Concept development and experimentationEFPI3001Samantha Hedger0801818

PROPOSALOver the past 12 months BHS have closed the doors

to ten of their stores, making way for the cheaper

retail chain Primark. Speculation of a further 260

store closures across the Arcadia Group proves

the ideal time to rethink and rework the existing

stores.

I propose a shake up in the Visual Merchandising of

BHS. From my research, experience and findings I

shall conduct a marketing proposal to be presented

to the company.

Researching the UK and Worldwide retail market is

essential when implementing changes to BHS. My research

satisfies these criteria. By initially looking at

direct competitors such as Marks and Spencer and

Next I can locate the differentials within these

high street brands. Exploring the rest of the retail

sector and analysing the ‘state’ of the British high

street as well as online-spending helped to identify

consumer attitudes.

Images from BHS AW11 Press Campaign 3

Competitors

Marks and Spencer is BHS’s number

one competitor, not just on the

financial sector (M&S has a larger

market share) but also on a personal

level to BHS and Arcadia group CEO,

Sir Philip Green. With two failed

attempts to purchase M&S, Green has

now made it his mission to better

the brand. Both BHS and M&S are

classed as department stores, as

they provide a range of in-house

brands; however M&S has re-invented

itself with huge success over the

past decade. Something BHS has so

far failed to do.

Take their most recent advertising

campaigns ‘Only at your M&S’ this

slogan emphasises exclusivity,

something many middle class consumers

were quick to pick up on since the

recession hit in the second quarter

of 2008. As wallets tightened,

many people turned to affordable

luxury, rather than from the luxury

sector itself. For M&S to identify

these trends, their food sales in

particular has maintained a steady

growth over the past few years.

Since coming out of the recession,

consumers have kept brand loyal to

M&S after realising they can get

great quality for lower prices.Image from M&S AW11 Press Campaign

Next , a close competitor to

BHS, has the same audience and

demographics however it’s coherent

website, catalogue and stores are

key to their consumer. Their AW11

advertising campaign features 7

women synchronised dancing at

landmarks in London; the message:

‘NEXT has the ultimate fashion look

... fashion is all about great timing

– the science of getting what you

want when you want it. And NEXT’s

timing is impeccable. You can shop

online at next.co.uk right up until

9 at night – and still have all your

lovely things delivered to your door

the very next day!’

Next’s move to online was easier than

others, with Next directory their

mail order service being around

for over a decade consumers were

accustomed to shopping via images

rather than having the product

directly in front of them.

Departmental stores such as John

Lewis and Debenhams are also key

competitors to BHS however they

offer concessions from outside

their in-store brands, which for my

research places them in a different

sector. In store beauty brands such

as Chanel and Yves Saint Laurent as

well as luxury designer clothing

is something BHS can’t compete

with. Although researching them was

important as they stock concessions

of Arcadia brands, such as Dorothy

Perkins, Topshop and Topman.

BHS also stock concessions from

their sister brands, however they

are not coherent with the rest

ot the store- they are laid out

differently and offer products that

appeal to a different consumer base

to the rest of the store.

HAVEBHSLOSTTHEIRBRANDIMAGE?

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One thing to consider is that BHS

has a very mixed brand image, their

concessions are in-keeping with

the stand alone stores, both with

layout, and signage. However, they

offer a smaller collection, mainly

basic items such as t-shirts and

cardigans. This layout is noticable

when browsing BHS stores, the

concessions are neat, spacious

and easily navigated. The in-store

brands are cluttered and squeezed

into the space available.

M&S processed 13,000 orders in the

first 6 months of launching their

m-commerce site. This way of spending

was slow to start however recently

New Look, Mulberry, Zara and French

Connection have launched shopping

apps suitable for mobile.

The newest way of spending is via

facebook. With more than 600 million

users, facebook is the worlds most

poplar website.

With F-commerce, the integration

of user reviews and their

recommendations revolutionised the

world of shopping. Being able to

‘like’, comment and share has a

major effect on purchases.

US designer Rachel Roy launched

a pop-up store in facebook last

year, offering a limited edition

collaboration with artist Estelle.

The collection sold out within 6

hours, and Roys consumer base

increased by 50% on the first day,

100% by the end of the campaign. The

facebook page aquired 1 fan every

1.5 seconds.

