New York Study Tour May 2014

ABSTRACTThe Retail Store Analysis contains visual merchandising, store characteristics, layout, and appearance merchandise analysis, customer service, and store image. There are written summaries from each appointment attended, as well as a summary of the individual store analysis of the M&M store on Broadway.

Retail Store Analysis

Visual Merchandising

Zara is known for their floor to ceiling window displays. The displays tend to be all glass

and this allows for the customer to see the merchandise in the store, as well as create awareness

around the brand. Zara does very little paper advertising and focuses more on the appeal of their

extravagant window displays. The location that I visited was a little bit smaller than I had

anticipated it would be, especially because it was in the center of New York City; however, there

was a flagship location just down the street at 52nd and 5th. This location, 101 fifth Ave (at 17th),

was narrow, but it did have two floors. The mannequins were dressed in the outfits that were

displayed beside it. I believe the idea here was to represent the way the apparel is structured

because many of the collections are inspired by lines and architecture. The inside of the store still

had an open feel even though it was crowded with tourists and locals shopping. The merchandise

was neatly folded and the associates were working hard to make sure that every little piece was

in its place. The overall vibe of the store was a combination of European and modern influences.

I did notice that there was different merchandise in this location than I saw in the Dallas location

at the Galleria. Zara does distribute apparel based on geographical location and how it fits in that

specific market. The lighting was modern and eye catching. The lights were displayed under the

cabinets to illuminate the apparel, and then beneath the apparel display there was recommended

shoes to pair with your outfit. The lighting made the space feel more modern and elegant,

especially for being a fast-fashion retailer. This was a unique attribute that I thought set Zara

apart from other retailers of its kind.

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Store Front

Store Characteristics, Layout, and Appearance

The approach that I believe Zara is taking is to present themselves in an upscale manner

but still be associated with low prices. I think that the modern lighting that is present under the

cabinets, under the hanging racks, and under the stairs allows the customer to associate this

brand with fashion forward products as well as quality. I was impressed with the displays and

how elegant the merchandise looked. The store was clean and organized; all of the merchandise

seemed to be in its place. The sales associated that were working the floor were constantly

refolding and straightening the shelves and displays. There was a security man at the door as

well as metal detectors to prevent theft. Most of the shopping was taking place downstairs even

though there were two separate levels. The second floor consisted of the more casual collection

and well as children’s clothing. The store was full of mirrors, which allowed the store to seem

larger than it actually was. There was a geometrical style layout; however, the square center

displays mimicked a boutique style. It seems as though they are mixing the styles to better serve

their customers. One of the negative aspects was that there were no bathrooms. I feel like this

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was a common thread in New York City and it was a struggle to travel for a given amount of

time and not be able to use the facilities, even if you purchased something from the actual store.

The cashier was located at the back of the first level and only consisted of two registers. My

impression of the store was that it was neat, organized, and busy; however, I did expect it to be

more extravagant than the Dallas location and it was pretty similar.

Merchandise Analysis

The merchandise is separated into sections, as most stores are. This location had a

women’s, men’s, and children’s department. The flagship location has a Zara Home in addition

to these departments, but it was not at the specific location that I visited. Within each section,

each piece was separated by color. This was visually appealing because if you were looking for a

certain color to wear to an event than you could walk right to the section you need and pick the

type of garment that you are looking for. In addition to separating the merchandise by color, it is

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also separated into casual or dressy work attire. The first floor housed most of the on trend

business attire and the new merchandise that is coming in, which is why most of the shopping

was taking place on the first floor. The second floor also housed women’s apparel but it was

more casual and had more color. Men’s was also located on the first floor but was smaller than

the women’s department. They had business and business casual attire that would be good for a

New Yorker. The apparel at this location differed greatly from the one that we have in Dallas.

The colors were darker and there was more apparel geared toward wet and cooler weather. The

location in Dallas has more yellow and white in the collection because it is hotter in Texas than

in New York. There was still color in the collections I saw, just not as much. The children’s

section was located in the back of the second floor. I am assuming that it is not the biggest seller

and needs a smaller portion of the selling space. They had dresses and casual wear for children,

similar to the other departments. The price range for this store is $39.00 to $199.00 depending on

what type of item you are looking to purchase. The dressy work attire outfits are more expensive.

