One to watch in 2012 – Esprit

 

Following last year’s disappointing performance, mass fashion brand Esprit looks on course for better results in 2012. After changes to senior management, reviewing brand and retail strategy, there are positive signs of the improvements being carried out.

The new retail concept on trial in Köln, Germany, looks set to be rolled out further to new locations as the company announces store openings for its successful Asian division. The only negative being that the ‘look and feel’ is overly similar to concepts by competitor clothing retailers, including; H&M’s COS brand, Mango and J Crew.

Changes to product design, such as removing excessive branding along with a sophisticated ‘adult’ colour palette, have created a more exclusive and up market feel to the different collections.

In the meantime, store presentation and VM delivery has a more confident and stylish look to complement the improved product offer.

In my opinion, even without the new shop fit, the more stylish and modern VM execution will prove popular with it’s customers.

Store standards have improved too, with greater focus on attention to detail on displays, and tidying of the stores. All in all, Esprit looks like a brand to watch in 2012, as the company gets back on track.

Click here to see our Esprit photo album on the Visual Thinking Facebook page to see the new store design in Köln.

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Watch Karl on BBC iPlayer

You can now watch Karl’s appearance on last night’s episode of ‘Alex Polizzi – The Fixer’ on BBC iPlayer.

Click here to watch the programme.

In this episode, Karl helps Alex to overhaul and rejuvenate Courtyard Bridalwear in Kettering.

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Making more customers say ‘I do’ at Courtyard Bridal

After being initially contacted by Twofour Broadcast to provide some retail advice and expertise for their new show The Fixer, I then spoke to Alex Polizzi to discuss my ideas about what ‘a great bridal shopping experience’ should be about.

We started by considering the overall ‘look and feel’ requirements for the business, along with a range of important customer needs, such as ‘romancing the product’ with better VM and a range of practical improvements to the fitting rooms, including creating more space, upgrading comfort and useful additions such as better mirrors, mood lighting and seating for relatives of the bride to be.

On the strength of this, I was invited to come to the store in Kettering and discuss these with Alex in person – as part of the show.

I advised that the business had many muddled and conflicting practices instore, and most were ineffective. The result was a cluttered, dowdy and uninspiring shopping experience. Aspects of the interior design were tired and required updating. Products were not presented well to maximise their selling potential, with dresses cramped together hiding design details. Accessories looked untidy and unloved. Overall, product presentation looked unappealing – missing elegance and style, crucial elements for a successful bridal wear shop. These factors combined to reduce sales and were damaging customer perceptions about the products, service and expertise that was on offer instore.

Customers at Courtyard Bridal were shopping to make themselves and their party look amazing for the most memorable and magical day of their lives. The store was not convincing the brides, the groom or their family members that the experience or products would deliver the magic.

We needed to make the shopping experience more inspiring and introduce a sense of elegance and style instore. We also needed to make the shopping process as relaxing as possible, as whilst this can be a thrilling experience, for many people everything associated with weddings simply means a lot of stress! Therefore, it was important the shop didn’t just ‘look good’ but made people ‘feel good’ too – a more comfortable and relaxed environment, as people can spend upwards of three to four hours choosing and trying on these products.

On this occasion, we didn’t carry out the actual makeover, but using my advice on the retail strategy required to create the right shopping experience, Twofour Broadcast arranged for the changes to be made using external contractors. I am pleased to say that most of the changes I recommended were carried out and to a high standard.

The store has had a significant change in fortunes following the changes with sales positively now on the up. Anne Preece, the owner said: “Thank you for your input into our makeover, all of our customers love the improvements that have been made and we love it too.”

The Fixer will air on Tuesday evenings from 8 – 9pm from 31 January with Courtyard Bridal featuring in the first episode. The programme will also be available to view on the BBC iPlayer after transmission.

More information on the programme can be read here.

