Specialty Insider Blog

The Goliaths are Coming, the Goliaths are Coming

2011-05-22T16:29:00.000-04:00

Specialty Insider contributing columnist Robin Lewis writes in the new issue about what changes at the biggest retailer in the business might mean for some of the smaller ones, the independent specialty stores:

After two years of declining domestic same store sales, Walmart is finally getting it. However, it might be too late. What they finally ‘got’ is a small-store strategy, that they now understand they must accelerate. But, it isn’t just about smallness.

The really big idea is what I rail about constantly. It’s really about preemptive distribution: If a retailer wants to win a consumer away from a competitor, it’s imperative that they provide the consumer with convenient and instantaneous access (including the physical store). They must get to the consumer first, faster and more often than the hundreds of equally compelling competitors.

But the big question for Walmart: Are they too late? Is bigness too ingrained in their strategic mind to be able to execute a small strategy? More importantly, do they really understand the necessity of a preemptive distribution strategy, which, along with small neighborhood stores, also includes a superior integration of all online and offline distribution platforms as well as the use of information and logistics technologies to ‘localize’ product mix (which is a must for small store success)?

Anyway, Walmart better put the pedal to the metal on its small store and preemptive distribution initiatives. If not, they risk preemption (no pun intended) by more of their competitors who are also getting it.

But Walmart is not the only big guy thinking small. Other big box retailers who have been in the pursuit of small: Home Depot launched its ‘lite’ urban store in the ‘90’s; Best Buy is opening 150 small Best Buy Mobile stores, focusing on smartphones; Staples is planning on accelerating the rollout of a 4,000-square-foot model; Target has a small suburban and urban neighborhood model; Office Depot is re-positioning itself with a 5,000-square-foot store and touting itself as a convenience retailer; and, of course CVS and Walgreen’s are now fighting for every corner of every block in America.

Also, as predicted in my co-authored book with Michael Dart, The New Rules of Retail, the major department stores will also launch small, off-mall, neighborhood stores, such as JC Penney did a few years ago and will likely accelerate as the recovery continues. Further, we predict the department stores will eventually rollout branded specialty chains such as INC, Arizona, Stafford and so forth.

For more on what it means for the independent specialty store, check out the new issue of Specialty Insider, available to subscribers, at major trade shows and online at specialtyinsider.com.

Power From the People

2011-05-15T19:07:00.000-04:00

Specialty Insider contributing columnist Emanuel Weintraub has some fascinating thoughts about the hidden value your company's employees hold.

Even though you may say your company has an open door policy, one question is almost always asked at most businesses: Why don’t your employees come in through that door and tell you what they are really thinking?

The answer is pretty simple: Because it takes courage to tell the boss why his concepts and policies aren’t working as well as they should be. In the telling, that person may be stepping on powerful toes. In this uncertain period of time they may not want to stick their necks out.

But the people in your company can help you more than you think. There are tools out there to help you unlock the power of your employees. Many companies offer such services, including ours, which we call our J.P.Q. (Job Profile Questionnaire) survey. These enable employees to “give it up” in a confidential way that never identifies individual responses.

The concept of these surveys is to provide your employees an opportunity to suggest ideas for improvement of the company without making you -- their boss – mad. This can be a delicate situation because, maybe, they are challenging long-held ideas, some of which are not serving the company well in terms of marketing, sales, cost control and profitability.

Our survey itself has been used by a wide variety of companies in the fashion business, including Wacoal, Triboro, Weatherproof, Oxford Industries, Jones Apparel Group, Gerber Childrenswear, Polo Jeans and Rashti, among others.

These surveys can address a number of different areas:
•Streamlining organization and reporting relationships
•Growing market share
•Elimination of non-value adding activities
•Software needs

Once the survey responses are in, the organization table as seen through the eyes of the employees can be charted. Mostly this shows up as different from the company organization chart and explains why key elements sometimes fall through the cracks. Sometimes we get unexpected side comments: Recently we heard about the need for a user-friendly merchandise calendar, as well as the use of webinars to cut the cost of travel.

Weintraub can be reached at Emanuel Weintraub Associates (Consult@emanuelweintraub.com), his consulting company specializing in business strategy, profit improvements, marketing, organizational analysis and other areas for companies in the apparel and fashion industries. Or check out the latest issue of Specialty Insider at major shows, to subscribers and at specialtyinsider.com

Mmm, Mmm, M-Commerce

2011-05-05T21:54:00.000-04:00

The demigods of technology have long warned of the demise of desktop computers and laptops. One day in the near future, they predicted, mobile devices would forever change our lives.

Well, that day has come.

Smart phones, iPads and other wireless devices are redefining the way we live, work and play. For small businesses, this seismic shift in technology has opened the door to improved operational efficiencies and higher profits.

For specialty retailers in particular, mobile apps and related software – particularly mobile web browsers that make shopping a breeze – can lead to higher sales, stronger margins and more compelling marketing capabilities. The execution includes mobile apps designed for the back end of your business as well as the front end – including point of sale and traditional e-commerce.

