A tradition that spans three generations in my family took on a new dimension this season. Last weekend, as my children carefully unpacked and began to arrange the lighted Christmas village that my father made many years ago, I pulled up a chair—as I always do—and listened to their chatter.
My daughter, ever detail-oriented, used logic to plan where each piece should go. The stores, which include a grocery store, bakery, drug store and toy shop, occupy one area. The entertainment—ice-skating rink and restaurant—are nearby. The common area is beautifully landscaped, with a pond and bridge. Houses are connected by an elaborate sidewalk system.
Despite the fact that this was “decorating weekend” and I was barred from work by my family, I couldn’t help but mentally compare our tabletop village to today’s master-planned community. The miniaturized combination of residential, retail and entertainment create a dynamic neighborhood. The idea of “place-making,” so important to master-planned community developers, is clearly evident. The sidewalk links, the adjacencies, the aesthetics—all follow the master-planned model.
What this suggests to me is that planned communities aren’t rocket science (not that developers claim them to be), but are successful because they follow a natural plan. They are, simply, a carefully conceived reaction to what we’re all looking for in a community.
There is, however, a little bit of mischief-making in our village that wouldn’t be considered desirable in a real-life master-planned community. My son, probably feeling a little frustrated that his older sister was controlling the space planning, decided to add his own personal stamp to the township. One resident—a small boy rolling snow into a giant snowball—was moved from his traditional spot in the common area to a retail rooftop. Directly underneath, an elderly lady was positioned at the store’s entrance, frozen in time and forever (at least for this holiday season) the potential victim of a snowball on the head.
— Katherine Field
Thursday, November 30, 2006
Monday, November 27, 2006
Seasonal Road Signs
Black Friday and Cyber Monday aren’t the only barometers for holiday shopping trends. Add Transportation Thursday to your list—that’s Thursday as in Thanksgiving Day.
For the past nine years, my family has spent at least a portion of Thanksgiving Day in transit between afternoon and evening turkey dinners. It seems we can never unite everyone in one place for a single meal, and more often than not we find ourselves cruising Interstates 40 and 85. The trek to my parents’ home in Boone, N.C., takes us through Greensboro, with some of the most congested and convoluted crossroads in the state. The good thing about traveling mid-afternoon on Thanksgiving Day is that traffic is typically not as heavy and there have traditionally been very few tractor trailers, with the exception of flatbeds hauling Christmas trees out of the mountains. This year was notably different.
An hour into our trip as we approached Greensboro, I decided it was time to take an informal survey of what seemed to be a considerable increase in truck traffic. In the fifteen minutes it took us to travel from one side of the city to the other, I counted 29 tractor trailers—from transportation companies and retail fleets alike. I stopped counting, but commerce just kept on trucking past us. Contrast that to previous years, when we might see one or two trucks traveling the same stretch on Thanksgiving Day and it was obvious retailers are working overtime and going the extra mile to make sure inventories are in-stock for holiday shoppers.
It also underscores other trends in our industry such as the shortage of transportation resources, which forces the drivers and trucks that are available to work every possible day. Additionally, consumers clamoring for convenience and accustomed to 24/7 access to on-line retailers have led bricks-and-mortar stores to be open longer hours, in some cases nearing 24-hour operations including store openings on Thanksgiving Day. If the increased hours result in increased sales (obviously what retailers are hoping for), then an increased demand for replenishment naturally follows.
What I’m hoping for is a realistic assessment after the holidays. Tallying all the sales across the holiday season, was there enough of an increase to warrant the extra hours and the extra resources? What percentage of the total holiday sales actually occurred from Thanksgiving Day to Cyber Monday? How much did same-store sales increase from Thanksgiving weekend 2005 to 2006 in those stores that expanded their hours of operation? What about profits for that same period? Was the cost of operation easily covered by the increased sales?
Sometimes the price we pay is impossible to calculate. I couldn’t help but feel sad for the truck drivers and their families, and for trends that take us farther and farther from the traditions we are celebrating and shopping for in the first place.
