Simons Turning Focus to Eco-Store Prototype

When Simons was brought to West Edmonton Mall excitement came to not only Edmonton, but across the country, as the Quebec based retailer opened new clothing retail options for consumers, while increasing competition against both fast-fashion retailers like H&M and more luxury brands due to Simons’ breadth and depth of selection.

Since the initial expansion outside of Quebec, Simons has been adding stores to major Canadian cities, including Vancouver, with stores opening within the next couple years in Ottawa, Calgary, and Mississauga.  Each store is built uniquely in each city by differing in architecture and adding new innovative features (such as the photo studios in Edmonton) to increase customer engagement.  While resulting in expensive construction for the stores, these unique stores help Simons appeal to consumers in these separate cities (such as using Vancouver’s local artist Douglas Coupland sculpture at the entrance) by providing unique atmospheres inside and out, while affirming a differentiation from the competition by offering a different, unique experiences at each retail location.  This creates a significant competitive advantage in comparison to most that use a cookie-cutter store design nationally and even internationally, as visiting stores in each city is a new experience.

With the new store in Quebec, Simons is looking to make an initial push as a retailer to use a location that runs as green as possible with current technology.  This store will use green technology such as electric vehicle chargers and solar panels in a goal according to Mr. Simons, “…to achieve a zero net footprint.” Simons is not only keeping green in mind, but also looking to increase customer engagement through new interactive digital technology (unannounced).  This store will serve as a prototype to test new technologies and shopping experiences, much like the South Edmonton Common Canadian Tire, for future and current store changes.

I commend Simons for being actively involved to reduce their carbon foot print.  Simons is taking the initiative to become the first and foremost of large clothing retailers to test green technology and this has the opportunity to further Simons competitive advantage.  Despite the excitement around another unique Simons experience, Simons needs to maintain its breadth and depth of selection to drive sales. Consumers expect businesses to become greener without understanding the significant cost to the company, but the product and service offered outweighs the environmental expectations from consumers.  Simons needs to provide exceptional service away from the digital interaction, and maintain its wide-ranged selection to ultimately keep the customer happy.  If Simons changes its focus on this new store away from the product and service offered at current stores, to creating simply a green location, they may risk lowering conversion rates.  Ultimately, this store is a prototype and testing location, which may help mitigate future loss from unsuccessful engagement tactics.  This store very well may be the future change for most large retail locations, as pollution laws, transportation, and how we shop evolves.

References:

http://www.retail-insider.com/retail-insider/2016/3/simons-next-generation

http://www.retail-insider.com/retail-insider/tail-insider.com/2012/10/maison-simons-opens-new-edmonton-store.html

http://www.bnn.ca/News/2016/2/26/Its-not-as-easy-as-it-seems-Simons-CEO-fends-off-competitors-as-Ontario-debut-loom.aspx

https://en.wikipedia.org/wiki/La_Maison_Simons

Blowing up the Fashion Industry: A Look at Dynamite

As of 2014, Groupe Dynamite, a Montreal fashion chain which owns the clothing retailers Dynamite and Garage, has over 370 stores in Canada and worldwide. As one of the few Canadian retailers that have successfully entered the U.S. market, Groupe Dynamite has a very strong sense of their unique brand and understanding of their customers.

Dynamite positions themselves as an authentic brand and apparel retailer that is the choice destination for young women, offering fashionable casual and business attire. Dynamite targets a well defined customer segment by focusing on lifestyle and a fashion attitude point of view, rather than the traditional demographics. Their strong brand is a result of aligning their communications and design to their target customer profile: Rachel the 27 year old, the older sister to Alexa, 16, who represents Dynamite’s sister brand, Garage.

The store has a consistent modern, chic and sexy look and atmosphere that begins from the outside of the store and is carried throughout the store within. This is achieved through ambient lighting, monochromatic colours, and trendy music. The store layout is kept constant throughout their locations, in order to create a sense of familiarity and comfort for the returning customer. The tables throughout the store are kept low, and shelving is at an optimal height to eliminate any possible loss in sales that occur when products are out of reach.

