Reviewing Shopko's New Format

My hometown Lincoln, Neb., Shopko underwent its extreme makeover several months ago, but until I read Marianne Wilson's and Connie Gentry's coverage of the discounter's new store concept in the May 2008 issue of Chain Store Age (due out May 1st), I hadn't yet made it a point to see the new look for myself.

Although the first of the new concepts debuted in Suamico, Wis., near the chain's home base of Green Bay, Lincoln was an early recipient of Shopko's upgraded appearance. With my 17-year-old daughter in tow, I drove the two miles to the store on Tuesday to compare the CEO's description of the makeover (see "Shopko's Strategy for Growth," page 22, and "Shopko's New Format Shows Feminine Touch," page 156, in the May issue) to what was unveiled in Lincoln.

My first impression, of course, was the new Shopko logo, a feminized and dramatic departure from the former red and blue iteration. I had, of course, seen the new bronze logo on the storefront, but hadn't ventured beyond to see the interior follow-through. I was surprised at the size of the optical department and the pharmacy, both up front and each an upscaled version of what you'd expect to see. The apparel departments filled the interior core of the store, framed by a series of functional, yet aesthetically pleasing, endcap fixtures holding a varied assortment of accessories. The book department was dramatically expanded, so much so that my daughter was moved to make a book purchase. I gravitated toward the expanded patio shop, pleasantly surprised at the merchandising plan and depth of product.

My daughter and I were most taken with the lifestyle graphics that lined every wall of the store. A mixture of product shots and people, the graphics were colorful, upscale, and accented by attractive crown molding ledges.

My biggest disappointment was the fitting-room arrangement. Instead of the prototype's promised four zoned fitting areas, the only one we found was in the women's department, which would force juniors and men and children to travel quite a distance to try on an apparel item. Definitely not ideal.

All in all, I was impressed with the changes in Shopko. As I paid for my daughter's book purchase and we exited the store, I asked her if she would return. "Probably not," she said. "It's definitely better than Wal-Mart, but I still prefer Target." That jives with how CEO Michael MacDonald describes his store, and his customer base. "Shopko merchandise offerings are more traditional [than Target's], whether it's fashion that you wear or for your home. It's going to be current, but not very, very forward ...," he told senior editor Connie Gentry. In other words, there are plenty of stalwart Nebraskans who are drawn toward Shopko's conservative discount merchandise. But my daughter and I likely aren't among them.

Impulse Buys Require In-Stock

Guaranteed, every woman reading this blog has faced the following scenario: On my lunch break, I dash to the local mall to grab a gift. Harold’s, a 43-store chain out of Dallas and a personal fave of mine, is having a store-wide sale. I zip in and nab two great shirts for the birthday boy—my father, turning 81.

Wow, great looking spring skirts and tops. Treat myself to an outfit instead of lunch nibbles? Why, that’s a win-win for the waistline no matter how you measure it. The skirt I like best is available in sizes 0, 2, 4 and 6…(maybe the 6 would work….) But no, the coordinating shirt is only available in L or XL. End result: Harold’s and my waistline both lose as I console myself at Moe’s.

Moral of the story: Retailers that don’t utilize store transfers to juggle sizes and keep sets in stock will lose all those impulse buys. Sure, I could have asked the sales associate to see if the shirt was available at another store, which she did quite efficiently on one of the items I was purchasing for my father. However, the nature of impulse buys is that, if it’s not in the store, by definition it can’t satisfy that spur-of-the-moment consumer whim.

Message to Harold’s: Guys you’re so close, push that POS inventory tool to the limit and bring those sets together—if not for me at your Raleigh, N.C. store, then for my friends in Atlanta, Nebraska or Texas.

—Connie Gentry

Here’s the Hype—Not So “Venti Big”

“We’re doing something big at Starbucks. Like Venti big. We can’t tell you what’s going to happen because that will ruin the surprise. Come to any Starbucks on April 8, at noon sharp, to celebrate something big.”

Ok, I admit it. When I got this e-mail, I was instantly drawn into the hype. And I shared it with friends.

On Monday, April 7, my colleagues Samantha Murphy and Barbara Hagan, and I debated what the “big” announcement would be. “Maybe they will announce that they will offer free wireless,” I suggested.

“Nah, they would tell you to bring a laptop or wireless device. I think they are introducing their self-service coffee machines,” predicted Samantha. (We had just posted this very story on our Web site that morning.)
“We’ll find out tomorrow,” I added.

As we each made our way to three separate Starbucks locations on the appointed day at noon, we learned the big news—the company introduced a new daily brew. This new brew, called Pike Place Roast was named after the first Starbucks store that opened in 1971. It was located in Pike Place, Seattle (home of the famed Pike Place Market).

Truth be told, the entire experience was really a let down—big time. While visiting the Starbucks on Park Avenue in Rockville Centre, N.Y., I was one of four customers on line at noon. The gal in front of me ordered a latte, and only then did the barista ask if she would like to try a “Short cup” (8 oz.) of the new brew for free. She said, “Sure.” Then it hit the barrista to ask the rest of us if we wanted to try one too. Hey, that’s why I was there, right?

After paying for my Grande non-fat, iced cafe mocha (yes, I made a purchase), I also got my Pike Place Roast, as well as a “loyalty card” entitling me and a friend to a free Tall Pike Place every Wednesday from now until May 28.

Sam’s experience had even less customer service. Visiting the East 57th Street location in New York City, “I was surprised by how little fan-fare there was,” she told me.

They too were giving out free samples, although she had to ask about the promotion. Worse, they had her stand off to the side with about five others, all waiting for someone to bring them their Short cup of Joe. After seven minutes—yes, seven—she was served. She received no loyalty promotion.

And poor Barbara, who visited the location on 56th Street and Lexington Avenue, New York City, had the worst experience. There was no signage or indication of a “big announcement.” Being the only one in the store, she was too embarrassed to ask about the promotion and left.

On a high note, the blend was pretty good. It was similar in taste to espresso, which I am partial to. Yet, I still question the effectiveness of this promotion. The e-mail did its job. It caught my attention and brought us all into the stores.

However, with little to no signage or cross-selling efforts, how effective could the overall promotion have possibly been? I have no idea how Starbucks will measure the effectiveness of this campaign, and I would love to know how many customers will become fans of the new roast.

While we may never learn the true results of the promotion, the experience did teach us all one big lesson—don’t believe the hype.

—Deena M. Amato-McCoy