Archive for the Merchandising Category

Designing Stores of the Future

Trying to reinvent the wheel has been an age old challenge often met with disappointment. As Store Designers set their sights on creating the next great retail environment it is essential not to forget the basic principles of retail. Introducing the newest materials or technological advances into a new store design is only part of what will make that store design succeed.

Dollars per square feet still rule the retail universe and anyone that doesn’t think so can ask all the Award winning Store Designs that are no longer in business. As a retailer you must formulate the business plan to generate profit and then follow the plan to stay in business. Yep, it is that simple. Where many retailers run into trouble is not recognizing that the store plan, display methods need to be tested to see they can meet the business plans bench marks.

The math is easy, just take the product, the turns, the gpm, the units on hand and extend it out for a years worth of sales. If the number meets or exceeds your business plan volume or sales figures, you will live to see another year of retailing. I have found in my years of designing prototypes for start up retailers that they were doomed from the beginning as a result of not completing the exercise stated above.

We have made it part of our design process to prove out the capacity issues and inventory levels throughout the year before we pick colors, new technology or lighting. Our stores stay in business as a result of this review and we urge everyone to insist on having the figures proven before nails are placed into the walls.

Recently, a wedding gown store in Monsey, NY required the above scruiteny as the owner was working out of her home for years. She conviction to make the business thrive was obvious, but in planning the new store, it became apparent that they capacity to generate the profit to run the business could not be met based on the first design firm asked to assist her with the project.

Once we determined the sales performance and linear feet to make the profit levels a reality the design effort became much easier. We we able to concentrate on innovative design ideas which turned the basic landlord vanilla shell into a radient Euro Design Couture store. Every gown had a home and every piece was able to be displayed in the best possible way. We are proud to say the store has out performed expectations and the future looks bright.

A simple twist to a better rate of sales

From Fixtures Close Up Blog

 

Firstly, I do take exception to the term “Jerry rig” followed by “Jerry built” however, I have become use to it.

The concept of presenting product to the flow of traffic is a sound merchandising idea. With the 45 degree angle, the product takes on a new viewing vista to the customer coming down the aisle.

The problem here is that the product needs to face in one direction because of the dynamics of the package are such that if you alternate the direction, you reduce the actual dimension of available loading space as you go back. That is not good, because the capacity is the most critical issue with product presentation. You can see from the photo that the product went back only two rows and stops. The other consideration is that if the right product is shopped and removed, there is no longer a visual image showing to the other direction.

This design is a left hand, right hand solution meaning it is intended to fit in either side of the aisle but only showing product in one direction. The proof is that the right side of the display in the photo is blocked visually by another product shelf therefore, the 45 degree view serves no purpose in stopping traffic.

The direction of traffic usually puts the direction from the front of the store going back as the primary direction to show the goods on a 45 degree angle.

I agree the pricing could have been handled better by the store, that is why it is to the vendors best interest to design the unit with minimal store participation. Assuming the store would load the product into the unit correctly apparently was too much of an assumption. Lastly, the store and the vendor better figure out why an entire bin of product is empty? That did not happen in one days worth of sales. In today’s difficult retail environment, this void of product is costing both partners dearly in lost sales which cannot be made up easily.

Kmart and Selena Gomez Announce Apparel Collection — HOFFMAN ESTATES, Ill., March 30 /PRNewswire/ –

Kmart and Selena Gomez Announce Apparel Collection — HOFFMAN ESTATES, Ill., March 30 /PRNewswire/ –

KMART Looks to build Fashion Cred

I have been following the progress of KMART since 1980 and they have never gotten it right in all these years. During hard times for KMart there was no money to revamp the stores and bring them up to par with Target or Walmart. Unfortunately, they do not have a model in Sears as to how ready-to- wear should be presented as “the other side of Sears” has not gained traction in ten years.The answer is either bite the bullet and believe that a REAL Change will make a significant difference in the all so important category to the bottom line.. Apparel.The answer is simple. As Store Planner for over thirty years I have looked to exclusive solutions to secure brand recognition. KMart needs to invest in unique display systems, stay away from stock solutions and create a look that is right for them. The formula is not difficult but it is very hard to accomplish from the inside as politics often cramps the creative process. Dollars will always play a factor but you do not have to spend a lot to look new and fresh. My intuition tells me that KMart has used up at least seven lives and running out of chances to finally do it right and build customer CRED.Jerry Birnbach F.I.S.P.Partner RDD Associates Inc Store Designer NYCRetailers for a better tomorrow bloggerhttp://www.wwd.com/footwear-news/kmart-looks-to-build-fashion-cred-3005949

Madonna new Hits will be on the Runway not Billboard’s Chart

 

If ever there was a brand that was meant to be, this is it! Madonna has consistently maintained who she is and what she stands for. Her success to have withstood the test of time is a testimonial to an industry comprised of fickled fans.As a retail consultant for retailers and brands my advice is simple. Pay attention to detail and have a clear vision of what you want to look like at the store level. I have seen too many retailers kill a celeb brand by not taking the extra step to do it right. This is not about throw it at the wall and watch it stick. Even Madonna needs to follow the basic rules of retailing in order to guarantee success.The first of many right moves was to join forces with Iconix. They certainly have a track record for successful launches but Beware of Macy’s. Having experienced personally the XOXO brand at Macy’s Herald Square I can only say their intentions were good, but their execution was just that.I for one would like to see a red thread sawn into the wrist of every item if possible. You would be doing many a favor.