They strategically use their store-front displays in order to engage and entice customers to enter the store by outfitting mannequins, both in the glass display and within the transition zone of the store, in the latest trends. Even as a frequent shopper of Dynamite, who considers this store as the choice destination for work appropriate clothing, I have personally experience the effectiveness of these displays. I often find myself making unplanned trips into a Dynamite store due to specific pieces or outfits that were on display.

The level of customer service that I have received when in Dynamite is unmatched, when compared to other apparel retailers that I’ve frequented. The sales associates are extremely helpful, accommodating and always deliver an excellent experience for the customer. They never hesitate to start a dressing room for customers or help find them a different size. The personalized exchange of names within the dressing room plays a role in creating customer loyalty as well. As a customer, I have never felt suffocated by greetings or assistance, which is something that I find rare in a retailer.

Dynamite offers a wide selection of apparel, from casual sweaters and jeans to blazers and dresses, all of which are aligned with the brand’s sexy and sophisticated image. Although I tend to be a mission shopper, I find myself browsing through their entire selection due the loyalty I have towards this brand. When compared to its competitors, such as Zara or RW&Co., Dynamite offers a competitively lower price point, which might be considered pricey in the eye of the price conscious shopper. As a financially struggling university student and price conscious shopper who is loyal to the Dynamite brand, I find that I am willing to pay more for the quality of the clothing and the customer service that Dynamite provides.

Along with their unique focus on understanding the customer lifestyle, as well as their established brand presence, Groupe Dynamite will continue investing in its retailing brands, Dynamite and Garage in order to continue the growth of its retailers in Canada and the U.S.

References:

http://www.tfocanada.ca/news.php?item=1512

http://thechronicleherald.ca/business/1222155-women-s-clothes-retailers-panicking

http://groupedynamite.com/dynamite_11?lang=fr

From Frumpy to Fabulous

Imagine shopping at “The Bay” ten years ago: the clothing section had old, frumpy styles that were more tailored to my grandparents than anyone else, they sold electronics in-store, and there was even a department with big appliances like washers and dryers. Fast-forward ten years and you’re suddenly shopping in “Hudson’s Bay, ” a trendy fashion retailer with chic, youthful clothing styles. Under the direction of Bonnie Brooks, Hudson’s Bay repositioned itself from a tired department store to an upscale fashion retailer. Brooks helped the retailer replace its under-performing product selection with popular, must-have fashion brands like Burberry, Topshop, Diesel and Jessica Simpson. The once struggling retailer was now a go-to stop on any of my shopping trips.

As part of the transition in creating their new image, the company changed their name from simply “The Bay” to “Hudson’s Bay”. The new name was accompanied by a sophisticated new logo, a far cry from the large yellow “B” that had been in use since 1965.

Although they no longer use their old logo and coat of arms, Hudson’s Bay still pays tribute to their Canadian heritage with the revival of their popular striped fur trade blankets, now sold in stores. In addition to their rebranding efforts, Hudson’s Bay also experienced great success in bringing new customers in with their Team Canada Olympic clothing line during the Vancouver 2010 Olympics. In particular, the signature red mittens, which caught my own eye, became an international symbol of the Canadian games. These mittens led to an increase in traffic and a rediscovery of Hudson’s Bay.

With the growth and rebranding of Hudson’s Bay, in 2013, Richard Baker made the decision to acquire Saks Fifth Avenue, a highly successful and world famous iconic fashion retailer, in a successful attempt to align the company with other high-end department stores.

In my own personal experience as an employee at Hudson’s Bay, I was impressed by the extensive lines of luxury brands and highly coveted items. As I have grown older, I have developed an increased interest in fashion and Hudson’s Bay has successfully transitioned into a store that appeals people like me, who value style. Hudson’s Bay is an example of a company who successfully revamped and rebranded themselves during a time slow growth for the company, and managed to come out on top. They have now reclaimed their position as a top-tier shopping destination.  

