case study - from department store to multispecialist retailer copy
TRANSCRIPT
global brand vision home retail experts
GBV
FROM DEPARTMENT STORE TO MULTICHANNEL RETAILER
A MAKEOVER CASE STUDY
GBV WHO WE ARE
We are a Retail Consulting firm specialising in assisting home retailers to
better, change, or create their new or existing business.
All our consultants have worked in leading retail businesses like Crate & Barrel, Anthropology, Zara Home,
etc. before joining us.
We like to call ourselves “home retail experts for rent”
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GBV CLIENT BACKGROUND
Client is a regional player operating in 4 South American markets.
Information based on 2011 figures.
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STARTING POINT
Client’s Home department had been under-preforming all other departments for many years and was
unprofitable.
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KEY REASONS
Competitive Landscape
Consumer Expectations
Specific nature of Home Retail
• Other department stores had same offer• Discounter’s success at entry price level• Arrival of home retail specialists• Maturing market
• Demand for Emotional Shopping Experience• Demand for better Quality & Service• Time and Convenience Constraints• Increases in disposable income
• Not enough understanding of specific home retail
• Confused product offer including “house” brands
• Treating home like apparel, client was unable to take advantage of the upside potential as market leader
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Competitive Landscape
PriceHighLow
High
Ass
ort
ment
Dep
th/W
idth
Falabella
RipleyParis
Casa&Ideas
All retailers were fighting for the same piece of the pie – our client’s offer did not offer sufficient choice, and was missing out on the more affluent market (where little competition existed)
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Consumer ExpectationsConsumer ratings of Client were far below best-in-class competitors
• Under-invest-ment in
• stores/fixtures• No VM Stan-
dards/Practices
• No dedicated Home VM at store level
• Communication between Buying/Operations
• No clear defini-tion of buying/planning
• Unclear chan-nels ofcommand
• Too much individuality ratherthan structure
• Outdated structure with unclear responsibilities
• No home spe-cific training and development
• No dedicated VM
teams for home• High staff
turnover
• Product quality ofsupermarket level with occasional sprinkle of ex-pensive product
• Supply chain component
• In-house design teams replicat-ing same stories every season
• Buyers not in control of new product
• 100% seasonal-ity in assortment
• Focus on entry price rather than choice
• Confused per-ception that many skus = variety
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Specific Nature of Home Business
• In apparel, the image and brand are protagonists. In Home, the product is the hero, followed by presentation and execution
• In home, brands work well in some categories, but are mainly related to• Bridal registry/wedding list• Promotions• Technical or specialist product (ex. electricals, mattresses, pots & pans, chef knifes, etc.
In all these instances though, we talk about manufacturing and designer brands.
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IN OTHER WORDS…
“If you do not change direction, you may end up where you are heading.” Lao Tzu
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Creating a Specialty Retailer in Home
ASSORTMENT/BUYING
ORGANISATION
STORE DESIGN
OPERATIONSVISUALMERCHANDISING
BRANDING
Flagships Stores
B-Stores
3 Countries
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1- ASSORTMENT/ORGANISATION
CREATING A NEW SHOPPING EXPERIENCE
CR
EATIV
E
Private Label Product Designs or Product ExclusivitiesMore Depth and Width in Product Choices
POS-friendly Private Label Packaging De-sign
External Designers for fresh Design ap-proach
Introduce Client to New Vendors
Goals:
• Increase Cus-tomer Experience
• Increase Sales• Better Gross
Margin• Love and Pas-
sion for Home
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1-ASSORTMENT/ORGANISATION
METH
OD
OLO
GY &
OR
GA
NIS
ATIO
N
Increase Materials, Styles, Pricing Offer
Create New SKU Hierarchy and eliminate Duplication
Define Core-Seasonal
Define Style and Price Mix, Win-Play-Show
More Sourcing Countries & New Buying Agents
New Job Profiles for Buying and Planning
Create a Sandbox/Showroom for Product Review
Goals:
• More efficient Organisation
• More Motivation• More Clarity and
Transparency• Sustainability of
Change
CREATING A NEW SHOPPING EXPERIENCE
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KITCHENWARE - COOKWARE
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KITCHENWARE – TEA & COFFEE
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KITCHENWARE - STORY
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TABLETOP DINING
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TABLETOP DINING
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TABLETOP GLASS
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TABLETOP FLATWARE
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BATHROOM TEXTILES
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BATHROOM ACCESSORIES
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BEDDING
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HOME ACCESSORIES/GIFTS
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HOME ACCESSORIES/GIFTS
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FURNITURE - DINING
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FURNITURE - LIVING
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2- STOREDESIGN
CR
EATIV
E
Work with Architect on New “Lifestyle” conceptCreate Block Plan according to New As-sortment
Create Micro Layouts
Design Specialty and other Fixtures
Goals:
• Create a warm andwelcoming store environment
• Increase Sales
CREATING A NEW SHOPPING EXPERIENCE
There is yes, no, and Wow - Wow is the one to aim for”. Milton Glaser
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STORE DESIGN
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STORE DESIGN
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BRIDAL REGISTRY AREAGBV
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RUG PRESENTATIONGBV
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CHECK-OUT COUNTERSGBV
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3- VISUALMERCHANDISING
CREATING A NEW SHOPPING EXPERIENCE
CR
EATIV
E
Conceptual Direction of Visual Merchandis-ing
Goals:
• Create a warm andwelcoming store environment
• Increase Sales
Implementation of Visual Merchandising
Creative Direction of Visual Merchandising
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3- VISUALMERCHANDISING
CREATING A NEW SHOPPING EXPERIENCE
Goals:
• Create inspiring environment with
creative use of product to max-imise salesM
ETH
OD
OLO
GY &
OR
GA
NIS
A-
TIO
N
Visual Merchandising Organisation
VM Job Descriptions
Visual Merchandising Design Manuals
Store Routines and Review Processes
Sku Police
Support New Store Setup
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TELLING STORIES THAT INSPIREGBV
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TELLING STORIES THAT INSPIREGBV
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TELL STORIES THAT INSPIREGBV
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GIVE EACH PRODUCT A HOMEGBV
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GIVE EACH PRODUCT A HOMEGBV
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BECOME A BRIDE’S BEST FRIENDGBV
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BE FESTIVEGBV
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4- OPERATIONS/SUPPLY CHAIN
CREATING A NEW SHOPPING EXPERIENCE
Goals:
• Improve staff proficiency
• Createenvironment wherepeople can thrive
• Increase Cus-tomerSatisfaction
METH
OD
OLO
GY &
OR
GA
NIS
A-
TIO
N
Vendor & Agent Compliance Standard ManualFurniture Home Delivery Process
New Staffing Concept and Review Process
Review of Customer Service PoliciesOperations Manual and Staff Training Pro-gramme
Sales Aides
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5- BRANDING
CREATING A NEW SHOPPING EXPERIENCE
CR
EATIV
E
An Own Name for Home Department
New Catalogues
New Product Benefit Signage
New In-Store Navigation Signage
New POS Material & Private Label Packag-ing Concept
Goals:
• Increase Cus-tomer Experience
• Increase Sales• Better Gross
Margin
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LOGO FOR HOME DEPARTMENT
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CATALOGUE
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STORE – NAVIGATION SIGNAGE
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STORE - PRODUCT BENEFIT SIGNAGE
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PRIVATE LABEL PACKAGING
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POS MATERIALS
GBV RESULT
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Customers Happy Client and Staff Happy
GBV FEEDBACK
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“This has been the most successful project in our company in the 15 years I’ve worked here.”
“Our Home Department has become a specialty business. Other departments willfollow the same direction”