Zara is a fast-fashion retailer but I feel the quality of the product is far greater than some of their

competition. I think that they found a gap in the market and are doing well there. They offer

affordable prices in addition to good quality pieces.

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Merchandise by Collection and Color

Customer Service

The customer service at this location was certainly not what I was expecting. We did not

receive any sort of greeting when we entered the store. I do not know if this was because the

store was so busy that they did not notice but it was slightly disappointing. Also, we had been

traveling over thirty blocks to get to this location and I asked to use the bathroom and the sales

associate simply said “no” and walked away. There was no explanation and apology and she

seemed quite rude actually. All of the sales associates were wearing headsets and seemed to be

extremely busy and too occupied to help actual customers. To their defense, the store did look

fantastic given the volume of customers in the store; however, the actual customer service was

not up to a standard that I am accustomed to in the Dallas location. The associated almost

seemed snobby in a way, which is not usually the case in fast-fashion retailers. The fitting rooms

were full and the line to try on clothing was extremely long. The sales associated were willing to

answer questions if you specifically asked them, but they would not approach you if you did not

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have a question. I felt slightly ignored and I did not expect this type of service from such a

reputable brand as Zara. The security guard that was at the door did not even greet us when we

entered the store. The attitude that I got was that the customers were an inconvenience to them

and interrupted them while they were trying to straighten the store. When we asked questions

about the merchandise they gave us one-word responses and were not helpful in finding other

sizes or colors. Therefore, I did not actually purchase anything from this location because I did

not really feel that comfortable in the store.

Store Image

In my opinion the store’s target customer is a mostly trendy professional woman from 13

to 31. There is a good portion of men that shop here for business casual clothing as well. I

envision Zara’s customer as a workingwoman that wants to remain in fashion and still look

professional. You can also wear these clothes casually or to a dinner; they are extremely

versatile. The image of the store is definitely not consistent with the image I had in my head

before visiting the store. I thought the customer service and layout would be more luxurious than

the Dallas location. I would actually prefer to shop at the Dallas location now that I have visited

that one. I did not know that Zara stores had multiple levels. I have not seen very many retail

stores in Texas with multiple shopping floors. This seems to be the norm in the heart of New

York where space is easier to accommodate vertically than horizontally. However, I was

impressed with the size of their men and children’s lines. These sections were larger than the

location in Dallas and were clean and organized. I was impressed with the use of the lighting

displays that illuminated the merchandise. It was also unique to be able to make the store feel big

with the placement of the clothing displays and lighting. The store was physically narrow, so I

felt that was a positive aspect of the retail space. The most impressive thing I noticed about this

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specific location was the organization and neatness of the clothing displays. I am sure that it is

difficult to maintain an organized environment when there are so many people in the store. I also

learned that this 101 location is a hub for international tourists, especially tourists from France.

While in the store, I heard more French speaking individuals than I heard English. I think that

this is due to the whole European feel of the merchandise and store layout. I almost felt like I

was in a different country with the amount of international tourists that were browsing in the

store. My overall experience with the store was disappointing in terms of service and physical

environment, but I was impressed with the organization and cleanliness of the store.

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Ross Analysis

Ross is an off-price retailer that specializes in discounted name brand apparel for men

and women. Isabella, the college recruiter for Ross stores, shared valuable perspectives on

different areas of business that include, planning, allocating, and merchandising. Ross operates

1200 stores and plans these stores by region, demographic, climate, and socioeconomic status’.

Melinda, the women’s wear buyer, spoke to us about what her job entails. She effectively

communicates and builds relationships with vendors to ensure Ross can obtain the best possible

purchase. Merchandise is separated into different classes; this allows buyers to focus on specific

areas. Ross does not use cost concessions, which is where the retailer will ask for additional

money from the vendor if merchandise did not sell through. In addition, markups on the

merchandise will vary depending on the vendor that Ross chooses to use. A typical Monday will

consist of pulling reports from the week before about how well the merchandise sold, what the

best seller consisted of, and what inventory is low. Tuesday will generally be vendor

appointments. Wednesday and Thursday will be making general buying decisions as well as

continuing to build vendor relationships and obtain inventory. Lastly, Friday consists of catching

up on reports or appointments that did not get finished through the week. She mentioned that the

majority of her job was the search for closeouts on vendor products. However, they do not

purchase too many of one SKU because Ross wants to ensure a “treasure hunt” mentality. This

increases the chance of an impulse buy from their customer and ultimately generates more

revenue. Ryan also spoke to us regarding planning and allocating, which falls on the more

analytical side of merchandising. There is also a ten week internship opportunity that entails

classroom training, floor training, goal of negotiating training, excel, and various systems, such

as POS and additional reports. This intern works closely with the buyer to learn the buying

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process and how to effectively negotiate with vendors to get the best possible cost for Ross. I

benefited most from Ryan’s advice, which was to be proficient in excel applications problem

solving skills. He mentioned that it is vital to understand how the details of the business work to

help you in making an effective problem solving decision.

