AlixPartners Releases 2006 Consumer Sentiment Index, Which Pinpoints Which Retailers Are Failing to Meet Consumer Expectations and Why; Also Reveals Key Changes in Consumer Attitudes.

NEW YORK -- AlixPartners, the global corporate-advisory firm, today released a consumer-attitude study that has broad-reaching and important ramifications for retailers, those companies that sell their products to retailers and financial players that buy, sell or trade retailing companies. The study pinpoints consumer expectations of retailers by category, and determines which retailers are delivering, those that aren't, and why. It also demonstrates that a strong correlation exists between meeting customer expectations and creating shareholder value. The research was done in 13 retail categories, and by key consumer demographics as well.

The research reveals significant shifts in consumer desires regarding the key retail attributes of price, product, service, access and overall shopping experience. Moreover, the data show that new priorities have emerged, and many retail issues that weren't previously on consumers' radar in the past are veritably lighting up the screen.

Additionally, the study quantifies the extent to which Wal-Mart (WMT) has redefined retail in the U.S. Notes Frederick A. Crawford, a managing director with AlixPartners in New York and the firm's leading consumer expert, "The level to which Wal-Mart has penetrated the American consumer retail psychology is startling. In many respects, Wal-Mart defines retail in America." However, the research also points to significant areas where rival chains can potentially compete and win.

In the study, all 13 retail categories revealed surprising and interesting findings. Briefly, highlights include:

In the clothing category, the 2006 AlixPartners Consumer Sentiment Index plots the comparative strengths and weaknesses of Gap (GPS), Old Navy, Banana Republic, American Eagle (AEOS) and Express, and reveals the surprising rise of a player with no prior ranking in this report. It compares the performance of major department stores such as Kohl's (KSS), J.C. Penney (JCP), Macy's, Sears (SHLD), Dillard's (DDS) and Nordstrom (JWN).

In the club category, the study uncovers which two of the three major players, Sam's Club, Costco (COST) and BJ's (BJ), are in a relative tie, and which one those two are leaving behind. There are decisive findings on who is best and least pleasing to consumers in the Discount category, among Dollar General (DG), Family Dollar (FDO), Dollar Tree (DLTR) and Big Lots (BLI).

In the do-it-yourself category, the study explains why there is room for a small-format D-I-Y, as it compares consumer attitudes towards shopping at Home Depot (HD), Lowe's (LOW), Ace Hardware, Menard's and True Value. In comparing consumer electronics retailers such as Best Buy (BBY), Circuit City (CC), Radio Shack (RSH), Fry's and CompUSA, it reveals a hidden opportunity for one of those companies.

In specialty categories such as office supplies, the findings call into question whether three's a crowd in the universe where Staples (SPLS), Office Depot (ODP) and Office Max (OMX) presently compete. And in the sporting-goods category, the study explains why one player among Dick's (DKS), Sports Authority (TSA), Academy Sports, Oshman's and Dunham's Sports wins hands down.

Key findings of the 2006 AlixPartners Consumer Sentiment Index can be accessed by going to: www.AlixPartners.com/csi2006.

Users are required to register.

Research, Methodology and History

The 2006 AlixPartners Consumer Sentiment Index was conducted in the summer and fall of 2005 with 6,000 consumers in the U.S. across ten key demographics: Gender, Age, Location (urban, suburban, rural), Region (NE, MW, south, west), Education, Marital status, Number of children, Employment status, Income level and Ethnicity. Participants were asked 63 questions created to determine what matters most to consumers when interacting with retail businesses, on the five timeless criteria consumers evaluate: price, product, service, access and experience. They were asked to rank each question in importance from "extremely important" (5) to "not important at all" (1). Consumers were also asked to rank individual retailers on how they are performing against the criteria from "outstanding" (5) to "poor" (1). The data were evaluated in the aggregate as well as against 13 retail categories: Books, Clothing, Club stores, Convenience stores, Department stores, Discount (dollar stores), Do-It-Yourself stores, Drug stores, Electronics, Grocery stores, Mass merchandise, Office supplies, and Sporting goods.

The study, headed by Frederick A. Crawford of AlixPartners, has a long and rich history. Originally titled the Consumer Relevancy Study, it dates back to August 1999 when Crawford was working for Ernst & Young and, later, Cap Gemini. The initial research consisted of 5,000 consumers in the United States. The team completed further broad-based research in 2000, 2001, 2002 and 2003. In addition, they completed parallel research of 6,000 consumers across nine European countries in 2002, and completed a study in Japan in 2003. The findings were parlayed into a Business Week and Wall Street Journal best-selling business book, The Myth of Excellence, by Fred Crawford & Ryan Mathews. The latest study, which is the first under the auspices of AlixPartners, was completed in the winter of 2005.

About AlixPartners

AlixPartners LLC (www.alixpartners.com) is internationally recognized for its hands-on, results-oriented approach to solving operational and financial challenges for large and middle market companies globally. Celebrating its 25th anniversary in 2006, AlixPartners has become the industry standard for performance improvement aimed at producing bottom-line results quickly and helping clients achieve a more positive outcome during times of transition. The firm has more than 450 employees in its Chicago, Dallas, Detroit, Dusseldorf, London, Los Angeles, Milan, Munich, New York, Paris, San Francisco and Tokyo offices.