A Sobering Note On ADA ... Lawsuits Keep Coming

March has been a stormy month for retail attorneys, as ADA lawsuits are back on the docket.

This week, a Colorado subsidiary of Kroger Co., agreed to make improvements to 101 King Soopers and 35 City Market stores as part of a settlement with Colorado Cross-Disability Coalition. Although there was no financial award, the company will work with Access By Design, an accessibility consulting firm, to improve accessibility in parking lots, service counters and check-out lanes.

The Colorado Cross-Disability Coalition is the same group that earlier this month settled a 1999 suit against Kmart for $16.25 million -- the largest such award to date. (Macy's paid $2.8 million in 2001 to settle an accessibility claim.)

Kmart also agreed to spend as much as $70 million in the next eight years to bring its stores into compliance with federal standards for merchandise placement, counters, restrooms, fitting rooms and parking lots.

I hate to speculate as to what sort of financial toll this $80 million-plus pricetag will take on Kmart (Sears Holdings), which is already struggling with declining sales.

And March isn't going out like a lamb either. Now Target has been sued because its Web site is inaccessible to the blind...

--Karen Schaffner

Now I Lay Me Down To Sleep

America is tired. We're overworked, under-rested and stressed out the majority of the time. Giving customers what they want is the name of the game, right? So if customers want a book they can comfortably read while laying in bed, then let's give them what they want. Trinidad, Calif.-based Bed Books did just that, creating a new book-printing format that has the text printed sideways on the page so that the book can be read comfortably from a horizontal position. It might not work for the average subway or plane reader, but for a lazy Sunday afternoon? I'd try it out.

British Airways now caters to the horizontally minded consumer with the launch of their First cabin experience, where passengers can fly overseas while laying down in a 6 ft. 6 in. bed, complete with a duvet, linens and a full-size pillow. You hand over your passport, and wake up in another time zone. I could get used to that.

You can even kick back and rest your laurels while nightclubbing these days, thanks to the hot new restaurant and lounge chain Bed. Clubbers and diners can lounge the night away on comfy flatbeds partitioned by transparent curtains and padded with copious amounts of pillows. Sounds relaxing to me!

I even got the chance recently to take a load off at the newly opened Magnolia store in Atlanta--one of Best Buy's newest brand concepts. The store marries the latest home technology equipment in the setting it warrants--beautiful residential room models. I had the pleasure of testing out a new rear projection screen that was bigger than my car, while laying in an ultrasuede, fully reclinable lounger. The sales associate turned down the lights, closed the electronic partition that separated us from the rest of the store (via remote control, mind you) and played a Michael Buble DVD through the stellar home audio system. There was no pressure to buy, and the sales associate didn't mind our restful and enjoyable 20-minute video viewing. If only shopping was always this relaxing!

--Alison Embrey

Whompin’ Stompers

Not since Harrod swished and stomped across the stage in the '70s musical “Hair,” have we seen such outrageous footwear. Diva’s eye to Spring fashion snagged on the shoe news and didn’t get much further. In case you haven’t checked out the hottest fashion sources yet, the news in shoes is platforms—the highest and hunkiest platforms the fashion industry has ever seen. Paris Hilton will have to do resistance leg lifts to train to wear these monsters—some set on platform bases that are four or more inches high, with separate heels or massive wedgies. And they are from lots of savvy designers this spring—ranging from Stuart Weitzman to Prada to Steve Madden. A headline in the New York Times Sunday magazine fashion section said: "Big Foot Lives!" So, throw out those Jessica Simpson, “Dukes of Hazard” boots from last season and head for the mall: give these new platforms a stomp (Just be sure your personal injury insurance is paid current first.). Coincidentally, Jessica has just introduced a new line of shoes that she personally designed and recently introduced in Las Vegas.

--Diva

Will the Real Wal-Mart Please Stand

If you haven't already heard the news, Wal-Mart just opened a new test Supercenter store in Plano, Texas, on March 22 that may convince customers they've entered, well, another store besides Wal-Mart.

