Does Your Store Have a Soul?

I know, you're thinking that it's a dumb question relating to a whole bunch of mumbo jumbo, new age stuff, but let me explain.  On the Friday after Christmas, Sarah DaVanzo and I spent the day walking through all of the shops along Madison Avenue, starting at about 59th Street.  We visited all of the high-end, luxury stores for about 20 blocks and what we found were stores without a soul.  Stores that had no energy, no life to them and, in many cases, didn't have many people in them either. 

They were what we'd call "Web stores"--physical stores with merchandise,  staff and everything you'd expect at a store, but operating as if they were little more then a Web site--and sometimes a snooty one at that!  Point at something to get more information and maybe touch it.  Otherwise, it's a store that does little more then a Web site does.  In fact, at some stores, we got less info.  We stopped in at one cool looking shop from a perfume brand from the 1700s, but the sales person there seemed pretty uninterested in sharing their heritage and story with us.

In contrast, stores that we would say had a soul, were crowded and had a definite life to them.  There were expected lines to the Apple store & FAO Schwatz stores on Fifth Avenue, but the Abercrombie store on Fifth had a line as well.  Crate & Barrel was humming with activity and people touching and enjoying the merchandise.

And some of our new favorite stores along Madison:

The DKNY store that was letting guests take pictures of themselves and adding their pictures to the photo montage playing on all of the digital monitors around the store.  Plus they had a cafe for shoppers to either take a break or to entertain the non-shoppers so those shopping could actually enjoy themselves.

The Juicy Couture store continued its brand experience throughout the store, including the dressing rooms.  And it was about the only store we saw with teenagers once we left FAO and Apple.

We LOVED the two Ralph Lauren stores!  They were so alive in every way.  Merchandise, store design and staff.  And you know what all of that energy generated?  Judging by the transactions we saw going on, sales. 

We're putting together a more detailed review and some trends now, which you can expect to be released during the Retail Advertising Conference next month. If you're investing in physical space and paying all of those costs just to create a "Web store," you're wasting a lot of good money and some great business opportunities.

--David Polinchock

A New League

Remember those classic high-top Reeboks that you just had to have back in the '80s? The sports apparel/footwear/equipment retailer (a subsidiary of the Adidas Group) has come a long way since those iconic high-tops. Everything from the product to the logo has changed. In fact, the retailer could be called the comeback kid in terms of branding.

After the high-top craze of the '80s came and went, so did the Reebok brand. The company would pop up every now and then with a new athletic shoe, but they always seemed to be on sale at a discount store--never in high demand or with a large presence at department stores or sporting goods retailers. And then Reebok came out with a new logo (Rbk) no one recognized (which was probably a good thing in retrospect.) Now, all of a sudden it seems the brand is everywhere. Its alliances with the National Hockey League (the new NHL Powered by Reebok store in New York City on 6th Avenue) and National Football League (Reebok has a contract to outfit the NFL) make the brand a major player in the industry.

And not only has Reebok teamed up with sports' major leagues, it has also befriended the female consumer in several ways. One that first comes to mind is the commercial currently on air, in which several women show up for a football game/house party in fashionable jerseys that represent their favorite team (In this case it was the Giants, and then one woman has the audacity to walk in decked in Jets garb.) The athletic jerseys, customized for women, don't make it look like you're wearing your boyfriend's or brother's clothes. Who thought that women were actually interested in professional sports? It's about time.  Also, for the second year in a row, Reebok has been the official footwear and apparel sponsor of the Avon Walk for Breast Cancer, a series of weekend-long walking events that take place from May through October in eight cities across the country, attracting tens of thousands of participants who generate funds and awareness to help find a cure for breast cancer.

Well, I have to say cheers to Reebok! It appears the brand has come full circle. It all started out with that classic high-top--that women loved. And now that Reebok is back on top, it's nice to know it didn't leave its female customer in the dust.

--Rachel Brown

Talk to Your Daughter

I have been eagerly anticipating today, October 1st; I have a big red circle on my calendar. If your thinking, hey Ron, isn’t that Nigerian Independence Day, or isn’t that the Peoples Republic National Day in China, you’d be absolutely right--but it’s not why it’s circled. Those of you who know me better might dig deeper, and ask, isn’t that the beginning of the harvest moon, or the day that Barbra Streisand signed her first recording contract with Columbia? Again you would be right, but it doesn’t account for the red circle on my calendar.

It’s not my birthday, but it may be more anticipated, and I’m turning 50 this year! Oct. 1 marks the launch for the newest ad campaign for Dove (aka Unilever) Soap products. The commercial will begin to air on www.youtube.com. There were no glimpses yet, but the industry is all abuzz. Not since “The Da Vinci’s Code’s” trailers has there been so much hype and anticipation. Dove’s latest commercial promises to be this year's most talked about ad campaign, which speaks volumes given Dove's phenomenally successful “Real Beauty" and “Evolution” campaigns. The Evolution campaign won top honors at the Academy Award version of TV commercials, the Cannes Grand Prix. Both commercials are available on Youtube.com, each with so many millions of hits as not to be imagined. If you aren’t familiar, then you must have been raised in outer space.

