Department Store Dilemma: Less Foot Traffic, Better Customer Service

At a time when online shopping sales keep growing and malls keep emptying, customers who still make the trip to brick-and-mortar venues may be in for a surprise: better customer service. According to surveys conducted during the busy holiday season by the American Customer Satisfaction Index, key aspects of the department and discount store customer experience are much better in 2016 compared with the prior year. Not only did shoppers report higher satisfaction overall, they also encountered cleaner stores, more courteous staff, and a much speedier checkout process.

Less foot traffic brings shorter lines and customers gain when staff have more time to offer personal service and keep merchandise in order. But less foot traffic is hardly sustainable as a massive wave of store closings sweeps across the industry and some of the oldest names in the business—Macy’s, Sears and Kmart, and JCPenney—shutter property after property.

Traditional department and discount stores have made strides with omnichannel offerings and website satisfaction shows an uptick to 79. On the other hand, sales and promotions are not as common (down 3% to 78) and perceptions about locations and hours are starting to erode as more stores close (-2% to 82). While customer satisfaction may be getting a short-term boost from better service, in the long run, consumers may get frustrated if favored locations close and they need to go farther to reach stores.

Going head-to-head with online shopping, brick-and-mortar languishes behind. With an overall ACSI score of 78 (up 5.4%), department and discount stores trail internet retail by 5 points. Coming in at 83 (+3.8%), online retail now ties for third place in customer satisfaction among 43 ACSI industries. Simply put, shopping online is so easy and convenient that it continues to place pressure on traditional retailers not only in terms of sales, but in just getting people into stores.

At the customer experience level, the advantages of online shopping remain clearly delineated, as in past surveys. While checkout speed at stores has improved greatly, it still pales in comparison with the convenience of online purchasing (88). Moreover, department and discount stores are not keeping up with merchandise selection—including brand names—or inventory availability. Perhaps most telling, however, is that despite store staff becoming more helpful and courteous, the industry does not have an edge over the customer support offered online via live chat, help pages, and call centers (both score 79).

ACSI Retail Report 2016 »

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