Department Stores Play an Important Role in the Success of a Designer

March 13, 2012

“American Idol” has produced Grammy winners, but reality TV has yet to produce a designer with mass commercial success. By adding retail to the formula, NBC’s “Fashion Star,” premiering Tuesday, aims to make business part of the entertainment

“It’s the fashion version of ‘American Idol,’ a real business process,” said E.J. Johnston, a former IMG Fashion executive who created the show’s concept with producing partner James Deutch, a former Hearst Entertainment executive.

The grand prize, a $6 million contract with Macy’s, Saks Fifth Avenue and H&M, will be awarded to one of 14 contestants on the 10th episode finale. In addition, each week buyers can place orders after each runway presentation, and viewers can buy product online that night and in stores the next day.

“We like the idea of big entertainment with tangible prizes, not to mention viewers like instant gratification,” said Deutch. (The show was taped over the summer, allowing retailers time to produce the clothes.)

“With other shows, winners still need to find a way to make their business work,” said Johnston. “We wanted to show that dream-come-true moment where a buyer says ‘I want that,’ so we made them the judges.”

In addition to decision making on camera, buyers must bid against one another to carry a look exclusively. “I can honestly say the show was really competitive both from the design and the buying process,” said Nicole Christie, H&M’s communications manager who was one of the show’s “featured buyers.” “It’s like going to Sotheby’s. You have to act fast and outbid the competition,” said Terron E. Schaefer, Saks’ executive vice president and chief creative officer, also a featured buyer. But the advantages far outweighed the challenges. “It’s like a 10-hour commercial for Saks,” he said.

Noted Macy’s vice president-regional planning manager for women’s apparel Caprice Willard, “We’re on the cutting edge of new ways to find talent and bring fashion to viewers. It’s important that retailers be open [to it] because we have to evolve in order to stay relevant. Customers are armed with far more product knowledge than ever before, so it puts the onus on us to be one step ahead.”

For contestants, who ranged from designers at major fashion brands to bartenders, the show means a fast track to success. “Whether or not they progress to the finale, their success is limitless. I wouldn’t be surprised if some end up in Macy’s and other storefronts,” said Willard. “There were designers who sold hundreds of thousands of dollars who didn’t win the grand prize,” added Deutsch.

While it remains to be seen how the clothes will sell, all retailers were optimistic about their profitability. As for the show, it has sold to 25 countries, and producers are in discussions to develop foreign versions with local retailers. Deutsch and Johnston are now developing a similar show with a 1,000-door home goods retailer. Said Johnston, “There are thousands of fascinating processes out there to add entertainment to.”

For more information, visit: http://www.wwd.com/media-news/film-tv/retailers-have-roles-in-fashion-star-5789620

Meijers Giving Back

February 27, 2012

Donation will provide more than 34,000 meals to feed the hungry in southeast Michigan

Meijer has donated $10,000 to two southeast Michigan food banks as part of the retailer's nationwide online holiday contest, "Get Gifted," that also awarded one lucky winner – a Macomb County, Mich. resident – with $10,000 in Meijer gift cards.

Meijer representatives and grand prize winner Vicki Spokes presented the $10,000 donation to Gleaners Community Food Bank and Forgotten Harvest last week. Both food banks are members of Feeding America®, the nation's leading domestic hunger-relief charity with a network of 200 food banks nationwide.

"While we are always pleased when our customers engage with our brand online, it's especially satisfying when the end result provides a benefit to such a worthy cause," said Kevin Brown, chief marketing officer of the Grand Rapids, Mich.-based retailer. "Food giving continues to be a focus at Meijer, and we appreciate our customers joining us in this effort."

Each year, Meijer donates more than 6 percent of its net profits to charity.

The donation will help make a difference in the community, said John Dziurgot, vice president of operations for Gleaners Community Food Bank.

"Gleaners is grateful to Meijer for its leadership in addressing hunger," Dziurgot said. "With one in five households in southeast Michigan facing hunger, this generous donation will help Gleaners ensure that our neighbors are not forced to choose between buying food and paying the bills. We appreciate Meijer's efforts to bring attention to hunger in our community and to provide two excellent organizations with much-needed resources to address the problem."