If you are skeptical about leveraging the power of m-commerce, consider this: According to a recent study by ABI Research, global consumers will spend about $119 billion on goods and services on their mobile phones by 2015. Currently, mobile shopping sales in the U.S. stand at about $3 billion and are rising at about a 25 percent growth rate, according to several industry sources. In 2010, eBay said its mobile gross merchandise volume was over $800 million in the U.S. alone.

For more on how you can take advantage of m-commerce, check out the new issue of Specialty Insider, available at spring markets and shows, to subscribers and online at specialtyinsider.com.

Hutton, Halston and More For Fall

2011-04-24T15:09:00.000-04:00

If you’ve done your job right as a specialty retailer, you’re well on your way to setting up your merchandise mix for fall. You’ve hit the winter and early spring markets and you're putting the finishing touches on your buying right now.

For those last-minute buying decisions, Specialty Insider checked in with Oona McSweeney, vice president of retail and special markets for Stylesight, the online fashion and trend resource that is an excellent resource for finding out what’s next in fashion.

This report is part of Specialty Insider’s new On Trend series, regular reports on what to look for in apparel trends for the coming season.

Specialty Insider: What’s the big picture for fall?
Oona McSweeney: As fashion weeks across the globe wind down, several must-have looks for women next fall have emerged early. Chic and polished looks inspired by the best of 70s fashion will surface early: Think Faye Dunaway and Lauren Hutton, Halston and Yves Saint Laurent.

SI: What should retailers be looking for in bottoms?
OM: The flare-leg pant continues to trend up as a key fashion item in both casual and tailored versions in all women’s markets. The ideal layering partner, flared pants look best paired with a silky or sheer tailored blouse with subtle details like bow ties or shirred yokes.

SI: How about when it comes to sportswear?
OM: For tailored separates and suits, tweedy woolen fabrics in warm shades edge out plaids. A languid, long-over-long silhouette inspired by the Luxe Grunge trend features maxis or flares layered under long coats and knits. Real and faux fur evolves from last season’s craze in youthful interpretations mixing color, patchwork and longer lengths with abandon.

For more on what Oona and Stylesight have to say about fall fashions, check out the new issue of Specialty Insider, available now to subscribers, at major trade shows and online at specialtyinsider.com.

Tobe: Follow the Leaders

2011-04-17T18:56:00.002-04:00

The new issue of Specialty Insider features an exclusive report from Catherine I. Moellering of Tobe -- the international fashion and retail authority -- identifying four best-in-class strategies being employed by some of the most innovative and established retailers in the industry right now, all of which are applicable to the best specialty retailers.

Here is an excerpt, discussing the first of these studies:

Just like the first fragile signs of spring, consumers are signaling they are ready to emerge from a deep freeze as well. This past holiday season was the strongest since 2004 and consumer confidence hit a three-year high in February. Economists predict that consumers will spend a greater percentage of their tax refund on discretionary purchases as jobless rates continue to drop.

As consumers open their wallets to spend (albeit cautiously), retailers will find themselves in a new position. For the first time in years, they can move from a position of defense to one of offense. The mindshare that was devoted to day-to-day survival can now be allocated to near and long term-growth strategies.

While this shift is certainly a welcome one, it can be overwhelming to consider the myriad of options that retailers have to consider. Technology? Supply chain management? More fashion product? Mobile commerce? Social Networking? Loyalty Programs?

After years of operating on stripped down budgets, we are all keenly aware of the value of capital investments. Perhaps the best ways to evaluate and choose new areas in which to invest is to study industry leaders.

The first is about Walmart and its new virtual make-up kiosks. An IBM kiosk with a built-in camera allows Walmart shoppers to upload their images and then scan the barcodes of cosmetics products to see how the products will look on their individual skin tone.

In an age of fast fashion and short attention spans, initiatives that can both engage a consumer and do so in a personal way are the holy grail of retail. In addition to driving sales, Walmart’s initiative packs a ROI punch as well. Virtual try-on means that stores no longer need to toss samples or returned merchandise.

What's the lesson learned? You don’t have to be a billion dollar retailer or have to buy expensive technology to give your customers a personal and engaging experience. In fact, the personal touch is one of the great advantages of specialty retail.

Evaluate your selling space from a consumer’s point of view. Do you have comfortable and inviting areas for consumers to try before they buy? How about stocking accessories near the changing rooms so customers can see a customized finished look?

Read about the other three case studies in the new issue of Specialty Insider, available to subscribers, at major shows and online at specialtyinsider.com. For more information on Tobe, go to tobereport.com.

Five Financial Tools For the Recovery

2011-04-10T17:45:00.001-04:00

It looks like things are truly getting better, but are you and your business properly positioned to take advantage of improved conditions?

As economic conditions continue to show signs of improvement – both consumer confidence and jobs added have increased in recent months – concerns remain as businesses have not made enough investments and expansions to drive a full recovery.

In the specialty retail segment, this translates into cautious spending in tertiary markets. However, many of the primary markets are seeing increases in foot traffic and higher sales as well as gross margins that are stronger than in the same period last year – despite higher fuel prices due to turmoil in the Middle East.

As a result, financial experts are looking at the upcoming summer months for improvements in consumer spending in the specialty retail market as well as continued loosening of the credit markets.

So the question is: How is your business positioned to handle these changing economic conditions, and what financial and business tools can you deploy to thrive in this market?

