6. Dollar General
> Change in the past year: -2.5%
> Change since first rating: 0.0%

> Industry: department and discount stores
> Industry change in past year: 0.0%
> No. of stores: 9,800

Dollar General (NYSE: DG) is a Tennessee-based discount store with locations in 35 states. In 2010, Dollar General’s customer satisfaction score peaked at 80. It has since decreased 2.5% to 78 — not especially low, but not great. This score lands Dollar General right in the middle of the ranking for the department and discount stores industry. However, customer satisfaction concerns have done little to slow sales.

5. Expedia
> Change in the past year: -2.5%
> Change since first rating: -3.8%
> Industry: internet travel
> Industry change in past year: 0.0%
> No. of stores: e-commerce only

As recently as 2009, Expedia (NASDAQ: EXPE) was the number one online travel company when it came to customer satisfaction. It has since slipped behind Travelocity. The company still is better rated than Orbitz (NYSE: OWW) and Priceline (NASDAQ: PCLN). Although overall customer satisfaction with the internet travel industry did not change over the past year, Expedia was the only company in the group where satisfaction decreased.

4. Walgreen
> Change in the past year: -2.6%
> Change since first rating: -1.3%
> Industry: health and personal care stores
> Industry change in past year: -1.3%
> No. of stores: 7,811

Walgreen’s 2.6% decrease in customer satisfaction is much more than the health and personal care stores industry decline of 1.3% over the same time. The company’s stock value fell approximately 15% in 2011. Walgreen started 2012 off poorly as well, after refusing to do business with pharmacy benefit manager Express Scripts (NASDAQ: ESRX). Company revenues have already been hurt, and same-store sales for January dropped 4.6%.

3. Barnes & Noble
> Change in the past year: -3.7%
> Change since first rating: -4.8%
> Industry: specialty retail stores
> Industry change in past year: +1.3%
> No. of stores: 704

Barnes & Noble’s (NYSE: BKS) customer satisfaction score dropped 3.7% last year, after falling 2.4% the year before. Despite this, the company has one of the higher scores among the specialty retail stores industry. Still, the company’s score of 79 is significantly lower than major competitor Amazon’s score of 86. Barnes & Noble’s business falls behind Amazon in a number of ways aside from customer service, including online sales, e-reader market share, and overseas presence.

2. Walmart
> Change in the past year: -4.1%
> Change since first rating: -12.5%
> Industry: department and discount stores
> Industry change in past year: 0.0%
> No. of stores: 633

Walmart (NYSE: WMT) is the largest retailer in the world, with 2.1 million employees and revenue of just under $422 billion in 2011. Despite this, the company leaves customers extremely unsatisfied. Since 1994, when ACSI began tracking the company’s customer satisfaction levels, Walmart’s score has decreased 12.5% — the largest drop among all retailers. Walmart has the second-lowest score among all retailers in the department and discount stores sector. Its presence in the supermarket industry appears separately in ACSI’s data. Walmart has the absolute lowest score among supermarkets, with a score of just 69.

1. Netflix
> Change in the last year: -14.0%
> Change since first rating: -11.9%
> Industry: Internet Retail
> Industry change in past year: +1.3%
> No. of stores: e-commerce only

Just last year, Netflix (NASDAQ: NFLX) had the second-highest customer satisfaction score among retailers, behind only Amazon. Since then, the company has experienced a massive 14% drop in customer satisfaction, leaving its score down among the lowest. In October 2011, Netflix announced that it would spin off its DVD-delivery service into a company called Qwikster, causing a huge public outcry. Although the company quickly gave up on the idea, with CEO Reed Hastings posting an apology on the company’s website, it continued the unpopular practice of charging customers additional fees to continue receiving both DVD-delivery and streaming services.

Charles B. Stockdale