Excavating Problems at Anthropologie

The Washington Post: It’s hard not to see the parallels between what’s ailing J. Crew and what’s ailing Anthropologie: Both chains are simply failing to offer shoppers the kind of clothes they are looking for. And while it was easy at first to write off Anthropologie’s stumbles as a temporary blip, a full year of unattractive merchandise in dresses — one of the chain’s most essential categories — raises questions about whether it might be slipping into a rut.”

“It’s not all bad news for Anthropologie: The company said that sales of home products, beauty products, accessories and shoes were strong in the latest quarter.” CEO Richard Hayne “told investors he is so bullish Anthropologie’s potential as a home goods retailer that he said he could foresee a future in which clothing accounts for less than 50 percent of the store’s sales. If the store can pull off that change in the mix of the business, it may not matter so much if the apparel category goes through a soft patch.”

“And the retailer seemed to suggest that it is going to be more focused on building an international growth strategy this year, a move that could provide it with a fresh stream of sales growth.”

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Beds-in-a-Box: The Big Mattress

The Wall Street Journal: “Mattresses were long considered immune to the e-commerce boom. For decades, they have been sold in showrooms full of dozens of styles with dizzying discounts and high-pressure salespeople. But a new breed of upstarts with slick websites has cracked into the $14 billion U.S. mattress industry. The online sellers offer just a few varieties at fixed prices—and ship free to customers’ doors a foam mattress that is compressed into a box the size of a large suitcase.”

“In place of the chance to try out a $5,000 Tempur-Pedic with adjustable base or lie down on a $2,500 Serta iComfort with gel memory foam, they promise free shipping, 100-day guarantees and free returns. It is a process aimed at the often wealthier, younger and busy shoppers who care less about kicking the tires and more about convenience … Compressed mattresses promise high margins because they are cheaper to ship than inner spring mattresses that can’t be compressed … Because of how carriers like FedEx and UPS charge, delivering a 90-pound compressed mattress is less expensive than home delivery with a regular truck.”

“Returns, however, are a challenge.” As Scott Thompson, CEO of Tempur Sealy, explains: “Getting the bed back in the box, that’s a little bit of a problem.” Other online mattress sellers include Casper Sleep, Leesa Sleep and Yogabed.

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UK Record Shops Enjoy Record High

“The number of ‘bricks and mortar’ entertainment stores has reached a record high – despite rising online sales of music and film,” the BBC reports. There are now some 14,800 shops selling CDs, DVDs and Blu-ray, with supermarkets and high-street chain sales leading to the rise … The number of stores selling music and video has more than doubled since 2009, with DVD and Blu-ray available in 14,852 stores in 2015 and CDs and vinyl in 14,727.

Kim Bayley, CEO of the Entertainment Retailers Association: “Conventional wisdom has always suggested that the internet spelled the end for physical entertainment stores, but these numbers show that traditional retail still has a place, particularly for impulse purchases and gifts. After all, you can’t gift-wrap a download or a stream.”

Bayley adds that “the trend is clear – just as the internet has demonstrated that accessibility and convenience are key to selling entertainment, physical stores are demonstrating that if you put entertainment in front of people, they will buy it.”

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A Revolution in Toothbrush Design

Gizmodo: “Researchers at the Fraunhofer Institute have developed a virtual brushing simulator that promises to revolutionize how toothbrushes are designed and tested … The size, shape, and elasticity of a toothbrush’s bristles can be precisely modified and tested in the simulator, but so can the size, shape, and quantity of the abrasive particles in a toothpaste.”

“Highly controlled experiments can be conducted in the simulator allowing toothbrush designers to almost instantly determine how effective a new bristle design is at removing dirt while still preserving tooth enamel … So in the future when a commercial for a new toothbrush promises it to be effective at battling plaque and gingivitis, hopefully its creators will be able to show the simulated results backing up their claims before you make the upgrade.”

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Michael Schrage: Why UX SUX

User experiences fall short when they are inordinately focused on transactions, says Michael Schrage of MIT and author, most recently, of The Innovator’s Hypotheses. In a talk entitled, Why UX SUX, at Columbia University’s Brite ’16 conference, Schrage said the emphasis should be on how interactions with the brand measurably transform customer perceptions and expectations.

The question, then, is which transformations are best for both customers and brands? The challenge, in that sense, is to re-design customers for the trajectory of their sense of themselves and who they want to be. Schrage cited Chik-fil-A and its offer of a free dessert to families who put away their cell phones during dinnertime, and Lego, with its focus not so much on its plastic bricks but rather the future of play itself. He also mentioned Netflix’s re-inventing its customers as binge viewers.

Tracking trajectories and transforming expectations requires integrating innovation with the experience and expectations, Schrage says. Achieving this is less about having a strategy than it is a culture that’s open to transcending the transactional experience, and transforming experiences in tandem with the customer trajectory.

