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Jeff Grant's Retail Blog

Putting a New Spin on Nostalgia

Written by Jeff Grant, July 30, 2008

In some areas of retail, the good old days are back again.

I know I recently blogged about vinyl — as in designer purses and department store record aisles — but another story about stacks o’ wax caught my eye. UpstateLink.com in South Carolina noticed the resurgence of independent record stores in the Greenville area. The fact that there are seven such stores in a relatively small market (population 56,002 in the 2000 U.S. Census) tells me that enterprising retailers can modernize just about anything that has nostalgia value.

Vinyl record stores have always been around, despite the domination of music CDs and DVDs. But the few I’ve visited were either too claustrophobic (one was literally stacks of wax) or too trendy (another appealed to the urban grunge crowd even though it offered all musical genres). Websites for two of the South Carolina stores show good merchandising worthy of today’s best CD retail outlets. Their websites look good, but are somewhat graphics-laden and thus slow to load on some computers.

What I think the stores really have going for them is that they offer a club-like atmosphere, including live performances, barbecues, radio station promotional tie-ins and post-concert events after bands finish their sets at local venues.

There’s no question that fans of vinyl consider themselves a trendy minority, so they value retailers who cater to their needs. The same is true of other nostalgia-style businesses, like consignment shops, as this New York Times story relates. Wealthy clotheshorses are rushing to buy designer threads at incredible discounts, and easing their green consciences by purchasing recycled clothing.

The entrepreneurs who have discovered the buying power of vinyl and consignment shoppers are proof that nostalgia sells. Dress it up in a well-designed retail store with great merchandising and you’ve got a niche market almost to yourself. Add an e-commerce website and your ability to sell expands virtually worldwide. There’s nothing old-fashioned about that.

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Pharmaca Has Formula for Success

Written by Jeff Grant, July 23, 2008

I recently visited Pacific Palisades, California, where my grandparents, uncle, aunt and cousins lived when I was growing up. It’s an even more desirable, upscale area today than it was in the ’50s and ’60s. I remembered that there had always been a drugstore on a main corner in the village. I wasn’t surprised that it had been replaced by a newer drugstore — if you can call it that — named Pharmaca.

When it comes to retail store design, this chic chain has come up with a formula for success. Upon entering, you immediately notice that you can see all the way to the back of the store. That’s because none of the central shelves is higher than eye level. The merchandise is neatly displayed, making it a breeze to find over-the-counter drugs, vitamins and even protein bars. The side-wall shelves reach higher, with product like slippers, canes and other larger items.

Star-like lighting hangs from the ceiling, giving the store an almost ethereal feel. Soothing colors adorn the walls. Eye-pleasing graphics relate everything from the company’s vision statement – “seek knowledge, embrace change, practice wellness, celebrate life” — to brief advice on how to buy items for specific needs. If the goal is to make you feel comfortable while shopping for items often associated with illness, Pharmaca has succeeded. All the design elements blend perfectly in a contemporary setting.

The prescription drug counter is conveniently located near the front of the store. In the back of this Pharmaca, a Wellness Center offers massage and beauty treatments. There’s a tea room and reference library. In-store events are held there, such as “Preventing Travel Sickness” and “Summertime Skin Treatment.” A monthly newsletter is available on the company website, with coupons, product information and helpful hints for customers. Staff members are friendly and knowledgeable, answering some off-the-wall questions I threw at them about store design and merchandising.

I relate all this to you as another example of how to learn from great retail design in your neighborhood. Pharmaca is adding new stores regularly, which tells me that consumers are pleased with what this “drugstore” offers. If there ever was a “destination” drugstore, this is it.

In addition to helping nurture their customers’ minds, bodies and spirits, Pharmaca has gone to great lengths to satisfy their design senses. In wishing you good health, Pharmaca has also wished you a pleasant shopping experience. Study their formula and see if it brings you a healthier bottom line.

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Vinyl Revitalizes Retail

Written by Jeff Grant, July 15, 2008

Interesting how vinyl has shown up in retail news lately — from record albums to designer handbags. And it shows how enterprising retailers can turn vinyl into green.

Vinyl albums never really went away, but their presence certainly shrunk once CDs hit the scene, followed by MP3 and other digital audio formats. But purists seem to love the sound made by needle hitting vinyl. This CNN story shows how the Fred Meyer department store chain made the most of an ordering error. It received vinyl records instead of CDs for a particular album. Someone decided to try selling the vinyl versions and bam, they flew off the shelves. Now the chain will start offering vinyl at all its locations that carry music – a “sound” business decision, I must say.

Then vinyl turned to green for two Connecticut women — in more ways than one. When they learned that old billboards are full of recyclable vinyl, they started snapping it up. Then they found a way to get the vinyl cleaned with recyclable water before slicing it up to make designer purses, clutches, belts and handbags. This article from the Connecticut Business News Journal tells how the women go to great lengths to make the company even greener with locally grown cotton lining the products’ interior, shipping them in recycled packaging and printing most marketing materials on recycled paper.

They also have a great website at www.gg2g.com and slogans like “LOOK HOT WHILE SAVING THE PLANET: Accessories that are in keeping with a reuse & recycle philosophy.” The company has grown so fast that they’re looking for a larger location for manufacturing plus retail.

These stories are really about retailers who saw seized opportunities that others might overlook. Keep an eye out for your own “vinyl moment.” It could put you on track for a greener retail landscape — especially at the POS.

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What’s Green and Works Downtown?

