Business and Strategy

Nordstrom recently announced adjustments to its loyalty program; frequent shoppers are eligible for perks like custom shopping parties, in-store fashion shows and as much as $100 in complimentary alterations.

Barnes & Noble unveiled temporary price cuts to its Nook tablets and e-readers for shoppers who buy either People magazine or New York Times Nook subscriptions. And Safeway, Kroger and Stop & Shop are hoping to offset rising food prices by providing gasoline discounts to their rewards members and personalized savings for loyal shoppers.

Working for the past few weeks on this month’s cover story prompted me to do some soul searching. While retailers are factoring a whole lot of analytical expertise into their pricing decisions and using optimization tools to determine precise pricing, promotional plans and markdown cues, I found myself thinking about what prompts me to buy. Is it ultimately about the price — or is it about value? When am I willing to make exceptions to my own spending rules? And what, if anything, might make me throw caution to the wind and spend with wild abandon?

In the midst of a slow-but-relatively steady economic rebound, retailers big and small faced the challenges of the marketplace head-on during 2011, putting the big three – originality, imagination and ingenuity – to work in new and exciting ways. We’re talking inventive apps for smartphones and tablets; vending machines dispensing fresh-baked goods; blizzard forecasts in the heat of summer; and even more convenient delivery options. Great concepts, all springing from a germ of an idea — and all worth a second look.

As we were putting the finishing touches on STORES’ annual predictions for the coming year there was a flurry of retail news, including holiday forecasts and third-quarter sales figures. There was also a handful of stories that leave one contemplating just how different the future of retail might be.