Here is an interesting story from today's New York Times – (click here for the link)

Nordstrom's – the upscale department store – will be carrying a select group of Compact Disk recordings of artists whose music reflects the style of their stores and customer's taste.  On reflection, this really should not be a surprise.  For many years, Nordstom's has employed pianists to perform on fine pianos in their stores to enhance the shopping experience for their customers.  And our choices in music reflect our personal style and taste more than any other indicator.

However, the point that I want to make – to my music industry colleagues – is that we must sell our products where potential customers are likely to gather.  We can not wait for them to come to our stores.  We must be present – and available – for them when they are in the mood to shop.  Be it on the Internet, or at casual gatherings or at entertainment venues.  If you are going to capture a portion of the discretionary dollars, you must first capture a portion of their mind.

Nordstrom's – along with Whole Foods Markets, Target and Starbucks, etc. – are not selling products per se.  They are selling a lifestyle.  Music retailers, if they want to succeed, must understand this concept and grab its potential.

As the NY Times articles states, Nordstom's is not planning to carry a full line of music CD's in their stores.  But a market that they long ago ceded to specialty stores like Tower Records (now in bankruptcy) is emerging for customers who visit their stores.  In typical fashion for a merchant who understands their customers, they will have listening kiosks in the music department and they will also place the music CD's at selected points throughout the store to take advantage of cross-selling opportunities.

Personally, I now realize that just in the last 12 months I have purchased music CD's in Starbucks (Ray Charles, Sergio Mendez), Target (Tony Bennett) and Whole Foods (Chris Botti.)  Could I have waited and purchased these CD's at a later date at a music store.  Yes.  But, the point is, I didn't want to wait – and risk the chance that the store would not have the selection in stock; or that I would forget that this artist's CD had grabbed my interest.  The music CD grabbed my attention at that point, and I put it into my cart – AND… I paid full retail price for each of these CD's.

There is a lesson in all of this.  Understand your customers and you will gain the opportunity to grow your business.

OK – Two weeks after the new Tony Bennett Duets album was released, I was finally near a Target store and had the time to go in and purchase the Limited Edition CD / DVD combo – “exclusively available” at Target. 

I did enjoy the short (20 minute) DVD in the recording studio about the making of the album. And I am glad that I have it just in case I do not TiVo the broadcast special on November21 (sponsored by Target.)

I doubt that I will ever look to Target stores to be my main source when purchasing CDs and DVDs in the future.  However, several interesting factors came into play during my short shopping experience at Target yesterday.

Wow – those stores are big – and no aisle goes straight through – like a maze! Interesting concept – keeps customers inside each department.  But, the CD department is all the way in the back of the store.  Limited selection; decent signage.  While I was looking for the Tony Bennett album – and they had a TV showing the “Happy Birthday Tony” promo ad in the department – I noticed the new Diana Krall CD – “From This Moment Out” – ALSO with a bonus track – EXCLUSIVELY available from Target!

OK – I am a sucker for “exclusive content” from my favorite artists.  No price shopping for me – if it is attractive and exclusive, I want it – and I don't look to save a couple of bucks at another store or on-line!  Very clever of Target.  It reminds me of why I buy CDs at Starbucks – They have it first (Ray Charles' “Genius Loves Company”) or it is a Starbucks original by artists that I like.

I'm not sure if Target is making money on its sponsorship of the Tony Bennett project.  They did from me because I ended up buying another CD – Aaron Neville's new “Bring it on Home … the soul classics” CD – all at full price!  I suppose the whole point is to bring certain desirable demographics into Target stores.

Here's the lesson that I think is valuable for retailers:

Find a way to bundle, manufacture or otherwise “brand” certain products as “exclusive to (your store.”)  When you use this tip selectively, it prevents customers from price-shopping your competition – only YOU sell this particular assortment.  I think that it also elevates your image in the minds of customers.  Certain customers value exclusivity – I do – and are willing to pay for it when it is something that they desire.