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Jeff Grant's Retail Blog

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 I wasn’t surprised that it had been replaced by a newer drugstore — if you can call it that — named Pharmaca.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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What Do Shoppers Really Want?

Written by Jeff Grant, June 30, 2008

I’ve been seeking the answer to this question for years. Like you, the best I can do is make educated guesses. Suzy Gershman, the author of a new city Frommer’s shopping guide, seems to do the same in this interview with the San Francisco Chronicle. Her thoughts on how consumers shop in a down economy could help you plan your merchandise mix during these tough times.

She notes that shoppers are more likely to take a pass on stuff that looks good and opt instead for stuff that makes them feel good — especially at home, where they’re spending more time now. And she echoes my sentiment that consumers want to shop in retail stores that not only look special, but that make them feel special: “It’s that out-of-body experience when you are taken somewhere else.”

Gershman tells readers where she loves to shop in the San Francisco Bay area. They’re the kind of places where customers might find something totally unexpected to buy. Wouldn’t it be great if you could get your store mentioned in her book? It’s not out of the question. There are plenty of print and online shopping guides out there. Find out who writes them. Put them on your email list for newsletters and updates. Let them know when you have great new, hard-to-find merchandise.

For example, I recently discovered Shorelines Gallery in downtown San Diego. It’s the only place in the county to buy handmade, hand-painted Sticks furniture. The merchandise is great and the store design outstanding. I hope the owners are doing all they can to get noticed online and in print. If they’re as creative in promoting the store as they are in retail design, it shouldn’t be hard to do. Take a look at their website. It could get your creative juices flowing – and in this economy, you need all the juice you can get!

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How Will You Check Out Customers?

Written by Jeff Grant, June 27, 2008

With payment by fingerprint and interactive shopping carts a reality in some cutting-edge retail stores, you should start thinking about how your customers will pay you in the future. According to this study on MediaPost.com, 19% of U.S. customers surveyed expect to check out via fingerprint recognition by 2015. They also look forward to shopping carts that “locate products in the store, check prices and promotions, upload recipes and complete the checkout process.”

Even if you’re store doesn’t offer shopping carts, it’s worth looking at the study results to see what a cross section of consumers expect in the future. Shopping by mobile phone and social networking shopping websites aren’t too difficult to get involved with, although holographic sales assistance sounds more like a something for the Jetsons at this stage.

You owe it to yourself and your clientele to keep up with the latest technologies at the cash wrap, on the sales floor and in the dressing room. If you’ve been to an Apple or Old Navy store, you know that many sales associates are in constant communication with each other via wireless headset, and some can ring up sales on the spot via wireless checkout devices that even print receipts. I certainly appreciate checking out fast even when there’s a line at the POS, and I think consumers will come to expect such convenience the more they’re exposed to it.

Read the survey results and see what I’m talking about. The more you learn about what consumers really want, the more likely you’ll be ready to satisfy their needs in the not-so-distant future.

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Organic Scanning from the Kitchen

Written by Jeff Grant, June 20, 2008

Supermarket shopping via home computer has been around for a while but this new product from Ikan Technologies makes it a whole lot easier. It’s a countertop scanner that resides in your kitchen. When you’re done with a food product or other scannable item, you run its barcode under the scanner. This builds a list of items you need from participating merchants. When you’re ready to order, you can review the list before sending it wirelessly to your PC, which then transmits the order to the merchant. You can pick up the goods or have the market deliver them to you, depending on store policy.

This seems like a fantastic way to speed up shopping. Of course, it doesn’t come cheap. The Ikan scanner lists for about $399. But I see it as another way for smart retailers to engage their clients and solidify their loyalty. I can see applications even in non-food retailing, such as office-supply, athletic-goods, pool-supply and other stores that stock disposable merchandise. You’d need to convince you clients that a system like this will save them time and money. I think many of them would agree.

Speaking of kitchens, this article cites a study that shows people who buy organics are much more receptive to new products and ideas than the rest of the buying public. Affluence doesn’t appear to be a factor when buying organically, even though most organic products sell for more than their non-organic counterparts. What this study says to me is that just by promoting a few organic products in your store, you might have a better chance of attracting new customers. Whole Foods Markets, for example, sell organic clothing, skin-care products and other goods along with its organic foods. I’m sure that the customers who buy that clothing are going to walk out of Whole Foods with more than just some hip new threads.

Keep abreast of the latest in scanning technology. And don’t overlook the organic market. Sounds like a winning combination to me.

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A Boulder Vision for REI

Written by Jeff Grant, June 16, 2008

I’ve always loved poking around REI stores, with their vast selection of outdoor goods and clothes. I haven’t always agreed with their merchandising tactics, however. It seemed to me that merchandise was just clustered around the store by product type, such as kayaks in one corner, handheld GPS systems in a kiosk, hiking boots in a rack, etc. I didn’t feel like I was having much of a customer experience at a destination store. Instead, it was just a walk through an assortment of departments with nice merchandise.