ONLINEExploring different ways to spend

was essential to my research.

Online shopping has had a huge

impact on consumer spending habits,

especially in the past 5-6 years

with auction sites such as Amazon

and Ebay becoming increasingly

popular. Comparison websites offer

a launch pad for consumers, being

able to identify the best deals

online. Online stores such as

Asos, Missguided and Net-a-porter

are hugely popular. E(lectronic)-

commerce is the most popular way

to shop via the internet however

m(obile)-commerce via your smart

phone and f(acebook)-commerce via

the social networking site are the

most recent platforms for consumers

to spend 24/7. For shops to increase

sales and revenue they must be savvy

and incoroporate these platforms

into the brand.

Next was the first retail store to

identify the peak time for internet

usage is around 7-8pm. Offering next

day delivery when ordering by 9pm

they have tapped into a huge market.

This was originally trialed in the

Christmas period 2010, however they

extended it due to sucCess and

demand. Stores such as Asos and

Oasis offer a 90 minuite click-to-

deliver service if you live within

the M25.

Above shows online shoppers’ annual

spend per head. It is predicted to

double in the next couple of years

from that in 2005. Brands must tap

into this market to maximise sales,

potentially offering all 3 online

platforms (e/m/f-commerce) as well

as apps for tablets such as the

IPad. Buying clothes online peaks

among the 25-34’s. This market has

a disposable income and are entering

the family lifestyle. BHS can appeal

to this market.

Source: Verdict 2010

I’d like to see a wide range of sizes and fittings in store

If shops don’t have the item I want in my size/colour I just go to a different store

I’d like to see better stock avalability in-store

I’d like to see more personal service/advice from in-store staff

I don’t like the atmosphere in a lot of clothing shops

I like the ordering service for out-of-stock items that some stores offer

If shops don’t have the item I want in my size/colour I order from their website instead

It’s more relaxing to shop online than in-store

I like the privacy of shopping online and trying on at home

I shop online to find specific brands or items not available in stores near me

I shop online because I’m more likely to find my size

You get much better fashion advice and tips online than in-store

Base: 1,403 adults aged 15+ who have bought clothes in the last 12 months and use the internet

Source: Ipsos Mori/Mintel

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10 11

To firstly understand the high

street it was essential to explore

the previous examples of spending.

The British high street is in

decline, one in eight shops now

standing empty. Half of UK town

centres now compete with five or

more supermarkets within a two

mile radius. Out of town shopping

centres offering free parking and a

shopping experience under one roof,

are driving people out of town. Shops

such as Woolworths, Waterstones and

Zavvi have closed their doors, with

HMV, Comet, Mothercare and Dixons

dramatically downsizing, the future

of the high street looks bleak.

Sales growth for high street stores

between 2005 and 2010 was a measly

1.5% in comparison to out of town’s

11.5%. The growth of non-store

(online and mail order) rose by a

phenomenal 71.5%.

ONLINE VS. HIGH STREET

But is all lost? M&S property

developer Clem Constantine quotes

‘the high street is and will

continue to be important in a

multichannel age. Eventually

this internet and the high

street will...start to merge,

and complement each other

more.’

Despite the popularity of shopping

online, 53% of consumers prefer to

return or exchange items in store

that they have bought online.

Taking the statistics into account I

decided to explore ‘brick and mortar’.

One trend in several high fashion

shops was apparent: the gallery. Shops

displayed products as if to look but

not touch, focusing mainly on customer

service, for you to be assisted with

your purchases.

Abercrombie and Fitch, Jack Wills,

Urban outfitters, and Superdry took

a completely different approach:

heritage. Shops had dark mood lighting,

with certain products and displays lit

up more than others. Memorabilia and

props were incorporated into the shop

layout, this included sewing machines,

stag heads, old fashioned pictures and

areas to sit and lounge.

These two store designs differentiated

completely, however they work well with

the product being sold. Department

stores John Lewis and Debenhams swayed

towards the heritage theme.

Certain concessions had fantastic

displays; this shoe boudoir in Debenhams,

Woking is a good example (right). It felt

luxurious, the lighting used highlighted

certain products and displays within

the concession. It was clean and easy

to navigate, the colour theme was gold,

black and white (minus the green signs,

it was a promotional day).