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Tory Burch Analysis

Mickey, who is the CMO of the Tory Burch organization, initiated this appointment; she

manages client management, brand experience, and serves as a useful tool in striking a balance

between the client and the service provider. Tory Burch runs and operates over 100 stores

globally, so the market is certainly not saturated, and they maintain a good balance of quality and

price. Tory founded the brand in 2004, and they have a strong social media presence. The first

store was located on Elizabeth Street in downtown New York. The business is extremely

customer centric and is operates solely around the customer. Most of the employees that spoke

on the panel seemed genuinely happy to work for such a successful company that believes in

each other, and creates an environment for growth and success. Mickey mentioned that she finds

is important to find a mentor to bounce ideas off of; she also believes it is vital to be able to

navigate between science and art, to ensure each situation has been looked at and evaluated from

different perspectives. Gary Chang, the CRM, works with “Big Data” and essentially what the

customer is purchasing and how it is useful for the business. This entails, emails, cookies,

marketing interests, and all communication that is linked to the customer. His advice was to

make sure that you have a full professional resume, broken down by specific skills that are useful

for the company that you are applying to. He suggested proving how you would be valuable, and

that your passion will resonate with the company if it is a good fit for you. Victor, the digital and

marketing consulter, explained that it is important to not get caught up in the flashy name of the

company, but to ensure that the company culture is a good fit for you. He suggested to put

yourself in as many different business situations as possible to ensure you know how to handle

them in the future. Ellie’s position is to maintain local teams and set up Tory Burch events; she

also establishes overall company objectives and calendar alignment. Her advice was to, go for

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whatever you are passionate about, and be purposeful in your search for employment and

positions; this is a good indicator of what sets people apart from one another. Lindsey, head of

digital branding, focuses on corporate marketing and maintains relationships with Google and

other search engines to ensure the awareness of the brand is being fully represented. Her advice

was to take calculated risks and don’t always play it safe. In addition, if you mess something up,

then own it, and identify why it didn’t work out. Do not place blame on other co-workers. I

benefited from this appointment immensely and found that the advice that was given will be

extremely beneficial after my internship is finished and I am looking for full-time employment.

It made me believe in myself again and re-ignited a passion that I have for this industry. I am

excited to apply what I learned from this appointment in my internship and career.

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Foxcroft Analysis

Foxcroft is a better-priced separates line, with ranges of $69.00 to $99.00. The focus is on

the women’s division of the apparel group. The offices in the New York location entail

production, sales, and technical design. The Lewisville, Texas location houses accounting and IT

for the company. A few companies that are customers of Foxcroft are Nordstrom, Van Maur, Sue

Patrick, and over 700 specialty retail stores. They specialize in non-iron/wrinkle-free shirts. The

process of the wrinkle-free chemical is called a “wet finish”, which is a high temperature of

different chemicals. They also design varies shirts for Brooks Brothers, which encompasses

different stretch cottons and an assortment of designs and prints. These prints are created in

house and are associated with different trends found in the market at certain times. They also

look at different storyboards and pull inspiration from pictures and interpret the designs in a way

that will work for retailers. The company culture consists of an open-door policy, which consists

of open forums, weekly departmental meetings, cross-functional meetings, and opening up the

floor for feedback and suggestions. Company sales and results are available to everyone. This

allows for more associates to provide feedback on what is and is not working. The environment

is democratic and ensures everyone is focusing on the big picture. Foxcroft is always working on

a three-year plan and essentially what is good for the business and the company. Some of the job

duties include securing vendor appointments, discussing current business and changes in

business, presenting merchandise to retailers, ranking merchandise from 1-10, working on

retailers plans and deadlines, and ensuring a positive merchandising conversation with

employees and vendors. They mentioned it is important to know your customer and show them

what you think they would like, or what you think would be beneficial for them to have. They

also provide internships in New York and Lewisville. Their advice was to make sure that you

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know Excel and all aspects of retail math to set you apart from your competition. One example

that was given was the formula, Retail-Cost/Retail. She mentioned to not rely on a computer

program to calculate these formulas for you, but to actually know the product and how to

calculate the prices. The most beneficial aspect was the knowledge that I received from the

wholesale side of merchandising. Often times in our major we focus solely on retail and simply

forget where the product comes from or how it is manufactured. It was informative to see the

different processes that are involved in getting the product to the actual retail store.