The commercial titled “Onslaught” is the brainchild of advertising monolith Ogilvy & Mather Worldwide, in which, out of the darkness we hear a voice warning “Here it comes”... cue Hitchcockian staccato-like music, then in a concise 60 seconds a seemingly Rockwellian 7-year-old girl is bombarded with all the body image advertising she, (let me say it again for emphasis, a S-E-V-E-N-year-old) will see in a year, followed by the tag line “Talk to your daughter before the beauty industry does." It sounds more ominous than the opening credits for Jodie Foster’s latest vigilante film. It sounds frightening, alarming, and so insightful, that I hope every mother and daughter will discuss it. If I could get a daughter by October 1st I would.

The Dove advertising is unique among controversially based ads, as it actually sells product, enhances the corporate identity and helps to contribute the cultural debate about self-images. Kudos for Dove for knowing who their customers are; for not being afraid to take a stand; for having confidence in their product and the American public. Dove is authentic, honest and relevant. Doves’ advertising is so cleverly covert, in as much as it makes you feel like you're doing something good for the world by washing your face. I’m switching brands.

--Ron Knoth, Guest Blogger

We Know It When We See It

Apparently, offensive or annoying advertising alienates consumers...(Really? No duh.) In any case, according to a national survey commissioned by Streetblimps Inc.--a company that implements outdoor and alternative marketing campaigns--86 percent of Americans said that when advertising offends or annoys them, they are less likely to buy the product.

It seems pretty obvious to me that you don't want to offend (or even annoy) your potential customers. So why would a company even consider this kind of advertising? Well think of this: 70 percent of survey respondents said they are more likely to remember irritating ads. So is it better to be memorable or to play it safe?

Doug Frantin, founder of Streetblimps, says that there's a fine line between being memorable and going too far. "When it comes to deciding what's offensive, we know it when we see it," he says. Although what's considered offensive/annoying may vary based on demographics, the survey found the decision not to buy the product was universal. Age, income, ethnicity and location didn't affect the responses. Only 11 percent of respondents said they were more likely to buy the product when the advertising annoyed or offended them.

So I want to know, why does it have to be offensive/annoying to be memorable? Plenty of ads are memorable without the irritation--think of the AT&T/Cingular ads that feature different conversations ruined by dropped calls. These are pretty hilarious--therefore memorable. (If you don't know what I'm talking about then you are seriously out of the loop.) Now compare these ads to the Geico.com commercials with the cavemen. Some people find those funny, but personally, I cannot stand them. I think they are completely stupid and abrasive--but I do remember them...just not for the right reason. However, just because I find AT&T ads funny/memorable does not mean I'm going to use their services. In fact, check out what this blog had to say about the campaign:

"Following a Better Business Bureau investigation into the 'fewest dropped calls' ad campaign and a protracted legal fight with Sprint over the issue, AT&T is reportedly dropping its claim, according to an employee. Turns out, the assertion was never really true, and was based on only a small part of a larger Telephia report. As a whole, the report notes that AT&T Wireless did not have the most reliable network in places like New York, Chicago, Houston and Los Angeles, according to Broadband Reports. Recent studies from Consumer Reports and JD Power mirror these findings, and have placed Cingular/AT&T at or near the the bottom of their rankings for reliability and satisfaction. An AT&T spokesman says that dropping the 'fewest dropped calls' language is just part of an overall shift to a new message: 'More bars in more places.'"

But I digress...Anyhow, this goes back to the age-old question: is there such thing as bad publicity? Well if you're familiar with the Retail Design Diva, you already know my answer--yes, there most definitely is. Being offensive is easy. Why not up the creativity and snag us with that?

--Jessie Bove

Enhancing or Hindering the Grocery Experience?

You may need a color-coded key card the next time you shop at Safeway. The lifestyle-focused retailer recently introduced its Eating Right label under the "theory" that the new label will make shopping for healthy foods easier, primarily because the labels shout out a food's nutritional benefits, like "High in Fiber" or "High in Protein." Finally, no more hours wasted reading boring nutrition labels! Instead, Safeway does the hard work for us by color-coding labels that indicate a food's health benefits. The company released the following as their color codes for the new Eating Right brand:

Light Blue = Low Fat
Royal Blue = Light
Red = Whole Grain
Yellow = Low Cholesterol

Whew! It's not really that much to remember, but why light blue and royal blue--couldn't we just stick to primary colors, people? As if grocery shopping wasn't challenging enough (I loathe it!), I'm not so sure Safeway's color-coded labels will make my life easier. But, being the true journalist that I am, I decided to give it a shot.

