North Of The Border

Today we want to take you to Canada, which has become an often talked about neighboring country especially within the fashion industry. With many US companies looking to expand over the last couple of months, retail growth just north of the border is on everyone's radar.

photo via Nordstrom

At the lead of the pack is Nordstrom who in less than a year will introduce it's first store in Calgary. Following that, the Seattle-based department store expects to open four more stores in Ottawa, Vancouver, and two in Toronto throughout 2016 with hopes to eventually expand their lower priced sister store Rack as well. However, it's not all smooth sailing for the super chain who may see some competition arise as Holt Renfrew plans to launch an off-price high-end apparel shop called hr2 to compete with the steadfast Nordstrom.

photo via Ottawa Citizen

Others like Land's End, White House Black Market and Chico's have also recently ventured across the Canadian border. Many of these stores are taking a different angle and focusing market expansion on their online access versus advancing brick and mortar operations. With J.C. Penney in a rut, Canadian native Joe Fresh has just debuted online shopping as has Macy's and Bloomingdale's who both now ship to the north as of the past year.

photo via Yahoo Finance

On the other end of things, the Canadian parent of Lord & Taylor, Hudson's Bay Co. just made a major acquisition by snatching up Saks Inc. According to CEO Richard Baker, the goal is to introduce the luxury of Saks into Canada and open seven Saks Fifth Avenue stores, 25 Off Fifth outlets and launch an e-commerce platform targeted at Canadians. Between Lord & Taylor, Hudson's Bay and Saks Fifth Avenue, the conglomerate will now be able to offer customers a range of quality products and distinct shopping experiences at a range of price points from moderate to luxury.

photo via Elle Canada

You'd be more than surprised about some of the Canadian born and bread who are currently power players on the international catwalk. Designers Erdem Moralioglu of Erdem and Dean and Dan from Dsquared2 are all natives who grew up in Montreal and Toronto accordingly.

photo via Financial Post

Despite the market shift, there are some retailers still slow to the game. Which stores are on Canadians' wish lists? From Trader Joe's to Uniqlo to DSW and Madewell, these are the brands consumers are demanding the most, so what are they waiting for?

Giving Back, Moving Forward

It’s been a tough few weeks and between the gas crisis, nor’easter, lack of public transportation and general destruction of homes, businesses and the like that Sandy has caused, we are in for an interesting holiday season. Some retailers like Saks have already felt the effects with its 5th Ave store in Manhattan, which produces one-fifth of its company wide sales alone and was closed for a week and a day due to the storm. Many other companies are already forecasting lower expectations than originally anticipated like TJX stores, Kohls, Ralph Lauren, Michael Kors and even Macy's for the 2012 gifting season.

So as a result, this holiday shopping season has been pushed up even earlier as retailers try and maximize as much as possible on Black Friday revenue. Stores like Walmart, Target and Sears are even opening as early as 8pm on Thanksgiving itself, deeming the holiday "Black Thursday." However, along with this, comes much controversy about infringing on the importance of this traditional family oriented holiday of giving thanks for those employees who are forced to cut it short or give it up entirely in the name of dollar signs.

photo via MyCityWay

One retailer keeping its doors closed on Thanksgiving is Macy's, who will open at midnight on the morning of Black Friday. Instead, the mega department chain which hosts its annual Macy's Day Parade, is putting its focus on Thanksgiving Day festivities by bringing in a mobile component to its 86th celebration. The MyCityWay Macy's Thanksgiving App, will offer both parade attendees and TV viewers an interactive in depth look into the balloons, floats and performers as well as the ability to track the route and play customizable games.

photo via British Vogue

Others are getting a bit more creative and looking at more innovative ways to attract shoppers. For one, Barney's is partnering with Disney this year to launch a cartoon film following Minnie's adventures at Paris fashion week. Along the way, she runs into some of fashion's most famous faces which includes Lady Gaga, Alber Elbaz, Carine Roitfeld and Sara Jessica Parker to give you a little sneak peak!

video via Forever 21

Forever 21 is releasing its augmented reality app called F21Pop bringing both its windows and magazine to life. The fast fashion chain specifically caters largely to Generation Y-ers so incorporating a digital component into this year's holiday campaign is key.

video via Asos

One retailer definitely capitalizing on the disposable income of Generation Y is nonetheless Asos! This time the online trendy shop is launching a global interactive Christmas campaign featuring shoppable films starring the likes of Ellie Goulding, Charlotte Free and Azealia Banks. Each celebs' personal style will be showcased via a cross-platform approach through images, video and editorial shots.