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Maker & Company Analysis

Maker and Co. is a newer brand that was established by Chris Crowley in 2010. The idea

was to create an identity that would resonate with the customer as having impeccable

craftsmanship and a unique heritage. The story that Chris told was a story of a “maker” who

lived in Europe, who made clothes in the back and sold them in the front. The story is not real

but it has a unique idea and sets this company apart from any other. The logo of the bike was

supposed to represent what the man rode to work everyday. Chris mentioned that there is only

five people that work closely with him in the office that we visited, and this included sales,

design, and marketing. His garments are made for men, are collection oriented, and focus on

craftsmanship and minute details within the product. In the appointment, he showed us the

specific weave of the product that he got in Europe that had incredible wicking ability for water,

simply because of the tightness of the weave of the material. He also explained the placement of

the logo is essential in the marketing and wear ability of the brand. He wanted the product to be

more about the way the garment was made than on the importance of the logo. He just launched

at Nordstrom and profited by the 65 percent sell through. He mentioned it is essential in

maintaining a good business sense through the entire process as well. It is important to be

creative and make a quality product; however, that product will not sell if you do not know how

to market it correctly. He had just finished his spring/summer 2015 collection and we were able

to see some of the pictures of the garments in his personal portfolio. He mentioned that he travels

to Europe several times a year to get inspiration for his new collections and also to meet with

mills on the development of new materials. Some of the inspiration that he shared with us came

from different boats and nautical type items. Chris shared with us that it is important to position

your brand perfectly to ensure that the customer makes a positive connection between the

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product and the price. He told us he wanted to create something that had meaning so he could

channel his passion into his collections. His advice to us was to “put our mark on the world” and

“do what you enjoy doing.” These few words were the most beneficial to me out of the whole

New York trip. I found this meeting to be extremely inspiring and I felt I had more clarity when I

left his office. I felt I had lost a little of my vision in the corporate aspect of my degree and I was

deeply encouraged to follow the direction I had initially set out to do. When I went on this trip I

was focused on securing a job that would pay the bills; now I am certain that I eventually would

like to end up in the process of textile collaboration, focusing on aesthetic and design. I feel more

determined than ever and I am so grateful that I had the opportunity to meet such a focused and

successful designer that was relentless about his vision.

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Saks.com Analysis

Saks.com, which is part of HBC digital, is the e-commerce site that is responsible for

over $8 billion is retail sales. Michael, the CEO, was kind enough to bring several members of

his team to speak about the different parts of the e-commerce business. Lincoln Moore, the chief

site merchant, is responsible for marketing, technology, and events to drive consumers to the site.

Irene Hong is responsible for digital marketing, and national and international paid search

options. Maurice manages current promotions, editorials, emails, vendor marketing programs,

and unique campaigns to drive sales to the site. The panel shared with us that more than 70

percent of customers are digitally influenced. The customer journey is starting online and

becoming critical to any large retail company. The main goal of Saks.com is to create a

“seamless” customer experience between online and brick-and-mortar retailing. There is also a

true collaboration among team members, whether it be in-store teams, or merchants, to corporate

executives. The buying team consists of buyers, assistant buyers, and associate buyers that work

closely with the merchandise analyst and general merchandise manager to provide an appropriate

assortment of online merchandise. Saks.com maintains separate departments for planning and

allocating because the company is so large. The goal of Saks.com is to perfect the Omni-channel

experience for all of their customers. They are still in the transitioning stages and it will take time

to fully implement this technology. The digital marketing campaigns started in 2011, and began

in stores in 2012. They have paid search engine marketing that allows them to purchase bid

words that ensure consumers will see their site when they search specific words or products. In

addition, metrics are closely monitored to explain the returns on ad spend. This process includes

number of site visits and conversion rates. The digital team allow look at customer cookies and

have a total of 35 different emails tailored to fit the specific want and need of a particular

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customer. I benefited most from observing and hearing different language that revolves around

the world of e-commerce. This is an area that I was not too familiar with before the appointment

but I feel as though I have a better understanding of the certain roles that are present in this

digital field.