Written by Jeff Grant, July 10, 2008

It’s always gratifying to read about someone who “gets it” when it comes to neighborhood retail. Boutique owner Kristin Wild gets it at age 24. She seems to know that the right merchandise and the right location are keys to the success of her clothing store, Atticus, in downtown Madison near the University of Wisconsin.

A recent article on Madison.com tells how Wild recognized that retail was all that was missing from the city’s downtown, which has seen a boom in urban housing in recent years. As a former buyer, she jumped at the chance to take over the space vacated by a bookstore that was relocating. She found the right mix of casual designer clothes and had her sister design pedestrian-stopping displays in the two large storefront windows. Look at the photos to see how appealing the store is for the youngish shoppers Wild attracts.

Not surprisingly, Wild carries a good amount of eco-friendly “green” items made from organic cotton. Surprisingly, the article cites a study that Wal-Mart “is the biggest buyer of certified organic cotton, but many emerging designers are using it, too…(The study) estimates that the market for green apparel will grow from $3.05 billion in 2007 to $4.18 billion this year.” With so many green-conscious university students nearby, Wild should have an easy time selling her hip apparel.

As I’ve said before, rejuvenated downtowns are a great place for retailers to get their start, or for existing ones to expand. The Main Street business district of Ann Arbor, Michigan, is another good example. Coincidentally, it also is near a large university. This article on mlive.com is about how a renovated building should help draw more students, faculty and staff from the University of Michigan to the downtown area. Keep your eye out for stories like these. You should be among the first to know when opportunities arise for relocation or expansion.

Think green. Think downtown. Those who do will have a good shot at keeping the green rolling in at the POS…

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Hail to the Retail Queen!

Written by Jeff Grant, July 2, 2008

Mary Portas is my new retail hero. Her BBC TV show, “Mary Queen of Shops,” hasn’t made it to this side of the world yet. But I wouldn’t be surprised if an American version is in the works, possibly with a different star (I’m available).

This article in England’s Mail Online tells all about the show. I love the premise: Portas, who owns a leading branding agency, is the consumers’ champion when it comes to small retail shops, especially clothing stores. She is “sick of surly shop assistants and wants to put the joy back into shopping,” the article says.

On the show, Portas works with owners to turn their stores around in five weeks — and not just turn around employee attitudes but also window displays, merchandise selection and even the clothing the entire staff wears.

Like me, she feels that too many store owners don’t do enough research before opening their doors to the public. That can be the kiss of death in this age of cookie-cutter retailers moving into any and all neighborhoods. If you don’t know what your competition is doing, how can you expect to ever attract their customers?

Portas also sets a good example for retailers. She puts her children above everything and advises you to never work for anyone who doesn’t do the same. Sound advice, coming from a woman who was orphaned at age 18.

Make sure you read Portas’ Golden Rules of Shopping. They’re aimed at consumers, of course. But as a retailer, you need to know what she’s telling them because it affects you. Rule No. 1: “If you don’t get good service you are effectively being ripped off. Remember, it’s part of the margin built into the ticket price.” That’s one of the best arguments for great service I’ve ever heard.

Check out Portas’ website as well. Watch some clips from her show’s first season. Consider reading her book for shoppers. I think you will find her to be a royal pain in your side — a pain that hurts so good.

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Turn Second Glance into First Impression

Written by Jeff Grant, July 1, 2008

The rent was a bargain. The visibility was…practically invisible. But you moved into the out-of-the-way retail space anyway, convinced that dedicated customers would find their way to your door. And then you woke up.

Sadly, this scenario is repeated daily by gung-ho storeowners who are convinced they can succeed in a less-than-desirable location. The good news is: It can be done. Here’s one example:

A three-store treadmill and fitness products retailer got tired of paying huge rents to be in regional malls. He sold the company assets and name, and then opened his own store in a semi-industrial area near a major freeway. It has even more showroom space than any of his mall stores, so customers can try a larger variety of treadmills before they buy. But finding the place was a challenge at first.

“The owner makes it a point to tell customers that because his rent is low, he can offer lower prices to those willing to drive a little further down the road.”

Since he had retained the rights to his customer database, the first thing he did was send email and postal mail announcements about the relocated store. He bought ads in nearby local newspapers for the same purpose. Then he invited everyone to an open house and sale over a weekend.

He included directions in the announcements and invitation, but that wasn’t enough. First he checked the local zoning laws regarding signage. Then he set out “Open House” directional signs and balloons at key intersections along the route to assure customers they were heading in the right direction. And to catch the attention of drivers on that freeway, he rented a giant inflatable strongman for his roof, holding an arrow sign that said simply “Next Exit.” When drivers reached the end of the off-ramp, they could see the “Open House” signs guiding them to the store.

Business is now brisk at the hard-to-find location. The owner makes it a point to tell customers that because his rent is low, he can offer lower prices to those willing to drive a little further down the road.

You can apply his ideas to your location-challenged retail space. Some tips:

  • Use as much as signage as your landlord and local zoning laws permit.
  • Let all current, previous and potential customers know about your location via email and postal mail.
  • Stress that your new location helps you offer better prices thanks to lower overhead.
  • Provide incentives such as prepaid gas cards, drawings for movie tickets and other good reasons for customers to find you.

Above all, don’t act like you’re a low-budget merchandiser just because you’re store isn’t in a mainstream location. Remind staff to treat each customer that comes through the door as a welcome guest rather than an easy mark. Even if you can’t have location, location, location, you can have profits, profit, profits.

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