TJ Maxx Defies E-Commerce Trends

The Washington Post: The success of TJ Maxx “offers some insight about what is — and isn’t — proving enticing to customers in the current shopping environment. For starters, TJX’s strength is evidence that the recent woes of traditional retailers can not simply be chalked up to the rise of online shopping. Marshalls has no e-commerce offering at all, nor does HomeGoods, another fast-growing TJX-owned chain … T.J. Maxx, Marshalls and HomeGoods offer hard-to-ignore evidence that customers are still plenty eager to shop in physical stores if the merchandise, price and service are on point.”

“The booming sales at TJX also underscore the extent to which shoppers generally are embracing off-price shopping, with its promise of name brands at low prices and a treasure hunt-like shopping experience … So far, TJX’s strategy is proving quite productive, with research firm eMarketer estimating that its stores generate about $309 in sales per square foot.”

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Lord & Taylor Is Coming Up Roses

Washington Post: Lord & Taylor “has ordered up a big roster of rose-emblazoned pieces, many of them exclusives from labels like Karl Lagerfeld Paris and Calvin Klein, that are meant to cater to the contemporary, trend-conscious shopper … In addition dresses and blouses, they’ve lined up offbeat items like rose-flavored gummy candies and rose-shaped temporary tattoos. And in some stores, the products will be featured in a shop-in-shop it calls The Birdcage.”

“It’s a major merchandising and marketing effort that executives hope will … telegraph a fresh, contemporary direction … without alienating the loyal shoppers who might fondly remember that the rose was a staple of Lord & Taylor marketing from 1946 until it was phased out over the last 20 years … The idea … to harken back to the company’s heritage … is a tactic retailers across all price points are turning to right now based on the belief that millennials will respond to this kind of storytelling.”

However, “the story of the rose may be so obscure and unfamiliar to young shoppers, it may be hard for them to even understand the collection as an ode to history and heritage.”

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New-Breed Pop-Ups Rejuvenate Retail Fun

The New York Times: “Entrepreneurs … are helping revitalize pop-up stores, a decades-old retail concept. More party than hard sell, this new breed of pop-ups is becoming increasingly innovative and fun — far more than the seasonal pop-ups that once prevailed. And they are also increasingly profitable, experts say, since consumers crave these new experiences.”

“Using pop-ups does, of course, still help entrepreneurs stay nimble and lean. They do not need to sign long leases, stash away much cash or carry big credit lines. For their part, consumers can meet the designers and touch and feel their works, which cannot be done online. In the process, brands can be built more quickly, sales can be increased and new products can be tested.”

“Events are, well, popping up in garages, around pools and even in locked storage spaces. Some retailers are even doing 3-D pop-up printed jewelry, say experts. And one artist opened a gallery in a giant Christmas tree.”

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For Whom The Cash Registers

“High-end stores hide registers to force contact with salespeople, eliminate lines and add fancy sheen,” The Wall Street Journal reports. “Stores aim to make the experience of paying more elegant, akin to private shopping, and to eliminate a pain point that keeps some shoppers from completing a purchase—having to wait in a visible line. Hiding the cash register also forces shoppers to interact with the salespeople and might even encourage them to buy more.”

Dexter Peart of luxury label Want Les Essentiels: “We’re downplaying that last transactional part of the experience. … We want the human interaction as one of the last touch points … This time also gives our sales associates an opportunity to get to know the people shopping in our stores a lot better.”

“Stores say customers’ expectations have risen with the success and ease of online shopping, making waiting in line seem unenlightened … But making cash registers discreet and encouraging customers to work through sales associates instead could make some shoppers uncomfortable. The unfamiliar protocol may feel strange at first.” Barneys maintains “a few visible cash registers in the downtown store in case a customer feels more comfortable paying the traditional way.”

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Omnichannel Trips Target’s Supply Chain

The Wall Street Journal: “Target Corp.’s plan for a retailing future that marries its stores and online sales is being tripped up by a supply chain from the past. The Minneapolis-based discount chain is moving away from a largely one-size-fits-all model toward one that can be customized to give each of its 1,800 stores tailored layouts, product selections and ordering patterns.”

“But that approach is being stitched onto a distribution system designed before e-commerce demanded that its stores also become local distribution centers and showrooms for online customers … The problems Target is addressing are common to large brick-and-mortar retailers who have added new ways to serve online shoppers … these capabilities—like letting shoppers pickup online orders in stores and shipping from stores—are disruptive to retailers’ regular operations.”

“Customization isn’t just a means to get local delicacies on shelves, but also to tackle some basic problems—like how many feet of paper towels or boxes of cereal are needed to keep shelves stocked in very different locales. In the past, Target could adjust to those patterns more easily when the supply chain required moving goods from distribution centers to shelves. Newer problems are tougher.”

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JC Penney To Display Dresses Like Oreos

The Dallas Morning News: “What does a $2.49 package of Oreo cookies have to do with a $24.99 colorful summer dress? … A prominent display of Oreos in the supermarket includes pictures of the cookies, maybe with milk, and a discounted price in big print. Then there’s a rack of cookies right there. If you had to hunt down the Oreos, you might forget about them.”

At Penney’s, a “rack of dresses will be right behind the mannequins where shoppers can find them. Plus there’s a big sign with the price.”

“We’re making it as easy as possible to buy the dress,” says JC Penney CMO Mary Beth West, who “spent most of her career in the consumer packaged goods business devising ways to get us to spend billions of dollars on brands such as Ritz, Philadelphia, Nabisco, Kraft Mac & Cheese, Jell-O and Cool Whip.”

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Macy’s Simplifies Its Shopping Experience

The Washington Post:”This week, Macy’s announced that it is shaking up its discounting practices: The coupon system will remain in place for full-priced items, but the retailer is implementing a different strategy to get shoppers to pounce on its clearance merchandise. The move is effectively a bet that shoppers prefer simplicity over the thrill of demonstrating their shopping savvy.”

“Here’s how Macy’s new approach works: When an item is on clearance, you can’t apply coupons or other discounts to it. Macy’s said it will apply deeper cuts to the ticket price than it did previously, but the price you see on the tag is the price you will pay. The retailer has also moved all the clearance items to a centralized area in the store — one for men’s apparel, one for women’s — instead of having the racks scattered throughout the store. So far, Macy’s has seen upbeat results from the change.”

“In a conference call with investors this week, Macy’s chief financial officer Karen Hoguet offered this explanation for why the change was getting traction: ‘I think what happens is, customers want simplicity. And when you are looking for deep clearance goods you could just see the price of the item and not have to do the math in your head. And it’s easier.'”

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