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JCPenney Analysis

The JCPenney appointment was a walk through of the store and an explanation of the soft

and hard shops, and essentially why they are positioned in a certain manner to reflect consumer-

buying patterns. The store manager was kind enough to show us the entire sales floor. We started

with Mango, which is a hard shop. The manager explained that the mannequins are really what

sell the product to the consumer. There are various price check stations that are available for the

consumer. She also mentioned that JCPenney carries multiple private label merchandise that

generates the majority of their profits because you can only purchase them at JCPenney stores.

Some of the private labels include, St. John’s Bay, Worthington, and Arizona. The manager

helped us to understand the importance of ADA compliance standards for the in-store traffic.

There has to be a certain amount of space between aisles to ensure that people with wheelchairs

are able to access the merchandise, which has to be at least 36 inches from one another. There

has to be a clear path between aisles and the store must remain clean and organized at all times.

This specific JCPenney location was the most stocked and organized that I have personally seen

in the past. How the store looks is important to the eye of the consumer. There was a “red

landing” in front of the entrance of the retail store. This is where store meetings take place before

the store opens each morning. There is a team of 20 that come in at night and stock and re-

organize the store for the morning crew. The store has a traditional department store layout.

There are different departments, such as Women’s, Juniors, Kitchen, Home, Men’s (located on

C2), Children, Jewelry (commission based) and more. There are associates that are assigned to

these departments; however, they are cross-trained to be able to assist associates in different

departments when a bottleneck occurs. They also maintain a store-within-a-store mentality,

which creates a boutique type of layout for the consumer. An example of this would be the well-

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known makeup retailer Sephora. Ron Johnson also created “streets” within the store to make the

shopping experience better for the customer. The most beneficial aspect of this appointment was

to experience how the different aspects of the retail environment end up affecting the purchase of

the consumers. It was helpful to be able to put a visual to some of the principles that we learn in

our retailing course.

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The Container Store Analysis

The Container Store was founded in 1978, in Coppell Texas; there is still a distribution

center located there. They are a publically traded company, with 66 retail locations, and over

10,000 product SKU’s. The main focus and vision of The Container Store is to “save space” and

“save time.” They rely heavily on their foundation principles, which emphasize the happiness

and knowledge of their employees. Another one of their foundation principles is one = three,

which means that one great person will equal three good people. They have consistently made

the Fortune’s 100 top companies to work for. There is a focus on conscious capitalism ensuring

that people are treated with respect and fairness before profits. The speaker’s position was Vice

President of Visual Sales and included an array of duties: correct signs and pricing, supports

merchandisers vision by depth of products, experts on products, training, and operational needs.

The layout is inspired by a traditional grocery store layout to ensure the product is the star and is

easy to find. The products are presented with props that represent a balance of color and material.

The sections of the store are signed and organized. The merchandise is organized by solution to

make it easier for the consumer to find exactly what they might be looking for. Front features,

headers, mass outs, and store box plinths are used to advertise products in the store. They use

merchandise processing, which is the associates continuing to straighten shelves and organize

items while helping customers. There is an extensive training program that includes 200 hours of

formal and floor training for each new employee. This includes 24 hours of classroom training

before the employee is able to step foot on the sales floor. Elfa is the number one seller

throughout all of the locations. This is a closet organization and storage solution device that

helps the consumer save time and money. The idea is to create a “WOW closet.” The most

beneficial part of this appointment was the terms that I learned in relation to different types of

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products. I am accustomed to terms that are associated or related to apparel, but it was helpful to

hear terms that are used in other types of retail stores. The speaker was also passionate and

energetic about his position and it seemed as though it is a great company to work for. I also

learned a great deal about the company’s vision and principles.

