FierceRetail September 4, 2015
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Today’s Top Stories
1. Kit and Ace expands, adds in-store coffee shops
2. 52% of shoppers value in-store technology
3. Hy-Vee opens in-store clinics
4. Star Wars Force Friday a $1B retail event
5. 51% of dads can’t pass up a good deal

Also Noted:
Spotlight On… Does Walmart have too many stores to support?
Stories from around the Web and much more…

Chutes & Ladders: Chutes & Ladders: The Fresh Market finds CEO; Net-a-Porter founder resigns before merger

Editor’s Note:
FierceRetail will not be published on Monday Sept. 7 in observance of Labor Day. We will resume publishing on Tuesday Sept. 8.L.L. Bean legend Leon Gorman dies

Leon Gorman, the grandson of L.L. Bean founder Leon Leonwood Bean, died from cancer at age 80. Gorman is credited with transforming L.L. Bean from a mail-order catalog business to a global supplier of apparel and outdoor equipment-now operating retail stores, producing more than 50 separate catalog titles, and generating annual sales of $1.61 billion.

Sneak Peek: Lowe’s new NYC urban-format

The first Lowe’s urban-format store features merchandise curated for the city dweller, same-day delivery and a bevvy of in-store technology to bring endless aisle inventory to the smaller footprint.

Want to stay on top of the rapidly changing retail industry from every angle? Be sure to sign up for our sister publications FierceMobileRetail andFierceRetailIT to stay up to date on everything from beacons to PCI compliance.

Join other retail professionals in the conversation! Be sure to follow us on Twitter at @FierceRetail and visit us on LinkedIn!

More News From Across the Retail Industry
1. Shopkick blows past 15M users
2. Dairy Queen protects franchisees with new firewall solution
3. Tractor Supply revamps e-commerce platform


> Shop.org Digital Summit – October 57, 2015 – Philadelphia, PA

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* General ad info: Click here

Today’s Top News

1. Kit and Ace expands, adds in-store coffee shops

By Jacqueline Renfrow Comment | Forward | Twitter | Facebook | LinkedIn

Canadian retailer Kit and Ace announced plans for extensive expansion in the upcoming months and the addition of in-store coffee shops.

The apparel brand will open Sorry Coffee Co. in select cities, including Toronto, Moose Jaw Times Herald reported. The 3,300 sq. ft. flagship location will open Sept. 17.

The coffee shops are a creation by Kit and Ace cofounder JJ Wilson, the son of Lululemon (NASDAQ:LULU) founder Chip Wilson.

“When I look at how the world is changing in retail and experiential retail, and how people want to shop and what they’re looking for, they’re looking for more than just a clothing store,” Wilson told Moose Jaw Times Herald.

Everything at the coffee shop is locally sourced and the cups wills be adorned with local artwork. Each shop will have elements that are unique to its community.

Kit and Ace is launching new storefronts in both Canada and the United States, along with an e-commerce platform. The company, which opened its first store in late 2014, plans to have a total of 50 shops by early 2016 in locations such as London, Australia and Japan. The accelerated speed of expansion is thought to be linked to Chip Wilson’s increased availability to help Kit and Ace efforts after departing from Lululemon’s boardin February.

For more:
-See this Moose Jaw Times Herald article

Related stories:
Lululemon founder’s family launch boutique
Kit and Ace pushing global expansion
Lululemon expands style assortment
Lululemon founder Chip Wilson resigns from board
Lululemon founder’s family launch boutique

Read more about: Lululemon, Canada
back to top

2. 52% of shoppers value in-store technology

By Jacqueline Renfrow Comment | Forward | Twitter | Facebook | LinkedIn

One-third of shoppers, or 34 percent, believe they are better connected to real-time information than sales associates. However, 52 percent of shoppers see value in retailers who use technology to improve the shopping experience.

Sixty-four percent of shoppers also said they would be willing to purchase more items if they received better customer service.

“As online and mobile shopping become more prevalent and accepted worldwide, the importance of the customer experience remains high—as noted by the majority of respondents who would buy more merchandise from retailers they believe provide better customer service,” said Nick D’Alessio, global retail solutions development, Zebra Technologies.

“Mobile technology helps provide real-time visibility of product availability, flexible delivery and payment options—freeing retailers to focus on the shopper experience and delivering personalized service to customers.”

According to the eighth annual “Global Shopper Study” by Zebra Technologies, shoppers are looking for in-store assistance: 51 percent of shoppers are interested in mobile coupons, 45 percent in shopping maps, and 41 percent in associate assistance.

