B-School > News > Releases > Speakers at McCombs

Andrew T. Hall Chairman, Foley's Also See Foley's Website

September 20, 2004
Foley's Chairman Emphasizes the Range of Challenges to Retail Marketing
by Niti Dalal

The millions of consumers in the United States have more than 36,000 “brick and mortar” stores to choose from in addition to online vendors. So how do retailers set themselves apart from the competition?

With one hour of lecture time and 47 PowerPoint slides, Andy Hall, Chairman of Foley’s, had many answers for Professor Eli Cox’s marketing class Sept. 15. Hall claimed that putting the presentation together was difficult because many of the traditional marketing concepts, everything from product and market segmentation to government affairs, apply to the department store.

“There are so many retailers and so many types of retailers, and each of them is seeking to provide a new or better way to give the consumer goods and services at the lowest price possible, forcing retailers to differentiate themselves,” Hall said.

The leading southwest department store retailer, Foley’s belongs to the May Department Stores Company, along with other retailers such as Lord and Taylor, Marshall Fields and Priscilla of Boston. Hall praises the corporation’s decision to retain the name of each of its stores, claiming that this takes advantage of hometown loyalty, which is “very powerful stuff.”

But it is more than just hometown loyalty that keeps consumers coming back to Foley’s. According to Hall, there are several things Foley’s does, and other companies should do, to influence consumers to buy from them, including making things easy for consumers. Foley’s, for instance, provides three methods of shopping: by visiting the actual store, by calling in and by going online.

Hall also suggests excellent customer service to encourage shoppers to return. One technique cashiers at Foley’s have found useful is using the customer’s name during checkout to foster a connection between the shopper and the employee.

“Friendly service builds esteem and keeps people coming back,” Hall said.

E-commerce continues to heighten the challenges of retaining brick-and-mortar customers. Compared to last year, online sales have increased 26 percent, a growth of $56 billion. While the growth does not represent a significant portion of retail sales, the Internet has proven to be a great way to supplement current marketing, Hall said.

In his lecture, Hall encouraged students to be open to new ideas, as changes in technology, trends, merchandise, style and demand revolutionize the retail industry.

“Embrace change because change is the way we make money,” Hall said.

For general media information contact the Director of Communications: David Wenger (512-471-3314).