References

http://www.theglobeandmail.com/report-on-business/brooks-out-as-president-as-hbc-shuffles-top-executives/article12631261/

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/new-logo-old-name-the-bay-returns-to-its-roots/article9356220/

http://business.financialpost.com/executive/management-hr/how-richard-baker-engineered-hudsons-bay-co-s-stunning-turnaround-with-a-leap-of-faith-in-real-estate

From Meatballs to Dark Cherry Glazed Beef

On a recent trip to Los Angeles I biked up to Santa Monica. There is a lot of retail there, but one of the first stores I saw was Nordstroms. As I walked through the large glass front doors I made a judgment that I believe any true Canadian might make. That is, it is just like "The Bay". Upon a closer look there were many distinguishing brands that did differentiate Nordstroms from its less popular Canadian sister. These were higher-end brands such as Mackage and Burberry. Next as I went up to the third of four floors of the store I saw something that The Bay certainly does not have. That is a sit down fine-dining restaurant inside the store. This restaurant (pictured below) was Blue Stove.  Blue Stove has a strong reputation as a lunch destination, and they offer a variety of upscale tapas (Such as "Crisp & Spicy Dark Cherry Glazed Beef") and wines inside a classy atmosphere.

This concept of in-store dining may not be as unique as I had first thought. For years in Canada we could buy meatballs at IKEA and Starbucks’ Coffee at Safeway. Blue Stove is really just an upscale extension of this concept that traditionally makes retail outlets more comfortable and increases customer’s time spent in the store. According to Craig Patterson and Retail Insider, department stores in Canada are increasingly adding these restaurants, bars and coffee shops to their in-store experience. The trend is apparent in Toronto in not only department stores (such as HBC), but also single brand stores such as Kit and Ace.

It is now important to understand the benefit of adding a fine-dining experience to stores such as Nordstroms, and how it is different from the traditional convenience options that we have seen in the recent past. More than just convenience and increased shopping time, I believe that these fine-dining restaurants create a strategic trade area. There is a mutually beneficial relationship between both businesses by creating this tight trade area. Blue Stove benefits from Nordtroms’ shoppers as they walk through the store and build up a hunger; and now that they have become a destination restaurant, Nordtroms benefits from Blue Stove customers who are only looking for a fine-dining experience at first, but fall victim to the “40% off” rack situated just outside the restaurant. Whereas for stores incorporating restaurants in the past, it has been generally the store that generates the traffic, and the restaurant is simply a convenient amenity. In addition to this, Blue Stove also adds to the environment of Nordstroms. It offers a unique value proposition to shoppers who appreciate a fine dining experience and can spend a fair amount of time in the store. In my opinion, these are very useful benefits for both businesses. However, I would propose that the class of the restaurant should correspond with that of the retail store. For example, I do not believe that Blue Stove would see the same success at a value-driven department store such as Winners, but perhaps it would fit well in The Bay as they continue to introduce more upscale brands and transform their value proposition. 

In conclusion, a restaurant inside a retail store may not be a novel idea. However, it is the evolution of this idea that creates and important trend in current and future retail. Once cafeterias and coffee booths, retail stores now introduce fine-dining experiences that transform the role of an in-store restaurant.

References

https://www3.hbc.com/press-release-container/the-bay-queen-street-unveils-new-food-destinations-by-oliver-bonacini-restaurants-and-compass-group-canada/

http://www.retail-insider.com/retail-insider/2015/11/food-beverage

http://www.yelp.ca/biz/blue-stove-santa-monica

Lego Invites Customers to the Virtual Lego World

Whenever I went over to my cousin’s house, I loved playing Lego with my cousins. I liked the way how I could create my perfect world with these tiny blocks and shared it with others. I also loved visiting the toy store and browsing new series of Lego set. Even though I am in my twenties now, I am still a huge fan of Lego. However, I prefer to use the online website to look at Lego products instead of going to the store since it is more convenient. Along with a steady increase demand for online shopping, the physical stores are losing traffic flow to the online retailers. Under these circumstances, the stores have started finding ways to communicate with customers by adopting a bunch of creative ideas for store displays and layout. Interactive digital displays are considered to be one of the best methods of reaching the best outcome for the retail stores. The Lego store in Chicago successfully demonstrated the inclusion of interactive digital displays as a form of shopper marketing to draw customers’ attentions towards the brand.

The store installed gigantic displays right on the storefront in a way of promoting their products efficiently and at the same time, offering a relish experience to people. This little activity already generated impact on people’s mind associated with the brand even before they walk in the store. The main target audience seems to be children, but it can appeal to everyone. When a child (as seen this photo) stands in a highlighted area, he/she can instantly transform into a Lego figure that mirrors a child’s movement, which creates an enjoyable experience and memory. In this sense, the interactive displays can significantly contribute to fostering positive brand image and awareness by providing interactive experiences to people.