Here's the first of five financial tools featured in the latest issue of Specialty Insider:

When it comes to commercial banking services, try shopping local and think about opportunities to refinance. And if you do, partnering with a local bank or credit union may be worthwhile. Credit unions in particular have increased their business banking services in recent years to serve neighborhood businesses just like yours.

The benefits to banking local are numerous, and include better service and more flexible terms. The best part is working face to face with lenders. One good place to start the conversation on which bank or credit union to choose is at your local chamber of commerce mixer or breakfast. There, you can troll for references and recommendations of commercial lending partners.

For the other four tools you'll need to help your specialty retailing business, check out the new issue of Specialty Insider, available now to subscribers, at major spring markets and online at specialtyinsider.com.

Canada’s Pot of Gold

2011-04-03T13:39:00.001-04:00

Joel Carmen was driving a taxi in Toronto when his life was altered – literally. It was 1975 when the recent university grad picked up Peter Jackman during a shift, and learned that the expert tailor was interested in opening a store. Carmen knew nothing about the apparel or retail business, but plenty about blue jeans; after all, they made up his entire wardrobe. So with a few thousand dollars savings, and an expert tailor by his side, Carmen gave up his cab, and set up Over the Rainbow in the artsy Yorkville neighborhood.

“We started with just a few pairs of women’s jeans and a focus on customer service,” recalls Carmen, of the tiny shop’s launch on Bloor Street. “If they didn’t fit, we’d alter them to make them fit. We became famous for being able to alter jeans, and doing anything necessary for our customers to make a pair of jeans work.”

Thirty-six years, and 4,800 square-feet later, little has changed at Over the Rainbow, where fit and shopping experience remain the retailer’s top priority. Although Jackman, the original tailor has long since moved on, Carmen lets nothing come between his customers and their blue jeans, providing extensive alteration services on every item he sells.

Over the Rainbow is known around Toronto for its customization: Taking in and letting out waists, tapering, adding maternity panels, shortening legs and reconstructing original hems and even replacing a tough button fly with an easy to manipulate zipper.

Read more about Over the Rainbow and lots more about fashion retailing in the brand new issue of Specialty Insider, available now to subscribers, at major shows and markets and online at specialtyinsider.com.

How To Sell Denim

2011-03-27T16:25:00.001-04:00

It’s been around for more than 200 years, but no category of fashion changes as often – and requires as much constant attention – as denim. That’s why Specialty Insider chose it as the subject of its very first How to Sell Smart Guide to make sure you don’t get the blues when you’re selling jeans

Creating a niche in specialty can be a daunting task. How do you optimize product offerings? How do you drive traffic to your store? Where do you advertise and what promotions should you run? A trip to Mercedes-Benz New York Fashion Week can provide an storeful of trends, but deciding what your targeted consumer will buy takes editing, smarts and a little bit of luck.

So, Specialty Insider asked executives and creative people at some of the most famous and best brands in the industry to share their secrets with us of how they position their own brands for success and discuss how they think specialty stores can do the same.

From the outside looking in, denim industry insiders offer tips on optimizing product and profits.

For this Smart Guide, Specialty Insider started with a basic question: How should a store decide on the correct product mix for its target customer?

The first thing a specialty store must decide is who you want to be, according to Michael Press, president at Vintage Revolution. “Are you trying to be a denim store? What is your target consumer?” he asks. The younger, and the more casual, tend to increase the need for a larger denim mix.
Independents must look at other stores in their area, according to Press.

“Is there already a well-recognized jean store? This greatly affects the mix again,” he said. If there is a mega-retailer nearby, the “mix needs to be either very defined” so the specialty retailer “can maximize customer needs without carrying hundreds of SKUs.” In this case, a retailer should choose to “really show off a single or just a few brands but with an impactful offering. That trumps the display of a competing store.”

There's lots more to this brand new Insider guide and you'll find it in the new issue of Specialty Insider, available now to subscribers, at major spring markets and online at specialtyinsider.com.

The New Issue of Specialty Insider

2011-03-21T14:38:00.000-04:00

What independent specialty retailers need to know when it comes to selling denim could fill the better part of a magazine.

And that’s exactly what Specialty Insider has done for its next issue, arriving later this month.
In the cover story, “How to Sell Denim,” the magazine launches its very first Smart Guide, a primer for stores on everything they need to know about buying, merchandising, displaying and selling denim jeans and related sportswear.

Specialty Insider editors talked to more than a dozen experts in the industry – suppliers, retailers and others in the trade – on the best techniques necessary to have a successful denim business.

It’s the most in-depth report the magazine has ever done and, as always, it’s a hands-on “Insider” guide specifically created for the independent retailer.

And there’s plenty more in the new issue. There’s a profile of a well-known jeans retailer in Toronto that bases its merchandising strategy all about the fit.

Plus, there are features from Stylesight, the online trend service, and The Tobe Report, the famous fashion resource that is now part of the Doneger Group.

Add in dozens of Insider Tips on on-line activities, financial matters and other subjects, plus Views To Use from Specialty Insider’s stable of columnists and you’ve got another strong issue. For a sneak peak, go to specialtyinsider.com. The complete issue in print will be available next week at major trade shows and markets and to subscribers.