photo via mediapost.com

Kohl's is making shopper's dreams come true as it unleashes its campaign "Dream Gifts" that offers mega savings and lavish contests like its "dream receipt" component which pays for one lucky shopper's entire purchase everyday in each of its 1,100 stores! Kohl's is heavily pushing its advertising via digital, social media and mobile platforms to include things like cinema ads running on Hulu, ABC, CWTV.com and Adap.tv as well as offering Friday flash sales and sweepstakes on Facebook. Not to mention, with every new "like" on Facebook, the retailer will donate a dollar to Toys for Tots! Among this, Kohl's also has its designated gift pairing displays, an online list builder which includes a real time budgeting feature and free wifi in all of its stores.

photo via Ebay

Ebay is stepping up its game as well with its Holiday Collective, which takes over 40 designer gifts from the like of Chris Benz, Steven Alan, Tibi and Jonathan Adler, etc, and brings them to shoppers at a super affordable price of under $100!

photo via Star Tribune

Meanwhile, some are getting in the holiday spirit by joining up forces to produce some noteworthy collaborations. For instance, Target and Neiman Marcus are teaming up to offer a limited collection of more than 50 products ranging from fashion merch to sporting goods from the likes of Oscar de la Renta, DVF and even Derek Lam. Since the prices range rom $7.99 to nearly $500, it's a great opportunity for both retailers to blend their customer bases and capitalize on profits. 

photo via J.C. Penney

So we've caught you up on a plethora of different retailers but what's J.C. Penney up to as they continue to struggle to reposition themselves? This holiday season the department chain will be handing out over 80 million holiday themed circular buttons with codes revealing prizes like trips to Disneyland, gift cards or free merchandise.

Not only do we have Black Thursday and Black Friday promos to look forward to, but Cyber Monday too! With that said, if you are looking to avoid all the holiday shopping madness, what better way to shop than from the comfort of your own home? According to a recent survey from shop.org, nearly 90% of retails will offer some form of free shipping over the next few weeks and we couldn't be more excited for that!

 

video via ABC

Despite the increased holiday pressures, for many, Sandy is still on our minds. And as sample sale season is among us, many designers are offering the proceeds from these deeply discounted crazed sales towards Sandy Relief Efforts (which is something we LOVE to hear and shop!). On top of that, Gap Inc., Target, Macy's and Home Depot are just a few of the companies donating hefty sums to the American Red Cross to help rebuild the local community.

A lot of crazy things have happened the past year (both good and bad) and we’re sure there’s more to come. So whatever your plans are for Thanksgiving, make sure to be thankful for something this year and remember to give a little back!

Back To School Madness

It’s that time of the year again, when stores are stocked full of multi-colored backpacks and print frenzy notebooks. However, going back to school isn’t what it used to be. According to the National Retail Federation, next to Christmas and Black Friday, back-to-school (BTS) is the next largest spending event of the year and it doesn't just end with school supplies and fall clothes anymore! From flower delivery to skateboards, tanning, cars, and speakers, a multitude of industries are cashing in on the back to school cash flow.

Not to mention, retailers are moving up the back to school madness earlier and earlier every summer. According to a survey by PriceGrabber, about 20% of shoppers said they started buying BTS as early as June, with school barely out! For most consumers, this strategy is the best way to spread out purchases, budget their spending, and anticipate heavier discounts. Despite countless promotions, deals, giveaways, and free shipping the National Retail Federation projects that consumers with children aged kindergarten through 12th grade will spend on average about $688 on BTS merchandise this season.

photo via Teen Vogue

Teen Vogue has even declared this Saturday, August 11th as “Back to School Saturday” (BTSS) to promote consumers to get out and shop for back to school fashion and beauty goodies! On Saturday, students across the country can score discounts and free stuff from participating stores like Aeropostale, American Apparel, Gap, H&M, True Religion (and that’s just the gist of it) as well as a full list of beauty brands like Clean & Clear, Clinique, and Neutrogena via The Teen Vogue Insider App for the iPhone. With this app, shoppers not only earn points toward exclusive prizes by checking in, but can map out local participating retailers in their area.

photo via Sears

Sears is jumping on the BTSS bandwagon with their Team Up To Stop Bullying initiative in collaboration with the Boys & Girls Clubs of America. On August 11th, via a 15% off savings pass, up to $70,000 worth of purchases on apparel, accessories, intimates, footwear, fine jewelry, and watches will be donated to charities affiliated with the project.

photo via Staples

Overall, retailers like Staples, Office Depot, and Best Buy are introducing new strategies to gear up for back-to-school shopping. From heavily discounted laptops and printers to fun campaigns featuring celebrities to supporting various charitable initiatives, these companies are pushing their promotional strengths to the max. At the head of the pack is Staples who's Back to School Savings Pass will return which costs $10 and offers shoppers 15% off merchandise until September. Not to mention, in a recent weekly flyer, some of their savings included glue for a penny and copy paper for a quarter!