The "Get Gifted" contest launched nationwide in November to give customers a feel for the hot brands of the season by offering playersa chance to explore three rooms of a Meijer home through 360-degree videos. It was the first time a big box retailer utilized the interactive 360-degree video technology with a contest.

The contest was quite popular, drawing nearly 3.3 million featured merchandise clicks and more than 255,000 sweeps entrants. The contest launched on Nov. 10 and concluded on Dec. 18.

More than 100 prizes – three each day – were awarded throughout the contest period, and included gifts such as a Nintendo 3DS, a 32" Vizio television, and a Barbie Dream Townhouse. The Grand Prize winner received $10,000 in Meijer gift cards.

Even though Vicki Spokes, 55, entered the contest daily, she said she never dreamed she'd win the grand prize.

"I was just hoping I would get lucky and win a $50 gift card," Spokes said. "I never in a million years thought I would win $10,000 in giftcards. I was shocked and surprised and in awe. My grandchildren will reap the rewards."

Aside from the contest's unique digital focus, Spokes said she was pleased to know that it also included a philanthropic component.

The $10,000 donation to the Feeding America member food banks – Gleaners Community Food Bank and Forgotten Harvest – equals more than 34,000 meals for the hungry, according to Feeding America.

"Every dollar we can generate is critical to Forgotten Harvest's battle against hunger," said Russ Russell, Forgotten Harvest chief development officer. "This award will provide over 16,000 meals to those in need of food. We are deeply appreciative of their commitment to helping us drive hunger from the community."

Russell added that Meijer supports Forgotten Harvest daily as a food donor. In 2011, Meijer donated more than 500,000 pounds of food that would otherwise have gone to waste, as well as a semi-tractor to help expand its mobile pantry program.

To view the food bank donation presentation video, please visit http://www.youtube.com/watch?v=KYQeJau3QNY.

To review the "Get Gifted" contest, please visit www.meijer.com/getgifted.

About Feeding America: Feeding America provides low-income individuals and families with the fuel to survive and even thrive. As the nation's leading domestic hunger-relief charity, our network members supply food to more than 37 million Americans each year, including 14 million children and 3 million seniors. Serving the entire United States, more than 200 member food banks support 61,000 agencies that address hunger in all of its forms. For more information on how you can fight hunger in your community and across the country, visit http://www.feedingamerica.org. Find us on Facebook at www.facebook.com/FeedingAmerica or follow our news on Twitter at www.twitter.com/FeedingAmerica. 

About Meijer: Meijer is a Grand Rapids, Mich.-based retailer that operates 197 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky. As a pioneer of the "one-stop shopping" concept, Meijer stores have evolved through the years to include expanded fresh produce and meat departments, as well as pharmacies, comprehensive electronics departments, garden centers and apparel offerings. For more information on Meijer and the ability to shop for more, please visit www.meijer.com. Follow Meijer on Twitter @twitter.com/meijer or become a fan at www.facebook.com/meijer.

For more information, please visit: http://www.prnewswire.com/news-releases/meijer-donates-10000-to-gleaners-community-food-bank-and-forgotten-harvest-through-retailers-get-gifted-online-holiday-contest-140564133.html

Meijers Giving Back

February 27, 2012

Donation will provide more than 34,000 meals to feed the hungry in southeast Michigan

  Meijer has donated $10,000 to two southeast Michigan food banks as part of the retailer's nationwide online holiday contest, "Get Gifted," that also awarded one lucky winner – a Macomb County, Mich. resident – with $10,000 in Meijer gift cards.

Meijer representatives and grand prize winner Vicki Spokes presented the $10,000 donation to Gleaners Community Food Bank and Forgotten Harvest last week. Both food banks are members of Feeding America®, the nation's leading domestic hunger-relief charity with a network of 200 food banks nationwide.