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Daniel Lubestsky: Cool to be Kind

Speaking at Brite ’16, Daniel Lubetsky, founder of Kind, says that 90 percent or more of those who buy the snack bars are unaware of its social mission, which, naturally, is to promote kindness. The priority is that they buy into the brand as a quality product. That said, a community of kindness is promoted in at least three ways:

1) Kindawesome Cards. When someone is kind to you, visit howkindofyou.com and have a kindawsome card, good for two Kind bars, sent to him or her. It’s on the honor system. 2) Kind Causes. A website where you can nominate causes. Each month the “community” votes for a favorite, which gets $10,000. 3) Kind Foundation. A celebration of “kind” people who are making a difference in their communities, with a total of one million dollars in awards.

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How Walmart & Whole Foods Shoppers Are Alike

Perfect Price: “The distribution of spending at Whole Foods and Walmart —stores that are diametrically opposed in the cultural imagination —are actually quite similar in terms of the distribution of spend. Slightly more people spend less than $25 on a trip to Whole Foods, and slightly more spend between $25-$100 at Walmart, but overall, the distribution of how much people spend on trips to these stores are remarkably alike.”

“Far and away, consumers spend the most at Costco, the third largest retailer in the United States … At the very bottom of the list is 7-Eleven, the largest convenience store chain in the United States. The average spend per trip at 7-Eleven is less than 15% of that at Costco … The average spend for trips to Walmart, Whole Foods and Trader Joe’s all fall in the range of $50-$55 .. Trader Joe’s shoppers are heavily concentrated in the $10-$100 range with nearly 9 out of every ten falling in the category.”

comparing_the_amount_spent_on_shopping_trips_to_whole_foods_walmart_trader_joes_and_costco

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Late & Great: @ Ray Tomlinson

Engadget: “It’s a sad day for the Internet: Ray Tomlinson, widely credited with inventing email as we know it, has died … In 1971, he established the first networked email system on ARPANET (the internet’s ancestor), using the familiar user@host format that’s still in use today. It wasn’t until 1977 that his approach became a standard, and years more before it emerged victorious, but it’s safe to say that communication hasn’t been the same ever since.”

“His choice of the @ symbol for email popularized a once-niche character, making it synonymous with all things internet. Arguably, he paved the way for modern social networks in the process … barring a sea change in communication, it’s likely that the effect of his work will be felt for decades to come.”

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Sugru: The Play-Doh of Glue

The New York Times: “Sugru is a moldable glue. It looks like Play-Doh, can be shaped around any object, sticks to almost any material, is waterproof, is heat-resistant and dries to a silicone rubbery finish in 24 hours. Its ability to bond to virtually any surface — wood, glass, metals and ceramics among others — and its moldable nature make it unusual in the world of adhesives, sealants and glues.”

“I wanted to design something that was so easy and so fun to use that more people would consider fixing things again,” said Jane Ni Dhulchaointigh, the Irish entrepreneur behind Sugru.

“Ms. Ni Dhulchaointigh said Sugru could withstand temperatures as high as 356 degrees and as low as minus 58 degrees, making it durable indoors and out. It will not melt, freeze, soften or harden. It can be thrown into a washing machine or dishwasher, and even soaked in seawater. If a user makes a mistake, a sharp knife can be used to cut through Sugru’s rubbery surface, removing it without damaging the surface of the repaired item.”

“Sales topped $5.5 million in 2015, up from $3.4 million in 2014 and $250,000 in its first year in 2010. Ms. Ni Dhulchaointigh expects sales to exceed $10 million this year and $60 million by 2020. It is now sold online to more than 160 countries and through 19 brick-and-mortar retailers in 6,050 stores in four countries. In the United States, 10 retailers carry the product in 4,500 stores.”

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You Don’t Have To Be Danny Meyer …

The New York Times: “At Back Label Wine Merchants on West 20th Street in Manhattan, you won’t get very far into the handsome shop before you are greeted cheerfully and offered assistance. The sales clerk may engage you in conversation to determine your tastes and what you are seeking, or will recognize that you are browsing and don’t want a hovering presence.”

“It’s all about hospitality, of course,” said Patrick Watson, who opened Back Label in May 2014. “You don’t have to be Danny Meyer to understand how critical hospitality is to the experience.”

“Hospitality is more than a warm greeting. It’s anticipating how people shop and what information they want. At Back Label, Mr. Watson arranged the display as if following the progression of wines at a dinner party, starting with bubbly and moving through whites to reds, Old World to New World, subdivided by localities. For a more in-depth perspective, he also displays wines by characteristic — those made from grapes grown in limestone soils, say, or wines with lively acidity.”

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