This what Max Grassfield does. The answer depends on the retailer in question. They read the ads and visit stores only when what they want is on sale. They have absolutely no loyalty. If you are not a mass-market discounter, you cannot make money from such customers.
Product quality is important in customer retention, but only up to a point.
When I was growing up in the 1930s and 1940s, we lived in New Canaan, Connecticut. If we wanted quality products, we would take a day's journey to New York City where we could visit Bloomingdale's or Altman's. I doubt that anyone in New Canaan is traveling to New York City to shop today. American retailing has become so advanced that most customers are within easy driving distance of a large mall or shopping center with a wide variety of stores offering anything that they could conceivably want to buy. For every store featuring Hickey Freeman suits, there are a couple of others not too far away who have Charles Jordan or Joseph Abboud.