"While we are always pleased when our customers engage with our brand online, it's especially satisfying when the end result provides a benefit to such a worthy cause," said Kevin Brown, chief marketing officer of the Grand Rapids, Mich.-based retailer. "Food giving continues to be a focus at Meijer, and we appreciate our customers joining us in this effort."

Each year, Meijer donates more than 6 percent of its net profits to charity.

The donation will help make a difference in the community, said John Dziurgot, vice president of operations for Gleaners Community Food Bank.

"Gleaners is grateful to Meijer for its leadership in addressing hunger," Dziurgot said. "With one in five households in southeast Michigan facing hunger, this generous donation will help Gleaners ensure that our neighbors are not forced to choose between buying food and paying the bills. We appreciate Meijer's efforts to bring attention to hunger in our community and to provide two excellent organizations with much-needed resources to address the problem."

The "Get Gifted" contest launched nationwide in November to give customers a feel for the hot brands of the season by offering players a chance to explore three rooms of a Meijer home through 360-degree videos. It was the first time a big box retailer utilized the interactive 360-degree video technology with a contest.

The contest was quite popular, drawing nearly 3.3 million featured merchandise clicks and more than 255,000 sweeps entrants. The contest launched on Nov. 10 and concluded on Dec. 18.

More than 100 prizes – three each day – were awarded throughout the contest period, and included gifts such as a Nintendo 3DS, a 32" Vizio television, and a Barbie Dream Townhouse. The Grand Prize winner received $10,000 in Meijer gift cards.

Even though Vicki Spokes, 55, entered the contest daily, she said she never dreamed she'd win the grand prize.

"I was just hoping I would get lucky and win a $50 gift card," Spokes said. "I never in a million years thought I would win $10,000 in gift cards. I was shocked and surprised and in awe. My grandchildren will reap the rewards."

Aside from the contest's unique digital focus, Spokes said she was pleased to know that it also included a philanthropic component.

The $10,000 donation to the Feeding America member food banks – Gleaners Community Food Bank and Forgotten Harvest – equals more than 34,000 meals for the hungry, according to Feeding America.

"Every dollar we can generate is critical to Forgotten Harvest's battle against hunger," said Russ Russell, Forgotten Harvest chief development officer. "This award will provide over 16,000 meals to those in need of food. We are deeply appreciative of their commitment to helping us drive hunger from the community."

Russell added that Meijer supports Forgotten Harvest daily as a food donor. In 2011, Meijer donated more than 500,000 pounds of food that would otherwise have gone to waste, as well as a semi-tractor to help expand its mobile pantry program.

To view the food bank donation presentation video, please visit http://www.youtube.com/watch?v=KYQeJau3QNY.

To review the "Get Gifted" contest, please visit www.meijer.com/getgifted.

About Feeding America: Feeding America provides low-income individuals and families with the fuel to survive and even thrive. As the nation's leading domestic hunger-relief charity, our network members supply food to more than 37 million Americans each year, including 14 million children and 3 million seniors. Serving the entire United States, more than 200 member food banks support 61,000 agencies that address hunger in all of its forms. For more information on how you can fight hunger in your community and across the country, visit http://www.feedingamerica.org. Find us on Facebook at www.facebook.com/FeedingAmerica or follow our news on Twitter at www.twitter.com/FeedingAmerica. 

About Meijer: Meijer is a Grand Rapids, Mich.-based retailer that operates 197 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky. As a pioneer of the "one-stop shopping" concept, Meijer stores have evolved through the years to include expanded fresh produce and meat departments, as well as pharmacies, comprehensive electronics departments, garden centers and apparel offerings. For more information on Meijer and the ability to shop for more, please visit www.meijer.com. Follow Meijer on Twitter @twitter.com/meijer or become a fan at www.facebook.com/meijer.

For more information, please visit: http://www.prnewswire.com/news-releases/meijer-donates-10000-to-gleaners-community-food-bank-and-forgotten-harvest-through-retailers-get-gifted-online-holiday-contest-140564133.html

"Wholesalers balance inventory with sales"

February 15, 2012

JCPenney--predicted to be one of the most interesting retailers in 2012

February 13, 2012

J.C. Penney just blew up its brand — in a good way — thanks to a new management team with some radical new ideas. J.C. Penney is about to be the most interesting retail story of the year.

