Archive Page 4
Overnight Success Can Take Years
Written by Jeff Grant, August 20, 2008
Overnight successes usually don’t happen quite that fast — especially in retail. I was reminded of that in stories I read about two vastly different clothing retailers. You may have heard of Forever 21, a hip clothing store known for its low prices on up-to-the-minute fashions. You probably never heard of Show Hoppers, a dancewear shop in Concord, New Hampshire that doesn’t even have a website. Fortunately, the Concord Monitor followed the mother-and-daughter owners of Show Hoppers in their first year as they learned the intricate dance of retail survival.
After 24 years in business, Forever 21’s worldwide sales are in the billions of dollars, according to this article in the Los Angeles Times. Show Hoppers’ owners say they’re thrilled if sales hit $300 a day. Yet both are niche marketers. Aggressive Forever 21’s mantra is “Create a niche, and then blow it out.” Show Hoppers’ niche is dancewear for girls in their small town. They realized parents had to drive many miles to find appropriate clothes for their little dancers, so they started on a shoestring with a boutique catering to those parents.
Forever 21 attributes its success to spotting fashion trends and then finding manufacturers who can supply them with quality, low-cost clothing. Show Hoppers is still looking for its place in the Concord sun — or sleet, if you factor in the miserably snowy first winter they experienced in downtown Concord. But they hung in there, adjusted inventory and are optimistic about their second year in business.
I like the attitude of the daughter, who doesn’t let being legally blind slow her down: “Every decision you make that’s unknown is scary. But if you don’t take a chance, how are you going to know?”
I also like the attitude of Forever 21’s senior vice president: “Where there’s a flash of opportunity, we’re stepping in.”
It took Forever 21 nearly a quarter of a century to achieve its “overnight” success and become a media darling. I hope Show Hoppers is content to become the premier dancewear shop in its home state, and perhaps beyond. Before you become an overnight success, I hope you will read both stories and draw inspiration for your retail store.
Photographic Memories You Can Hold in Your Hand
Written by Jeff Grant, August 18, 2008
Here’s another story about an enterprising retailer who spotted a need and is filling it. With a name like Life’s Sweet, you might think it’s a bakery. But it’s really a place that turns family memories into tangibles like hardcover photo books and music DVDs.
Like so many parents, Sonya Cartwright of Colorado wanted a more permanent way to preserve her family’s photos and scrapbook items. She left the corporate world to find a way to do just that. Cartwright knew that most of us now keep our photos stored on digital camera memory cards or hard drives, possibly to never be seen on paper. So she found a way to transfer them to large-format hardcover books at an affordable price. Customer can make photo compilations of birthdays, anniversaries, other milestones, or just random images. Just give Life’s Sweet the digital or hard copies and they put the book together, complete with binding.
Look at the samples on the Life’s Sweet website. These aren’t just little end-table books but large coffee-table books with full-bleed images of 10 by 12 inches or 12 by 16 inches. How many of us have the time to do print, assemble and bind such books? I know I don’t. That’s why Cartwright’s idea is so appealing. I do know how to make DVDs with music to accompany photo slideshows, but again, I can’t find the time for it. And I don’t think I would trust the job to the photo counter in a drugstore or even a big-box retailer.
The Life’s Sweet website is full of great slogans that immediately convey the company’s services, like “You snap it. We publish it.” and “We do all the work! You get all the credit!” I also like their press page, with inks to lots of media coverage, industry awards and even Life’s Sweet’s TV commercials.
I haven’t seen photos of the stores’ interiors. But if they convey the concept as well as the website, I think Cartwright has a formula for long-term success. She might even get partnership or buyout offers from larger competitors. Whatever happens, it’s nice to see another corporate dropout become the very picture of entrepreneurial success.
Indoor Racing Gets Back on Track at Retail
Written by Jeff Grant, August 15, 2008
It’s been years since I saw a model-car raceway in a retail store. The ones I remember were called slot cars. They were really popular in the ’60s and ’70s. You brought in your own slot car or rented one at the indoor track. Some tracks are still around; you can find them with a quick Google search.
Given the popularity of remote-control model cars in the past few years, I’m surprised no one thought of substituting them for slot cars and updating the indoor-track concept. Well, two entrepreneurial guys did, and I love the stores they’ve created: American Hot Rod Racer in Sterling Heights, Michigan, and Beachwood, Ohio.
According to this story on candgnews.com, Rick Maicki saw how much fun his three kids were having with small, homebuilt pinewood derby cars. He and brother Henry wanted to leave engineering and go into something more family-oriented. Rick came up with the idea of putting reconfigurable tracks for remote-control cars in a mall environment. He also came up with a way for kids (and their parents) to build their own cars in the store before competing on the track. To build customer excitement, he added flat-panel TVs that display racers’ names, photos, car details and other statistics.
What a winning idea: Kids get to play together with cars they take pride in. Parents love to take the kids to the track for some quality time. The Maicki brothers reap the rewards; not just the monetary ones, but the joy of seeing kids’ faces light up once their cars hit the track.
Take a look at the store. It was designed by a professor at an art institute; a student did many of the murals and artwork on the walls. Those are great ways to get started in retail without spending a ton of money. The brothers also have a great website that tells everything you need to know about their two stores, including a mission and values statement. More stores are being planned, thanks to the success of the first two.
The brothers also got aggressive with their PR. It’s pretty much a story that sells itself: the rebirth of indoor model-car racing. Crain’s Cleveland Business was so impressed, they posted a five-minute video about the place. I urge you to watch it. It should get you revved up and thinking about how to keep your store in the fast lane.
Bluebird is in the Black and Going Green
Written by Jeff Grant, August 13, 2008
Once you have a good thing going in retail, it can be hard to step back and see if you can improve it. Even successful restaurants and art galleries/studios will resist change if they have steady, consistent sales. But the owners of a funky eatery/pottery/glass arts establishment in Durham, Arkansas, saw the need. They’ve embarked on a remodeling project that will result in a classier, more-upscale environment.
An article on NWAOnline.net tells how Terra Studios is being transformed into the Muse Gallery and Coffee House. The good thing the studio has had going for it is the Bluebird of Happiness. Really. They’ve sold 8 million of the glass figurines in the 20 past years, attracting about 60,000 visitors annually. Those visitors are often hungry, which is why a restaurant is on the premises.
The new owners, according to the article, “are revamping the businesses to create a sounder business plan and increase opportunities for local artists.” It’s always a calculated risk to remodel. Yet the owners recognize the need to bring the gallery and restaurant into the 21st century. They’re going about it in a smart way, I believe, by inviting more local artists to sell their wares in the gallery. This will help the new place generate a buzz in the arts community, which in turn should attract art lovers interested in more than just the Bluebird of Happiness. But the bird has a new companion, the Pink Bird of Hope, with 10 percent of sales going to the Ozark affiliate of the Susan G. Komen for the Cure Foundation.
The coffee house will offer local products, which is part of the owners’ start of making the business a “green” one. They’re already in the black from artists’ rental apartments on the property, and they’re using their own money to make all the upgrades possible. I applaud them for taking the risk. Whether the bird are blue, pink or any other color, they’re well-positioned to keep happily counting the greenbacks for many years to come.
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.
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.
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.
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…
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.
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!