video via youtube

Recent surveys show consumers are expected to shop more at both department and specialty stores this year compared to 2011. In response, Macy's, who continues to target Millenials, will shift their marketing efforts towards microsites and text-to-enter sweepstakes. And what about J.C. Penney you ask? With major changes happening at the department chain that includes slashed prices, boutique-like mini-shops, and ipad checkout systems on the sales floor, there is major pressure for the retailer to boost sales this month. J.C. Penney has initiated free haircuts for children in kindergarten to sixth grade. In addition, the department chain is also offering free shipping promotions which has become a must-have incentive for parents this season when it comes to shopping online.

photo via eBay

With online shopping at a record high since 2007, consumers will make use of m-commerce more than ever to compare prices, search for coupons, and respond to price matching and in-store promotions. Companies like eBay, are preparing for the BTS season by stepping up their social media efforts via Pinterest contests which include a $5,000 eBay dorm room makeover as well a $100 eBay gift card by creating pin boards of dorm room essentials and backpacks via eBay's back to school pinboards. eBay is also hosting a Facebook backpack drive where it will donate up to 5,000 backpacks full of school supplies to students.

photo via Mr.Youth

In general, social media has revolutionized the entire back-to-school process, specifically for college bound students. From discussing acceptances to room assignments, class schedules, student life, and general Q&A to making friends, research shows that this group is creating online communities via social networking sites starting in March all the way through October. Instead of meeting fellow peers at orientation, today's college bound Freshman can connect the moment their acceptance letters arrive in the mail. With 40% of students logging on to Facebook more than 10 times per day and 58% stating they use Twitter all the time, brands and retailers are going to have to successfully and innovatively utilize this new outlet in order to reach out to these students during their transition into college.

Whatever the strategy is, back to school fever is here! It seems most retailers are not only slashing prices, upping discounts, and experimenting with innovative marketing approaches, but bringing a philanthropic spirit to the season as well! Let the BTS madness take way and enjoy the rest of the summer!

Changing The Channel

Since our last blog on the mid-market, The Changing Landscape, there has been plenty of newness, but this time reflecting influences of an e-commerce boom, omni-channel retailing, and the idea of a “moving target” or mobile shopper. With so many companies shifting into omni-channel retailing, today, we’d like to discuss what they are doing to stand out in a crowded marketplace.

Timing is everything, especially for the likes of Gap Inc, American Eagle Outfitters, and Macy’s. Not only are they placing smaller orders in factories but postponing color and fabric decisions to the very last minute as well as reducing the overall time products spend in warehouses. So what’s causing this change of pace? Well, as demands from millennial shoppers strengthen, it’s all about selection, speed, and uniqueness. This has forced many retailers to trim their concept-to-store times from twelve months to about nine to six. Not to mention the rise in such brands as H&M, Zara, and Forever 21 has challenged the ability of traditional retailers to keep up in the world of fast fashion. So what are these fashion labels doing to not only satisfy the demands of Generation Y-ers but keep up with the competition?

photo via ADWEEK

We spoke about Generation Y, a few months ago, examining who they are and what they really believe in. As online shopping becomes more mainstream, from these Millenials to the Baby Boomers, more and more companies are upping their e-commerce presence. Research shows that many consumers use the internet as a way to check product availability, explore brands, and read reviews before actually stepping foot into the store itself. Not to mention, with today's technology, consumers can virtually try on clothing without ever entering into a dressing room. This growing comfort in shopping online and rise in price savvy consumers also puts more pressure on retailers to deliver a knowledgeable staff, a generous in-stock selection, and a pleasant in-store experience.

video via Wall Street Journal

A major battle retailers are having with the universal access that the internet offers as well as increased comfort by consumers using it is the growing presence of "showrooming." Shoppers are getting smarter and extremely price conscious. With showrooming, shoppers scope out products in stores (with no obligation to buy) and then go online and compare prices to buy merchandise for less at sites like Amazon, which ultimately damages brick and mortar operations. The electronic industry is feeling the largest hit from this issue and is fighting back. For example, Walmart now ships to its stores so customers can avoid shipping fees and Best Buy price matches competitors web prices. However, how to actually combat this issue is going to be difficult as online only companies continue to grow and expand product assortments.