Mixing It Up on Your Retail Floor

2011-03-12T20:09:00.000-05:00

During New York’s 2010 Fashion Week, Versace placed ten-foot tall, high-definition video walls inside its Fifth Avenue windows. The video walls served as backdrops for live models wearing the season’s latest looks.

Smart move. Every retailer is challenged now to create a store that shows the shopper, at a glance, all the options that are available to her. Show her how to mix and match with confidence, much the same way that The Limited did back in the 1980s when big hair reigned supreme. By the way, with a new cash infusion from Sun Capital, Limited is mixing it up a bit again with a new store design and seems to be back on the comeback trail again.

Since most independent retailers don’t have a “Sugar Daddy” like Sun Capital in their back pockets, and video walls are out of reach for most, here are a few ideas for mixing it up without breaking the bank:

1.    If space allows, having live models walking in your windows isn’t a bad idea. The idea, in video form, was certainly good enough for Versace to grab people’s attention. And if you can’t swing live or video models, call your local over-size print specialist and have a larger than life photo of one of the models blown up as a backdrop.

2.    Rent a red carpet, roll out it out down the middle of your store, and flank it with movie theater velvet ropes. Stagger all the mannequins from your windows down the middle and create your own catwalk. On a good day, throw open your doors and let that red carpet roll out onto the sidewalk: You’ll be sure to get people checking out your store.

3.    Recycled mannequins can be found in re-sale shops, online and in the back rooms of department stores for next to nothing. A can of spray paint can transform this mix-and-match lot into a fashion color crew ready for the latest trends.

4.    Set the stage further by scouting out old brass chandeliers, then spray paint them black and hang multiple shapes and sizes down the red carpet for a little Moulin Rouge vibe.

For more on retail consultant Connie Post's suggestions on making your store better, check out the new issue of Specialty Insider, available by subscription, at major shows and markets and online at specialtyinsider.com.

Apt to App

2011-03-06T14:22:00.001-05:00

Facebook chief executive officer and social media wunderkind Mark Zuckerberg recently told a captivated crowd that the website is working to unlock “new social experiences” for its 200 million or so mobile product users via several heavily-tweaked and revved-up apps.

For specialty retailers, these changes along with innovations from Yelp and FourSquare have the potential to bolster sales while revolutionizing the shopping experience for consumers. It turns out that specialty retailers can find increased sales at the intersection of social media and mobile apps

Specifically, Facebook is rolling out “Deals” – an app for iPhones and other smart phones – that connects local businesses to Facebook friends.

Here’s how it works: As a shopper strolls around town, she launches the Facebook Deals app on her smart phone and gets a list of nearby retailers offering online coupons and other deals. Then she visits the store to “unlock” the coupon, which could be for a free product or a special discount on a product.

The new app compliments Facebook’s Places app and joins a similar app recently announced from Yelp that takes on FourSquare’s popular app. At heart, all of these are enhanced location-based products that connect consumers to your business. But before you dive head first into any of these marketing tools it’s critical to have a strategy for your social media campaign.

For more on how to develop that strategy and lots more on how social media can help you grow your specialty business, check out the current issue of Specialty Insider. It's available to subscribers, at major trade shows and markets and online at specialtyinsider.com.

The Real Deals May Be Ending

2011-02-27T16:55:00.001-05:00

Bob Dylan said it best: “It’s not dark yet, but it’s getting there.” The real estate window of opportunity for savvy retailers may be closing before the year is over

When it comes to retail real estate, 2011 is likely to see some slight changes in valuations and lease terms as the impact of the recession continues to have a lasting effect on the market, experts say. Of course, much is riding on consumer sentiment and spending – especially when it comes to employment prospects.

For specialty retailers, the valuations are expected to inch higher while the flexible lease terms and renegotiation deals that retailers have enjoyed of the past two years will swing back to favoring landlords instead.

Valuations at strip malls, malls, lifestyle centers and freestanding retail stores have been stagnant through most of 2010. Integra Realty Resources tracks the rate of change in property values and “predicts that retail properties are still showing signs of weakness and stabilization will not likely be reached until late 2011,” says a spokesperson. “In fact, retail has experienced the greatest declines in value over the past 12 months, decreasing eight percent in value. That being said, Integra predicts that retail real estate is only expected to lower one percent in value over the next six months.”

Already, certain markets are seeing higher pricing and longer leases. In New York, for example, valuations rose slightly this past fall. In California, valuations are depressed in most markets, but jumped to a range of $400 to $500 per square foot in key submarkets such as Beverly Hills. This is up from about $300 over the prior two years, says Matthew M. May, president of Sherman Oaks, Calif.-based May Realty Advisors.

Need more real insider insight into real estate? Check out the new issue of Specialty Insider. Every issue provides retailers with smart, money-saving information they can use to help them run their business. Specialty Insider is available by subscription, at major shows and markets and online at specialtyinsider.com.

Falling for Fall Fashions

2011-02-20T15:50:00.001-05:00

Such is the timing of being in the fashion business that whatever the weather is outside, you’re usually focused on merchandise for exactly the opposite.