The interactive displays can be beneficial in saving money and time regarding marketing strategies. Also, it is relatively small but easy to repurpose. The Lego store has done a great job of converting itself into a customer-centric company aligned with its mission statement. The company once played a big role in changing the perception of product packaging through using augmented reality. However, it is not the first time that a company created “the activity zones” in the store. Apple stores designed the store layout to adapt a ‘customer-friendly approach’ strategy. This brought a huge success since customers could immerse themselves in their products and services. Another example is Sports Chek provided a climbing wall to customers for equipment trials. This created more engaging customer experiences as well as having better responses to customers’ needs.

The way the company leverages shopping experiences in accordance with interactive displays has come a long way. The widespread of ‘experiential’ retailing shows the ideal archetype of customer interaction and engagement that leads to customer loyalty. This new phenomenon is undeniably being propelled by the pursuit of excellent customer experience.

Reference

http://techland.time.com/2012/01/19/intel-showcases-8-items-to-usher-in-the-experiential-retail-revolution/slide/legos-interactive-window/

Fossil: Thoughtful Marketing

When you walk through a mall, what is the first thing you see that draws you into a store? For me, it’s the exterior layout of the individual stores. A store’s transition zone establishes a change and makes it obvious that the space will provide a different experience. How the company designs this space has an effect on customers walking by as it may be their first impression of the brand. Fossil, an American designer and manufacturer of accessories, has put time in effort in establishing a consistent theme, not only with the physical aspect of the stores, but also with their products and marketing materials.

Background
Fossil was founded in 1984 by Tom Kartsotis and his brother Kosta. Most business established during the early ‘80s centered their brand based on their products, its features, and its benefits. Fossil, however, based their brand on their design. During the time, Tom and Kosta were hesitant on basing their brand off of design; however, the success Swatch made with creating affordable, design-driven products gave them hope. The company IPO’d in 1993 as Fossil focusing was on fashion watches with a retro look before introducing leather goods in 1990 under the Fossil brand and Relic line of watches.

Layout

With an average store size of 1250-1500 square feet, every square foot needs to be taken into consideration when trying to create a comfortable environment for customers to shop in.


The layout works well for all three types of shoppers. The variety of products shown in a small amount of space allows navigation, and also an easier way for the shoppers to browse which markets to the general plan and unplanned shopper. The products are also organized into their own sections so it also guides mission shoppers to where the product they may be looking for will be.


The displays of the products are also thoughtful; not only are the products in their individual sections within the store, the spacing of the products (specifically leather) between each other, encourage customers to remove the products from the shelves and try them on. There are shelves around the store allows there to be a display of the variety of products the company offers. Islands in the middle of the store are low so that customers can see the entire store without any shelves blocking their view. The lighting in the store would highlight the products and makes the environment feel warm, cozy, and comfortable. These different considerations contribute to the overall modern vintage aesthetic.

Smaller details

Diving into other promotional materials Fossil considered to facilitate their theme and brand is their packaging and other point of sale materials. Fossil establishes consistency that extends beyond the physical layout of the store and products that customers buy. You can take even more of the store back home through their packaging: the vintage tins.
There were countless times when I would walk by the store and become attracted to Fossil’s display of vintage tins; there were times when I wanted to buy a watch just to get the tin. Tim Hale, the creative director of Fossil since 1987, says "The identification of Fossil with the tins is almost on the same level as the identification of Coca-Cola with the hourglass bottle." The popularity of the tins have resulted in the decision of having dates and serial numbers assigned to them to foster an urge to collect more.
 

Overall, Fossil has spent a lot of time in fine tuning what their brand is through the variety of products they offer, the store décor, and promotional materials. It has taken years to build this brand and it will take continuous efforts to maintain this brand image to the public. 

This blog has been moved to www.alexedmans.com/blog

Thank you very much to everyone who has been reading my blog. Now that I have launched my own website, going forwards the blog will be integrated into the website and all new posts will be made there. The new website is www.alexedmans.com/blog.