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By Katie YaegerMarketing 4250HNov. 11, 2014

Most Admired Retailer

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About LOFT

Established in 1996 by ANN Inc. as Ann Taylor LOFT, an extension of the Ann Taylor brand. ANN Inc. brands offer “a feminine, polished approach to updated classic style.”

More value-conscious and casual than Ann Taylor.

Had 544 store locations in the U.S., Canada and Puerto Rico as of August 2014.

+Retail Strategy

Target market: 28- to 40-year-old fashion-forward, value-conscious female professionals.

Location: Enclosed malls, lifestyle centers

Assortment: A moderate amount of items in apparel; private labels

Pricing strategy: Upper moderate with sales

+Retail Strategy

Communication mix: TV/magazine, online, mobile

Store design/display: Neutral walls, free-form layout, displays, designated petite and sale areas

Customer service: Modest

Long-term sustainable competitive advantage: Quality, casual and fashionable professional wear at an affordable price

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Private, house brandsMerchandise consists only of private brands.

Most merchandise is the LOFT brand.

• Lower-priced and more casual than the Ann Taylor brand.

• Had larger growth (8%) than Ann Taylor (1%) as of Q4 2013.

Launched activewear line Lou & Grey in 2014, sold in LOFT stores, online and at a few freestanding stores.

+Supply Chain Advantages

“The quality of our products begins with the treatment of the people who manufacture them.”

Provides public with outline of policies and programs concerning workers’ rights and environmental protection.

Emphasizes engaging with suppliers and supporting women throughout supply chain process (factories to suppliers to stores).

Has one distribution center (in Louisville, Kentucky); is a zero-waste facility.

+ Pricing Strategy

Price range: Upper-moderate

Implements a high/low pricing strategy

• Almost always sale emails or in-store/online specials.

+Multichannel Marketing

LOFT uses multichannel marketing fairly effectively.

Brick-and-mortar: Combined inventory across stores and digital channel, sales

Catalog: Shipped to homes

Online: Easy-to-navigate website, emails with sales and trends

Mobile: Love LOFT loyalty program, ANN INC. BFF, mobile-optimized website

+ Retail Locations and Site Selection

Urban and suburban areas where younger, upper-middle-class professionals live

Enclosed malls and lifestyle centers

+Store Layout

Free-form layout

Clothing segmented into areas: New arrivals Casual wear Business casual wear Petites (sign) Lou & Grey Sale (sign)

+Store Design

Promotional and point-of-sale signage

Window and freestanding displays

Entrance with “decompression zone”

Utilized wall space

Clean, well-lit, spacious, attended dressing rooms

Cash wraps with jewelry and other accessories

+Visual Merchandising

Straight-rack, four-way and gondola fixtures

Item and size presentation

+Secret Shop

Customer service: 3 Cashier sounded very bored; saleswoman asked if I was

“still” finding everything OK; saleswoman was helpful in dressing room.

Ease of finding items: 4 Sale section not well organized.

Advertisement of price: 4 Sale specials well marked; dress had further, unmarked

discount.

Atmosphere: 5 Good lighting, relaxing, not cluttered

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Banana RepublicJ.Crew

LOFT’s Competitio

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+Financial Results

ANN Inc. (NYSE: ANN) Return on assets: 10.17 Stock price (as of Nov. 10, 2014): $36.05

The Gap, Inc. (NYSE: GPS) Return on assets: 16.71 Stock price (as of Nov. 10, 2014): $38.60

J. Crew Group, Inc. is a private company.

ANN Inc. has a lower return on assets and stock price than The Gap, Inc.

+SWOT Analysis

Strengths

Company brand recognition, association with quality

Customer loyalty

On top of trends

Multichannel retailing

Opportunities

International expansion

Beauty products

Personal stylist

Weaknesses

Customer service

Lack of formalwear

Threats

Imbalanced product mix (2013)

Poor PR

Reduced mall traffic

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Marketing TacticProblem: LOFT has gotten bad PR in recent months for manipulating photos to make models look skinnier.

Solution: Eliminate digital manipulation and feature diverse women of all body types.

+“Real Professionals” Campaign

Highlight female professionals with different demographics and sizes — emphasize authenticity.

Partner with the Love Your Body campaign.