My first warning sign came when it was nearly impossible to find the "Eating Right" label anywhere in my local NW Portland, Ore. Safeway store; even though I had called in advance to confirm that they did in fact carry the new brand. After asking several employees where I might find this label, I was directed to the frozen foods section where--tada!--several Eating Right labels appeared, looking very much like Lean Cuisine's and/or South Beach's frozen meals. Hmm...competition, anyone? Right now, the frozen food section is the only location with Eating Right labels (at least at this store), but management indicated plans are in the works to expand into most grocery areas.

Pretty soon, we'll all be shopping in a Safeway store filled only with Safeway products. The retailer has an abundant amount of in-house brands, which cuts out the middle man and puts more cash in their pockets. Novel idea, eh? While Safeway used to carry 70 private brands, they've recently reduced that number to 10. As a consumer, that's still a lot of Safeway to stomach. But, on the flip side, in-house brands are more attractively priced and typically carry the same nutritional weight as their brand-name counterparts.

Besides the challenge of actually locating the Eating Right label, the store I visited was beautifully laid out and the staff was remarkably friendly. I even had a pleasant chat with my cashier about the wheat-free cereal I was purchasing. Imagine that--friendly checkers?! I left Safeway feeling fabulous about my shopping experience, and no amount of in-house labels or color codes can take that away from me!

--Heather Strang

Want It?

It's nice when a retailer tells you what you want to buy. Saks announced its fall WANT IT! campaign this week and I can't help but ask, "Are you sure I want it???" I'm not convinced. After all, the women's campaign includes shoe booties. That means it's either 1987, or Saks completely ran out of new fashion options. In addition, the Saks WANT IT! line also features eight other chic items, like swingy capes (think Sherlock Holmes), sky-high heels and textured cardigans. Yikes. On the bright side, cropped jackets made the list (love those!), as did opaque legs. The men's line features menswear with a tuxedo slant, turtlenecks and finally--what we've all been waiting for--a man purse. Saks is calling it a "gentleman's bag," but either way, it's a step in the right direction. Men with purses, how great is that? So, now, my man can carry my wallet and cell phone when we go out, instead of the other way around. Ingenious! As a bonus, Saks partnered with graphic artist Marian Bantjes to create hip graphics for each new item in the WANT IT! campaign. Now, there's some creativity I can appreciate. You go Saks!

--Heather Strang

Singing the Blues

Until Valentine's Day (of all days), JetBlue held a high place in hearts of most customers who've flown on the airlline. In fact, the new company even made the top 25 in BusinessWeek's first-ever ranking of the customer service elite (results based on consumer responses from the first half of  2006)--until the business publication decided to remove it from the roster, after its blunder on the runway.

If you didn't see the countless media reports, JetBlue ran into a bit of a problem when a bad snow storm caused massive flight cancellations--to the tune of more than 1,000. Stalled at New York's John F. Kennedy airport, passengers on some planes waited an unforgivable 10+ hours on the icy runway. Some reports even indicated that bathrooms were off limits after several hours on some planes.

Didn't JetBlue learn anything from other airline scheduling mishaps over the years? If you're a small airline, know your limits, and please have a Plan B. Everyone knows there's not much to be done about uncooperative weather, but there's no excuse for people to have to sit on a plane for 10 hours--even 2 hours is pushing it.

Mistakes do come with a price--and JetBlue is willing to pay it. The airline is offering refunds and vouchers to customers who had to endure the unfortunate experience. JetBlue's CEO David Neeleman has apologized publicly through whatever broadcast will let him (including David Letterman, whose late night show seems to be the spot for lots of annoucements these days.) Although I do admire Neeleman for his unrelentless apologies and for being publicly accountable, as most high-level executives seem to run for cover in these instances.

However, it goes back to basic customer service. Businesses who put their customers first are usually the most successful. The Golden Rule is not only the right thing to do, but it is also the most profitable thing to do. And locking people on a plane for hours on end is not recommendable.

--Rachel Brown

So Long Federated, Hello Macy's Group?

Iconic Federated Department Stores Inc. may soon be a name of the past. Yesterday, the company announced that its board of directors will ask shareholders to change the company's name to Macy's Group Inc. A vote to amend the corporation's charter to accommodate the new name will take place at Federated's annual meeting on May 18, 2007. If approved, the new name would be effective on June 1, 2007.

So why the name change? Terry J. Lundgren, chairman, president and CEO of Federated says  "Macy's Group" is a name that more accurately reflects the transformation of its business in recent years. "Today, we are a brand-driven company focused on Macy's and Bloomingdale's, not a federation of department stores. By aligning our corporate name with our largest brand, we will increase the visibility of the company with customers, leverage the world-famous Macy's brand name, and get more credit for our accomplishments in the marketplace," Lundgren said.