Wal-Mart really went all out on this store design, which caters to upscale shoppers, particularly female consumers. No loud PA announcements, additional cash wraps in apparel departments, a new signage and graphics package to better aid wayfinding, more space around display racks (are you kidding, at Wal-Mart?), and customers can even take purchased apparel home on the hanger. The new store's book and magazine section features wood bookcases, lending it a bookstore feel. Its facade takes a departure from its traditional red, white and blue; the Plano store has brick with green signage and accents.

And that's not all. The higher-end product assortment includes fresh sushi, a wine selection that spans 1,000 labels (ranging up to $500 a bottle), gourmet cheeses, an expanded selection of organic foods and even a Wi-Fi-enabled coffee shop. 

Now, this sounds like a Wal-Mart I'd browse and could even commit some impulsive buying. Although some analysts warn that creating such different types of stores could alienate its core customers, I say Wal-Mart gets a gold star for trying to make the shopping experience more enjoyable--be it at any price point.

--Rachel Brown

You Know Improved Store Design Helps Increase Sales, But Would You Believe 46%?

You know what I like about American Eagle? The company is about the only retailer I know that is willing to openly discuss ROI on store renovations. Here's what the retailer had to say at its recent conference call:

"In 2005, we ... remodeled 43 stores. Remodeled store economics are quite positive. After a renovation, average store sales increased 46% and sales per square foot increased 14% on a square footage increase of 29%. We have about 160 stores yet to remodel."

I think sharing information like that with the investor community is pretty darn smart, because it leads to less push-back when you get to the next part of the discussion:

"For fiscal 2006 we expect capital expenditures to be approximately $175 million. This is related to [50] new and [50] remodeled stores, our new Pittsburgh headquarters in center as well as the construction of a new distribution system in Kansas, to support Martin and Osa, intimates expansion and potentially our direct business."

Back in the mid-nineties, DDI and GlobalShop worked with Deloitte on a major study about ROI and store renovations. We even sponsored a competition to recognize renovations that increased sales. Both initiatives were short-lived.

When DDI editors interview retailers regarding store renovations, they always ask about the impact on sales. Nine times out of 10, they are told, "We don't release that information."

What's the big secret?

--Karen Schaffner

Picasso Peccadillo

Diva wants to know: was Costco getting too uppity when it recently took to selling rarified, collector’s edition fine art—including original Picasso’s on its Web site? A New York Times article on March 16, said: “From diamonds to dog food to Dom Pérignon, Costco is known as an astute marketer of high and low.” According to the article, though, the Picasso’s Costco was trying to sell were fakes. Included was a drawing called “Drawing Arles,” which sold for $39,999.99 and came with a certificate of authenticity. Another offering was “Picador in a Bullfight,” which listed at $145,999.99, also presented as authentic.

According to Picasso’s daughter, Maya Widmaier-Picasso, who was present when Picasso did most all of his work and who keeps meticulous records of all Picasso’s art, the offerings from Costco are not authentic. Widmaire-Picasso issues certificates of authenticity for her father’s art and keeps photographic records of all the certificates she issues, so she should know. She also authenticates his works for Christie’s and Sotheby’s.

Now Costco can’t be beat for huge cans of Campbell’s soup, flats of bottled water and even TVs, and the wine shop does a great job of offering decent selections at a price; but Diva’s advise is: stick with one of those fancy-schmancy Madison Avenue art galleries for trophy art to impress your friends. Fine art is not chopped liver.

The buyer can, however, rest assured that Costco is doing all it can to investigate the situation and make it right. For now, any remaining Picassos have been removed from Costco's site.

--Diva

A Green Oasis

The spa industry has been leaning toward au naturale, organic products and services for some time, creating calming, mystic sanctuaries to relieve the stresses of its clientele. But your average day spa doesn't practice what it preaches in its store design, in terms of using eco-friendly materials. Atlanta-based Natural Body Spa & Shoppe, a Southern spa chain with locations in Georgia, Florida, Maryland, North Carolina, Tennessee and Virginia, however, has made a 100 percent green commitment to its customers. In its "Green Spa Pledge," the company commits to "striving to set a new standard for the ultimate Green Spa experience." The green experience transcends from the natural and organic products to the design of the space. Floors are made of recycled school bus tires and other reuse materials, spa menus are printed on recycled paper with soy ink and building materials of the surrounding environment are created from reclaimed wood and other post-consumer materials whenever possible. The chain also offers a recycling program for old cellular phones, pagers and PDAs--customers can drop them off at any Natural Body location, and they will donate them to Earth Share, a nationwide network of environmental and conservation organizations.

