Is The Mall Dead

With lighter wallets and heavier burdens, Americans are rethinking their conspicuous consumption. That's bad news for retailers.

Newsweek, November 12, 2008 — There's something growing in the New Jersey Meadowlands, the marsh just nine miles west of Manhattan—and it isn't the gentle ferns that the bucolic name suggests. Instead, what's emerging is a man-made behemoth, the largest and most expensive mall ever built in the United States. Originally slated to open this month, Xanadu is now scheduled for completion next summer. Lawsuits, political grandstanding and construction delays have nearly doubled the mall's cost to $2.3 billion. When it's finished, the half-mile "retailtainment" center will be a Vegas-meets-Disneyland pleasure dome with the country's tallest Ferris wheel and first indoor artificial ski slope. There will also be a two free-fall skydiving jumps, indoor surfing, a mini-city for kids, a digital... continue reading

Nike's Penney Deal Is Budget-Retail Bid†

Wall Street Journal, November 11, 2008 — Nike Inc. said it has entered a deal with retailer J.C. Penney Co. to sell a new line of shoes from its Converse brand, a move that will puts the maker of high-end sportswear more deeply into the budget retail market.

Disney, by Design

From couture to jewelry to designer furniture, building a ‘lifestyle brand’ that isn’t cartoonish

New York Times, November 6, 2008 — THE most expensive piece of clothing sold by the Walt Disney Company six years ago was a $75 sweatshirt embossed with a mug shot of Mickey Mouse. By Magic Kingdom decree, home furnishings were required to exhibit at least one Disney character, leading to children’s play rugs ($65, in Pluto) and nightlights ($9.95, in Winnie the Pooh).

Disney still peddles all those things. But now the company also sells $3,900 designer wedding gowns — no characters in sight — and women’s cashmere sweaters “inspired by Tinker Bell.” Interior design offerings include $2,800 leather club chairs and $6,000 chandeliers patterned after the Art Deco décor in Mr. Disney’s former office. One of the company’s new products: couture soap.

Welcome to Disney, the... continue reading

Thriftiness on Special in Aisle 5

New York Times, October 14, 2008 — While it might seem counterintuitive for stores to teach shoppers to cut their spending, several chains have concluded that providing such knowledge can spur loyalty and keep customers from trading down to cheaper competitors.

So the Stop & Shop grocery chain is offering “affordable food summits” where consumers are taught how to lower their grocery bills. Home Depot offers classes on how to cut energy bills. And Wal-Mart Stores hired a “family financial expert” who has used online chats to teach several thousand shoppers how to save money for college, whittle away debt and sell a house.

The retailers say their advice is neutral, not specific to any store — but they are always careful to point out money-saving items that their stores carry. The... continue reading

Social Media and Shopping Behavior

Retailers join consumers in the online conversation.

eMarketer, October 2, 2008 — Consumers' use of social media is altering the way they make purchase decisions. To stay relevant, retailers must determine how to incorporate social media, such as social networks and blogs, into their marketing strategies.

OfficeMax Magic

Bob Thacker says his plans to make us love OfficeMax are right on target. An exclusive Q&A interview by Tim Manners.

Hub, September 1, 2008 — Twenty years ago, when he was a marketing chief at Target Stores, Bob Thacker says he used to hear the same thing all the time: “Target? Are you kidding me? It’s a discount store in Minnesota. It’s kinda dumpy.”

Well, it took 20 years to turn around Target, and Bob was right in the thick of that transformation from “kinda dumpy” to “pretty darn cool.” Today, as chief marketing officer of OfficeMax, Bob is once again relishing a Target-sized challenge. “We’re the third-place brand in a category that has no differentiation whatsoever,” says Bob. “Office supply stores have long been dubbed as dull and uninspiring. But if you do things that are totally unexpected and surprising, it suddenly begins to breathe humanity into a category... continue reading

Mid-Tier Retailers Try New Brands On for Size

Chains Look to Stand Out In Crowded Marketplace

Washington Post, August 28, 2008 — This back-to-school season will go down as the Battle of the Brands. Kohl's launched six new lines of clothing this summer with a star-studded advertising campaign featuring celebrities from Lenny Kravitz to Hayden Panettiere. JCPenney introduced another half-dozen labels, the department store's biggest crop of new brands, with looks including urban rock and all-American. And Dillard's is chasing soccer moms with a line designed by Sheryl Crow that hit stores this month.

The Newest Brands? Open for Business

Retailers Have Switched Gears, Marketing Their Stores and Labels and Strengthening Bonds With Shoppers

CMO Strategy by AdAge, August 25, 2008 — Many marketers are rapidly becoming more concerned with how retailers think. They want to know their concerns, objectives, equities and images and how they go about creating bonds with shoppers. That's because today's retailers are evolving far beyond their historical role as simple points of distribution for selling national brands.

Retailing icon Mickey Drexler doubles down

J.Crew's CEO says that this is the worst retail environment he's seen in 40 years in the business. His strategy? Take J.Crew upscale and launch a new brand called Madewell.

FORTUNE, August 21, 2008 — Is now the time for a retailer to go upscale? The guru behind clothier J. Crew thinks that's the right strategy. J. Crew is relatively small - its entire retail square footage would fit into the space of just 13 Sam's Clubs - but CEO Mickey Drexler, the man who made Gap (GPS, Fortune 500) into a pop-culture phenomenon and reinvented retailing icon J.Crew, is closely watched in his industry.

Retailers 'Sell' to Young Virtually†

Kohl's, Sears Build Brands As Children Clothe Their Avatars Online

Wall Street Journal, August 19, 2008 — Retailer Kohl's Corp. this month launched a new line of apparel, but the plaid skirts and printed T-shirts won't be sold in its 957 stores. Instead, it's selling them on Stardoll.com, a virtual community for teens and tweens where kids can fork over "Stardollars" — purchased online at a nominal sum — to buy apparel for their online characters.