Late last year, J.C. Penney began building a dream team with Ron Johnson — the man who launched Apple‘s retail stores — as its new CEO. Johnson cut his retail teeth at Target and from there he poached Michael Francis to serve as J.C. Penney’s new president. Francis is largely responsible for Target’s branding and marketing efforts.

And this week, Johnson took a sledgehammer to the J.C. Penney way of doing business. It’s the most exciting thing I’ve seen in retail since Apple opened stores, again with Johson at the the helm.

J.C. Penney — now being referred to as jcpenney — is implementing a new pricing strategy, slashing prices up to 40% with to keep them that way year round. Not EDLP, this fair pricing strategy is designed to keep prices low on the basics shoppers look for frequently and introduce new merchandise on a routine schedule.

“We want customers to shop on their terms, not ours,” said Johnson. “By setting our store monthly and maintaining our best prices for an entire month, we feel confident that customers will love shopping when it is convenient for them, rather than when it is expedient for us.”

It’s a shocking move for any retailer, let alone a department store where hi-low pricing and promotions have long been the norm.

There will also be an entirely new layout, with brands merchandised in shops within the store rather than endless racks and runs of shelves. There aren’t many new ways to display merchandise and any effort to re-invent the in-store experience will be welcome with shoppers and provide a reason to buy in stores, rather than looking for bargains online.

“The department store is the number one opportunity in retail today. We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America’s favorite store,” Johnson said. “Every initiative we pursue will be guided by our core value to treat customers as we would like to be treated – fair and square.”

The new logo is meant to evoke the American Flag, a move likely to resonate with today’s shoppers and set it apart from the rest of the retail pack.

Most retailers make tentative steps toward change. They take a year to develop a new store format, reconfigure a layout or commission a logo. Then they test it, refine it and test it again. It can take years to roll out changes to a large store base and often before that happens, the plan changes again.

But Johnson is anything but typical. Changes begin on Feb. 1 and  in August jcpenney will begin updating all stores with new merchandise and presentations, adding two to three shops each month through 2015 in what management is calling a complete transformation.

It’s refreshing, daring and probably exactly what the retailer needs. It’s probably what a lot of retailers need but few have the leadership and support to do it.

For more information, visit: http://www.forbes.com/sites/lauraheller/2012/01/26/why-jcpenney-will-be-the-most-interesting-retailer-of-2012/

JCPenney--predicted to be one of the most interesting retailers in 2012

February 13, 2012

J.C. Penney just blew up its brand — in a good way — thanks to a new management team with some radical new ideas. J.C. Penney is about to be the most interesting retail story of the year.

Late last year, J.C. Penney began building a dream team with Ron Johnson — the man who launched Apple‘s retail stores — as its new CEO. Johnson cut his retail teeth at Target and from there he poached Michael Francis to serve as J.C. Penney’s new president. Francis is largely responsible for Target’s branding and marketing efforts.

And this week, Johnson took a sledgehammer to the J.C. Penney way of doing business. It’s the most exciting thing I’ve seen in retail since Apple opened stores, again with Johson at the the helm.

J.C. Penney — now being referred to as jcpenney — is implementing a new pricing strategy, slashing prices up to 40% with to keep them that way year round. Not EDLP, this fair pricing strategy is designed to keep prices low on the basics shoppers look for frequently and introduce new merchandise on a routine schedule.

“We want customers to shop on their terms, not ours,” said Johnson. “By setting our store monthly and maintaining our best prices for an entire month, we feel confident that customers will love shopping when it is convenient for them, rather than when it is expedient for us.”

It’s a shocking move for any retailer, let alone a department store where hi-low pricing and promotions have long been the norm.

There will also be an entirely new layout, with brands merchandised in shops within the store rather than endless racks and runs of shelves. There aren’t many new ways to display merchandise and any effort to re-invent the in-store experience will be welcome with shoppers and provide a reason to buy in stores, rather than looking for bargains online.