So, as this winter starts to moderate, thoughts are already turning to the onset of seasons to come, most notably fall 2011. Shopping for the back portion of this year in fact is consuming a lot of your time and attention right now as you hit the show circuit.

But what to buy? How indeed will you spend those ever-more-precious open-to-buy dollars?

For some of those answers, Specialty Insider turned to the pros, the fashion trend experts who really understand what’s hot and what’s a markdown-waiting-to-happen.

We turned to Stylesight.com, the online fashion and trend resource that is an excellent resource for anyone in the apparel business.

In our new issue, we look at knitwear, both men’s and women’s, for fall. According to Oona McSweeney, vice president of retail and special markets for Stylesight, “Sweater deliveries at retail for fall 2011 have gained floor space over last year, with strong trends crossing markets, classifications and genders.”

McSweeney says, “Fresh sweater pattern trends like Fair Isles and Nordics have also refreshed the cold weather and legwear classifications resulting in head-to-toe sweater knit dressing.”

For fall, she sees two key looks for retailers to focus on: The Great Outdoors and English Country. These cover a lot of territory – not just geographically – but style-wise too. McSweeney gives some specifics on what to look for.

For all the details on what to look for in fall fashion, check out the new issue of Specialty Insider, available at shows, to subscribers and online at Specialtyinsider.com.

Before You Show Go...

2011-02-13T17:23:00.001-05:00

If, like many independent specialty fashion retailers, you are heading out to shows and markets this week, Carol Hoffman of The Doneger Group has some advice: Edit.

In the digital age, “Edit” is the buzzword as a nonstop stream of information increasingly requires filtering tools that deliver us relevant information when we need it. The same challenge confronts the specialty store buyer, who faces an overwhelming amount of product, an increasingly hectic schedule of trade shows and a market that is far from being geographically consolidated. A typical New York market week might involve 10 trade shows, 80 showrooms and 1,500+ vendors.

As you race from the Lower East Side to the Upper East Side, from midtown to downtown and everywhere in between, pause (if you can!) and consider: Am I truly addressing the needs of my customers? Am I using my time as efficiently as I can in their service?

Of course, attending trade shows and market weeks, discovering new vendors and building relationships is essential to your business. Culling the wealth of information and product you find there is essential to your customer. But in order to do that best, it is imperative to first get a clear focus on your market niche and exactly who your customer is. With a sharp vision of who you are servicing, your next goal is to create a streamlined, well-edited assortment that speaks to her individual preferences and lifestyle.

To discover more insider tips on how to work markets, check out the new issue of Specialty Insider magazine, available to subscribers, at shows and markets around the country and online at Specialtyinsider.com.

An Oakland A

2011-02-06T21:35:00.002-05:00

The city of Oakland has long been upstaged by its larger neighbor across the Bay; San Francisco tends to hog the spotlight when it comes to culture, music, food and fashion. But as Oakland’s vibrant creative community flourishes, that trend may be slowing, and a new generation of restaurateurs, artists, musicians and retailers give reason for Oakland’s residents to stick to their side of the bridge.

When it comes to women’s fashion, Sherri McMullen is Oakland’s pioneer, with two McMullen boutiques in the trendy Piedmont neighborhood. The Oklahoma native opened her first location in 2007, after noticing a dearth of shopping options offering timeless women’s fashion and impeccable customer service. “I wanted to bring in beautiful clothing that women would have in their closets for years to come, but also fashionable, modern pieces that have a little bit of a twist to them,” said McMullen.

Having trained at Neiman Marcus under the tenor of retail legend Stanley Marcus, service, she believed, was paramount. “What happened to customer standards?” she would often ask before opening McMullen. “I wanted a store that would call you when they said they would, and write thank-you notes when you visited.”

It turns out that that other women in the neighborhood agreed with McMullen; just two years after opening her dress-centric, 925-square-foot boutique on Piedmont Avenue, she had enough business to open a second shop, nearly double the size, around the corner on Grand Avenue. McMullen’s Piedmont location is devoted entirely to dresses, the category that drives the business, while the Grand store carries a mix of casual separates, including sweaters, tops, accessories and shoes.

Read more about McMullen and read all about specialty retailing in the new issue of Specialty Insider, available now at shows, to subscribers and at specialtyinsider.com.

What a Concept

2011-01-30T11:28:00.003-05:00

A $695 kimono dress from Tsumori Chisato hangs a few feet away from a table with the “Dennis Hopper and the New Hollywood” book and mug-shot-picture magnets.

A DVD of John Cassavetes’ 1974 classic film, “A Woman Under the Influence,” sits below a shelf of Annick Goutal perfume and vases from Tse Tse.

The idiosyncratic merchandise mix at Kisan Concept Store—where upscale apparel, jewelry, home products and vintage toys share a 1,300-square-foot space in New York City’s Soho —wasn’t curated for some pre-determined, target audience.

It reflects its owners’ whims, tastes, aesthetics, cultural interests and sense of humor.

“It’s our favorite things,” said Lionel Guy-Bremond, who co-owns Kisan with cousin Olivier Bremond and his wife Thorunn Anspach. “We always have new things. If we sell out of a bag, we won’t reorder it.”

