Paco Underhill Addresses NARMS Spring Conference

FOR IMMEDIATE RELEASE
April 6, 2009

Colorado Springs, CO….. Paco Underhill, a leading expert and pioneer on consumer behavior and founder/CEO of Envirosell, Inc., a global research and consulting firm, shared thoughts and opinions at Monday’s NARMS general session at the 14th Annual NARMS Spring Conference held here.

Underhill compared and contrasted the market view of three types of today’s shoppers: the CEO or worker who just lost his/her job; the “not in immediate danger” but cautious shopper and the “debt free but reluctant to show signs of conspicuous consumption” shopper. In sharing the various marketplace perspectives, Underhill predicted “We’re never bouncing back!”

Although acknowledging that the current marketplace scenario will be painful in the short run; Underhill stated the situation could show long term benefits as shoppers re-establish what they really need. Underhill declared that US markets are “over-stored” with some retailing areas likely to reach 20-30% vacancy levels in the near term. He went on to relate how re-cycling these retail areas; often “built cheap, built fast and built with little or no zoning regulations” will result in space that will have to “go to Mr. Bulldozer”. Underhill offered up numerous global examples of thriving retail spaces; often due to “not trying to be all things to all people”.

The author of “Why We Buy: The Science of Shopping” and “Call of the Mall: The Geography of Shopping”, Underhill reviewed consumption patterns now developing, noting the effects of effects of local taste, how money is being re-allocated and how “used is cool”. Underhill predicted major format innovation with the key to some retailers’ future success will be how to downsize the store, trying to achieve the same sales volumes in 20% less space.

Underhill challenged attendees to help work towards technology solutions that are for the “captains and sergeants in the store”, not the central office types whose feet rarely tread on the sales floor.

Challenging the audience thinking, Underhill asked “What if our kitchen and laundry room did our shopping for us? Eighty percent of our weekly purchases are routine,” he noted. He shared market examples of solving shoppers’ problems at various points around the world, inspiring hope for US marketplace adaptations.

Underhill’s involvement at the NARMS meeting included a special opportunity for ten conference participants who “learned with the expert” as they took part in a hosted store tour at a King Soopers grocery store, a Whole Foods store and PetSmart location.

NARMS’ nearly 500 member companies perform well over $3 billion in merchandising services, sales marketing, event marketing, demonstration and other retail services annually. The international trade association serves as a “central gathering point” for the retailing industry; promoting and establishing industry standards; providing critical industry research studies and educational information about the industry while acting as a voice for its diverse membership of service providers, manufacturers, retailers and associates. NARMS represents all classes of trade including: grocery, drug, mass, department, home & building centers, computer & office supply, electronic, value retailers, specialty and convenience retailers. Additional NARMS information is available at www.narms.com, including information about the 15th NARMS Spring Conference & Exposition at Saddlebrook Resort, Wesley Chapel, FL on April 17-20, 2010.

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