High Service Retailers Presented by Marcia Camacho Jaime Gleason Heather Jonas Lindsey Klug Betsy Palm Sarah Steuer

High Service Retailers Magnificent Mile Department Store Specialty Store

Magnificent Mile

Department Store

Specialty Store

Marshall Field’s History Came to Chicago in 1856 as a well known salesman with a merchants instinct Immediately had a huge impact on retailing High-quality goods Built grand emporiums Revolutionized the shopping experience “ Give the Lady What She Wants” 1871 – Chicago Fire and the rebuild 62 locations in only 8 states

Came to Chicago in 1856 as a well known salesman with a merchants instinct

Immediately had a huge impact on retailing

High-quality goods

Built grand emporiums

Revolutionized the shopping experience

“ Give the Lady What She Wants”

1871 – Chicago Fire and the rebuild

62 locations in only 8 states

Marshall Field’s Layout Over 800,000 square feet Lower level & 9 floors Men’s only on Second Floor Women’s on Third, Fourth & Fifth Floor Both have accessories on First Floor

Over 800,000 square feet

Lower level & 9 floors

Men’s only on Second Floor

Women’s on Third, Fourth & Fifth Floor

Both have accessories on First Floor

Marshall Field’s Layout 2 Juice Bars in 2003 Bally Total Fitness Crunch Fitness 3 restaurants 7 on State Café Walnut Room 2 food courts Australian Homemade Ice Cream 2 Starbucks coffee bars

2 Juice Bars in 2003

Bally Total Fitness

Crunch Fitness

3 restaurants

7 on State

Café

Walnut Room

2 food courts

Australian Homemade Ice Cream

2 Starbucks coffee bars

Tiffany Dome Made of 1.7 million pieces 6,000 square feet Largest glass mosaic of its kind First dome ever built in iridescent glass Largest example of Tiffany favrile glass in world

Made of 1.7 million pieces

6,000 square feet

Largest glass mosaic of its kind

First dome ever built in iridescent glass

Largest example of Tiffany favrile glass in world

Marshall Field’s Layout Lighting, music & decor determined by department Shoes Department 16,000 square feet Cosmetic Departments 26,000 square feet

Lighting, music & decor determined by department

Shoes Department

16,000 square feet

Cosmetic Departments

26,000 square feet

Marshall Field’s Layout & Displays Crowded Stocked like a department store Primary displays, few secondary displays Lots of racks Hectic, congested transportation between floors

Crowded

Stocked like a department store

Primary displays, few secondary displays

Lots of racks

Hectic, congested transportation between floors

Marshall Field’s Website Easy Access Accessible to information Emails about sales Shopping online under construction http:// www.fields.com

Easy Access

Accessible to information

Emails about sales

Shopping online under construction

http:// www.fields.com

Marshall Field’s Special Services Credit Card Rewards Personal Shoppers Gift/Bridal Services Weekly Advertisement

Credit Card

Rewards

Personal Shoppers

Gift/Bridal Services

Weekly Advertisement

Marshall Field’s Financials 2003 Asset Turnover 2584/2153 = 1.200 Marshall Fields Revenue/Target Corp Revenue 2584/48163 = 5.37% of Target Corp Revenue 2002 Asset Turnover 2691/2202 = 1.22 Marshall Fields Revenue/Target Corp Revenue 2691/43917 = 6.13% of Target corps revenue

2003

Asset Turnover

2584/2153 = 1.200

Marshall Fields Revenue/Target Corp Revenue

2584/48163 = 5.37% of Target Corp Revenue

2002

Asset Turnover

2691/2202 = 1.22

Marshall Fields Revenue/Target Corp Revenue

2691/43917 = 6.13% of Target corps revenue

Marshall Field’s How the store is doing May Company can reinvent back to high service status Not anticipating sales to decrease because of sale Problems because of sale Charge card complaints POS software

May Company can reinvent back to high service status

Not anticipating sales to decrease because of sale

Problems because of sale

Charge card complaints

POS software

Marshall Field’s Personal Impressions Overabundance of employees Store was overwhelming

Overabundance of employees

Store was overwhelming

Neiman Marcus History Founded in 1907 by Herbert Marcus, Carrie Marcus Neiman and Al Neiman in Downtown Dallas, Texas “ It’s never a good sale for Neiman Marcus, unless it’s a good buy for the customer.” 35 stores & 14 clearance stores located throughout the United States Neiman Marcus Distinguished Service in the Field of Fashion

Founded in 1907 by Herbert Marcus, Carrie Marcus Neiman and Al Neiman in Downtown Dallas, Texas

“ It’s never a good sale for Neiman Marcus, unless it’s a good buy for the customer.”

35 stores & 14 clearance stores located throughout the United States

Neiman Marcus Distinguished Service in the Field of Fashion

Neiman Marcus Store Layout Outdated, dull Poor Lighting Felt like a retirement home Brands had their own alcove Limited inventory on floor Soft music Fur coat trunk show Cold environment Ignored customers based on financial status

Outdated, dull

Poor Lighting

Felt like a retirement home

Brands had their own alcove

Limited inventory on floor

Soft music

Fur coat trunk show

Cold environment

Ignored customers based on financial status

Neiman Marcus Website Online accounts Latest trends Easy shopping categories E-mails about fashion & sales www.neimanmarcus.com

Online accounts

Latest trends

Easy shopping categories

E-mails about fashion & sales

www.neimanmarcus.com

Neiman Marcus Special Services Credit Card Incircle Rewards Personal Shopper Bridal Registry Catalog