The company also sends out a quarterly newsletter offering tips and advice on how to maintain a natural lifestyle, including introducing new yoga poses, Earth Day announcements and other comparable topics delivered right to customers' e-mail inboxes. What a wonderful example of a retailer being true to its customers and to its brand.

--Alison Embrey

Manufacturing Design

Diva always gets excited about a hot new store design, but it’s even more exciting (and unusual) to find a hot new design statement that comes from an industry manufacturing facility. Fixture manufacturing plants are usually functional, well-oiled machines that churn out product in relatively plain, unimaginative environments. That’s not the case with Morgan Concepts, whose new Huntington Beach, Calif., facility is trendy and radical enough in its design to turn heads on Rodeo Drive, or in New York’s Soho. Nabs Carlson, Morgan Concept’s Design Director and General Manager, is responsible for the new design, and he sums up the intent of the project: "The building is a fun environment, where commonality dwindles and passion is rejuvenated.” While new, state-of-the-art robotic equipment smoothes the manufacturing process, Carlson’s eye-popping design will be impressing clients with this manufacturer’s ability to speak design. If you’re in the L.A. area, tool by 5921 Skylab Rd. and take a peek. Go join Nabs and the folks at Morgan Concepts for a cup of coffee and tell them Diva sent you. This is way-cool design, and a unique step--establishing a brand image for a manufacturer.

--Diva

Point, Click.....Buy

Without question, online shopping is a mainstay in the consumer marketplace. A recent ACNielsen Global Online Consumer Confidence Study, which polled more than 21,000 respondents in 38 markets about their online shopping experiences, found that one-tenth of the world's population is shopping online. According to the study, some 627 million people admit to shopping online, 325 million of them as recently as last month. I know I was one of them. You probably were too.

Internet shopping is turning the consumer marketplace from inquisitive browsers to actionable buyers. All the price shopping, brand comparisons and decision making can be done in the comfort of your computer room, so by the time you stroll into Best Buy to purchase that high-def plasma, you're equipped with enough knowledge to tell the sales associate exactly what you want and how much you expect to pay for it. Thanks to the Internet, we've all become smarter shoppers.

Online shopping has even spawned the birth of a new retail segment--bricks-and-mortar stores that buy, trade and sell items from consumers for eBay and other Internet auction sites. With 166 franchise stores open and more than 800 stores under contract, iSold It on eBay is one of the largest such retailers. The retailer has even expanded as far as Canada, England and Ireland. This chain is making a fortune selling customers' junk for them--and why not? We pay people to wash our cars, walk our dogs and do our taxes--why not pay them to sell our old stuff?

The Internet has been an immensely powerful tool in all aspects of modern-day life, and will continue to be my No. 1 place to go to research products and become a better, more knowledgeable buyer. It will also benefit my credit card companies, as I haven't quite gotten past that whole impulse buying thing yet...

--Alison Embrey

Sport The Diva Bling, Baby

Dears, in case you were wondering, Diva will be jetting off to Orlando for GlobalShop in a couple of weeks. I absolutely wouldn't miss the most important event of the season. You'll be there, too, right? I mean, don't go all Tom Cruise and pull a no-show--after all, what would the red carpet be without you?

Where can you find me? Well, by now you may have determined that Diva has decided to remain anonymous, so you won't see my lovely face in person, but my now-famous likeness will be everywhere -- and I do believe that's as it should be. After all, if I do say so myself, in just a few short months, I've come to represent the Diva in all of you.

You're disappointed, aren't you? You really wanted to see me up close and personal, I know. So here's what I've decided to do:

You can pick up some Diva Bling (really...a pin with me on it) from my minions at the DDI booth in the main entrance foyer. At various times during the show, those very same minions will be walking though the aisles, looking for Diva wannabes. If you're sporting your Diva Bling and you're at the right place at the right time (what Diva wouldn't be?), you may win either an I-Tunes gift card or an official Diva T.

To put it in contemporary terms, Are you feelin' me?

-- Diva