Publix, Walgreens deliver highest customer satisfaction scores
ANN ARBOR, Mich. — Customer satisfaction as measured by the American Customer Satisfaction Index has not improved since the middle of 2009, and on Tuesday it registered its biggest drop in two years; for fourth quarter 2010, the index fell 0.5% to 75.3.
“Even though the economic recovery has gained a bit more momentum as of late, it remains sluggish,” stated Claes Fornell, founder of the ACSI and author of "The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference." “With low job creation and deteriorating customer satisfaction as tracked by the ACSI, the uncertainty of what will happen to consumer demand is not going away.”
For the most part, consumer angst was driven by dissatisfaction with government services and fuel stations on account of the escalating gas prices, the ACSI reported. In the retail sector, customer satisfaction dropped 1.6% to 75. Gas stations realized a 7.9% drop in satisfaction scores in the wake of a 20% rise in gas prices over the past year, the ACSI noted.
Results for other retail industries are mixed. Higher prices on food and other items dampened satisfaction with supermarkets (down 1.3% to 75) and health and personal care stores (down 1.3% to 77), while continued aggressive discounting kept department and discount stores and specialty retailers trending upward for a third straight year. Both industries improved by 1.3% to 76 and 78, respectively.
Publix — which has led customer satisfaction scores among supermarkets since 1994 — maintained its lead despite a 2% drop to an ACSI score of 84. Whole Foods was next, well behind Publix but coming on strong, gaining 4% to 79; followed closely by Kroger, unchanged at 78. Supervalu slipped below the industry average, falling 4% to 74, and tied with Safeway, which improved 3%. Walmart was at the bottom of the industry, unchanged at 71 for the grocery portion of its business.
“While supermarket chains like Publix thrive on the strength of their customer service, Walmart continues to be a place where people shop because of price,” Fornell said. “Service has a strong impact on customer satisfaction, but low prices coupled with low quality do not.”
Drug store chains led the health and personal care store category, up 3% to an ACSI score of 81. Among the three largest retailers, Walgreens remained in front, unchanged at 77, followed by Rite Aid, down 1% to 75. CVS Caremark satisfaction scores fell 4% to 74, which caused it to fall out of a first-place tie with Walgreens as compared with a year ago, and to hit the bottom of the category.
Conn.-based Stop & Shop installs fuel cell
QUINCY, Mass. — Stop & Shop is taking supermarket energy efficiency to a new level at a store in New England.
The supermarket chain, owned by Netherlands-based Royal Ahold, announced the installation of a 400-kilowatt fuel cell at its store in East Torrington, Conn.
The fuel cell, a UTC Power PureCell System Model 400, is expected to generate more than 90% of the store’s electrical energy.
Target to sell deluxe edition of Lady Gaga’s new album
MINNEAPOLIS — Pop singer Lady Gaga has partnered with mass merchandise retailer Target to allow customers to pre-order a deluxe edition of her new album, “Born This Way.” Customers can order the album through Target and download the title track for free at Target.com/Gaga until Feb. 26.
“Target and Lady Gaga together is a win-win,” said Troy Carter, Lady Gaga’s manager and Coalition Media Group chairman and CEO. “The partnership provides us with an opportunity to really engage the fans early and widen our reach on the album promotion.”
The album will be released on May 23. Target’s edition includes three additional studio songs and five remixes.