The New York Kisan Concept Store opened in September 2008, just as the financial crisis unraveled. Despite the unforeseen “bad timing,” the business found its stride in 2009, Guy-Bremond said.
Today, he runs the day-to-day operations as a store manager; Bremond takes a behind-the-scenes business role, and Thorunn is “the eye,” he said.

The merchandise assortment—about 150 brands—is 80 percent fashion, and 20 percent home, gifts, toys and jewelry culled from European and American fashion, gift and toy trade shows.

It’s a mix of established and emerging brands, weighted toward Japanese and European products, with about 35 percent French goods. Icelandic items, such as chunky sweaters from 66 North, also pepper the mix.The concept is for customers “to find everything in one store,” and most shoppers buy both apparel and non-apparel items, Anspach said.

Want to know more about the concept behind the Kisan Concept store? Check out the new issue of Specialty Insider, coming next week. And get an advance peek at the new issue at specialtyinsider.com.

X+Y=$

2011-01-24T05:41:00.000-05:00

Specialty Insider January/February The New Consumer Issue

It’s the changing of the guard – retail style – and independent specialty store owners are right in the middle of it.

In addition to all the economic troubles a retailer has to deal with, they are facing a fundamental shift in their customer base.

The Baby Boomer generation, which has ruled the retail roost for decades, is finally passing the shopping baton to two new groups with very simple names – X and Y – but very complex (and very different) buying patterns.

These demographic groups, ages 34 to 45, and 18 to 29, respectively, will be the focus of retailers now and for decades to come. And while Boomers will still retain a significant amount of buying power and many will take on the purchasing characteristics of their younger successors, the New Consumer changes all the rules.

Indeed, the culture is moving “away from the boomers, who for so long have been the guiding light of retail,” said Lois Huff, senior vice president of Kantar Retail, the retail market research and consultancy firm.

Both X and Y generations share a love of “customization, convenience and cool,” said Amy Shea, executive vice president, director of brand development of branding firm Brand Keys.
But while Gen X and Gen Y have both come of age during the Internet era, their differences are pronounced.

For one, while Gen Y is digitally wired, Gen X is “digitally inclined, but not defined,” said Huff.

Want to know more about the new generation of consumers? Pick up the new issue of Specialty Insider, available next week to subscribers and at important markets around the country.

Numbing Numbers

2011-01-17T11:17:00.001-05:00

If you’re an independent specialty retailer, you probably look at the retail sales results that come out every month and check out the competition. You can’t see how the local one-store specialty guy across the street did, but you do get a chance to look at how the big specialty players did and maybe you can read into their numbers to help you try to run your store better.

Forget about it.

We don’t know about you, but every month we look at how Banana and Buckle, Abercrombie and Aeropostale and all the rest did and try to figure out what it all means. We are about to give up.

Remember a year ago when every specialty apparel chain in the country was falling apart and The Buckle kept putting out not just solid, but terrific numbers. We bet every specialty operator worth their weight in hang tags headed to the mall to check them out and see what they were doing right.

Fast forward a year later and Buckle is doing OK but by no means are they tearing the place up. They’ve come back to earth…or at least the mall.

There were months when both Aeropostale and American Eagle were going great guns while Abercrombie & Fitch was tanking. That meant promotional fashion was hot and $48 t-shirts were not.

We got that.

But what do you make of months when stores in similar market spaces, like Aero and AE, have wildly different results? And how to explain A&F doing great one month and stinking up the joint the month later?

What’s a specialty retailer to do?

Well, here are a few things we’ve learned from looking at these comp store sales numbers for many, many years. We remember talking to the CEO of a big retailer that had stopped putting out monthly comps. He said if he wanted, he could produce a great monthly comp anytime he wanted. All he had to do was run a few extra ads, throw out some coupons online or schedule an extra sale. Eventually he would have to pay the consequences and some other month would suffer, but if that’s what it took to make Wall Street happy for a month, hey, no problemo.

A lot also depends on fruit: as in apples and oranges. If you are going up against weak comps, you can be a hero by just doing OK. So, never draw conclusions on one month’s numbers without going back to the year earlier and seeing what they are up against.

And finally – and we know this is hard to believe – numbers lie. They don’t always mean what they are supposed to mean. You can’t tell that to your landlord when the rent is due, but there are all sorts of tricks one can play if that's what you have to do.

You don’t need to be on the Food Network to know how to cook the books.

If It’s January, It Must Be…

2011-01-09T16:33:00.000-05:00

So, Christmas 2010 is all over but for the last returns, cleaning up all that darn tinsel and getting the books to reconcile.

Which means it’s time to hit the road again. It’s time to go to market.

There is certainly no shortage of trade shows, markets and exhibitions which to attend in virtually every corner of the country and every category in the business. Whether you go to the big monster shows in the major market cities or head over to the local Holiday Inn for a trunk show, there are about a gazillion opportunities for you to see and buy new products over the next month or two.

So, don’t blow it.

We know, we know: There are as many reasons not to attend shows and markets as there are shows and markets. Travel is expensive and not very much fun. You’ve got a store to watch and it’s tough to be away for a few hours, much less a few days. And there’s the kid’s recital, your cousin’s bar mitzvah and a great playoff game on TV this weekend. We know, we know.