Jerry Birnbach F.I.S.P

Partner RDD Associates NYC Store Designers

Retailers for a Better Tomorrow Blogger

 

Retail Brand leader goes to Target with Walmart number two

I recently did a review for a vendor of the number one and number two retailer referenced in this article. Based on my review of Walmart verses Target the order of best was reversed. Target should be number one, not based on volume but on the shopping experience.Having a long relationship with both retailers and experienced the evolution of their store presentation and product offering I think Target has been proactive in their thinking and Walmart reactive.Target has been a sea of red when you entered their store. In concert with their advertising they consistently have a brand recognition without the name even visible. The interior of Target is upscale, they used slat wire units before Walmart. Their graphics are well defined, depict the lifestyle they stand for and have expressed their message to the consumers for years. When Isaac Mizrahi was introduced to Target, it changed the world of Branding in Mass retail. Walmart looking for an answer to Target’s Isaac over a year later landed on George by Me, created by a top designer Mark Eisen. Although the product was innovative, the line was hindered by a reorganization at Walmart which led to the brands demise.Walmart has now introduced a more upscale flooring material. Walmart has become a sea of blue obviously to compete against the color red. Walmart have gone to yet another department sign system which has a very “cheap” look to it. Creativity lacks in a Walmart Store while it reeks in a Target Store. I understand that cost is a major consideration is Walmart, but Target works under the same restraints and pays attention to detail in their display presentation. Walmart uses extrusions, molded clips, mass produced display elements which are very constructional in nature. I think their customer is sophisticated enough to recognize mediocre design solutions. Sure it keeps product pricing down and perhaps that is acceptable to their consumers.One could never take away the success Walmart has enjoyed over many years and certainly they are a power to reckon with. I lived Walmart in the 70;s and 80’s when Mr. Sam was taking hold of the industry. He was innovative, he was a people person and he had relationships with vendors which led to their overwhelming success.What Target has done in my mind was to reach out to the Department store customer who felt the pinch of the economy and make them feel that shopping at Target was not a radical step down from Macy’s.Walmart’s message, in my eye, is they are representing a step up from Family Dollar. As the two approach the middle of the off price retail spectrum it will be interesting to see who leads the way and wins those customers. Will price prevail or will style win over.Jerry Birnbach F.I.S.P.Partner rddassociatesinc Store Planners NYC

Crain’s NY 3-14, New wave of foreign retailers invades NY

I do believe, as an industry consultant for Store Design and Display, that there is much more to the explanation why foreign retailers are gaining market share from the American retailers.To me it is a multitude of factors that make up the success of a product line, but at the end of the day it is style and quality. To satisfy all the customers all of the time is an unrealistic objective for retailers. To satisfy most of the consumers most of the time is more likely to be achieved.What has made apparel retailers successful is understanding their brand’s point of difference, knowing what their customer wants and delivering quality goods.To say a foreign influence is the main cause for the change in consumers attitude is a stretch. To say it is style, design, price, ease of shopping, better instore visual presentation, quality and advertising is closer to the truth.H&M delivered an upscale looking store priced like Old Navy to be disposable clothing year after year.The H&M and Old Navy approach is right for many shoppers but is of little interest to the department store customer that wants a unique offering.Therefore, set your sights on keeping your customer base with a line that meets their needs and wants which are constantly subject to change. Whether it is a poor economy forcing price to dictate, or a green movement to define a person as a caring, retailers need to go with the flow in order to just be able to stay in place.Unfortunately, to clothing brands, safe has only one advantage to them. Safe reduces their risk with the wrong style, or color, or size offering. Safe however increases the potential of customers turning to a retailer that has provided the right product for the times.The Gap’s former success was based on less is more and America bought into it. Change is the backbone of the American economy and as American brands took the safe road from change to no change, the path became wide open for the foreign brand to infiltrate the American market .Is it too late for American retailers to do something about the current trend? No if they want to be around in five years.You’ve heard of Ford and GM, remember when they owned the automobile industry? Foreign alternatives came in and knew the American publics needs better than the American companies. American retailers better spend more time asking their customers what they want as well as trying new things to test the next trend.Their is no room for complacency in retail and the retail store brands as we know it today  go the way of the typewriter if they continue to sit on their hands.Jerry Birnbach F.I.S.P.Partner RDD Associates Inc. Store Planners

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