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Fossil Showroom Analysis

Fossil is the biggest fashion watch business today and that has ever been. They are

vertically integrated and operate warehouses and maintain global distribution. The showroom

was beautiful and housed a variety of designers. The panel of speakers spoke to us regarding

their past jobs, their current positions, and the daily tasks that go along with their position. The

first speaker was Katie and has been with Fossil for the last seven years. She graduated from FIT

and majored in buying and merchandising. She handles Marc Jacobs and Tory Burch accounts, is

responsible for building lasting relationships with those brands, and also for daily tasks such as

planning, projecting, and forecasting. Liz is an account executive, has been with Fossil for five

years. She handles Karl Lagerfield, and DKNY accounts. She interned at Fossil in Public

Relations and ended up switching departments when a positioned opened up as a sales

coordinator. She was promoted from the support role of sales coordinator to associate account

manager, which manages smaller accounts with supervision. Then she was promoted again to her

final role as account executive. A few aspects of this position include creative solutions for brand

challenges, building relationships teamwork, establishing positive brand image, and daily

communication with each brand on what is and is not working for them. Sarah is currently a

sales coordinator, which tracks weekly sales, handles emails, communicating with each

department as well as vendors, and copying images to different accounts online. Kirsten is also a

sales coordinator and has been with Fossil for two years. She is responsible for recapping sales

and pulling reports, working with the showroom and visual merchandiser. Lastly, Laura is the

showroom manager who is solely responsible for Fossil’s market weeks. The market weeks are

four times a year and two seasons ahead. She prepares samples, organizes the showroom,

manages catering, meetings, and any kind of basic showroom need. There are internship

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opportunities in Dallas as well as New York; however, the majority of the positions will be in the

Dallas location because it is a lot larger than the showroom. I benefited from learning the

different brands that Fossil carries as well as the different positions that are available within the

company. It was also helpful to physically see how a showroom actually looks and how it is

presented to buyers. The panel was kind and informative on the brand and what each of their

positions entails.

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WGSN/StyleSight.com Analysis

Stylesight is a trend forecasting company that is available to companies on a month-to-

month subscription. The services are expensive so it tends to be larger corporations that use their

services. Mike Burns, the account manager at Stylesight spoke with us about how the site works

and its many functions. In the past, trends were forecasted from trend books that were assembled

in France twice a year. With the progression of technology, the Internet has made trend

forecasting available 24/7. Currently, there are two trend days that take place in London and

New York that forecast the Mega Trends. These trends are what depict the apparel that is going

to hit the market in the future. Socioeconomic trends, political trends, and pass trends are all

influential factors that come into play when establishing these Mega Trends. In addition, these

trends are always two years ahead; therefore, Stylesight just finished forecasting for

Spring/Summer 2016. After the Mega Trends are identified, then the trend trickles down to

women’s wear, then color, then season. The content team on 39th street manages this specific

content, which is a total of 90 people working together to establish these trends. There are also

200 people in London working on a content team as well. Stylesight has an image library that

consists of 1700 images; including images from retail locations, street shots and runway events.

In addition, the content team works specifically on developing reports, analysis of trends going

to festivals and shows, and product development experience. Forecasting is a large portion of the

job and the inspiration is pulled from fabrics, concepts, past trends, current market trends,

cultural influences, and essentially how these trends translate into apparel. The internship

opportunities tend to be difficult to get because of the amount of prestige that comes with the

position. They are available year round; however, you must be on point with artists, designers,

and all trends to prove you know your history. The most beneficial aspect of this appointment

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was the knowledge Mike shared regarding trend forecasting. I did not have any prior knowledge

about how trends were actually developed or forecasted before this appointment. I am going to

take his advice and start researching designers and what they are influenced by to be able to

stand out from the next applicant.

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Macy’s Analysis

Macy’s is a better-priced department store with 800 stores in the U.S. There are seven

major regions and each region is then separated into districts. Macy’s is over 100 years old and is

known for many iconic traditions. One of the traditions is the Macy’s Thanksgiving Day Parade,

which is highly tied to the Christmas season. They have a Marketing Parade Floor, which

handles all of the logistics of the parade and different events. Macy’s plan’s July 4th firework

shows and also transforms multiple Macy’s flagship stores with seasonal flowers. They are well-

known as being the American department store, usually displaying red, white, and blue in

multiple ad campaigns. Macy’s encourages giving back to the community at the local Salvation

Army and food banks. The Macy’s culture also prides themselves on diversity, with multiple

diverse vendors and females in power. In addition, Macy’s has seen a growth in sales over the

last four to five years of $4 billion, while other retailers struggle to stay afloat. They

implemented major changes during the recession when other retailers were too afraid to take a

risk of restructuring. Last year alone Macy’s hired over 1000 college graduates and continue to

add to that number. A business strategy that is valued at Macy’s is the MOMM strategy. This is

an acronym for My Macy’s Localization, Omni-channel, Magic Selling, and Millennial. My