Federated Department Stores Inc. was originally chosen as the company's name in 1929 by a group of family-owned department stores that joined together under a corporate holding company umbrella. Federated became an operating company in 1945, and its portfolio over the years has included various regional department store names. We all know that in 2005 and 2006, all regional nameplates were converted to Macy's, and today the company operates only Macy's and Bloomingdale's stores. While Federated does have considerably more Macy's stores than Bloomingdale's locations, the Bloomingdale's brand is still an icon of its own. So will changing Federated's name to Macy's Group seem like the company is casting Bloomingdale's aside? I'm not sure yet, but I do hope this isn't foreshadowing something to come: Bloomingdale's stores eventually all becoming Macy's stores one day. As of yet, this doesn't appear to be the case at all. But then again, in the world of department stores, you never know. Do you think the name change would be a smart move? If not, what are some other possibilities? Tell the Retail Design Diva your thoughts!

--Jessie Bove   

Bringing Saks-y Back

Saks has a new logo, and boy is it pretty! As part of the overall revitalization of New York-based Saks Fifth Avenue, the Saks logo has been updated with a new look that was officially unveiled this month. The new logo appears in advertising, on shopping bags and in a wide array of other merchandise and marketing materials. “Our customers can count on us as a consistent source of fashion, style and quality,” said Steve Sadove, CEO of Birmingham, Ala.-based Saks Inc., Saks Fifth Avenue's parent company. “The updated logo gives us a modern look that is sure to resonate with our customers and contribute to the resurgence of Saks Fifth Avenue.”  And I couldn't agree more. I think the new logo outshines its predecessor by far.

According to a press release, the new mark, which was developed by Pentagram Design Inc., incorporates an homage to Saks Fifth Avenue’s classic script logotypes and the geometry of the perfect square, a shape that has become central to the identity of Saks Fifth Avenue, from its catalogs to its employee pins. Terron Schaefer, group senior vice president, creative and marketing, Saks Fifth Avenue, says the "initial point of departure was the ornate calligraphy logo created for Saks Fifth Avenue by design legend Massimo Vignelli in 1973.” The idea then was to “create an enduring logo for the future by drawing upon the rich heritage of Saks Fifth Avenue.”

The company then collaborated with Pentagram partner Michael Bierut, a Vignelli protégé and graphic designer, on the modernization of the logo. Complementing the freshly minted logo is a comprehensive branding program, highlighted by a signature visual vocabulary too. To create it, Bierut split the logo into 64 unique square pieces, which he then re-sized, rotated and re-combined to yield a scrambled tableau. Bierut dubbed the squares “DNA,” because they constitute the essential elements of the unique identity of Saks Fifth Avenue, reflecting both the logo and the brand. The new visuals appear on everything from stationery and storefronts to charge cards and shopping bags. Saks also is collaborating with several designers such as Diane von Furstenberg, Christian Louboutin, Albert Kriemler of Akris, George Sharp of Ellen Tracy and the design team of Moncler to develop unique and exclusive items, each incorporating the new DNA. The new look took three years of planning and development (which I think was completely worth the wait).

So, what do you think of the new Saks logo? The Retail Design Diva wants to know!

--Jessie Bove

Real Coke Bottles Have Curves

No product packaging has had more of an iconic shape than that of the curvaceous Coca-Cola glass bottle, which this month celebrates its 90th anniversary of being placed on store shelves the world over. The Coca-Cola "contour" bottle, as Coke snobs are wont to call it, was originally patented on Nov. 16, 1915, but wasn't available to customers at retail until a year later. Today, you might have to dig a little harder to find a true glass contour bottle on retail shelves, as most convenience, supermarket and drugstores have opted to switch their stocks to the less-fragile aluminum can and plastic bottle containers. The dedicated Coca-Cola connoiseur, however, knows of course that there's nothing better than drinking an ice-cold cola directly from its original curvy glass container. (I still have the unopened, un-consumed contour Coke I purchased in the eighth grade at our class fieldtrip to Atlanta's World of Coca-Cola Museum, and hope to soon add a new model next year when the remodeled museum opens downtown.) I know, I'm super cool. Betcha wish you had one...

--Alison Embrey Medina

Rachael Ray Gets Cookin' with Home Depot

As if Food Network star, cookbook bestseller, magazine editor and beloved celeb to every cooking woman in America weren't enough, Rachael Ray has gone and found herself a daytime talk show. Appropriately named "Rachael Ray," the hour-long show presents simple solutions for everyday issues, offering viewers down-to-earth advice and take-aways from one of the food industry's most relatable icons. The set design for the show was outfitted by designers from The Home Depot and EXPO Design Center, and the retailer's brand is getting exposure thanks to the handy 360-degree "Tour the Set" feature on the show's Web site. Even more cool, when you scroll over a Home Depot-supplied appliance, countertop or floor on set and click on the logo, you are redirected to a special Home Depot Web site highlighting all of the items it provided for the set. Kudos for finding a smart and fun way of getting your brand out there--literally--right into people's kitchens. Grab some E.V.O.O. and cook up something delish while shopping for your next Home Depot kitchen tile. Yum-O!