— Connie Gentry
For the past nine years, my family has spent at least a portion of Thanksgiving Day in transit between afternoon and evening turkey dinners. It seems we can never unite everyone in one place for a single meal, and more often than not we find ourselves cruising Interstates 40 and 85. The trek to my parents’ home in Boone, N.C., takes us through Greensboro, with some of the most congested and convoluted crossroads in the state. The good thing about traveling mid-afternoon on Thanksgiving Day is that traffic is typically not as heavy and there have traditionally been very few tractor trailers, with the exception of flatbeds hauling Christmas trees out of the mountains. This year was notably different.
An hour into our trip as we approached Greensboro, I decided it was time to take an informal survey of what seemed to be a considerable increase in truck traffic. In the fifteen minutes it took us to travel from one side of the city to the other, I counted 29 tractor trailers—from transportation companies and retail fleets alike. I stopped counting, but commerce just kept on trucking past us. Contrast that to previous years, when we might see one or two trucks traveling the same stretch on Thanksgiving Day and it was obvious retailers are working overtime and going the extra mile to make sure inventories are in-stock for holiday shoppers.
It also underscores other trends in our industry such as the shortage of transportation resources, which forces the drivers and trucks that are available to work every possible day. Additionally, consumers clamoring for convenience and accustomed to 24/7 access to on-line retailers have led bricks-and-mortar stores to be open longer hours, in some cases nearing 24-hour operations including store openings on Thanksgiving Day. If the increased hours result in increased sales (obviously what retailers are hoping for), then an increased demand for replenishment naturally follows.
What I’m hoping for is a realistic assessment after the holidays. Tallying all the sales across the holiday season, was there enough of an increase to warrant the extra hours and the extra resources? What percentage of the total holiday sales actually occurred from Thanksgiving Day to Cyber Monday? How much did same-store sales increase from Thanksgiving weekend 2005 to 2006 in those stores that expanded their hours of operation? What about profits for that same period? Was the cost of operation easily covered by the increased sales?
Sometimes the price we pay is impossible to calculate. I couldn’t help but feel sad for the truck drivers and their families, and for trends that take us farther and farther from the traditions we are celebrating and shopping for in the first place.
— Connie Gentry
Wednesday, November 22, 2006
The Rebate’s in the Mail
It’s widely known in the rebate-coupon business that most coupons are not sent back for redemption and that even those customers who painstakingly fill out the required forms and wait weeks on end for their rebate checks oftentimes do not cash them in. Rebates have become a point of contention for many customers, who transfer the blame to retailers. So some retailers, including Best Buy, are getting rid of them despite their proven record of jacking up sales.Vendors, however, have not abandoned the rebate wagon. But they’re also not making it any easier for customers to cash in.
The other day my mailman left a rather innocuous-looking postcard that could easily be mistaken for junk mail. Indeed, I was about to chuck it when I realized the postcard was in fact a $20 rebate check! Rebate checks normally come in an envelope, with the name of the company prominently displayed. But this postcard had all the appearance of a come-on junk-mail piece. You know the type, the ones that promise you $20 if you agree to sign on for a product or service costing many times the value of the check. The company issuing the rebate printed its name in small letters.
I can’t say for sure why this unnamed vendor chose to send an open $20 check through the mail (all that was needed to cash it was a valid ID, something in this day and age of identity fraud is not too hard to come by), but I will surmise that the company was looking to minimize its cash distribution through the rebate program.
It’s going to take a little longer from now on to sort through my junk mail, now that I’m on to those sneaky marketing folks.
—Murray Forseter
Tuesday, November 21, 2006
Unique UNIQLO
It first started to make its way onto the pages of my morning newspaper and now it’s on my coffee cups. I’ve heard its buzz from chatter on the street and it’s most recently been the answer to, “Whereeee did you get that?”It’s UNIQLO. And it’s everywhere.
Since the popular Japanese apparel retailer recently opened its first global flagship and largest store on Broadway in Manhattan’s fashionable SoHo district, traces of its success—from shopping bags to sweater-adorned New Yorkers—have been seen all over town.
So it was time to see what the fuss was all about.