But if you’re waiting for the next hot line, the next trend or the next great hire to show up on your doorstep, you may have a very long wait ahead of you.

But there’s also a hard-to-define intangible you get when you work a show or market. You get a little buzz, a little rush of energy, maybe even a subtle reminder of why you got into this business in the first place. You just can’t get that sitting around counting inventory and monitoring the security cams.

See you at the shows. We’ll be the ones handing out the new issue of Specialty Insider.

What We Got for Christmas

2011-01-02T17:26:00.000-05:00

“You can’t always get what you want,” Mick Jagger told us, but then he adding, “But you find sometimes, you get what you need.”

If you were in the business of selling apparel this Christmas season, it looks like you got both.

We’ll see what the final numbers are, but from all reports holiday 2010 was pretty good. Not just pretty good in the context of recent business conditions, but pretty good for any year.

Shoppers were out, they were buying and they were spending real money. So not only did most independent retailers have a merry Christmas, but they also learned a few things that hopefully they can continue to use into 2011.

First off is that the consumer still wants to buy things. She may not be spending like the drunken shopper she seemed to be throughout much of the past decade, but she proved that if you give her a reason to buy, she will buy.

That was especially true in the luxury market. Again, maybe she’s not buying pairs of Birken bags, but she wanted something special and she was willing to take her credit card out of storage to do so. In another industry, Apple proved that once again.

Retailers also learned that inventory management is not only necessary, it’s crucial for their success. The excesses of the boom years covered up a lot of sloppy back rooms, but when the going got tough, tough inventory love came into its own.

As part of that, suppliers learned that they are the retailers’ back rooms more than ever. Supply chains may be getting ever longer but those who can shorten delivery times will be kings. H&M and Zara have proven that for years, but now every store in the country needs to be a fast retailer.

Finally, the fashion business learned that…well, that it’s truly a fashion business. If your store was heavy with the wrong cut of jeans, the wrong color top or the wrong bling, there was probably as much coal as cash in your register. The fashion slaves are far from being saved.

It was that kind of Christmas. Jagger gave us the answer to that in fact what the industry wanted and what it needed were one and the same: Satisfaction.

The Right Time and Place

2010-12-27T15:32:00.000-05:00

It’s not ever yet, but the verdict is in: Americans have not forgotten how to shop.

This Christmas shopping season will be remembered as the one when consumers rediscovered how to buy things…not just as gifts but for themselves too.

It really was a do-onto-yourself-as-you-would-do-onto-others kind of season.

Ever since the bottom fell of the economy in the fall of 2008, all kinds of experts have been telling us that the psyche of the American consumer had irrevocably and permanently changed and that they would never ever return to the spend-crazy days of the previous decade.

And maybe they are right, that was a once-in-an-economic-lifetime phenomenon. But that didn’t mean the spending pendulum would swing all the way over to the other side and stay there forever. There was a lot of room in the middle and that’s what the consumer found out this December.

She didn’t need to max out her Visa card or eat up the entire home equity credit line, but she also didn’t have to put her checkbook in the storage unit down the block.

She discovered that there was another scenario she could live with. She wasn’t going to get a big fat raise but she also wasn’t going to lose her job. Her house had depreciated about as much as possible but it was still a nice place to live. And if she used a debit card – or heaven forbid, cash – she could control her spending much better than if she pulled out the 28-percent Capital One card.

We as a society love to buy things…for ourselves and for others. We’re not going to do so at the risk of living in a cardboard box, but if we think the worst is over, we’re going to get back into the spending game.

We don’t know how long this will last. Pendulums, by definition, tend to be moving objects rarely standing still.

But this sure was a nice time and place for it to land, don’t you think?

Scorecard

2010-12-19T17:23:00.000-05:00

So, how are you doing?

As you come down the homestretch in the holiday shopping craziness, you probably don’t have a whole lot of free time to sit back and reflect on your performance. There will be time enough for that on Jan. 3, when the season is officially over.

But as you’re having your morning coffee (or Red Bull), you might want to take a second and give yourself a little reality check.

Some numbers recently came out on apparel sales that should serve as a pretty good yardstick for measuring your store’s performance against the rest of the playing field.

We’re talking about the November comp store sales results that were released a few days ago. Normally, we take all of these numbers with a grain of salt – sometimes around the rim of a margarita glass– because they can often be misleading…sometimes very misleading. They usually end up getting revised a month or two later and sometimes they are so distorted by merchandise classifications irrelevant to independent apparel stores like food and gasoline.

But the breakout from November showed that sales of clothing were up 5 percent over a year ago. Much more importantly, the data said that apparel sales are just about even with two years ago.

That’s huge.

The past two years have not been kind to retailing in general and the fashion business specifically. So year-over-year comparisons have become increasingly meaningless. If you can’t beat last year’s numbers you might as well as just turn off the lights, lock the door and go home.

But comparing things to two years ago gives a somewhat better picture and that’s why you need to take a moment to see how you measure up. It should give you a pretty good idea about the state of the your business and your ability to ride things out.

Mind you, it’s not the ultimate test. That comes when you compare your comps to three years ago. That was pre-Lehman Brothers, pre-housing meltdown, pre-everything. That was when business was actually good, even if it a lot of us didn’t know it then.

