Are retailers trying to boost sales by being nice to customers?


Funny thing happened during my family's recent visit to the mall yesterday: the sales help noticed that we were alive.

They said "hello," offered us a coupon and --- get this -- thanked us for stopping by. My wife and I were shocked to get this level of service from our local mall where like many shopping emporiums customer service was an after-thought. Truth be told, I wonder how many sales people working at malls can even spell "customer service."

I guess you can call it the upside of declining retail sales. Companies are scrambling for every customer they can get because holiday sales this year are expected to be godawful. Michael Nemira, chief economist of the International Council of Shopping Centers, recently lowered his forecast for holiday sales growth for November and December period to 1 percent growth from 1.7%, according to the Los Angeles Times.

Retailers ranging from Gap Inc. (NYSE: GPS) to Neiman Marcus have posted terrible sales. Even Wal-Mart Stores Inc. (NYSE: WMT), which has posted better-than-expected results, remains nervous about the consumer. Circuit City Stores Inc.'s (NYSE: CC) filing for bankruptcy protection today only heightened these fears.

That's why retailers need to pay even closer attention to the customer than ever before. Given the precarious state of many household budgets, shoppers will have less tolerance than ever for rude or incompetent retail staff. They are putting up with enough troubles in their own lives. Retailers who do not understand this reality will have an even less joyous holiday season.

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