Tory Sport: Retail Store as Marketing Medium

“Tory Burch’s new Tory Sport store shows how selling fashion today isn’t really about advertising. It’s about making a store into the marketing vehicle,” The Wall Street Journal reports. “People are still tactile. They want to feel the product,” Ms. Burch says. “Stores are changing, Ms. Burch says. Their purpose is to engage customers and to build a community. They also can be a place where the online and offline worlds merge.”

“With just one or two sizes of most styles on display, the Tory Sport store isn’t meant to be shopped the way mass-market flagship stores are … Instead, a designer store is a place to immerse and entertain shoppers in the fictitious, tightly controlled world the brand creates. It’s a chance to show and explain all that a brand stands for—and to seduce a shopper into buying something … Both Ms. Burch and Roger Farah, Ms. Burch’s co-chief executive, insist the Tory Sport store remains very much about sales, though.”

“We definitely want it to be profitable but we also want the experience to be one that people really like and get to know,” Ms. Burch says.

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The ReUse Store: Like a ‘Bizarro RadioShack’

The Wall Street Journal: “The city’s most peculiar electronics store may be the shop housed in a brightly painted cinder block warehouse in an industrial section of Brooklyn. There, customers waiting in a metal-cage entrance must ring a bell to summon the attendant.”

“Welcome to the ReUse store at the Gowanus E-Waste Warehouse, where every amp and smartphone for sale is some fellow New Yorker’s castoff. The program, run by the nonprofit Lower East Side Ecology Center, collected and recycled more than 1 million pounds of used electronics last year. It funds its operations—at least in part—by refurbishing and selling everything from laptops to speaker wire.”

“Customers range from parents buying laptops for their kids to artists seeking cheap electronics for their high-concept fantasies … One might imagine the ReUse store looking like a thrift-store version of a Best Buy. The reality is more of a bizarro RadioShack. There are countless peripherals and accessories, stacks of old speakers, bins filled with remotes and shelves of VHS tapes. There are also great bargains.”

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Coloring Books Color Retailers Surprised

The Washington Post: “Coloring books for adults — a genre once considered little more than a novelty — are suddenly a big business, a bright spot in the financial results of publishers and retailers alike. Nielsen Bookscan estimates that some 12 million were sold in 2015, a dramatic jump from the 1 million sold the previous year. The books have “attracted legions of enthusiasts who are looking to de-stress, who see scrawling away at an image of a tree or an animal as a low-key, low-stakes way to channel imagination or to keep their hands busy while they let their minds wander.”

However: “While many find the act of coloring to be a calming distraction from hours spent tapping, swiping and staring at screens, some early adopters aren’t exactly hooked. ‘Most of the pages are full of pictures that are so small I can hardly see the details to color them, which causes more stress than if I hadn’t tried to color in the first place,’ wrote one reviewer of a popular coloring book on Amazon.”

“It’s not clear whether the rise of adult coloring books has come at the expense of sales in other categories, but the impact of the craze can be seen in various corners of the retail industry: Barnes & Noble has said that strong demand for adult coloring books and artist supplies provided a tail wind to the chain’s total sales in the last three quarters. Walmart, meanwhile, moved in November to add a dedicated four-foot section for adult coloring books in 2,000 of its stores. And Target started carrying adult coloring books in 1,300 stores in August and within months rolled them out to the rest of the chain.”

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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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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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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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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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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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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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The Beatings Will Continue Until Morale Improves

“Gary Friedman, head of Restoration Hardware Holdings Inc., painted a dire picture of the furniture chain in an internal memo to employees, comparing its operations to a burning building with people on fire,” Bloomberg Business reports.

“Upset about customer service and late orders, Friedman fired off the message to the entire organization in late January … ‘We were sitting there discussing how the building caught on fire, why the building caught on fire, how long we expected the building to continue burning,’ he said in the memo … ‘NO ONE WAS FOCUSED ON THE PEOPLE IN THE BUILDING WHO WERE ON FIRE. THEIR CLOTHES BURNING, AND MANY OF THEM DYING. WE HAVE LET CUSTOMERS DIE.'”

“’We need a MASSIVE CHANGE IN OUR CULTURE AND ATTITUDE RIGHT NOW,’” Friedman said in the message, which was replete with capital letters. “THE GOAL IS DELIGHT … YOU WILL NEVER GET IN TROUBLE FOR MAKING A DECISION TO DELIGHT OUR CUSTOMERS. YOU WILL, HOWEVER, LOSE YOUR JOB IF YOU DON’T.”

Explaining the memo in an interview, Friedman said: “It’s empowering people in the organization,” he said. “We have a leadership culture, not a followship culture.”

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