Macy’s Localization is the splitting of 10 to 12 stores into district teams that gives feedback to

the corporate buying office. Omni-channel is the process of integrating a seamless shopping

experience online and in-store. Magic Selling is the shopping experience that is taught company

wide to ensure a “magical” experience for the customer. Lastly, Millennial stands for the $64

billion buying power of the Millennial, which is Macy’s prime target market. This encompasses

college age consumers, ages 13-31 who covers an array of different areas. The Millennial is in

college, starting their careers, getting married, and having children; therefore, there has to be a

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lot of different options to cover all of these types of consumers. I benefited most from the

information that Danica gave regarding Macy’s business strategies and their target market. I did

learn a good deal about the company and how they desire to be viewed from the millennial point

of view. I also learned that the Macy’s Harold’s square location is the largest department store in

the world, which is impressive.

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Oscar de la Renta Analysis

Oscar de la Renta offered seven panel speakers for our agenda. Melissa-Lefere-Cobb,

SVP Merchandising and Sales, Robert Kogan, the VP International Sales, Erika Bearman, SVP

communication, Elkin Nance, Director, E-Commerce, Daniel, Lawler, VP Footwear Design,

Taylor Cantrell, Sales and Merchandising Assistant and Claudine Jorgensen, the VP Human

Resources. Melissa was the founder of the Merchandising department and has worked for Oscar

for ten years. She built and sold look books and focused on combining data to form the program.

Classification Recap consists of 150 styles, what the sell through was, what sold at market and

requires constant analyzing to stay on top of emerging trends and sales. A good price point for

day dresses at Oscar de la Renta is $2000 and a sweet spot for jewelry is $595. The aspects of

Sales analysis require extensive retail math, formulas for price points, cost sheets, design teams,

relationships with designer, and maintaining a bridge between designer and sales. In addition, the

marketing team identifies what is important for the particular season and makes appearances on

social media sites. Oscar de la Renta works on three seasons at a time. They just finished the

Resort collection for 2015, which will ship in October. Pre-fall and fall are currently shipping.

Melissa explained that communication and networking between brands is essential in the fashion

industry. For example, Harvey Sanders, the CEO of Nautica helped assist her in job placement.

She mentioned we should be utilizing LinkedIn, networks, and groups from school to take every

opportunity to get in touch with people from the fashion industry. Erika Bearman started the blog

for Oscar called Oscar’s PR girl. This provides insight on the company and events that take place

within the industry. Many members from the panel shared with us that working harder, longer,

and smarter than the other employees will get you noticed and set you apart from others.

Claudine mentioned that she prefers hand-written notes to say thank you because it takes extra

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effort to send it in the mail. She also said it is important to have strong written and oral

communication skills because it can be one of the first indicators of your character and skill set.

They put emphasis on being familiar with the arts, designers, trends, collections, influences, and

architecture. The most beneficial aspect of this meeting was to see inside a luxury retailer and be

able to communicate with executives on their daily business tasks. They had a lot of good

information regarding interviewing for positions in the fashion industry and how to stand out

from the other applicants.

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Ralph Lauren Analysis

This appointment was a little bit different from the others because it required a personal

perspective and tour of the store as opposed to a sit down meeting of the company and brand.

However, Ralph Lauren has a prominent brand with a strong brand image that resonates

throughout the stores. There are many types of men that could relate to this store because there

were four levels depicting different collections. The atmosphere when I walked into the store

was rustic, parlor like. It felt as though a group of men were going to walk in with a cigar and a

glass of scotch, sit down on the couches and start talking about the events of the golf course.

There were old painted pictures of men and dogs on the walls and above the staircase. The

staircase was a replica of an old staircase in London. There was cologne sprayed in each level to

further that elegant and manly vibe. The sales associates were dressed differently on each floor,

representative of the floor that they were on. The whole mansion had a homey feel to it with

strategically placed trunks and books to make it feel like you are in someone’s home. There was

a rustic wood floor and carpet in areas that were representative of a den. There was an elevator to

take you to whatever floor you wanted to go to. The elevator also had an attendant that was able

to assist you with anything you might need. There were fresh flowers on all of the tables and

made the atmosphere that much more elegant. The first floor consisted of timepieces, fragrances,

and footwear. The second floor housed the most prestigious collection, the Purple Label. This

label had clothing and furniture that represented extreme wealth. The third floor consisted of

Polo by Ralph Lauren, which is all of the bright colored polo’s and pants as well as accessories.