--Alison Embrey Medina

Lunch Launch All Smooshed Up

Although an estimated 306 stores already have lunch available, Starbucks just rolled out their sandwich program in the ATL just 2 days ago...perhaps in an effort to boost lackluster same-store sales (which Starbucks blamed on long lines). Barista-associates have been touting the lunch-launch for a while now, and while the sandwiches look tasty, the merchandising doesn't.  First, the sandwiches have been jammed into existing cold cases, displacing lots of beverage SKU's and trimming down facings of others.  New branding and pricing tags are not in place for the sandwiches, the shelf tags that are in place are for products that were moved during the resets and, in each store we visited, counter mats announcing the savory meals are curled up and shop-worn after only 48 hours.  The nation's espresso destination of choice usually executes in-store to painstaking perfection, but this program has already left us, um, hungry for a better plan when their scrumptious breakfast hits town.

-- Doug Hope

Why Orange You Glad?

Orange. That’s the problem with Payless. No one likes the color orange. Orange is U-G-L-Y. It’s in-your-face-obnoxious and loud. If orange was a person, it would be that annoying, hyperactive kid at your seven-year-old’s birthday party. You know the type: the sugar-starved child whose parents don’t keep junk food in the pantry and make him drink milk with dinner. The one who goes berserk in a Willy Wonka-esque scene, stuffing his mouth with forbidden treasures (three hot dogs, two pieces of cake, a can of Pringles, one liter of coke and who knows what else) until he projectile-vomits it all over your living room rug (yes, the rug you spent eight months on a waiting list for). Orange is that kid. And have you ever heard anyone say their favorite color is orange? (Exactly, neither have I.)  

So it made perfect sense, I thought, that Payless ShoeSource decided to revamp its dated orange logo. When I saw the new-and-improved logo that debuted last month, I could not believe my eyes: orange…again. Why!? Here was this great opportunity for Payless to really do something. And what did they do? They changed typefaces and added a graphic--that’s it. It’s been reported that the new CEO Matt Rubel is trying his hardest to update Payless and turn it into something more than a bargain basement. I think this is great--the company and brand were in desperate need of a makeover. But when it came to changing their logo, something that hadn’t been redesigned in more than 20 years, Payless dropped the ball.

According to a press release, “Retaining the use of the color orange, for which Payless is well known, as well as the full name Payless ShoeSource, indicates to consumers that the retailer is not a completely different company, but simply a different Payless.” Oh really? First of all, I don’t think too many consumers would be dumbfounded if the company changed its name to just “Payless” and made the logo pink (or blue or green or white for that matter). Even if they really wanted to keep the name, they could have at least changed the color. No one is going to see a sign above a store that says “Payless ShoeSource” and confuse it for Foot Locker or Gucci just because it’s not orange. And, if a color change actually caused confusion like this, I’m not so sure that would be a bad thing.

Don’t get me wrong, I think Payless has a lot of potential, what with the opening of its newly designed, spacious and organized store on Fifth Avenue. It’s clear the company is trying to take the necessary steps toward evolving its brand image. But where they stand, as of now in fashion-savvy consumers’ minds, still isn’t so hot--ditching the orange could have only been an improvement and I bet it would have turned some heads. The next time I walk by a Payless, I probably won’t even notice the “new” logo, and I still won’t go inside.

--Jessie Bove

Photo: The new logo for Payless ShoeSource

Changing Wal-Mart

Wal-Mart is trying very hard these days to reinvent themselves as something cool and hip.  They're creating different kinds of stores and, like many other retailers, developing consumer-centric stores.  According to DDI, those five different types include suburban affluent, rural, baby boomer, urban/multicultural and Hispanic.  They seem to have the rural down right now, but it will sure be a very different road as they try to develop concepts to the suburban affluent, baby boomer and urban audiences. 

And they've been rolling out a variety of new store designs, including a new upscale store in Plano, Texas.  According to DDI, "What you will find is large-format departmental wayfinding signage and graphics, faux wood flooring in the apparel and home departments, curved gondolas in the grocery section--even a full organic foods section and gourmet wine selection."  It will be interesting to see if people will actually go to Wal-Mart for organic food and gourmet wine.  I'm trying to picture my friends going there and it's not working for me.  Of course, I'm not sure that people would have expected Costco to become a store where you could buy good wine and they've made it work.

