Tennessee retailers link sales to charitable giving

By Wendy Lee, The Tennessean

This Christmas, more retailers plan to target shoppers like 24-year-old Jacklyn Johnston, who vows this will be the first holiday when nearly all of her gifts are related to a philanthropic cause.

"I just really think that's important, especially this year, with people down on their luck," said Johnston, who plans to spend a couple of hundred dollars on gifts. "If you are in a position to help, I think you should."

At a time when retail sales are expected to be weak, some stores are aligning themselves with nonprofits in a bid to get consumers to feel better about spending money again.

For example, the owners of Tennessee Cheesecake donate
10 percent of each sale to Second Harvest Food Bank of Middle Tennessee when they sell a $24 gourmet pumpkin cheesecake.

"We thought this was a good way for us to help and for our customers to give back a little bit," said Will Wilson, vice president of Tennessee Cheesecake. This is the first year the company has partnered with Second Harvest. "It's hard to feel bad about buying a cheesecake."

Or consider this. A consumer can pay $25 to join department store Macy's "Thanks for Sharing" program, and the retail chain will donate $10 of that payment to charity. The shopper then gets 10 percent off other holiday purchases.

"I think it aligns well with the times," said Milton Pedraza, CEO of The Luxury Institute, a retail research outfit. "It does relieve the guilt (of spending money) or the feeling you're being insensitive to people who have so much less."

Last year, Macy's raised $14.7 million for charity in its "Thanks for Sharing" campaign.

Some retail analysts warn storeowners to be careful not to give consumers the impression that they care more about profits than the charitable cause in question - even if that truly is the case.

"Consumers don't seem to focus that much on how much is actually being donated, so retailers get away with giving very little," said Aradhna Krishna, a professor of marketing at the University of Michigan, who was co-author of a study on cause-related sales. Krishna said where the money goes is often difficult to track as well.

Last year, in a separate survey, about 79 percent of consumers said they'd be likely to switch from one equal brand (judged by quality and price) to another if it was associated with a good cause, according to Boston-based Cone, a strategy and communications agency.

Nonprofits get help

Several area nonprofits say more retailers have taken part in their charitable campaigns lately, and it helps. Locally based shoe charity Soles4Souls said nearly 250 Nashville-area stores have signed up to collect shoes on its behalf this holiday season, up from 150 stores last year.

"What we offer is a way for retailers to not only drive traffic into their stores, but also help with that purchase," said David Graben, the nonprofit's executive vice president.

Already, American Jewelry Co. in Mt. Juliet said it has noticed customers coming in more frequently after a Soles4Souls collection box went up in the store. For each pair of footwear that's donated, the store gives the customer a free jewelry cleaner or replaces his or her wristwatch battery at no charge, said store manager Ryan Wolfenbarger.

"I think everybody right now is re-evaluating themselves and their priorities," Wolfenbarger said. "I think it does make a difference to people if businesses reach out (to) people in a tough time."

Meanwhile, more than 30 local stores will participate in a "Fashion After Dark Shopping Night Out" from 6 to 9 p.m. Nov. 24, with 5 percent of sales going to aid The Minnie Pearl Cancer Foundation.

Meredith Fidler, owner of Moda Boutique on 12th Avenue South, said she hopes the event brings in more customers. "It's a great cause," she said.

Consumers who are perhaps too busy to volunteer say they are happy to buy cause-related items because it shows they're still contributing to charity with their dollars, said Kimberly Pace, a clinical professor of management at Vanderbilt University's Owen Graduate School of Management. "It's a win-win," Pace said. "They get to buy what they need, and at the same time they can give."