While moseying around the store, I noticed its exposed brick walls and large white columns, which emphasized the colorful and chic basics. The space also had the distinct raw feel of a warehouse. Cutting-edge architect Masamichi Katayama designed the 36,000-sq.-ft. retail location, aiming for simplicity while capturing the feel of modern Japanese retail experience.A glass display filled with revolving mannequins welcomes shoppers at the entrance. Vertical displays of 8,000 colorful and neatly folded cashmere sweaters are seen at the sides in repeating floor-to-ceiling grids. It’s obvious that organized is the name of this retailer’s game.
I began thumbing through some of its signature items from 100% Mongolian cashmere sweaters to fleeces and Japanese denim. The quality seemed like an unbelievable match for the prices. I slowly started piling things onto my free arm. This was my first UNIQLO experience. I never made it to either of the temporary stores already situated in Manhattan, one on the Upper West Side and the other at the plaza in Rockefeller Center.
Even though the retailer only has three permanent stores in the United States, all in New Jersey, the company is hardly a stranger to the retail industry. UNIQLO opened its first store in 1984 in Hiroshima and has since opened 760 locations worldwide. It’s also Japan’s first brand to go global.
The launch of the Broadway location in SoHo was so highly anticipated that the ribbon-cutting ceremony featured New York City Mayor Michael Bloomberg. And Food Network celebrity Iron Chef Masaharu Morimoto later served up fresh sushi from the kitchen. The store may still be shy of a two-week presence, but I immediately see how the word caught on so fast. With its sale associates more than willing to answer questions, complimented by the store’s easy layout, I could have been in and out if I wanted to.
But in this case, I didn’t want to.
Due to the success of the flagship store, the company has placed an array of newspaper ads announcing additional open-house recruitment events. And the ads don’t stop there. Singer Kelis and actress Lee Lee Sobieski are among the celebrities that have loaned their faces to the growing cult brand.With no signs of letting up, UNIQLO will sell over 100 different T-shirts designed by 40 top Japanese artists exclusively at the New York store during the fall/winter 2006 season before introducing the styles to worldwide locations in spring 2007.
UNIQLO may be everywhere in Manhattan, but I’m betting that soon enough it will be everywhere else.
— Samantha Murphy
Monday, November 20, 2006
Best Buy’s Best Practice?
Mastering multichannel is a priority for most retailers I’ve interviewed over the last year. But Best Buy—a multichannel master if there ever was one—may just have taken it too far, in my opinion.
In a new strategy in select markets—Lincoln, Neb., among them—the chain has set aside preferred parking places for on-line shoppers. Premium parking spaces, surpassed in front-door proximity only by the requisite handicapped slots, have been reserved for on-line customers who have specified in-store pickup.
A smart move, you say?
Consider this: On a busy—and rainy—Saturday, the Best Buy parking lot was full to bursting. The only available slots were located at the back of the lot—a daunting distance from the store. My son and I were forced to slosh through the rain, passing by two empty upfront spaces expressly reserved for on-line shoppers. Not only did I feel resentful that we were being denied use of convenient, and available, parking, but I seriously question the wisdom of giving on-line customers preferential treatment over their off-line counterparts.
After all, my son and I went to far more trouble to buy Best Buy’s products—driving across town in the elements as opposed to walking our fingers across the keys in the comfort of home. And we succumbed to several end-cap displays, adding soft drinks and other impulse items to our original purchase intent—something far more likely to happen in-store than on line.
I understand that Best Buy is attempting to thread its on-line presence to its bricks-and-mortar brand, as well as add another dimension to the Internet shopping experience. But to do that at the expense of the comfort and convenience of the off-line shopper is more than a little risky.
— Kataherine Field
In a new strategy in select markets—Lincoln, Neb., among them—the chain has set aside preferred parking places for on-line shoppers. Premium parking spaces, surpassed in front-door proximity only by the requisite handicapped slots, have been reserved for on-line customers who have specified in-store pickup.
A smart move, you say?
Consider this: On a busy—and rainy—Saturday, the Best Buy parking lot was full to bursting. The only available slots were located at the back of the lot—a daunting distance from the store. My son and I were forced to slosh through the rain, passing by two empty upfront spaces expressly reserved for on-line shoppers. Not only did I feel resentful that we were being denied use of convenient, and available, parking, but I seriously question the wisdom of giving on-line customers preferential treatment over their off-line counterparts.
