Who would have thought that Macy's would be in such a slump? The department store's shares dropped over 9 percent following the market's close Wednesday after it posted disappointing holiday sales and released the locations of 68 stores it plans to close nationwide as it aims to turn its fortunes around. Macy's comparable sales tumbled over 2 percent in November and December; it expects full-year diluted earnings to be in a range of $2.95 to $3.10 -- considerably lower than the $3.15 to $3.40 it was hoping for. In an effort to cut costs and streamline operations, Macy's said it will eliminate layers of management and will work to reduce other non-payroll costs. As a result of these steps, the company expects its work force will shrink by 6,200. Plus, some 3,900 workers will be displaced by the store closures and some of these employees may be reassigned. The store closures reflect an attempt to reverse slumping sales at its established shops, with the de...

It's no secret that our five senses -- sight, touch, taste, smell, and sound -- exert a powerful influence on our everyday purchase decisions. Such is the argument made by Martin Lindstrom in "Brand Sense," which stresses that retailers that deliver a multi-sensory experience achieve greater sales and higher levels of brand awareness in the minds of customers. Here are a few findings that illustrate how important it is for companies to appeal to consumers' senses to shape their behavior: In a study published in the Journal of Consumer Research , Ronald E. Millman showed that the pace of music playing in the background of restaurants and stores had a considerable effect on spending, traffic flow, and service. The slower the music, the more people shop. The faster the music, the less money people fork over. Related studies have demonstrated that the slower the music at restaurants, the longer people stay wining and dining. In fact, the average bill for diners was 2...

Per a paper in the latest issue of the Journal of Consumer Psychology titled ""Wetting the Bed at Twenty-One: Embarrassment as a Private Emotion," people can feel just as embarrassed buying sensitive products in person as they would online. This seems to go against common knowledge, doesn't it? You'd think that people would feel less sheepish buying condoms, home test kits, tampons, and Viagra privately and online, but the study finds that not to be the case. Apparently, the mere act of purchasing the item causes consumers to judge themselves. When the purchase is made at the store, we can at least walk out and remove ourselves from the very context in which the "act" was committed. While the study found that the negative feelings associated with in-store purchases gradually dissipated, the intensity of embarrassment felt when buying the products online did not lessen. If you think about it, embarrassment is a powerful emotion. It's potent en...