
February 2010
Stores, Stores, and More Stores!
I am always on the lookout for interesting new stores and great
retail stories. Well this month I have two new stores to tell
you about.
THE NEW MICROSOFT STORE
In the September 2009 issue of this newsletter, I reported
briefly on the new Microsoft store that had just opened here in
Southern California. Recently I got the chance to visit the
store and spend some time looking at the design and trying out
the merchandise. My first impression back in September was that
it was Microsoft's version of an Apple store and that still
holds true.
There are similarities but also some interesting differences.
The obvious difference is the merchandise, which includes PCs,
Xboxes, Windows-based phones, and a large selection of both
Microsoft software as well as third-party software.
To be completely fair I must admit I am an Apple customer and
have bought a number of Mac laptops over the years along with an
even greater number of iPods and accessories. With that said, I
am not a Microsoft hater like some of my Apple brethren. I use
Microsoft Office, although I do swear at it occasionally. But in
the end, I will forever be biased toward Apple products.
Among the similarities between the two stores is the Microsoft
Answers Bar, their version of Apple's Genius Bar. One
difference in their approach to providing expert advice appears
to be that Microsoft charges for most of the services available
at the Answers Bar. These services range in price from $49 for a
Performance Tune-Up to $99 for Advanced Software Repair. Yes,
Apple charges for some of its services, too, but I have found that
most of the services provided are included with the purchase
of an Apple product.
The basic merchandise displays and store layouts of both the
Microsoft store and Apple stores are very similar. I was
disappointed that Microsoft didn't create a revolutionary store
layout and merchandising approach. Being in the innovation
business, it would seem logical for them to do
something innovative with the store. A couple of things do improve on
Apple's store design. For example, Apple displays large back-lit
graphics on the walls of its stores. The graphics wall in the
Microsoft store displays video and constantly changing still
photographs. These large graphic displays create a more
interesting look to the store.
Another difference is small but important. Both stores
display a good portion of their merchandise on simple tables,
but Microsoft places stools in front of each computer and other
electronic items. Unfortunately, Apple provides few places for
customers to sit down.
The store was quite busy at noon on the Wednesday I visited,
which may or may not be an accurate reflection on how well
Microsoft is doing in the retail business. We'll have to wait and see.
A GIANT NEW FOREVER 21 STORE!
As we've seen in the last few years, dozens of former department
store locations around the country have been closed and left
empty. Sometimes these large buildings have been split into
smaller spaces and leased to several retailers. In the last few
months apparel retailer Forever 21 has begun to lease and
remodel several former Mervyn's locations.
This past week I had the opportunity to visit the newly opened
Forever 21 in Cerritos, California. It took over the abandoned
Mervyn's, which had been one of the anchors in Cerritos Plaza,
located in an ethnically diverse area of southern Los Angeles
County.
If department store executives would like a lesson in how to
create a great shopping experience, they should visit this
store. It is spectacularly merchandised, beautifully laid out,
and employs more than enough sales associates to serve the
customers.
In many of my visits to department stores over the years, I have
always thought the practice of jamming as many four-ways and
other display racks as could possibly fit into the space was a
major detriment to a pleasant shopping experience. That is not
what has been done in this store. Sufficient space has been left
between displays to allow customers to comfortably walk around
and see all the merchandise. Two people can actually be looking
at merchandise and not bump into the racks or each other.
This store does not sell high-end, designer merchandise. All
the merchandise is moderately priced and generally focused on
younger consumers. In a large community with a substantial
population of middle- to lower-income consumers, this store offers
just the right selection of merchandise. While the trade media
sings the praises of the fast-fashion retailers that have come to
the U.S. from Europe in recent years, it would be foolish to
overlook Forever 21 and its approach to affordable fashion.
This is a terrific store for today's value-oriented customer. I
believe these new larger stores will prove to be a big hit.
NOTE: Click the photos to see larger versions.

2010 BLOOMBERG BUSINESS WEEK CUSTOMER SERVICE CHAMPS!
Once again some extraordinary retailers were big winners in this
annual ranking of customer service superstars. The number one
spot went to L.L. Bean as it continue to do things to create
legions of loyal customers through its catalogs, web site, and
stores. Apple was #3, Publix Super Markets #5, Nordstrom #6,
Barnes & Noble #9, Ace Hardware #10, Amazon #11, Wegmen's Food
Markets #12, Starbucks #13, Panera Bread #21, and True Value #22.
IS HAGGLING BACK IN STYLE?
With today's recessionary economy, a recent article in the St.
Louis Post-Dispatch caught my attention. The writer sites a
Consumer Reports study from last year that showed more than two
thirds of Americans tried to bargain for a lower price with most
getting what they wanted. In this article customers claimed to
be able to haggle at Macy's, Lowes, and several other stores.
I spent a good portion of my retail life selling merchandise at
prices that were negotiable. While it was often good for the
customer, putting the price of the merchandise in the hands of
salespeople was and continues to be a very poor way to do
business. Matching the price of a competitor works for
many retailers--anything more in the way of price reductions
should be left to management.
WELCOME TO OUR NEW SUBSCRIBERS!
Over the last several weeks I have been in front of a number of
audiences. Many of the retailers in these audiences signed up
for this newsletter. Among the audiences were jewelers who
belong to the Independent Jewelers Organization as well as
retailers attending the annual Photo Marketing Association
Convention. I'm delighted to have all of the new readers of this
newsletter.
If there are topics you would like to see addressed here or even
if you want to comment on something I have written, feel free to
call me at (800) 766-1908 or email me at
george@whalinonretail.com.
WWW.RETAILERBLOG.COM
If you aren't reading my blog already, I would like to invite
you to take a look. I regularly write short pieces about new
stores, trends, and retail happenings. Take a look. I think you
will find it interesting.
Until next month...

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