“The department store is the number one opportunity in retail today. We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America’s favorite store,” Johnson said. “Every initiative we pursue will be guided by our core value to treat customers as we would like to be treated – fair and square.”

The new logo is meant to evoke the American Flag, a move likely to resonate with today’s shoppers and set it apart from the rest of the retail pack.

Most retailers make tentative steps toward change. They take a year to develop a new store format, reconfigure a layout or commission a logo. Then they test it, refine it and test it again. It can take years to roll out changes to a large store base and often before that happens, the plan changes again.

But Johnson is anything but typical. Changes begin on Feb. 1 and  in August jcpenney will begin updating all stores with new merchandise and presentations, adding two to three shops each month through 2015 in what management is calling a complete transformation.

It’s refreshing, daring and probably exactly what the retailer needs. It’s probably what a lot of retailers need but few have the leadership and support to do it.

For more information, visit: http://www.forbes.com/sites/lauraheller/2012/01/26/why-jcpenney-will-be-the-most-interesting-retailer-of-2012/

How Are You Retaining Customers?

February 13, 2012

Love just isn't enough anymore. In brand relationships, good customer service, high customer satisfaction and even professed brand loyalty won't keep consumers from ditching a product for the competition. In fact, more than half of U.S. consumers did so last year.

A global study by Accenture found that even though consumers are more satisfied with customer service than ever before, they are switching brands at a high rate.

The survey, conducted over the web in September and October 2011, queried more than 10,000 consumers to measure customer satisfaction across key attributes in 10 different industries. It found that while satisfaction increased for all those service attributes, an astounding two-thirds of respondents -- 66% -- reported they switched brands in the past year because of a bad customer experience. While the U.S.-only percentage of switchers was lower in 2011, at 51%, it is still significant and an increase over the previous year.

"Switching is something that's here to stay, said Robert Wollan, global managing director, Accenture customer relationship management. "Consumers have become accustomed to switching when the service or product isn't meeting their needs."

What is new is the big uptick in satisfaction, with increases ranging from 5% to 7% in one year, depending on the category. Consumers are happier, for instance, with shorter wait times (33% are satisfied compared to 27% last year); the ability to solve issues without having to speak to someone (38% satisfied, up from 33%); and the ability to resolve an issue by speaking to just one person (39% compared to 32%).

So what's going on -- shouldn't happier customers mean more loyal customers? Not necessarily. About one-fourth (24%) of consumers characterize themselves as brand loyal, while an almost equal number (23%) describe themselves as having no loyalty at all. As Mr. Wollan pointed out, not only are consumers now used to switching brands, there is a third factor on the increase that may also help explain the trend: the rise in customer expectation.

About 44% said they expect more, or much more, than they did last year from the brands with which they do business. In 2008, 31% said they expected more than the year before.

"We think the attributes we ask about -- wait times and talking to just one person to resolve issues -- have become table stakes," Mr. Wollan said.

Today's savvy digital customers expect polite and knowledgeable employees or convenient customer-service hours. And while they appreciate and are satisfied with those things, it's not going to stop them from taking their business elsewhere.

Also on the rise is partial switching, defined as when a consumer keeps a brand, but also adds another in the same category, such as buying a second mobile phone from a different provider. Partial switching in 2011 increased in all 10 industries Accenture tracks, from retail and consumer electronics to travel and tourism and banking. That's not only lost business, but more importantly, a loyalty lapse that opens a door to a new brand.

For more information, visit: http://adage.com/article/news/brand-love-satisfaction-shoppers-faithful/232680/

How Are You Retaining Customers?

February 13, 2012

Love just isn't enough anymore. In brand relationships, good customer service, high customer satisfaction and even professed brand loyalty won't keep consumers from ditching a product for the competition. In fact, more than half of U.S. consumers did so last year.

A global study by Accenture found that even though consumers are more satisfied with customer service than ever before, they are switching brands at a high rate.

