Consumers Choose Nordstrom as Best Retailer for Customer Service in New Survey; NRF Foundation/American Express Survey Also Ranks Top Retailers by Sector.

WASHINGTON -- Though the retail industry will be flooded with promotions and discounts this holiday season, customer service will also play an important role for shoppers when deciding where to buy gifts, according to a new survey by the NRF Foundation, an arm of the National Retail Federation that offers National Certification in Professional Customer Service and Sales, and the American Express Company. According to the survey, conducted by BIGresearch, the importance that shoppers place on customer service should not go unnoticed by retailers, as 85 percent of consumers said that they spend and shop more at retailers who provide good service. Another 82 percent are likely to recommend these retailers to friends and family.

"Retailers know that consumers spend more time and money in a store when they have a pleasant shopping experience," said John Theiss, Vice President, Retail Industries, American Express Establishment Services. "Through excellent service, retailers have an opportunity to retain and build on their customer base."

A nationwide poll yielding more than 8,600 consumer responses put Nordstrom at the top of the customer service list of retailers, followed by Coldwater Creek, Marshall Field's, Kohl's, and Boscov's. The top 10 is rounded out by Recreational Equipment Inc. (REI), JCPenney, Lane Bryant, Best Buy and Eddie Bauer.

The survey also ranked the top direct merchants, whose customer service front-runners included: L.L. Bean, Blair, Amazon.com, Overstock.com, and NewEgg.com.

Consumers Have Highest Expectation at Restaurants, Lowest at Discounters

According to the survey, consumers expect the highest level of service from restaurants, which had a 4.39 rating out of 5.0. Consumers also have high service expectations from specialty stores (4.32), department stores (3.94), and drug stores (3.92). Shoppers have average expectations from grocery stores (3.77) and internet retailers (3.71), and have the lowest expectations of service at membership warehouse clubs (3.58) and discount stores (3.21).

"As the retail environment becomes more competitive, customer service is taking a front seat in helping retailers maximize sales," said NRF Foundation President Tracy Mullin. "Retailers are investing heavily in employee training to ensure that the people who represent their companies during the holiday season are as knowledgeable and professional as possible."

Top Retailers by Sector--Wal-Mart Ranks First Among Discounters

When looking at the top stores for customer service by segment, a variety of retailers emerge as front runners in their sector. For discount chains, Wal-Mart holds the number-one spot for customer service, while Nordstrom is at the top of the list for department stores. Women's apparel retailer Coldwater Creek ranked first in the specialty apparel category and outdoor gear company REI took the top spot among non-apparel specialty stores. Additionally, family-owned Wegmans Food Markets ranked first in the grocery category.

NRF Foundation and American Express on Customer Service

The NRF Foundation and American Express, both recognized for their leadership in customer service, have a long history of collaborating to support the retail industry's focus on superior service. In 1996 American Express was the founding sponsor of the NRFF's first-ever Retail Skills Center (RSCs) dedicated to recruiting, training and placing individuals in retail positions. Currently, there are 15 RSCs in operation, all providing retailers with a pipeline of qualified workers trained in customer service. In April of this year, NRFF and American Express again collaborated to develop a management-level certification program targeted at store managers.

About the Survey

The NRF Foundation/American Express 2005 Customer Service survey was designed to gauge consumer attitudes toward retailers' customer service and to provide a listing of the top customer service retailers. The survey, which polled 8,648 consumers, was conducted by consumer marketing intelligence firm BIGresearch from September 7-21, 2005. The consumer poll has a margin of error of plus or minus 1.0 percent. Consumers answered the open ended question, "Which retailer delivers the best customer service?" In order to develop a fair comparision, regardless of a retailer's size or geographic coverage, the consumer survey responses were compared to each retailer's 2004 revenues in order to develop the overall rankings. The retailers were also ranked by category. The survey data and the process for selecting the winners was reviewed by Professor Martin P. Block, Ph.D. of Northwestern University. The survey on customer service expectations was conducted August 3-10, 2005 with 6,141 respondents.

American Express Establishment Services is the merchant network of American Express which acquires and maintains relationships with millions of merchants that welcome the American Express Card around the globe. American Express Company (www.americanexpress.com) is a leading global payments, network, travel and banking company founded in 1850.

BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch's syndicated Consumer Intentions and Actions survey monitors the pulse of more than 7,000 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace. www.bigresearch.com

The NRF Foundation (NRFF) is the research and education arm of the National Retail Federation. A non-profit foundation created in 1981, the Foundation conducts industry research, develops education and workforce development programs, professional certification programs and promotes retailing as a career destination. The NRF Foundation benefits retailers, their associates and business partners and allies, and consumers in many ways. Research provides the basis for education about the industry and its importance to the economy, and provides industry and government leaders with an analysis of public policy decisions on consumers, retailers, and the economy. The Foundation's education and career development efforts, including NRF University wired, encourage professional development and excellence in performance of retailing for associates and executives at all levels.