 

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Karl McKeever provides BBC Two with its VM fix

Renowned VM consultant Karl McKeever is to feature in the BBC Two show The Fixer, helping businesswoman Alex Polizzi to get several family firms back on the road to retail recovery.

Featuring in three of the six episodes of the series, Karl helps the stores to implement effective retail strategies such as improved store presentation, effective brand delivery and new customer service initiatives to significantly improve the fortunes of the businesses taking part.

Karl was chosen for the series by production company Twofour Broadcast, as he stood out as a leader in his field when they conducted their research into suitable retail consultants.

McKeever, whose VM and instore brand delivery consultancy Visual Thinking usually works alongside the likes of M&S, John Lewis and Sainsbury’s, relished the opportunity to apply some of his big business consultancy practices to help small, independent businesses.

“Myself and my team have advised some of the largest retail brands in the world and it gives us a lot of satisfaction to be able to use that expertise to help businesses that don’t have the large budgets to dedicate to retail improvement programmes,” explains McKeever.

Throughout the series, which begins on Tuesday 31 January, Karl and his team provide consultancy and solutions for a Northamptonshire bridal-wear shop, a family furniture store in Leeds and a fancy dress shop in Essex.

The Fixer will air on Tuesday evenings from 8 – 9:00pm from 31 January. Each episode will also be available to view on the BBC iPlayer after transmission.


BBC trailer for “Alex Polizzi – The Fixer”.

Click here to read the programme synopsis for the first episode on the BBC website.

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Gun Trade News: Tidy up your act

Visual merchandising consultant Karl McKeever has some simple but crucial advice for maximising retail potential in gun shops

As the creative director of visual merchandising consultancy Visual Thinking, Karl McKeever has worked with retail giants such as Tesco, Marks & Spencer and John Lewis. Recently, through GMK’s Target Project scheme to increase retail sales of the Beretta product group, he has turned his eye on the gun trade. He told Gun Trade News his impressions of the trade and what gun shops should be doing but aren’t – both to improve layout and presentation, and to increase sales

THE PROJECT WE RAN with GMK was with their field sales team. The idea behind the project was to equip them with a range of knowledge and skills in store presentation and branding, so they could provide better support to the retailers.

We started with a three-day workshop where we trained them in a range of best practices. We gave them some assignments to get out into the marketplace and test out their new knowledge and skills on a number of case-study examples. We then brought those back for a second workshop where we reviewed progress.

It wasn’t just from a visual perspective – part of those assignments was very clearly to find hard results through performance improvement, increased sales or category uplift. The balance between the two goals was very much 50/50.

Before the project I had very little experience of the gun trade. At the start of the project, we went out and visited several outlets to get an idea of what their presentation was like, to give us a ‘start point’ for the training and development.

I think my first impressions need to be put into context. Unlike, say, a company store where you have more control of their product range, these products were going into independent businesses – people with a much leaner investment scenario. The consequence of that is that these kinds of business reminded me of what the independent sports trade and independent bookshops were like 15 or 20 years ago – pretty unsophisticated, with a lot of scope for improvement. The range of products they stocked was often disorganised – a real ‘rag bag’ of mixed ranges, which makes it much more challenging in terms of presentation.

In the Target Project scheme, what we wanted to do was make sure any Beretta products – and I’m talking less about the guns and more about the clothing, accessories and so on – were together, to create a ‘shop-in-shop’ environment. We had to get the guys to focus on the strengths of the product, draw together strong and credible range categories as far as they could with the ranges they had, and within that apply a range of simple but effective visual merchandising techniques.

What we also got the field sales team to think about was whether there was potential to reposition their departments within shops – in other words, work with the retailer, making a few recommendations to improve position, improve the use of equipment and maximise the potential of a display.

Some of the advice I’d have for the trade in general goes back almost to first principles. I was genuinely quite surprised at some gun shops’ lack of modern thinking – it was obvious when a store was run by hobbyists with a lot of product knowledge but not much retail knowledge.