Right now, one of their most talked about strategies has been their entrance into the online social space with Wal-Mart - The HUB (School Your Way). They want to become the next  MySpace, but they seem to be a long way off.  Right now, it seems that they have several thousand members, but many of the pages I looked at seemed empty.  According to Wikipedia, MySpace currently has just over 95 million members and gets about 500,000 new members each week.  And if you do a google search on Wal-Mart + myspace, you get lots of negative posts about this effort.

So, it will be interesting to see how all of this plays out.  According to a recent Wall Street Journal headline (as reported in an NRF brief), "Wal-Mart Stores' push to rebrand itself as more of a lifestyle retailer and remodel 1,800 stores, or roughly half of its U.S. portfolio, by mid-2007, is dragging down its sales growth, say analysts."  Will they rebound or will they just alienate their current audience while trying to become something they're really not -- hip and cool.

I remember when Wal-Mart used to be about "Buying American."  Now I've read a great deal about that program that seems to suggest that they weren't really doing as much as they promoted they were doing, but it could be a great position if they really really did it.  Bring back local manufacturers and build employment in the towns they serve. 

But whatever they do, it needs to be authentic to who they are and relevant to their audience. People shopping for cheap are not going to Wal-Mart for gourmet wines.  And despite what Trader Joe's has been able to do with Two Buck Chuck, I don't think they'll be able to make that transition for quite some time.

I've included links to a variety of stories about Wal-Mart and what they're doing and welcome your comments and thoughts about their efforts!

--David Polinchock

Photo: Wal-Mart's store in downtown White Plains, N.Y., featuring design elements and a product mix for its urban customer.

Bus Stop Living Rooms and Street-Corner Hammocks?

Doesn't look like your average New York City bus stop, does it? The "primped" (or "pimped?") shelter on W. 57th St. certainly stopped more than one blogger in their tracks last week during ICFF. It actually was one of several creative promotions surrounding IKEA's Everyday Fabulous pop-up store that opened across the street from Javits during the show.

IKEA stylists turned parks into picnic playgrounds, strung hammocks from street corners and turned hot dog stands into outdoor cafes, in one of the more unusual buzz-generators on record.

"We hope people will leave the Everyday Fabulous Exhibit feeling like they've just had a cool drink, a breath of fresh air and a dose of inspiration to dare to be different in their own home," said Lena Simonson-Berge, IKEA's creative director.

Among the cool give-aways at the exhibit: Free down pillows for the first 100 "suddenly singles" and free photo frames for the first 100 out-of-work actors. Both groups probably could have benefited from a map to the bus stop living rooms and steet corner hammocks, too. (How did they ever manage to take the photo without a "city camper" napping on the sofa?)

--Karen Schaffner

A Branding Story

With the opening of the new Georgia Aquarium, an expansion of the High Museum of Art and soon-to-be-completed new location for the World of Coca-Cola, the city of Atlanta is on a mission to catch the eyes of the world and make Atlanta a destination for regional and international tourism.

Brand Atlanta, an organization put together in 2005 to promote the city as a tourism destination, has even established a newly branded logo and tagline for the city--"every day is an opening day"--and is as we speak now marketing product sporting the new ATL emblems. The organization recently worked out a deal with Macy's to sell exclusive ATL-branded merchandise in three of its Atlanta-area stores. Beginning in October, the Macy's stores at Macy's locations at Atlanta's Perimeter Mall, Cumberland Mall and Lenox Square will offer small in-store shops with everything from ATL clothing and hats to duffle bags.                                                                                                                   
According to an article in the Atlanta-Journal Constitution, Macy's was completely on board for the project. Ellen Fruchtman, a spokeswoman for Macy's parent company, Federated Department Stores, told the paper that the plan falls in line with the company's philosophy of incorporating the community into its stores. "We really make an effort to regionalize our merchandise," she said.

Previous to the Macy's deal, the Atlanta-themed merchandise had been used mostly for promotional giveaways, the AJC reports, with a small amount of sales online. Brand Atlanta hopes that using Macy's as a selling partner will greatly enhance the marketing of the new Atlanta brand.

--Alison Embrey

The American Way?

During a recent vacation to Los Angeles, I decided to take a minor detour into an American Apparel store on my way to the bar. This hot L.A.-based company is much talked-about here at DDI—and all over the press for its, well, hot, atmosphere. Known for its advertisements that border on soft porn and for its store design, which reportedly featured porn magazine covers, I decided this was a great opportunity to do some research on the brand. (Truth be told, I was also hoping head honcho Dov Charney—who is rumored to frequent his stores—would be there, so I could confront him about his press staff not returning any of DDI’s call for a feature story. But, in hindsight, it was probably best for both of us that he wasn’t there.)

I was excited about visiting the store because I am supposedly in its demographic—liberal 20-somethings. But, unfortunately, after my visit I really can’t see myself shopping there.

