Houston Retail Performance Update

Houston Retail Performance Update In the retail community, there is an ongoing discussion about consumers' lack of brand and store loyalty. Chain stores long ago took over the retail landscape, and the mom-and-pop retailer is nearly a thing of the past. Kaplan's Ben-Hur, an independent department store operating in Houston's Heights neighborhood for decades, recently closed amid rising land prices and falling revenues. In contrast, residents of the nearby Woodland Heights neighborhood were recently quoted as being overjoyed about the opening of a brand new Target nearby this summer.

Perhaps one explanation for this change is the blurring line (at least in the minds of some consumers) between discount stores and more traditional retailers. A new upscale Wal-Mart Supercenter in the Dallas suburb of Plano aims to attract those consumers who can be convinced that the term 'upscale Wal- Mart' is not an oxymoron, and who are none too pleased to toss sushi in their cart alongside their diapers and economysize mouthwash. However, considering the popularity of non- 'upscale' discount retailers, it appears that the new brand loyalty is price loyalty - simply buy from whoever gives you the absolute lowest price.

Is a price-obsessed public a good thing? On the one hand, few would react negatively to competition in the retail business. And we do get some great deals these days for many everyday items, but many would argue that the money we save is negligible. Will consumers' current attitudes toward retailers last for the long term? Perhaps one day soon, the public will have a change of heart, and those retailers that do not focus strictly on price will enjoy a resurgence. Then again, perhaps they won't, and it will be just a matter of time before Wal-Mart leases the vacant Galleria space.