Here is a/the article:
(google cache)
http://64.233.179.104/search?q=cache:LUJPQ8WH0zEJ:199.249.170.192/retailmerchandiser/reports_analysis/feature_display.jsp%3Fvnu_content_id%3D1000745650+best+buy+devil+california&hl=en&client=firefox-a
Highlights:
A few months ago, the company rolled out 70 newly converted stores in California — primarily in and around Los Angeles, San Francisco and San Diego. Based on tests of customer centricity lab stores in Los Angeles and a few other markets, the stores revamp the shopping environment to target five particular consumer groups: upper income men, suburban mothers, small-business owners, young family men and technology enthusiasts. Each store was then charged with determining the demographics of its local market, choosing two of these groups and then stocking merchandise accordingly.
Store personnel have been receiving training to help them identify the five groups. The high-income men group, dubbed
Barrys, are likely purchasers of action movies and cameras. Suburban moms, dubbed
Jills, have a strong predilection for purchasing items and services that help their family. The male technology enthusiasts, or
Buzzes, are early adopters with a love of showing off the latest and greatest.
To attract these groups, Best Buy is offering personal shoppers to hand-hold the customer through the shopping and gathering experience. Each Tuesday, when new DVDs reach shelf, i.e., store personnel are out cruising the section to steer customers to the home theater area which offers $12,000 integrated systems in a setting with couches and popcorn.
In November, ceo Anderson went even further. In the Wall Street Journal piece, he separated his 1.5 million daily customers into two camps:
angels and
devils.
The
angels, he explained, are those customers who boost profits by buying high-end TVs, portable electronics and other peripherals without waiting for sales. The
devils are those who return merchandise, buy only during sales and then flip those items on eBay.
He'd prefer to lose those customers who he says are undesirable and “wreak enormous economic havoc.” He is relying on a business school theory, says the article, that advocates ranking customers according to profitability, rather than the traditional retail strategy of attracting as many customers as possible through extensive marketing.
To pump up enticements to its angels, Best Buy is stocking more merchandise and lavishing its customers with better service. To repel the devils, it is reducing promotions and markdowns. It also began charging a 15% re-stocking fee on returned merchandise.
The angel-devil strategy has been rolled out to only a segment of the store base at this point as the execs at corporate examine sales records and demographic data.