photo via MBF Trend Consulting

While social media may only have a small influence on actual purchases, Pinterest has definitely been challenging retailers on how to capitalize on the ever-so-popular digital pin boards. Pinterest is the largest growing social platform ever and it is taking over the way we shop by "socially sharing" products. We discussed Pinterest previously and the question of how retailers were actually going to make money using the site. And, by the looks of it, a few companies have started to figure out how to get visual and use the platform for not only promotional purposes, but for potential profits. Sephora recently updated its website by incorporating the "Pin It" button on all of its 14,000 products and the site actually crashed. Both Ebay and Amazon have also added these "Pin It" buttons to their product pages. We'll be watching to see how visual profits get as more and more companies start to "pin" their individual product assortments.

photo via pocketlint.com

Spotify, a music streaming site and another platform extremely popular with Millenials, is teaming up with Coca-Cola in hopes to go well, everywhere. The music sharing platform is not only looking to attract more paying subscribers, but reach a global presence. Together the two brands hope to create new experiences for users by collaborating on music related projects and promotions and combining there branding.

photo via styld.by

Gap's got style as its partners with bloggers from FabSugar, Refinery29, and Lookbook.nu to create the site styld.by. Bloggers take Gap's spring 2012 merchandise and create looks to inspire shoppers, allow them to share with friends or purchase online. This strategy not only creates a "cool" factor, but puts Gap out there in the digital arena as more than just a contemporary retailer.

photo via NY Times

So how else are retailers standing out in the endless virtual world of products? Well, by combining forces because companies are stronger in numbers (literally)! Nordstrom's and Bonobos, Walgreens and Drugstore.com and Walmart and Kosmix are just a few examples. Let's be honest, brick and mortar stores are losing their ground so instead, retailers are going after the digital marketplace. Looking at Nordstrom as an example again, last February they also acquired HauteLook, started introducing apps, and offering same-day shipping to compete with other retailers and set themselves apart. 

photo via H&M

Looking at H&M, who recently released their third annual sustainable collection as well as published their Conscious Actions Sustainability Report this month, transparency has become a major focal point for the company. This time around, despite the super low price points, H&M seems much more conscious of how they are marketing the collection by merchandising conventional pieces with eco-friendly ones. A summary of the report highlights how H&M has established themselves as the biggest user of organic cotton in the world. As H&M reaches new improvements and accomplishments in the sustainability sector, we predict they will eventually establish themselves as the first known sustainable leader in the apparel mid-market.

photo via WWD

For our March MBF Picks, we discussed how Macy's import promotion, "Brasil: A Magical Journey," captured the hot topic of Brazil and stood out in the marketplace by focusing on an international concept. With J.C. Penney's new vendor and merchandising strategies causing a stir, Macy's has as a result begun a $400 million renovation of its Herald Square flagship, the largest in history. The 154-year old department store will incorporate fast changing technology while still preserving its historic essence through interactive store directories, mobile apps, digital product information, enhanced signage, and live video feeds to capture the buying power of the younger market. More details of the renovation include the creation of the world's largest women's shoe department, bringing in more luxury brands, and expanding their e-commerce potential. Macy's is particularly interested in this younger market and is not only looking to build better relationships in the store, but think locally in terms of products as well by offering experienced staff, locally targeted marketing messages, and more exclusive items.

photo via WWD

While Macy's bold transformation of more is more is underway, J.C. Penney looks to simplify as the major changes announced in the press are already in effect. From merchandise to fixtures, J.C. Penney is looking hip and refreshed. The retailer has already made efforts to revamp their product assortment by accepting applications from vendors seeking to sell product starting next spring. The entire store is going to be reformatted to give it a boutique-like feel and creating "the street" and "the square" to direct shoppers to brand presentations and demos. Not only are they moving towards the idea of "everyday low prices," but completely restructuring their pricing and tag system. In addition to this, the retailer features a color of the month with special sales on items with that tag color (April's color is teal incase you were wondering)! For us, this color system sounds familiar and reminds us a bit of how Apple introduced the nano-chromatic iPods years ago as well as their other color themed products and campaigns. With Ron Johnson at the head, how will J.C. Penney incorporate Apple's strategies next?

As the mid-market continues to experiment with innovative concepts and use technology as leverage to reach Millennial shoppers, attitudes and expectations will challenge retailers to change the channel. In general, brick and mortar operations will probably never completely fade out. However, the presence of the digital world is making a huge impact on the way we are shopping as more and more companies transition to omni-channel retailing. The idea of the department store is changing overall, especially as both J.C. Penney and Target introduce new boutique-inspired concepts and Macy's explores with technology. Whether it's taking full advantage of the internet and technology, repositioning oneself in the market, renovating, re-merchandising, or even moving towards a more sustainable product assortment, it will be interesting to see what will become of the mid-market in general as the entire industry is under major peer pressure to change.