Retailers need to get out and have a look what’s happening on the high street generally. That will open their eyes to the gap between the state of their own businesses and comparable ones in other marketplaces. Going back to the comparison with independent sports shops, 15 or 20 years ago those businesses were pretty untidy and lacked the mainstream retail thinking they now have. Then the big names in the business – Adidas, Nike and so on – set the bar so high in terms of their own branding that it sent a clear message to the retailers that they had to improve.

That is the kind of message we are looking to get GMK to communicate, albeit in a more palatable form – the message that there will be some serious threats in future. This is particularly the case in areas such as lifestyle clothing, which are a prime target for someone to trump the retailers with an online offer. From that perspective, everyone who sells clothing or lifestyle products within a shooting outlet should be concerned. And that concern should be that they deliver the best possible customer experience, so that customers buy from them instead of going online.

The customer wants a good shopping experience. The products are not inexpensive, and therefore they should be presented in a way that shows off their features and represents the price points they are offered at.

Taking Beretta as an example, if you look at their lifestyle products, in many ways their range is not dissimilar to the range that Ralph Lauren, for example, might sell. When you go into a Ralph Lauren store, it actually looks like a premium product – it looks expensive, it looks stylish and above all it looks great quality. In my experience of going into independent gunshops, the products just looked tired and unloved.

So what can retailers do? Simply, they can tidy up their shops. Implement some rigorous housekeeping programmes, and within that look for some best practices. They should practice clear product segmentation – put their brands together, and as far as possible, within brands group the merchandise by category. If there are a range of products that are designed for a specific function or need, they should try to present those together to give the customer an idea of what those products are all about.

Beyond that, they should look at some simple retail disciplines. Make sure that products are tidy, that they are in premium condition, that all unnecessary packaging is removed. In other words, treat your shop like a shop, not a stockroom that happens to be on the shop floor. It’s a harsh criticism, but that’s what I found retailers to be like in some cases.

There will be more retail developments from the scheme with GMK and Beretta later in the year – watch this space for details.

This article was published in the February issue of Gun Trade News.


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Cabinet Maker: How furniture stores should improve the shopping experience in 2012

It’s the start of a new year, a time when furniture retailers should think of how they will do things in 2012, and for many, put better plans in place to increase their lagging sales.

For starters, let’s consider the UK market leader Ikea, which plans to invest £27 million into its stores this year, despite a drop in sales during 2011. For me this is exactly how the leading retailers should be dealing with the ongoing downturn and low consumer confidence – continuing to invest in the customer experience, to keep shoppers fully engaged and visiting their stores.

To the big box furniture retailers that may not be investing similar sums in their stores this year, I ask this: would it be so damaging for them to reduce their dependence on the colossal, almost grotesque, headline grabbing promotional activity that most now seem to favour?

By this, I mean the constant ‘too good to miss’ sales, ‘buy now, pay almost whenever you like’ finance offers and ‘interest free’ and ‘payment holiday’ deals that characterise their key selling periods. These appear around Christmas, the New Year, Easter and (stop me if I’m wrong), what appears to be pretty much an ongoing sale throughout the year!

Whilst I recognise the importance of these ‘established’ methods of driving people instore and getting shoppers to commit, I think it is time for a change in ideas, methods and approach.

It’s a fact people aren’t buying as many sofas, beds, chairs etc. as before, and with the housing market remaining stubbornly stuck in the doldrums, those big ticket items don’t need to be, and won’t actually be, purchased like before either. So something has to change?

This industry has always unleashed its promotional onslaught at this time of year with huge reductions, the value of which are being propped up by artificially high prices maintained via ‘non-sales’ periods throughout the year. This ‘peaks and troughs’ mentality is damaging the industry in my opinion for a number of reasons. People know they are paying inflated prices in the (albeit rare) non-sales period, and there are so many sales that the actual sale value and point of difference is reaching the point of lethargy.