The first floor focused on women’s apparel, with the signage becoming more risqué as I approached the back of the store—and culminating in some rather risqué photos in the dressing room. The upstairs was mainly men’s apparel—and yes, it’s true, soft porn magazine covers. I think my main issue with the store was that its sexy signage didn’t match the apparel offering. With the exception of its swimsuit offering, everything I saw was essentially your basic T-shirt. When I think of T-shirts, I think of comfort, outdoor wear and lounging around the house—not about sex. Plus, the shirts (which were a bit out of my T-shirt price range) didn’t openly advertise that they were from American Apparel, which seemed to downplay the coolness factor of the chain.

I have no problem with using sex to sell, but I do think that it should have some relevancy to the brand. American Apparel is doing really well for itself though, including recently being honored for Marketing Excellence at the Los Angeles fashion awards, beating out some other big-names as BCBG, Guess, Paul Frank, and Roxy/Quiksilver, so is it possible that I’m more conservative than I thought?

Is there an American Apparel in your city? Do you admire them? Can someone explain the brand’s appeal to me?

--Sree Roy

Big Mac: Attack!

Yikes!  It being 2006 and all, you'd think that a 50- year-old company would be allowed to give itself a facelift.  Apparently not.  Not only is McDonald's getting criticized by geeks, published marketing gurus and unpublished marketing unknowns, but even McDonald's own franchisees (160 of them in North Carolina) are attacking the plan.

Business Week just published an article on the remodel, which was very Fox News-like fair and balanced, and worth a read.  Still, it seems as though the prevailing sentiment is, well, sentimental about Mickey D's.

Arguments abound that the new design is too nice for kids, and looks "too expensive."  Everyone waxes nostalgic for affixed plastic chairs and linoleum and arches of gold (by the way, where are those arches in the current design?).  Didn't the arches disappear from the building years ago?  And doesn't the new design pay arch-homage by using an updated, stylized, modernized arch?  Sort of like the modern, retro Ford Mustang?  Can anyone argue that the new design doesn't look better? OK, dumb question.

One thing missing from McDonald's plan seems to be what kind of results are being realized and projected for the franchisees who do remodel (as if they have a choice).  Does the more handsome design translate to a healthier bottom line?  As the Diva has pointed out before, Retail Renovation ROI is the secret sauce of design.  Fries with that?

--Doug Hope

Can You See Me Now?

Ever since cell phone providers offered GSM phones and the FCC forced cell phone providers allowed consumers to have portable phone numbers, it's a been lot easier for users to switch carriers, and buy whatever phones they like best (well, OK, so Verizon isn't GSM, and the old AT&T was tri-band and Cingular is quad-band...whatever).  Maybe the more open market is why Nokia is following Apple, Bose and Sony's lead and building stores (first one opens next month) for their brand (instead of those un-store, often single-item mall kiosks Nokia's scattered about).  Or, maybe Nokia, realizing they missed the boat on the whole clamshell vs. candy-bar form factor craze, decided to build stores to better listen to customers, like, um, Coach.

What's up with the brand storefront trend in the consumer electronics channel?  Best Buy and Circuit City probably won't like it (neither would Verizon, Sprint, Cingular or T-Mobile, for that matter) but will the other consumer electronics leaders decide to go direct, as so many fashion brands have?  So, we should expect storefronts from Samsung, LG, or even Microsoft next?  Hello, Moto?

--Doug Hope

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

The "Anti-Gap"

Diva doesn't need to look into her crystal ball to see that the future isn't bright for look alike stores. You know them...plain vanilla boxes with big lifestyle graphics. Folded neatly on the table in the front are sweaters...all cashmere in black, white, blue and pink. On the racks, suits in black, grey and tan. OMIGOD. Where have all the creative spirits gone?

Maybe they're all working for Anthropologie. With massive old French farm tables, weathered garden furniture and painted cupboards used to display its decidedly different merchandise, its stores are wondrous to behold. (Picture Diva gushing...)

To quote the Philadelphia Inquirer, parent company Urban Outfitters' hometown paper:

"In the cookie-cutter world of fashion, the company stands out by selling mass-produced items that feel unique and handcrafted. It's the anti-Gap, and architecture plays a big role in the illusion. The company's 150 stores in North America and Europe look as accidental as a flea market. But those silky pajamas aren't draped across that 19th-century Italian sideboard merely by chance."

How can a $1 billion dollar retail chain be so creative and out-of-the-vanilla-box? Certainly part of the secret is the fact that founder Richard A. Hayne was an anthropology major at Lehigh University. Which could explan why Anthropologie actually has a "Found-Objects Buyer."

There is hope, my dears. There is hope.

--Karen Schaffner

Proud to be American

In case you've missed it, American Apparel is exploding. The brainchild of eccentric entrepreneur Dov Charney--who refers to himself not as the CEO but as "senior partner"--the T-shirt and "brand-free" comfort clothes retailer is leaving a trail of sawdust across the country, popping up stores in 26 U.S. states and countries spanning the globe. What started as a wholesale company selling only blank T-shirts has ballooned into a $250 million business crafting more than 10,000 SKUs.