Image taken from Debenhams Woking: Nov 2011

Visual Merchandising

Their Principles concession also took on this trend, with pictures displaying previous coverage and ornate glass vases. The displays were colour co-ordinated to the current stock on sale, which worked well, a small display (see centre of image) highlights background information of the brand.Image taken from Debenhams Woking: Nov 2011

RATIONALEIn a questionnaire I conducted, 39.1% of people said they felt

BHS stores were outdated, only 17.4% felt it was a good/average

store. When asked would you consider shopping in BHS if they

offered ranges similar to sister brands Topshop and Dorothy

Perkins only 4.3% said no. Other answers ranged from yes, if

the price was right, if the brand updated their image and would

most definitely consider it.

On a personal level, having worked as a retail assistant at the

Horsham branch of BHS, and having had the opportunity to work

at Arcadia Headquarters (BHS press room, BHS AW11 press show

and a BHS wedding event) has benefited this project proposal

substantially. Having this prospective on the business, rather

than evaluating it just from the outside will make it more

viable and likely to be seen.

Having said that evaluating it as a consumer was essential to

experimentation. Visits to several BHS branches were essential.

Opposite are the results to a question taken from my

questionnaire.

Convenience, 35%

Speed, 30%

Available Sizes, 35%

Customer Services, 15%

Recommendations, 15%

Quality, 50%

Price, 55%

Convenience, 57.90%

Speed, 36.80%

Available Sizes, 57.90% Customer Services, 0%

Recommendations, 15.80%

Quality, 10.50%

Price, 78.90%

When shopping Online and In-store what do you look for?

Inner ring - In-store

Outer Ring - Online

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This is an image from BHS Brighton the last week of November 2011.

The deals on display are fantastic, however it is too cramped and overpowering.

Online editor for What?! Magazine, David Mahoney quotes ‘the futures bright...the futures not orange (red, pink or purple)’.

Image taken from BHS Brighton: Nov 2011

What’s shocking is these AW11 press images (below) have a completely different outlook. The crisp simplicity of them is hard to relate to the in-store merchandising.

Images from BHS AW11 Press Campaign

OUTCOMETaking into account the factors discussed previously, I will create a marketing pitch to be shown to the VM at BHS. Looking at the in-store experience, taking examples from competitors, online experiences, in-store findings, questionnaires and focus groups. It will be a sales pitch, tactfully written to highlight points that need addressing rather than a marketing report. It will clearly present a different concept on each page.

It will include the following:

• Shopfront:howtoutiliseshopwindowsgivingexamples from competitor’s displays. At the moment BHS use mainly posters to advertise product, rather than the product itself.• Visualmerchandising:correctlydisplayingproductto compel consumer’s imagination and encouraging them to buy. Examples of department store displays will be used.• Storelayout:assessingthewayconsumersarenavigated through store, with the use of signs and displays.• Lightingandheating:21.7%ofpeopleinmy questionnaire said this was a significant factor to consider when shopping in store.• Productonoffer:discussingwhethertheyproduct display is maximising sales potential.• Promotions:promotionsandofferswithclear signs and displays, during different periods of the month, rather than too many at once. My findings from supermarkets will satisfy an example.• Pointofsale:analysingconsumerexperience,goodPOS is essential as it is the last memory a consumer has when leaving the store.• Customerservice:providingexcellentservice,after sales care and discretion when returning product is something many consumers are now ‘hot’ on.• Coherentwebsiteandstore:makingtransactionswith both the store and online should be seamless, with delivery, returns and enquiries.• Customerexperiences:Offeringbrafitting,personalshopper and ‘try before you buy’ on perishable goods such as sweets and alcohol.

Essentially by creating this pitch I hope to present and work with BHS on a live project. However, if I am unable to do this I shall create a mock project. This will include a campaign using findings from my pitch. In this will be: press releases, my vision for a shop (using photography and illustration), a mock floor plan of an existing BHS, promotional advertisement via social media platforms, promotion via in store discounts, store advertisement near location, regional press coverage.

Image taken from BHS Camberly: Nov 2011

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