Now it looks like a more thoughtful approach to merchandising is seeping into the national cooperative chain, according to an article in Today’s Facility Manager. Top management is doing what any retailer — large or small — should do on a regular basis: imagine how your store(s) will look two, five or 10 years down the road.

You don’t have to pay analysts or buy research data to get ideas on planning for the future. Ask employees and customers for feedback. REI sales associates had plenty to say about floor comfort, so the REI prototype store of the future in Boulder, Colorado, incorporates their suggestions. Lighting also was a concern, so the new store features a tubular lighting system that saves energy by funneling sunlight from the roof to throughout the store.

To maintain ties to its community, the prototype store has a 2,000-square-foot community center with meeting areas and play area for kids. For-profits can rent the space, with revenues donated to various environmental groups. That’s sure to please REI’s large base of eco-aware members.

The store was kept open for all but five days before the grand opening, and was promoted on REI’s website so customers could keep abreast of the upcoming changes. Overall, it sounds like REI did a great job of planning and building out the prototype store with great concern for staff and members.

You should be thinking about your future as well. If you’re not doing so already, be sure to keep up with the latest design and merchandising trends. It’s very easy to do on the web. It took me all of 30 seconds to find the article about REI via a Google search. Survey your customers by email, and your employees in person, to find out what they like now and what they’d like to see in the future. You don’t need to plan on a scale as grand as REI’s. But if you don’t plan at all, the reality is that you might not have much of a future to look forward to.

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Swedish Fashion Stores Know How to Sell

Written by Jeff Grant, June 13, 2008

I had heard of the Swedish clothing chain H&M, but didn’t give it too much thought since they didn’t have a store near me. That all changed recently when my wife and daughter made it very clear they were going to visit the first H&M in San Diego County as soon as possible after its recent opening. Then this article about H&M appeared on the front page of The San Diego Union-Tribune’s print editions. It’s been a long time since I can remember the U-T running an article about a specific retail store chain, so H&M must be doing something to garner such attention.

While it’s the low-cost, well-made, great-looking apparel that draws shoppers in, it looks like H&M knows how to market itself as well. The article notes that H&M planned to give away free T-shirts and $10 to $250 gift cards to the first 200 people in line, literally roll out a red carpet and have a disc jockey on hand on opening day. They didn’t need to, since people have waited in long lines up to 18 hours to be the first inside new H&M stores elsewhere.

A photo I saw of the new store’s interior showed clean, contemporary store fixtures with plenty of space for shoppers to wander the aisles without facing a crush of other shoppers. Since H&M relies on rapid turnover of its merchandise, it makes sense that they would display the newest, hottest items near the front of the store and less seasonal clothing farther inside.

I noticed that H&M is also on top of its online sales strategy, with a website that incorporates video and rich media. A recent article in EcommerceTimes.com names those two online features as “must-haves” for merchants who understand their online demographic.

I encourage you to read up about H&M and the “must-haves.” Great advice like this is free all over the Web, and by walking into successful retail stores. It’s all there just waiting for you to emulate in your own inimitable style. If you can get a line waiting outside your store any day of the week, you’ll have done your homework.

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Havana Huge Success with Cuban-Style Apparel

Written by Jeff Grant, June 9, 2008

When customers want to buy your display items in addition to the merchandise, you know you’re doing something right. That’s what happened to Henry Leace, who started a Cuban-style shirt store in Miami. Now his Havana Shirt Store chain sells cigars and artwork in addition to the private-label shirts that have taken off in south Florida.

I haven’t seen images of his original store, but take a look at the current photos on MiamiHerald.com. They show clean, modern design that invites browsing. That’s attractive to Leace’s demographic: 25- to 55-year-old males who seek casual clothes with a little bit of a flair. The decor also should appeal to the women (or men) in their lives who seek the latest in clothes to buy for them. The Art Deco style of his Miami Beach store is pretty cool, too.

In addition, Leace is successfully going after the Hispanic market, which is extremely hot right now, according to the retail-trend analysis firm cited in the article. Leace seems to have a knack for retailing. He started out wholesaling men’s ties in 1986, did well with tie kiosks in a shopping mall and transitioned easily into retail stores. Not bad for a one-time physics major and college football player. He recognized his skill for the creative side of retailing and ran with it.

But he says he’s also good at looking for opportunities. That’s what any devoted retailer should do. Sure, you might be good at certain aspects of retailing than another, such as merchandising vs. inventory control. If you’re a good delegator, you’ll have someone performing those duties for you. That way, you can have more time to check the opportunities that are waiting for you to uncover.

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