While the quality of the clothing is an obvious driver of the chain's success, it's the intrigue behind the sexually-charged company that keeps Charney and team in the press. When bombarded with criticism for hanging graphics of pornography magazine covers on the doors of store fitting rooms, the company finally caved in and took the images down--only to replace them with covers of Playboy. Advertisements and billboards feature "real people"--including Charney and other employees--rather than models, sporting the latest AA creations (and sometimes nothing at all).

While not everyone can agree with the way American Apparel has positioned the brand to consumers, we have to recognize the feverish cultural force the company is spreading across the retail marketplace. In a time where consumers--especially young consumers--are looking for retail spaces that fit their personalities and lifestyles, a brand that supports individuality has a lot of promise. Keep on the lookout for a store near you.

--Alison Embrey

Building Family Fun

If today's most successful retailers are focusing on developing stores that offer memorable experiences, then Build-A-Bear Workshop truly defines success when it comes to families. Whenever this Diva walks by one of their stores, I always stop to watch all the kids having a wonderful time putting together their very own, customized teddy bears. It's one of the more popular birthday party venues these days. I even know a few adults who have found their "child within" and designed one.

Really, doesn't it epitomize everything we want today--good, clean fun and a chance to create something that is our very own?

If you let your imagination run wild with this concept, you might envision expanding into dolls. Great idea...they've already done it--with friends 2B made. Or maybe even take the concept out to other places where families gather, like stadiums or zoos. Oops...they're doing that, too! In their hometown of St. Louis, Build-A-Bear is opening stores at the Saint Louis Zoo (mid-March) and Busch Stadium (mid-April). As someone who enjoys the first three innings of a baseball game, this is one mother who would have jumped at the chance to take my kids to Build-A-Bear for the fourth, fifth, sixth, seventh, etc. inning stretch!

If you're wondering where retail creativity went, take a look at Build-A-Bear. I am one very impressed Diva...

--Karen Schaffner

An interesting article in the Baltimore Sun...

As an interesting follow-up to the previous post about the Gap, here's an excerpt from an article from the Baltimore Sun that speaks to the challenges many retailers face today.  And, unfortunately for many retailers, their only experience is price-based.  We're constantly surprised at how little attention companies pay to creating compelling, authentic and relevant brand experiences. 

"They sell ripped jeans and T-shirts with snarky messages, and cater to teenagers and college students--the most finicky consumers around.

But with their saucy marketing and stores that feel like hangouts for the 'it' crowd, Abercrombie & Fitch, American Eagle Outfitters Inc. and Aeropostale Inc. outperformed classic names such as The Gap Inc. and discounters such as Wal-Mart Stores Inc. in what generally was a tepid holiday shopping season.

Catering to teenagers is nothing new. But these stores have managed to create a cult-like following and rake in sales with ease in a retail climate where many stores have to discount heavily to win consumers. The attraction is as much about image and 'cool factor' as it is the clothes.

'Store experience is becoming a bigger and bigger deal,' said Richard Hastings, a retail analyst with Bernard Sands in New York. "Discount retailing is good for everyday, but for special shopping days people want the full experience. They want to be able to browse with their Starbucks coffee in a happy environment.'"

In the commoditized product world that we live in, retailers need to do a great deal more then they’re doing today to thrive.  Just look at the difference between two Mattel brands, Barbie and American Girl.  If there’s any example of brands using and not using compelling stories to increase their business, it’s these two.  While Barbie has shown a steady decline in both sales and market share, American Girl has been on an upswing.  Over the years, the Barbie story has become muddied and lost in relevance, American Girl has built a very strong and relevant story for its audience.  And the proof is in the pudding.  Just to check, I looked for Barbie dolls on Toysrus.com and the ranged from $10 - $20.  American Girl’s doll of the year, Jess, sells for $87 for the doll + her story book.  Shopping for Barbie at stores like Toys R Us is sometimes like shopping at a rummage sale.  Merchandise hard to find and usually pretty chaotic.  In contrast, going to the American Girl Place is a total experience, including a live stage show and the chance to eat in the American Girl Café.  The completely wrap you in the story. 

So decide which brand you want to be.  The brand in decline that struggles to sell around the $15 or the brand that creates a complete story and sells for $87.  The choice is up to you!

--David Polinchock

Link: Stores targeting teens were holiday leaders - baltimoresun.com.

A holiday to remember

For Marshall Fields' loyalists in Chicago, this holiday season was bittersweet, because it was the last one for Marshall Fields. As much as I admire Federated Department Stores' efforts over the past few years to rationalize the department store mess, I really am struggling with this decision. Anyone disagree?

--Karen Schaffner