After all, my son and I went to far more trouble to buy Best Buy’s products—driving across town in the elements as opposed to walking our fingers across the keys in the comfort of home. And we succumbed to several end-cap displays, adding soft drinks and other impulse items to our original purchase intent—something far more likely to happen in-store than on line.
I understand that Best Buy is attempting to thread its on-line presence to its bricks-and-mortar brand, as well as add another dimension to the Internet shopping experience. But to do that at the expense of the comfort and convenience of the off-line shopper is more than a little risky.
— Kataherine Field
Monday, November 13, 2006
The Big Toy Book Debate
Since having my daughter, Daniella, everything about Christmas is much more fun. This includes the decorating, the cooking, and especially picking out the gifts that “Santa” will leave her underneath the Christmas tree.
Like many parents, I try to get a jump on the latter task by October. My proactive game plan is often fueled by the annual Toys R Us marketing blitz that touts the chain’s “coveted” Big Toy Book—a catalog that features the holiday season’s top toy picks, as well as money saving deals and coupons.
Like clockwork, Toys R Us bombards American households with television ads the week prior to Halloween. This year, the catalog was delivered as an FSI in Sunday newspapers on October 29.
As the parent of a 2-and-a-half-year-old, Toys R Us has become a common retailer in my shopping repertoire. The chain, which has been tracking Daniella’s “maturity” since birth, regularly sends coupons for all of her baby and toddler needs. And thanks to Daniella’s enrollment in “Geoffrey’s Birthday Club,” each year she receives a birthday card, a “gift card,” and discounts on birthday party favors.
However, the one thing that the company doesn’t directly send our way is its Big Toy Book.
I understand that Toys R Us blankets the nation with their toy catalog in hopes of building holiday sales. And they also feature the catalog – sans some exclusive coupons – in their stores. However, I think they are missing the big picture.
The company makes the time to target me in when I am in the market to make birthday and everyday purchases. Yet, it stands to gain much more revenue from me during the holidays.
Between October and November I am in serious shopping mode. And my holiday shopping does not end with Daniella – I visit the store for gifts for my nieces, nephews and friends’ kids. And as my past holiday receipts prove, my shopping baskets are often filled with high-ticket items.
Clearly, the mass marketing approach is sure to bring in revenue. Although by failing to target holiday messages, I don’t think Toys R Us is taking the most effective—or lucrative—approach to building its holiday sales.
— Deena Amato-McCoy
Like many parents, I try to get a jump on the latter task by October. My proactive game plan is often fueled by the annual Toys R Us marketing blitz that touts the chain’s “coveted” Big Toy Book—a catalog that features the holiday season’s top toy picks, as well as money saving deals and coupons.
Like clockwork, Toys R Us bombards American households with television ads the week prior to Halloween. This year, the catalog was delivered as an FSI in Sunday newspapers on October 29.
As the parent of a 2-and-a-half-year-old, Toys R Us has become a common retailer in my shopping repertoire. The chain, which has been tracking Daniella’s “maturity” since birth, regularly sends coupons for all of her baby and toddler needs. And thanks to Daniella’s enrollment in “Geoffrey’s Birthday Club,” each year she receives a birthday card, a “gift card,” and discounts on birthday party favors.
However, the one thing that the company doesn’t directly send our way is its Big Toy Book.
I understand that Toys R Us blankets the nation with their toy catalog in hopes of building holiday sales. And they also feature the catalog – sans some exclusive coupons – in their stores. However, I think they are missing the big picture.
The company makes the time to target me in when I am in the market to make birthday and everyday purchases. Yet, it stands to gain much more revenue from me during the holidays.
Between October and November I am in serious shopping mode. And my holiday shopping does not end with Daniella – I visit the store for gifts for my nieces, nephews and friends’ kids. And as my past holiday receipts prove, my shopping baskets are often filled with high-ticket items.
