Case Study - From Department Store to Multispecialist Retailer copy

global brand vision home retail experts

GBV

FROM DEPARTMENT STORE TO MULTICHANNEL RETAILER

A MAKEOVER CASE STUDY

GBV WHO WE ARE

We are a Retail Consulting firm specialising in assisting home retailers to

better, change, or create their new or existing business.

All our consultants have worked in leading retail businesses like Crate & Barrel, Anthropology, Zara Home,

etc. before joining us.

We like to call ourselves “home retail experts for rent”

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GBV CLIENT BACKGROUND

Client is a regional player operating in 4 South American markets.

Information based on 2011 figures.

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STARTING POINT

Client’s Home department had been under-preforming all other departments for many years and was

unprofitable.

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KEY REASONS

Competitive Landscape

Consumer Expectations

Specific nature of Home Retail

• Other department stores had same offer• Discounter’s success at entry price level• Arrival of home retail specialists• Maturing market

• Demand for Emotional Shopping Experience• Demand for better Quality & Service• Time and Convenience Constraints• Increases in disposable income

• Not enough understanding of specific home retail

• Confused product offer including “house” brands

• Treating home like apparel, client was unable to take advantage of the upside potential as market leader

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Competitive Landscape

PriceHighLow

High

Ass

ort

ment

Dep

th/W

idth

Falabella

RipleyParis

Casa&Ideas

All retailers were fighting for the same piece of the pie – our client’s offer did not offer sufficient choice, and was missing out on the more affluent market (where little competition existed)

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Consumer ExpectationsConsumer ratings of Client were far below best-in-class competitors

• Under-invest-ment in

• stores/fixtures• No VM Stan-

dards/Practices

• No dedicated Home VM at store level

• Communication between Buying/Operations

• No clear defini-tion of buying/planning

• Unclear chan-nels ofcommand

• Too much individuality ratherthan structure

• Outdated structure with unclear responsibilities

• No home spe-cific training and development

• No dedicated VM

teams for home• High staff

turnover

• Product quality ofsupermarket level with occasional sprinkle of ex-pensive product

• Supply chain component

• In-house design teams replicat-ing same stories every season

• Buyers not in control of new product

• 100% seasonal-ity in assortment

• Focus on entry price rather than choice

• Confused per-ception that many skus = variety

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Specific Nature of Home Business

• In apparel, the image and brand are protagonists. In Home, the product is the hero, followed by presentation and execution

• In home, brands work well in some categories, but are mainly related to• Bridal registry/wedding list• Promotions• Technical or specialist product (ex. electricals, mattresses, pots & pans, chef knifes, etc.

In all these instances though, we talk about manufacturing and designer brands.

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IN OTHER WORDS…

“If you do not change direction, you may end up where you are heading.” Lao Tzu

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Creating a Specialty Retailer in Home

ASSORTMENT/BUYING

ORGANISATION

STORE DESIGN

OPERATIONSVISUALMERCHANDISING

BRANDING

Flagships Stores

B-Stores

3 Countries

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1- ASSORTMENT/ORGANISATION

CREATING A NEW SHOPPING EXPERIENCE

CR

EATIV

E

Private Label Product Designs or Product ExclusivitiesMore Depth and Width in Product Choices

POS-friendly Private Label Packaging De-sign

External Designers for fresh Design ap-proach

Introduce Client to New Vendors

Goals:

• Increase Cus-tomer Experience

• Increase Sales• Better Gross

Margin• Love and Pas-

sion for Home

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1-ASSORTMENT/ORGANISATION

METH

OD

OLO

GY &

OR

GA

NIS

ATIO

N

Increase Materials, Styles, Pricing Offer

Create New SKU Hierarchy and eliminate Duplication

Define Core-Seasonal

Define Style and Price Mix, Win-Play-Show

More Sourcing Countries & New Buying Agents

New Job Profiles for Buying and Planning

Create a Sandbox/Showroom for Product Review

Goals:

• More efficient Organisation

• More Motivation• More Clarity and

Transparency• Sustainability of

Change


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KITCHENWARE - COOKWARE

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KITCHENWARE – TEA & COFFEE

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KITCHENWARE - STORY

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TABLETOP DINING

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TABLETOP DINING

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TABLETOP GLASS

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TABLETOP FLATWARE

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BATHROOM TEXTILES

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BATHROOM ACCESSORIES

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BEDDING

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HOME ACCESSORIES/GIFTS

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HOME ACCESSORIES/GIFTS

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FURNITURE - DINING

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FURNITURE - LIVING

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2- STOREDESIGN

CR

EATIV

E

Work with Architect on New “Lifestyle” conceptCreate Block Plan according to New As-sortment

Create Micro Layouts

Design Specialty and other Fixtures

Goals:

• Create a warm andwelcoming store environment

• Increase Sales


There is yes, no, and Wow - Wow is the one to aim for”. Milton Glaser

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STORE DESIGN

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STORE DESIGN

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BRIDAL REGISTRY AREAGBV

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RUG PRESENTATIONGBV

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CHECK-OUT COUNTERSGBV

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3- VISUALMERCHANDISING


CR

EATIV

E

Conceptual Direction of Visual Merchandis-ing

Goals:

• Create a warm andwelcoming store environment

• Increase Sales

Implementation of Visual Merchandising

Creative Direction of Visual Merchandising

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3- VISUALMERCHANDISING


Goals:

• Create inspiring environment with

creative use of product to max-imise salesM

ETH

OD

OLO

GY &

OR

GA

NIS

A-

TIO

N

Visual Merchandising Organisation

VM Job Descriptions

Visual Merchandising Design Manuals

Store Routines and Review Processes

Sku Police

Support New Store Setup

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TELLING STORIES THAT INSPIREGBV

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TELLING STORIES THAT INSPIREGBV

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TELL STORIES THAT INSPIREGBV

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GIVE EACH PRODUCT A HOMEGBV

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GIVE EACH PRODUCT A HOMEGBV

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BECOME A BRIDE’S BEST FRIENDGBV

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BE FESTIVEGBV

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4- OPERATIONS/SUPPLY CHAIN


Goals:

• Improve staff proficiency

• Createenvironment wherepeople can thrive

• Increase Cus-tomerSatisfaction

METH

OD

OLO

GY &

OR

GA

NIS

A-

TIO

N

Vendor & Agent Compliance Standard ManualFurniture Home Delivery Process

New Staffing Concept and Review Process

Review of Customer Service PoliciesOperations Manual and Staff Training Pro-gramme

Sales Aides

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5- BRANDING


CR

EATIV

E

An Own Name for Home Department

New Catalogues

New Product Benefit Signage

New In-Store Navigation Signage

New POS Material & Private Label Packag-ing Concept

Goals:

• Increase Cus-tomer Experience

• Increase Sales• Better Gross

Margin

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LOGO FOR HOME DEPARTMENT

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CATALOGUE

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STORE – NAVIGATION SIGNAGE

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STORE - PRODUCT BENEFIT SIGNAGE

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PRIVATE LABEL PACKAGING

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POS MATERIALS

GBV RESULT

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Customers Happy Client and Staff Happy

GBV FEEDBACK

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“This has been the most successful project in our company in the 15 years I’ve worked here.”

“Our Home Department has become a specialty business. Other departments willfollow the same direction”

global brand vision home retail experts

GBV

[email protected]

www.globalbrandvision.com

THANK YOU !

Case Study - From Department Store to Multispecialist Retailer copy

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