I believe this whole approach is distorting consumers’ view of the ‘real price’and, as this goes on, will damage consumer confidence in the retailers themselves. They will become cautious, nervous and start to feel misled (perceptions do count!). Free lunch anyone?

Surely it’s this trust in price integrity (amongst other things) that helps to keep John Lewis so admired, successful and on top of the service satisfaction rankings?

As the furniture market remains challenging, I suggest the big box retailers change their tactics, and start to think more like the major grocers and high street stores.

Why not adopt policies that give everyday low prices, year round – to restore faith, or offer added value elements that encourage loyalty and create regular visits to stores. Investing in better shops, with innovative and useful customer services such as home improvement, design advice and access to approved local tradesmen, could actually become a reason to visit the shop in itself – other than simply offering people the promise of another cheap sofa with three years free credit!

Why not launch a promotion with a big travel firm, to offer low cost summer holidays, an idea that would be appealing to many cash strapped people right now. What about a furniture recycling scheme similar to M&S’s successful tie up with Oxfam, where shoppers get discounts and charities can distribute items for a second use to those in most need? That would help to capitalise on the nation’s charitable DNA and the sentiment of the festive season.

Discount and finance promotions seem to be the only way the sellers of big ticket furnishings are trying to get consumers through the door. This is short sighted, as there are many more tools the retailers could use to drive traffic without sacrificing margin, credibility or trust.

I strongly believe a switch from constant discounting, and a confusing promotional stance as the main sales driver, should be replaced or at least aligned with an ‘added value’ approach.

In this difficult market the major players with their huge stores can offer discount and finance options that smaller and independent furnishers couldn’t dream of. That in itself means these retailers have to work harder at ‘running the shop’, and doing what shop keepers do to keep their customers engaged and buying. As we say here at Visual Thinking, happy shoppers buy more.

My advice for 2012, for all retailers in this space, is to review their store experience and see if it has the ‘wow factor’. And this isn’t just in a visual way, it means providing a great shopping experience, great customer service and never missing the opportunity to be big, bold and innovative about reminding customers why they should be shopping with them. Finding imaginative ways to add value to customers is my hot tip for 2012. You heard it here first.

I hope it’s a good one for everyone!

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Retail Week: Making a difference

Visual Thinking’s brand director Karl McKeever wrote the following piece in reply to this column on the Retail Week website.

My recent experiences of visiting the Big Apple are somewhat similar John, except my lasting perception was that whilst the number of store associates has declined in real terms, so too has the level of service, knowledge and overall effectiveness of the ones that do remain.

Sloppy retail standards, poor replenishment, disheveled cash desks with inefficient service queues and disgusting fitting room areas are now common place in many US brands that were once hailed as leaders within their sector.

Moreover, some of the brands, which our own clients used to refer to as benchmarks of retail delivery excellence, now frequently come up in conversation for the opposite reasons!

Of course, some of this has to be expected. Businesses in all sectors have been forced to look at costs and make cuts in delivery in recent times. However, I think all retailers need to consider the impact of these decisions on the customer and to their brands long term.

In many cases, cuts are inevitable following unsustainable periods of excess. In my experience, they can be necessary and even beneficial to help people refocus and get the right priorities in place.

This means management teams and people working instore have to be honest about what is or is not possible to provide and adjust their delivery processes, resources and activities accordingly.

The bottom line is that the customer has ALWAYS ‘voted with their feet’ in these situations, seeking maximum satisfaction and value. But now they are increasingly using their fingers, buying online.

If retailers hope to reverse the reduction in traffic in their retail stores, they cannot simply expect to keep getting more for delivering less.

Running attractive, well presented stores that provide good, effective service should not be seen as optional, but essential! John Lewis reminds us of how this can be used as an important differentiator and ‘value adding’ part of doing business to maintain customers, sales and profitability.