The fourth floor housed the Black Label, which is business attire, suits, and expensive denim and

accessories. The different floors each represented a different lifestyle and they did a fantastic job

representing them on the specific floors. I benefited most from actually seeing the visual

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merchandising and actual merchandise of the Ralph Lauren brand. They did such a wonderful

job representing the different types of customers with the furniture props used on each floor. This

flagship location was Ralph Lauren branded perfectly.

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Individual Store Analysis

Unique Retail Concept

I would classy my trip to the M&M store an experience rather than a retail location. As

soon as you walk into the doors, which are floor to ceiling glass, you encounter a giant, rotating

blue Elvis m&m. I was personally not expecting the overall extravagance of the store. The walls

were covered in merchandise that ranged from small baby outfits to adult T-shirts. The first floor

was covered in merchandise and had different sections that allowed for easy navigation. The

most noticeable and eye catching display was the wall of m&m’s. I have never seen anything

like this display before. There were tubes of m&m’s that started on the third floor of the store

and went directly down to the first floor. Each of the tubes was completely filled with different

varieties of m&m’s. To make it more interesting, there were different mixes that filled each tube

that you would not be able to find in other retail stores. If you wanted to purchase a mix, an

attendant would give you a plastic bag and you would press down on the lever of the tube and it

would fill up the bag. The cost of your bag is dependent on how many pounds that you want to

purchase. Another unique aspect of the M&M store was the personalization of the products to

match New York. For example, I saw figurines that looked like the Statue of Liberty that were

filled with m&m’s. I noticed a portion of the ceiling was painted with Times Square. There was a

lot of merchandise that said New York City on it. I also found it interesting that the merchandise

was positioned a lot lower than normal retail locations. I believe the idea was to influence

children to grab merchandise, which would lead their parents to buy it for them. However, I also

feel like this could be a potential problem with theft, simply because the store is so busy and

there is multiple levels. While we were checking out the sales associate told us we had to take a

bag because they wanted to make sure that we were not stopped for shoplifting. I think that is

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one of the guidelines that they follow to reduce theft. The lighting in the store was mainly track

lighting that light up merchandise. There were so many displays in the store and it made it a little

difficult to move around easily. The store was so busy that it was a struggle to have any room to

shop at all. There were multiple escalators that allowed customers to move between floors easily.

It was also an open concept, so you could see the merchandise below as you went up the

escalators. This was a unique experience and allowed you to see more easily just how big the

store was. The merchandise was also categorized by color, which made it easy for customers to

find the color they liked and shop in that section. There was hundreds of merchandise bins with

different assortments of merchandise in them. These bins usually lined the glass wall that runs

throughout the store. This store is somewhere that you can take the whole family and they will

all be able to find something they like. You can find shirts, coffee mugs, costumes, bags, and

candy; everyone likes candy.

I find that the M&M store is more of a destination location and I feel it would be

beneficial to place one in the Vista Ridge Mall in Lewisville. This mall has been struggling for

years and a destination location like this could completely turn this mall around. The digital

graphics and marketing that is implemented in the New York location could be instrumental in

launching this mall into a new era. For years, Vista Ridge has been behind the times and does not

appear to be catching up anytime soon; this store could revolutionize the way that customers

view this mall altogether. Even if the mall implemented small changes such as rotating displays

or interesting and modern light displays on the merchandise, this could really improve the

appearance of the merchandise to the eye of the consumer. It would be huge to be able to

implement a two-floor retail space. That would make this retailer one of a kind and would

definitely set this mall apart from other retailers. I know the Galleria has several two-story

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retailers, but implementing it in a mall that is further away from Dallas could bring a better

reputation to this specific mall. This would also be a good strategy because the foot traffic at

malls are constantly decreasing, so building a destination store would help additional stores in

the mall as well.

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References

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• Time Out New York (2011, February 25). Zara | 101 Fifth Ave | Shops | Time Out New

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• Yennetta, T. (2012, March 14). Zara's Gigantic Fifth Avenue Flagship Opens Tomorrow

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