But the two-year comparison is a pretty good one in the meantime.

Do you dare to compare?

Who Needs Another Burger Joint?

2010-12-12T16:52:00.005-05:00

One of the fastest growing independent retailers in the country right now is an operation that seemingly should have no business being in business.

It sells cheeseburgers.

Five Guys, in case you’re not familiar with it, is a small semi-fast food restaurant. Like any of its competitors, you order at the counter, pick up at another counter and take your food on trays to a less-than-glamorous Formica table. Fancy it is not.

But delicious it most certainly is. And that’s the relevancy of a business like Five Guys to any good independent specialty retailer, including those in the fashion business: If you build a better burger, people will come.

There are more than 50,000 places in the U.S. where you can get a burger and fries. McDonald's alone has over 30,000. The typical fast-food customer is not going hungry looking for places to grab lunch.

But Five Guys came in with a plan: Use better ingredients, keep the menu relatively simple and try to put a little more effort into treating the customer just a little bit better. It’s really the same thing that In-and-Out Burger has done on the West Coast for decades, but Five Guys has brought that mentality to East, not exactly a hotbed of smiling fast food employees. And it’s doing it now when times are tough and the competitive landscape is fierce.

The point is that this is a business that came to a crowded – some would say overcrowded – marketplace with a new idea and it is succeeding. To those who say America is over-stored and there’s no new way to succeed – so why bother? – all you have to do is look at a business like Five Guys to know that’s simply not true.

One of the things that makes specialty retailing so – well, special – is that people are constantly coming into the marketplace with a fresh take…and succeeding. Just because there are players in a certain retail space doesn’t mean there isn’t room for one more with a fresh idea.

Five Guys makes great burgers. But they also make for a good business role model for independent retailers.

Feeling Special

2010-12-05T22:33:00.001-05:00

If you ever wake up in the morning and wish you had chosen a different career and were anything in the world but a specialty retailer, perhaps some recent events may make you feel just a little bit better about what it is you do for a living.

First, even though sometimes you think you’d be better off putting any money you had into your mattress rather than sinking it back into your business, you might want to rethink that.

Over the past few weeks, two big specialty apparel retail operations are in the process of being sold. First is Children’s Place, the kids clothing chain that is rumored to be in play and could go to equity investors. Then two weeks ago J. Crew put itself up for sale and has an offer from the private equity firm that used to own it before it went public.

Now, private equity boys’ mothers didn’t raise any dumb kids, so these guys would not be looking at these retailers if they didn’t see something they liked.

To our mind, at least, what they like is the merchandising position that specialty retailers hold. Simply fit, the idea of specialty retailing works. As big stores stumble around, often slow to react and burdened by huge financial pressures, specialty stores are often faster, better and even more profitable.

Who else likes specialty stores? American Express. Last weekend, the big credit card company sponsored a shopping event promoting making purchases at smaller specialty retailers, something it had never done before.

We haven’t seen the results from the sale, but again Amex is no not-for-profit slouch and they wouldn’t be putting their marketing might behind something that they didn’t think was going to hit a shopping nerve.

So, as the shopping action heats up over the next few weeks, you might want to consider that you’re probably in a better position in the retail hierarchy than some of your counterparts in the marketplace.

Specialty retailing lives.

Reality Check

2010-11-28T15:27:00.000-05:00

So, how did you do?

This past weekend sums up perfectly the plight of the independent specialty store retailer. It is the good, the bad and the ugly.

The good because this is the reason you got into retailing in the first place, that adrenalin rush when you open the doors on a big sale weekend and the store is jumping with customers and activity. It doesn’t get any better than this.

The bad because chances are you worked your butt off the past few days and you know there is only more of the same ahead of you for the next four weeks. Say goodbye to your free time, your family and your bed.

And the ugly because even though you will no doubt do your best business of the year and even though you will be worn out when it’s all over, you know you’re not going to make the kind of money you would have liked…or that you used to make.

That’s the reality of being a specialty retailer these days and as you lick your Black Weekend wounds you just might be wondering if it’s worth it.

Especially when you hear the press reports about how business was to start off the holiday shopping season.

Well, don’t take all the press reports quite so seriously. These were the reports that on Friday night said business has been surprisingly brisk but by Sunday morning were downgraded to only a slight bump in traffic.

No doubt those reports are going to be revised, re-revised and then revised again before this whole shopping match is over, so don’t get too bent out of shape if your numbers aren’t matching up with the ones you’re reading about.

Likewise, you should know a few other basics about all of these store stories out there. When the headlines talk about retail sales, they are usually including things like cars and gasoline, neither one of which has much to do with your business.

And even when they refer to sales at stores, chances are they are not including Walmart, the biggest retailer in the country, which stopped releasing those numbers a few years back. It’s like reporting on baseball but excluding the Yankees from the standings. If the Big Dog’s not included, the numbers are barking up the wrong tree.

As a business person you know you can make numbers do a lot of things, some of them having little to do with actual business conditions.

So, just go out there and run your store as best as you can this season and don’t pay too much attention to all those retail reports.

It ain’t over until the fat shopper sings.