What’s more encouraging, is the crop of newer US brands and even established players with refocused management teams, i.e. J Crew, that are giving the old guard (Gap Inc.) a run for their money.

Whether any of this is actually any different to how things have always been and not just part of the business cycle of is the question. But certainly, the internet is a formidable new competitor for all to keep high in their sights.

 

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Retail Focus: Lest we forget the unsung heroes of VM

I love retail awards ceremonies, it’s great watching people getting recognised for their efforts, especially in such tough times. I was a guest of Retail Focus a short while ago at the VM and Display Awards, which is always a good night, filled with the innovative design achievements of retail’s creative quarter.

What disappoints me though about all award ceremonies for our specific sector is that there never seems to be a category for what my team and businesses like Visual Thinking actually do. I think that this missing category should be called ‘The Unsung Hero Award’.

So what do Unsung Heroes do? They are not responsible for the glamorous windows, instore displays, the props, the creative executions or the big ticket store interiors and shop fits – basically all of the categories available to enter in our industry’s awards. The Unsung Heroes are the strategists, the planners, the people responsible for product presentation, space planning, commercial performance, presentation techniques – the people who make products look good on features and those who define merchandising policy.

For me the roles and skill sets of the Unsung Heroes are the true definition of ‘VM’. This isn’t a criticism of the VM and Display Awards, as I am a huge fan. It is a criticism of our industry, in that it’s definition of VM is more about window dressing and instore displays than it is about innovation, practical skills and the planning behind the maximisation of each store as a selling space.

I am no awards expert, but I would like to suggest that space be made on all future VM awards for the following categories: Best Instore Brand Launch; Best Seasonal Promotion and Best Merchandise Handling!

I think that these award categories would give recognition to the teams, that in my experience, create the ‘unseen’ magic instore. It would be nice to see the person that sits there and designs planograms get their moment on the stage. They don’t deliver glamour, but their actions can generate quantum times more money than a single display ever could.

For my conceptual categories, I would like to suggest a few podium place candidates. Superdry is one of the first brands that springs to mind. It would be a winner in some category for its innovative and impactful use of fixtures and for its wonderful folding techniques. Also worth a mention would be John Lewis at Canary Wharf. Its award would be for imaginative and customer friendly use of space in its snack shop there. Lastly, Ralph Lauren and its relentless pursuit of high standards and of course its global consistency of retail delivery must surely be worth an award.

2012 promises to be tough and the industry needs to take more notice of the Unsung Heroes. Displays and above the line advertising may be making the headlines but it’s the planning, strategy and more hidden VM competences that put money in the till.

Read the original article here.

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Christmas cheer, as seen on TV, but not instore

There were many column inches and much online chatter concerning Christmas TV adverts for retailers this year. In fact, the topic seems to grow in voice annually – as it establishes itself as part of the build up to the main event. The media like it, as it’s a time of the year with popular interest, as arm chair critics become ever more vocal, informed (and knowing) about what makes a good ad.

Most of the noise this year has been about the success of the John Lewis campaign. For many it has the ‘Marmite’ factor. No matter if you love it or hate it, people are familiar with it – so in pure advertising terms, it seems to have fulfilled the clients’ brief.  Whether you ‘buy’ the creative execution and sentiment of the piece (a story of a boy waiting for the big day, seemingly as desperate and melancholic as a depressed 40 something parent lamenting their passing youth, filmed in an artsy film noir style) John Lewis had some effective practices at play.

By launching the advert ahead of TV to the Internet via YouTube and Twitter, the company allowed ‘chatter’ to grow about the date and time of the on screen premiere. Without doubt, this gained more viewers, and probably people who were most eager to share their views with the world. So the debate has reigned ever since…

Whether you like the ad or not, many people discussed it (see Retail Week website) and will be talking about John Lewis. Re. the Retail Week comments you will see – the very idea of such a brand joining other retailers in the future use of ‘seasonal celebrities’ was inspired.