Credit Card

Incircle Rewards

Personal Shopper

Bridal Registry

Catalog

Neiman Marcus Financials 2003 Net Profit X Asset X Leverage = Return on Equity Margin Turnover .035 X 1.523 X 1.788 = 0.095 2002 Net Profit X Asset X Leverage = Return on Equity Margin Turnover .034 X 1.55 X 1.81 = 0.095

2003

Net Profit X Asset X Leverage = Return on Equity

Margin Turnover

.035 X 1.523 X 1.788 = 0.095

2002

Net Profit X Asset X Leverage = Return on Equity

Margin Turnover

.034 X 1.55 X 1.81 = 0.095

Neiman Marcus How the store is doing 14% jump in same store sales 87% jump in net earnings Planning to open 5 new stores by 2007

14% jump in same store sales

87% jump in net earnings

Planning to open 5 new stores by 2007

Neiman Marcus Personal Impressions Plain Dark & Boring Unknowledgeable employees

Plain

Dark & Boring

Unknowledgeable employees

Lord & Taylor History David May and Levi copper-riveted pants Opened first store in 1888 in Denver, Colorado 54 Lord & Taylor stores

David May and Levi copper-riveted pants

Opened first store in 1888 in Denver, Colorado

54 Lord & Taylor stores

Lord & Taylor Layout 7 Floors First Floor Accessories Cosmetics All were very small Felt like a cheap, crowded department store Light music in background Store signs looked cheap Plain mannequins No makeup No faces Racks overflowing

7 Floors

First Floor

Accessories

Cosmetics

All were very small

Felt like a cheap, crowded department store

Light music in background

Store signs looked cheap

Plain mannequins

No makeup

No faces

Racks overflowing

Lord & Taylor Website Advertisements Mailing Lists www.lordandtaylor.com

Advertisements

Mailing Lists

www.lordandtaylor.com

Lord & Taylor Special Services Credit Card Mailing Lists Catalogs

Credit Card

Mailing Lists

Catalogs

Lord & Taylor Financials May Company’s 2003 Net Sales $13.3 Million Lord & Taylor was 7.32% of May’s 2003 Net Sales $1.8 Million

May Company’s 2003 Net Sales

$13.3 Million

Lord & Taylor was 7.32% of May’s 2003 Net Sales

$1.8 Million

Lord and Taylor How the store is doing Closing many stores May Company only opened 1 store in 2004 Trying to reposition back to the status it once had

Closing many stores

May Company only opened 1 store in 2004

Trying to reposition back to the status it once had

Lord & Taylor Personal Impression Unprofessional, nonexistent staff Extremely rude

Unprofessional, nonexistent staff

Extremely rude

Nordstrom History Originated as a shoe store, Wallin & Nordstrom Later became Nordstrom, Inc. Nordstrom was based on exceptional service, selection, quality & value 1960’s began growing rapidly Added the clothing market

Originated as a shoe store, Wallin & Nordstrom

Later became Nordstrom, Inc.

Nordstrom was based on exceptional service, selection, quality & value

1960’s began growing rapidly

Added the clothing market

Nordstrom Layout Easy to read map Very Spacious Customer Friendly Shopping Environment Comfy Chairs

Easy to read map

Very Spacious

Customer Friendly Shopping Environment

Comfy Chairs

Main Level Cosmetics Women’s Shoes Second Level Men’s Merchandise Third Level Women’s Apparel High-end designer lines Classic or Conservative Collections Wood trim Modern Collections Vibrant colors Lighting displays

Main Level

Cosmetics

Women’s Shoes

Second Level

Men’s Merchandise

Third Level

Women’s Apparel

High-end designer lines

Classic or Conservative Collections

Wood trim

Modern Collections

Vibrant colors

Lighting displays

Clean displays to accent special items Add home décor to give display style Racks are not stuffed full Nordstorm Layout & Display

Clean displays to accent special items

Add home décor to give display style

Racks are not stuffed full

Nordstrom Layout & Displays Displays include everything including accessories Every displays has a certain look to it Each display pulled products together

Displays include everything including accessories

Every displays has a certain look to it

Each display pulled products together

$1300.00 for pure fashion - 40% Discount = $780.00 almost affordable Wearing a coat made out of every part of the animal…Priceless Price for High Fashion

Website Online accounts Easy shopping E-mails Access to all services www.nordstrom.com

Online accounts

Easy shopping

E-mails

Access to all services

www.nordstrom.com

Nordstrom Special Services Credit Card Catalog Wedding Shop Customer Service

Credit Card

Catalog

Wedding Shop

Customer Service

Nordstrom Financials 2003 Net Profit X Asset X Leverage = Return on Equity Margin Turnover .037 X 1.454 X 2.734 = 0.147 2002 Net Profit X Asset X Leverage = Return on Equity Margin Turnover .015 X 1.46 X 2.99 = .065

2003

Net Profit X Asset X Leverage = Return on Equity

Margin Turnover

.037 X 1.454 X 2.734 = 0.147

2002

Net Profit X Asset X Leverage = Return on Equity

Margin Turnover

.015 X 1.46 X 2.99 = .065

Nordstrom How the store is doing? 1 st quarter sales of 2004 Increased 16.6% Profits increased 153% Future Plans Open 4 full line stores in 2005 Next 4 years to compete with Marshall Field’s & Macy’s

1 st quarter sales of 2004

Increased 16.6%

Profits increased 153%

Future Plans

Open 4 full line stores in 2005

Next 4 years to compete with Marshall Field’s & Macy’s

Nordstrom Personal Impression Staff was Knowledgeable Friendly Helpful Empowered

Staff was

Knowledgeable

Friendly

Helpful

Empowered