The survey, conducted over the web in September and October 2011, queried more than 10,000 consumers to measure customer satisfaction across key attributes in 10 different industries. It found that while satisfaction increased for all those service attributes, an astounding two-thirds of respondents -- 66% -- reported they switched brands in the past year because of a bad customer experience. While the U.S.-only percentage of switchers was lower in 2011, at 51%, it is still significant and an increase over the previous year.

"Switching is something that's here to stay, said Robert Wollan, global managing director, Accenture customer relationship management. "Consumers have become accustomed to switching when the service or product isn't meeting their needs."

What is new is the big uptick in satisfaction, with increases ranging from 5% to 7% in one year, depending on the category. Consumers are happier, for instance, with shorter wait times (33% are satisfied compared to 27% last year); the ability to solve issues without having to speak to someone (38% satisfied, up from 33%); and the ability to resolve an issue by speaking to just one person (39% compared to 32%).

So what's going on -- shouldn't happier customers mean more loyal customers? Not necessarily. About one-fourth (24%) of consumers characterize themselves as brand loyal, while an almost equal number (23%) describe themselves as having no loyalty at all. As Mr. Wollan pointed out, not only are consumers now used to switching brands, there is a third factor on the increase that may also help explain the trend: the rise in customer expectation.

About 44% said they expect more, or much more, than they did last year from the brands with which they do business. In 2008, 31% said they expected more than the year before.

"We think the attributes we ask about -- wait times and talking to just one person to resolve issues -- have become table stakes," Mr. Wollan said.

Today's savvy digital customers expect polite and knowledgeable employees or convenient customer-service hours. And while they appreciate and are satisfied with those things, it's not going to stop them from taking their business elsewhere.

Also on the rise is partial switching, defined as when a consumer keeps a brand, but also adds another in the same category, such as buying a second mobile phone from a different provider. Partial switching in 2011 increased in all 10 industries Accenture tracks, from retail and consumer electronics to travel and tourism and banking. That's not only lost business, but more importantly, a loyalty lapse that opens a door to a new brand.

For more information, visit: http://adage.com/article/news/brand-love-satisfaction-shoppers-faithful/232680/

Steve Madden Gives Back to Two Ten

February 7, 2012

Steve Madden is giving back.

The creative director and design head of Steven Madden Ltd. has made, along with his wife Wendy, an unrestricted $1 million gift to the Two Ten Footwear Foundation. The nonprofit called it one of the largest personal donations in its history.

“I’ve met so many great people and been lucky that I love what I do,” Madden said. “I’ve been given this lucky break, and we’ve done very well — better than I should have — and I just want to give back.”

“Steve and Wendy’s gift to Two Ten is their personal expression of compassion for the work we do and for the shoe industry they love,” Two Ten President Neal Newman said in a statement.

There are no stipulations on the gift, Madden said.

“I’ve worked with them over the years, and it’s a fantastic organization. I trust them to do what’s best,” he said. “I’m just grateful I’m in the position to do it.”

For more information: http://www.wwd.com/footwear-news/people/steve-madden-gives-1m-to-two-ten-5593982?src=nl/FN/20120201

Steve Madden Gives Back to Two Ten

February 7, 2012

Steve Madden is giving back.

The creative director and design head of Steven Madden Ltd. has made, along with his wife Wendy, an unrestricted $1 million gift to the Two Ten Footwear Foundation. The nonprofit called it one of the largest personal donations in its history.

“I’ve met so many great people and been lucky that I love what I do,” Madden said. “I’ve been given this lucky break, and we’ve done very well — better than I should have — and I just want to give back.”

“Steve and Wendy’s gift to Two Ten is their personal expression of compassion for the work we do and for the shoe industry they love,” Two Ten President Neal Newman said in a statement.

There are no stipulations on the gift, Madden said.

“I’ve worked with them over the years, and it’s a fantastic organization. I trust them to do what’s best,” he said. “I’m just grateful I’m in the position to do it.”

For more information: http://www.wwd.com/footwear-news/people/steve-madden-gives-1m-to-two-ten-5593982?src=nl/FN/20120201