From Matalan’s ‘eerie people trapped in a snow globe’, or Asda’s tie up with Leith’s to reinforce their ‘quality credentials’, brands such as M&S, Sainsbury’s and Tesco try ever harder to touch the ‘shopping nerve’ and convince consumers to lavish them with one of the biggest shopping spends of the year. Each year there is seen to be a winner or loser. Now, I’m no expert in what makes a great TV advert, but what I do know is what makes a successful integrated media campaign, and here lies the rub.

What each of these adverts singularly fails to do, almost without exception, is to link what happens on TV with the consumers’ shopping experience instore. There is little, if ANY connection at best as to what shoppers experience. Although given the so often joyless and stressful experience that Christmas shopping can be in reality – you can understand why they might not want to make it seem too real!

Essentially, I’d like to see more connection to what consumers could expect to find.

Sainsbury’s created a great advert this year with a Pantomime theme, and Jamie Oliver gave his last big appearance for the brand – but a visit instore revealed no such merriment. ‘Oh no it isn’t’!  A few pieces of printed POS and bit of tinsel at the till does not a Panto make! Morrisons market place advert was perhaps the closest in concept to what actually happens instore with its Market Street fresh offer, and with star appeal from Mr Flintoff and Brucie!

So my message at this festive time of year, is if you’re employing creative minds (and setting aside MASSIVE advertising budgets) to carefully craft what is shown on TV, make sure they spend time with relevant people to create synergy and connection with the experience instore. This shouldn’t come as any surprise, as in normal times, any good marketer realises the importance of making sure TV does not disappoint when people turn up to shop, i.e. don’t over promise and never under-deliver!

John Lewis may have got the prize for most commented advert of the season, but will it make the tills ring louder? Sainsbury’s had a great idea, but has failed in my view, to maximise the potential of this family friendly piece instore. They could have done much more with it inexpensively, and created better engagement with their consumers. And in a way the John Lewis ad couldn’t dream of.

The buzz in retail this Christmas, this year is not about promoting low price and offers – that’s a GIVEN! With a price war going on in all but name, and 3 for 2s gift offers now being ‘industry standard’, smart retailers have been looking for more engaging ways to appeal to shoppers.

Retailtainment is the buzz word – it means providing an experience for customers and putting back some joy into the experience of shopping. And let’s face it, that’s where stores SHOULD BE EXPECTED to win out over the simple convenient and functional shopping experience that’s growing massively in popularity for many online.

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Gun Trade News: GMK scheme to boost retailers’ fortunes

In the following article in Gun Trade News, Karl talks about Visual Thinking’s work in training staff for shooting retailer GMK.

An education scheme carried out by GMK as part of a Europe-wide venture by Beretta aims to improve shooting retailers’ store layouts and increase their sales.

GMK, Beretta’s UK distributer, is now looking to roll out its Target Project scheme further among its dealer network.

As part of the scheme, 10 of GMK’s sales staff received training from Karl McKeever of Visual Thinking, who has worked with retail giants such as Marks & Spencer.

Mr McKeever trained the GMK representatives on tactics to maximise sales such as visual merchandising, store layout and presentation. The first training session took place in July, and the second session was held in October.

GMK sales reps then went out to retailers in GMK’s dealer network to pass on this knowledge. Since the scheme is still in pilot, around 20-30 retailers have been involved to date – but GMK hope to widen the scheme in the coming year.

GMK’s Emma Parkin told Gun Trade News about the contents of the course: “It involves simple principles, but ones that major retailers outside the industry are using.

“It’s techniques such as ‘see it, like it, buy it’, where customers can look at a mannequin with some of your clothing on it, and you display product right next to the mannequin so that they can instantly pick it up and buy it.

“Karl showed us photo evidence of shops that were doing it right – supermarkets and which products they place next to each other, and so on.

“It’s a way for gun shops to get an edge, and make a difference to their sales.”

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