Clearly, the mass marketing approach is sure to bring in revenue. Although by failing to target holiday messages, I don’t think Toys R Us is taking the most effective—or lucrative—approach to building its holiday sales.
— Deena Amato-McCoy
Friday, November 3, 2006
Wal-Mart Cracks Down On Tardiness
There’s a line from a Bruce Springsteen song that goes “One step up, two steps back.” In my mind, it could well serve as the play by play for Wal-Mart. The chain has been working mightily this past year to improve its image. But for every positive action or good deed, it seems to take two steps backward.
Sometimes it’s Wal-Mart’s own doing, as when it followed up the news of its improved health-care coverage with the news that it would stop offering traditional low-deductible health plans for new hires in favor of low-premium plans with much higher deductibles. Other times, it’s inadvertent, as when one of the consultants it hired to help polish its image was found to be the mastermind behind a controversial ad for a GOP senate candidate that some found to have racial overtones.
Wal-Mart took another step back, at least in my mind, this past week when news of its revisited attendance policy leaked out. The new rules hold Wal-Mart Stores’ hourly employees more accountable for excessive unexcused absences and formalize penalties for the same—being 10 minutes or later for work three times will earn an employee a demerit, and could eventually lead to termination. And while in the past, general bad weather would suffice as an authorized excuse, only natural disasters such as blizzards or hurricanes now qualify.
In addition, employees must now call an 800 number to report all absences and tardiness by an hour before their scheduled start time. They also have to call their manager with the confirmation code they received by calling the hot line. Previously, employees got permission directly from their store managers.
I understand that a company of Wal-Mart’s size needs to be strict about tardiness and to hold employees accountable. But I also think a company of its size needs to be flexible. There is precious little flexibility in Wal-Mart’s new policy. Under its old policy, Wal-Mart store managers approved absences on a case-by-case basis. The new policy is far more rigid and treats all employees the same. While I’m all for fairness, the fact is that employees are individuals and deserve to be treated as such.
As for the weather, I always considered it an act of nature beyond our control. Apparently, Wal-Mart doesn’t. My local Wal-Mart employs a good number of older workers, I wonder how they will fare once the bad weather hits when it comes to getting to work on time. People shouldn’t have to put themselves in danger (and believe me, even a few inches of snow can make for nasty driving) because they fear having it count against them on their record.
— Marianne Wilson
Sometimes it’s Wal-Mart’s own doing, as when it followed up the news of its improved health-care coverage with the news that it would stop offering traditional low-deductible health plans for new hires in favor of low-premium plans with much higher deductibles. Other times, it’s inadvertent, as when one of the consultants it hired to help polish its image was found to be the mastermind behind a controversial ad for a GOP senate candidate that some found to have racial overtones.
Wal-Mart took another step back, at least in my mind, this past week when news of its revisited attendance policy leaked out. The new rules hold Wal-Mart Stores’ hourly employees more accountable for excessive unexcused absences and formalize penalties for the same—being 10 minutes or later for work three times will earn an employee a demerit, and could eventually lead to termination. And while in the past, general bad weather would suffice as an authorized excuse, only natural disasters such as blizzards or hurricanes now qualify.
In addition, employees must now call an 800 number to report all absences and tardiness by an hour before their scheduled start time. They also have to call their manager with the confirmation code they received by calling the hot line. Previously, employees got permission directly from their store managers.
I understand that a company of Wal-Mart’s size needs to be strict about tardiness and to hold employees accountable. But I also think a company of its size needs to be flexible. There is precious little flexibility in Wal-Mart’s new policy. Under its old policy, Wal-Mart store managers approved absences on a case-by-case basis. The new policy is far more rigid and treats all employees the same. While I’m all for fairness, the fact is that employees are individuals and deserve to be treated as such.
As for the weather, I always considered it an act of nature beyond our control. Apparently, Wal-Mart doesn’t. My local Wal-Mart employs a good number of older workers, I wonder how they will fare once the bad weather hits when it comes to getting to work on time. People shouldn’t have to put themselves in danger (and believe me, even a few inches of snow can make for nasty driving) because they fear having it count against them on their record.
— Marianne Wilson
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