More than half of those surveyed, 52 percent, admitted to showrooming in the store, then purchasing items online. More than three in 10 said they preferred to go to a physical store to pick up items purchased via online channels.

Personal information is still a concern for shoppers. Almost eight in 10 respondents were willing to share some level of information with retailers; however, only 5 percent fully trust retailers with this information. In addition, 64 percent value retailers who give them control of how much personal information is used.

For more:
-See this Zebra Technologies press release

Related stories:
Consumers torn between personalization and location information
Online consumer content influences about 50% of in-store purchases
New website offers deals in exchage for reviews
The buy button arrives: How social media shopping will change retail
Price matters, but customer service still closes the deal

Read more about: Customer Service, Customer Experience
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3. Hy-Vee opens in-store clinics

By Jacqueline Renfrow Comment | Forward | Twitter | Facebook | LinkedIn

Hy-Vee is opening two in-store medical clinics in the Twin Cities region later this month. In partnership with North Memorial Health Care, Hy-Vee customers will have access to an array of primary health care services provided by physician assistants and nurses at the stores in Oakdale and New Hope, Minnesota.

“We are excited to bring together these two respected brands to offer easy access to affordable and convenient care,” said Kelly Macken-Marble, North Memorial Health Care president of population health and ambulatory services.

“This is a natural partnership since both Hy-Vee and North Memorial are focused on innovative ways that make getting and staying healthy easier. These two walk-in clinics are another way that North Memorial is expanding services that lead to better health.”

Hy-Vee is focused on helping consumers live healthier lifestyles through its in-store dietitians and pharmacists, and an extensive section with healthy food options known as HealthMarket.

North Memorial Express Clinics will offer care for common illnesses such as strep throat, ear infections, influenza and more. Wellness tests and screenings, such as sports physicals and vaccines, will also be offered.

Hy-Vee has been a pioneer in supermarkets when it comes to providing healthy alternatives and services for its customers. However, several pharmacies and big-box retailers have recently started or expanded the use of in-store medical clinics, includingWalgreens, CVS, Walmart and Target.

For more:
-See this Hy-Vee press release

Related stories:
Hy-Vee launches delivery, in-store pickup
Aldi’s prices cheaper than Walmart’s
Traditional grocery stores rank highest for customer service
Dash’s Markets launches delivery service
Instacart adds same-day service to D.C. market

Read more about: Hy-Vee, Health Care Services
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4. Star Wars Force Friday a $1B retail event

By Jacqueline Renfrow Comment | Forward | Twitter | Facebook | LinkedIn

Retailers are not missing the opportunity to sell anything—and everthing—Star Wars related. The movie series is moving to capitalize on Force Friday in honor of the release of “The Force Awakens.” Retailers such as Toys R Us, Target and Walmart were releasing new merchandise starting Friday Sept. 4, just after midnight.

                     Times Square Star Wars celebration at Toys R Us

Disney planned an entire day of events and in-store activities for the day. The merchandise is coming out well before the actual movie release, which is still more than three months away, Dec. 18.

Experts predict that the retail toy sales geared toward the movie could rack up $1 billion in sales in the United States for 2015, Fortune reported. Add in global sales and that number jumps to between $3 billion and $5 billion.

“That’s going to be quadruple what it is in a non-movie year,” Jim Silver, editor-in-chief of toy-centric website TTPM.com told Fortune.

The seventh feature film based on the Star Wars series is perhaps the biggest rollout for a toy franchise ever, according to U.S. toy experts. Disney, which now owns Lucasfilm, will reap the most benefits from the box office and licensing fees for all toys, apparel, video games and other gear.

However, other retailers will do well from sales, especially those who are the biggest sellers of toys. But the day is not just for those selling toys to kids. It’s a new retail holiday for all.

For example, Petco was offering a line of dog toys for Star Wars fans and Best Buy was promoting Star Wars movies, games and merchandise, along with a pre-order of the new movie. Department stores like JCPenney were able to create products for several different categories, launching everything from apparel and accessories to bedding.

“The event has the potential to meaningfully accelerate the division’s revenue and profit growth,” Alexia Quadrani, a JPMorgan analyst, told CNBC. She projects that Star Wars licensing and retail store sales will increase 200 percent, perhaps leading to $500 million in incremental revenues and $200 million of incremental operating profit for Disney in fiscal 2016.

