscale department stores, Kohl's ranks highest in customer satisfaction with a score of 688. Following Kohl's are Dillard's and Macy's in a tie at 681. Los Angeles Metropolitan Area In the Los Angeles area, Nordstrom ranks highest among upscale stores, earning a score of 766. Macy's ranks highest among midscale department stores with a score of 652. New York Metropolitan Area Neiman Marcus ranks highest among upscale department stores in the New York area with a score of 768, while JCPenney ranks highest among midscale stores with a score of 661. "Upscale department store shoppers are more interested in the availability of exclusive brands and in customer service, which has led to Nordstrom's strong performance in Atlanta and Los Angeles and Neiman Marcus' strong showing in New York," said De Vere. "It is particularly notable that Neiman Marcus ranks highest in the highly competitive New York market, where other iconic upscale department stores are based. Shoppers at midscale stores are more sensitive to price and seek good value in conjunction with a wide selection of brands and fashions, which is where JCPenney, Kohl's and Macy's successfully strike a balance in the metropolitan areas in which they rank highest." The study finds that customers who make purchases at midscale and upscale department stores also tend to shop at downmarket department stores before making a purchase. For example, four in 10 upscale store customers say they shopped at the midscale department store Macy's before making a purchase at an upscale store. Furthermore, some shoppers at midscale department stores say that they also shopped at discount stores, such as Target, before making a purchase at a midscale department store. "This blurring of the lines among the upscale, midscale and discount segments presents an opportunity for department stores to broaden their customer bases," said De Vere. "Midscale stores have expanded their merchandise offerings by incorporating more exclusive designer product lines that appeal to upscale shoppers. If midscale department stores are able to convert more of these upscale shoppers into purchasers, it will significantly impact the competitive landscape for upscale department stores. Midscale department stores face the same pressures from discount stores that are also expanding their lines to include more designers and recognizable brands." The study results also include the following key findings: -- Customers who shop at a midscale department store before making a purchase at an upscale store spend an average of $109 per visit and $2,393 annually on apparel, while customers who shop at an upscale store before purchasing at a midscale store spend an average of $249 per visit and $4,011 annually on apparel. Average annual spending on apparel tends to be higher among women, with approximately 27 percent of women saying that they spend at least $2,500 annually on apparel-related purchases, compared with only 22 percent of men who say the same. -- Nearly 45 percent of upscale store customers and 30 percent of midscale customers say that they would like their department store to offer a designer shopping bag that is reusable, which presents an opportunity for stores to provide an environmentally friendly offering. Shoppers 40 years and younger tend to be more interested in reusable shopping bags, compared with their older counterparts. -- When department store customers wait in line for more than four minutes when paying for merchandise, satisfaction declines significantly, compared with customers who don't wait as long. However, customers in Los Angeles appear to be more patient than customers in New York and Atlanta. Satisfaction declines by an average of 22 points among shoppers in Los Angeles who wait longer than 5 minutes to check out, compared with 42 and 44 points, on average, among shoppers in Atlanta and New York, respectively. The 2007 Department Store Experience Study is based on responses from 5,877 customers who made a purchase at a midscale or upscale department store in the Atlanta, Los Angeles, or New York area. Respondents must reside within the Metropolitan Statistical Area (MSA) as defined by the U.S. Census and must have made a purchase at a department store located within the MSA. The study was fielded in July and August 2007. For more information on customer satisfaction with upscale and midscale department stores in Atlanta, Los Angeles and New York, visit JDPower.com. Atlanta Metropolitan Area Upscale Department Store Segment Overall Satisfaction Index (Based on a 1,000-point scale) Nordstrom 766 Upscale Store Segment Average 744 Neiman Marcus 737 Saks Fifth Avenue 737 Bloomingdale's 719 Midscale Department Store Segment Overall Satisfaction Index (Based on a 1,000-point scale) Kohl's 688 Dillard's 681 Macy's 681 Midscale Store Segment Average 680 JCPenney 661 Los Angeles Metropolitan Area Upscale Department Store Segment Overall Satisfaction Index (Based on a 1,000-point scale) Nordstrom 766 Upscale Segment 743 Barneys New York 716 Bloomingdale's 713 Neiman Marcus 712 Saks Fifth Avenue 701 Midscale Department Store Segment Overall Satisfaction Index (Based on a 1,000-point scale) Macy's 652 Midscale Store Segment Average 647 Kohl's 645 JCPenney 639 NOTE: Dillard's is included in the study, but not ranked due to small sample size. New York Metropolitan Area Upscale Department Store Segment Overall Satisfaction Index (Based on a 1,000-point scale) Neiman Marcus 768 Nordstrom 752 Saks Fifth Avenue 733 Barneys New York 732 Upscale Segment 732 Bloomingdale's 706 Midscale Department Store Segment Overall Satisfaction Index (Based on a 1,000-point scale) JCPenney 661 Midscale Store Segment Average 648 Kohl's 647 Macy's 641 About J.D. Power and Associates Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies. About The McGraw-Hill Companies Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com. J.D. Power and Associates Media Relations Contacts: John Tews Syvetril Perryman Troy, Mich. Westlake Village, Calif. (248) 312-4119 (805) 418-8103 email@example.com firstname.lastname@example.org No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate (1) To be included in the study, department stores must be located in the Metropolitan Statistical Area, as defined by the U.S. Census, for the respective city.
SOURCE J.D. Power and Associates