In an article in yesterday's Wall Street Journal, Ann Taylor and stores like it were profiled for their use of systems like Atlas (Ann Taylor Labor Allocation System), developed by RedPrairie Corp, that track employee sales and activities and adjust their schedules to match the store's busy times, thus maximizing profitability. While I understand this is a great productivity tool, it's taking a bit of the humanity out of retailing...somewhat.

The sluggish national economy has put pressure on many retailers to pinch pennies. "The single biggest controllable cost in retail is people," says Carl Steidtmann, chief economist at Deloitte LLP. Because few retail workers belong to unions, he says, it is easier for employers to "move people around." Vendors of the systems claim they can boost productivity by 15% or more, and can help cut labor costs by 5% or more.

What I find even more interesting, and this is JUST for Ann Taylor (having a wife who's a fan of their clothes) is the heavy discounting that they've trained their customers to come to expect! Just last night, she produced a series of coupons, some for actual dollar amounts off of the merchandise and some for large percentages like 20% to 30% off any purchase over a certain figure. I understand margins, I know that they're high in the fashion industry, and I'm sure that there's good reason for this. However, customers of Ann Taylor and other brands like them (some of those mentioned in the article, most likely) have trained their customers to shop based on price and incentives. Period. Sure, the clothes fit...but seriously - 30% off on a regular basis? Action Item: So, what have you trained your customers to do? Expect things on sale, expect things you don't like doing? This is a great opportunity (and I'm doing this too) to look at your customer base from the perspective of lifetime value, and re-segment them based on 'those who should be with you in the future' and 'those who aren't going to be with you in the future'.