For more:
-See this Fortune article
-See this JCPenney press release
-See this Best Buy press release
-See this CNBC article

Related stories:
Disney opens largest Disney Store yet in Shanghai
Walmart, Toys R Us, select Targets open late for Force Friday
Disney store redesign drives revenue to $760M in UK
Amazon blocks Disney pre-order amid Hachette dispute
JCPenney launches Disney shops in 565 stores

Read more about: Walmart, Force Friday
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5. 51% of dads can’t pass up a good deal

By Jacqueline Renfrow Comment | Forward | Twitter | Facebook | LinkedIn

When it comes to impulse shopping, 51 percent of dads said that a great deal is the top reason behind making a last minute purchase.

A new study from iModerate reveals what spurs dads to make impulse purchases, and craving a salty or sweet food was the second top reason, mentioned by 19 percent of the dads surveyed.

“Dads are taking on a larger role in the household, whether as primary shopper or as equal owners of family shopping responsibilities,” said Julia Eisenberg, iModerate senior VP. “Self-reported data from a Y&R study shows that 80 percent of millennial dads are their households’ primary or equal-share shoppers, which is why it’s so important for brands and retailers to understand how to stop dad in his tracks in the aisle and boost those impulse purchases.”

Also in the top five reasons is rewarding their children, which caused 16 percent of the dads to pick up items for their kids or families. These rewards were compensation for good behavior, an accomplishment, or to avoid an in-store meltdown. Why these purchases? Seventy-one percent of those surveyed said they felt good after making a purchase for their kids and 19 percent admitted that those purchases make them feel appreciated.

“Impulse buys for children are complex emotionally—much more so than fulfilling a craving with a bag of chips,” Eisenberg said. “While these don’t need to be large purchases, they have a big impact on dad and his relationship to his children, which presents another opportunity for product marketers.”

Avoiding another trip to the store was another driver for impulse buying. Seven percent of dads said they buy a product in anticipation of needing it soon. And just behind that reason, at 6 percent, was buying a treat for themselves or their families.

Finally, 2 percent of the dads surveyed said they made an impulse purchase based on a positive experience with a brand or the desire to try a new product from a certain brand.

More and more retailers are looking for ways to reach out to dads, especially millennial fathers, as they become an increasingly important consumer segment. According to recent research from Packaged Facts, men spend less time in stores than women, but they tend to spend more money on fewer items, making the cost per item higher.

For more:
-See this iModerate report

Related stories:
Millennial dads grocery shop four times more often
Millennials willing to pay for loyalty
80% millennials turn to video when making purchases
Whole Foods unveils concept geared toward millennials
Abercrombie returns to logos to woo older millennials

Read more about: Millennial Dads, Impulse Purchase
back to top

Also Noted

SPOTLIGHT ON… Does Walmart have too many stores to support?

Walmart’s 5,200 stores in the United States, including all formats and Sam’s Club stores, reported flat sales for the latest quarter. If Walmart wants to see the sales improve, downsizing the number of locations may be a viable option. The retailer is stuck competing on two levels: against Amazon in e-commerce and other big-box brands, such as Costco, in the brick-and-mortar space. With such a vast number of stores, some are bound to be less profitable than others. Story

Welcome to this week’s Chutes & Ladders, our roundup of hirings and firings throughout the industry. Please send the good word—or the bad—from your shop to Allison Moon and we will feature the news here at the end of each week.

Specialty grocer The Fresh Market named Rick Anicettipresident and CEO, effective Sept. 1, to replace former president and CEO Craig Carlock, who resigned in January after 15 years with the company. Anicetti was president and CEO of Food Lion, a subsidiary of Delhaize Group, for eight years and COO for two years prior. He also held several leadership positions at supermarket chain Hannaford Bros over the course of 20 years, including as exec-VP and general manager of the southeast division for six years. During his time at Food Lion, Anicetti transformed the business from a distribution company to a customer-centric organization. He has more than 30 years of experience in the retail industry overall. Story

>  Natalie Massenet, founder and executive chairman of designer retailer Net-a-Porter, has resigned from her future position as chairman of the newly merged Yoox Net-a-Porter Group. Off-season luxury retailer Yoox and Net-a-Porter agreed to merge in April. Both are e-commerce retailers, with a combined worth of $1.4 million. The founder and CEO of Yoox, Federico Marchetti, was set to continue as CEO of the merged company while Massenet was to be named chairman and remain in charge of editorial content. Yoox issued a one-sentence statement announcing that Massenet would no longer be a member of Yoox Net-a-Porter board of directors following her resignation. Story

Read the rest of this week’s Chutes & Ladders at FierceRetail. 

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