Retail Consumer Satisfaction Up But Wal-Mart Disputes It's Lower Number

Consumers might have been stingy in the fourth quarter, but they came out of the period happier about the way they were treated by retailers, the American Consumer Satisfaction Index demonstrated, with Wal-Mart and Dollar General being exceptions.

Considered in two categories, department/discount store and supermarket, Wal-Mart gained a point in the ACSI rating system to 70 as a general merchandise retailer, but it lost two points to 69 as a food retailer. Wal-Mart's ACSI supermarket rating slipped in the quarter even though its sales gained. Claes Fornell, director of the National Quality Research Center, which is an ACSI sponsor, noted that Wal-Mart's supercenter operations are so price oriented that service isn't as big a deal to its customers as it is to those of some other retailers.

Dollar General, only included among department/discount stores, saw customer satisfaction slip three points to 75, which Fornell attributed to more affluent consumer trading down for price but not liking their treatment. While Fornell didn't address the trading down issue in his Wal-Mart analysis, he certainly implied it was a factor or why would the retailer's satisfaction rating decrease when its customers have traditionally concerned themselves with price foremost? Comparatively, Wal-Mart's supercenters may appear a bit worse for wear these days as supermarket operators have dressed up their stores in an effort to win affluent customers who aren't â€" or weren't before the recession â€" tempted by Wal-Mart's low prices on food and consumables.

Both the Wal-Mart and Dollar General results suggest that bargain retailers may not be able to hold onto new customers they're getting as a result of the recession once the economy improves.

Wal-Mart spokesman John Simley vigorously disputed the ACSI findings, saying that Wal-Mart's "robust" customer satisfaction data has the retailer gaining, with better efficiency at checkout, assortments more closely aligned to shopper demand, displays that make items easier to find and new store lay outs that lower shelves, allowing for a better view of the store. Customers "are having a more pleasurable shopping experience," he insisted.

Across retailing, positive fourth quarter 2008 customer satisfaction trends can be pinned in part to falling prices on gas and general merchandise. However, customer service is more important in the study than price, Fornell said, and, for the most part, consumers felt good about their experiences. Overall customer satisfaction at retail â€" defined as department/discount stores, specialty retail stores, supermarkets, gas stations, and health and personal care stores -- gained 1.3 percent to a rating of 75.2.

The department/discount and specialty store categories each advanced by 1.3 percent to 74 and 76 respectively while supermarkets held their own despite the fact that last year's fourth quarter saw food prices rise at the greatest rate since 1980.