High Service Retailers

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High Service Retailers

  1. 1. High Service Retailers Presented by Marcia Camacho Jaime Gleason Heather Jonas Lindsey Klug Betsy Palm Sarah Steuer
  2. 2. High Service Retailers <ul><li>Magnificent Mile </li></ul><ul><li>Department Store </li></ul><ul><li>Specialty Store </li></ul>
  3. 3. Marshall Field’s History <ul><li>Came to Chicago in 1856 as a well known salesman with a merchants instinct </li></ul><ul><li>Immediately had a huge impact on retailing </li></ul><ul><ul><li>High-quality goods </li></ul></ul><ul><ul><li>Built grand emporiums </li></ul></ul><ul><ul><li>Revolutionized the shopping experience </li></ul></ul><ul><li>“ Give the Lady What She Wants” </li></ul><ul><li>1871 – Chicago Fire and the rebuild </li></ul><ul><li>62 locations in only 8 states </li></ul>
  4. 4. Marshall Field’s Layout <ul><li>Over 800,000 square feet </li></ul><ul><li>Lower level & 9 floors </li></ul><ul><ul><li>Men’s only on Second Floor </li></ul></ul><ul><ul><li>Women’s on Third, Fourth & Fifth Floor </li></ul></ul><ul><ul><li>Both have accessories on First Floor </li></ul></ul>
  5. 5. Marshall Field’s Layout <ul><li>2 Juice Bars in 2003 </li></ul><ul><ul><li>Bally Total Fitness </li></ul></ul><ul><ul><li>Crunch Fitness </li></ul></ul><ul><li>3 restaurants </li></ul><ul><ul><li>7 on State </li></ul></ul><ul><ul><li>Café </li></ul></ul><ul><ul><li>Walnut Room </li></ul></ul><ul><li>2 food courts </li></ul><ul><li>Australian Homemade Ice Cream </li></ul><ul><li>2 Starbucks coffee bars </li></ul>
  6. 6. Tiffany Dome <ul><li>Made of 1.7 million pieces </li></ul><ul><li>6,000 square feet </li></ul><ul><li>Largest glass mosaic of its kind </li></ul><ul><li>First dome ever built in iridescent glass </li></ul><ul><li>Largest example of Tiffany favrile glass in world </li></ul>
  7. 7. Marshall Field’s Layout <ul><li>Lighting, music & decor determined by department </li></ul><ul><li>Shoes Department </li></ul><ul><ul><li>16,000 square feet </li></ul></ul><ul><li>Cosmetic Departments </li></ul><ul><ul><li>26,000 square feet </li></ul></ul>
  8. 8. Marshall Field’s Layout & Displays <ul><li>Crowded </li></ul><ul><li>Stocked like a department store </li></ul><ul><li>Primary displays, few secondary displays </li></ul><ul><li>Lots of racks </li></ul><ul><li>Hectic, congested transportation between floors </li></ul>
  9. 9. Marshall Field’s Website <ul><li>Easy Access </li></ul><ul><li>Accessible to information </li></ul><ul><li>Emails about sales </li></ul><ul><li>Shopping online under construction </li></ul><ul><li>http:// www.fields.com </li></ul>
  10. 10. Marshall Field’s Special Services <ul><li>Credit Card </li></ul><ul><ul><li>Rewards </li></ul></ul><ul><li>Personal Shoppers </li></ul><ul><li>Gift/Bridal Services </li></ul><ul><li>Weekly Advertisement </li></ul>
  11. 11. Marshall Field’s Financials <ul><li>2003 </li></ul><ul><ul><li>Asset Turnover </li></ul></ul><ul><ul><ul><li>2584/2153  = 1.200 </li></ul></ul></ul><ul><ul><li>Marshall Fields Revenue/Target Corp Revenue </li></ul></ul><ul><ul><ul><li>2584/48163  = 5.37% of Target Corp Revenue </li></ul></ul></ul><ul><li>2002 </li></ul><ul><ul><li>Asset Turnover </li></ul></ul><ul><ul><ul><li>2691/2202  =  1.22 </li></ul></ul></ul><ul><ul><li>Marshall Fields Revenue/Target Corp Revenue </li></ul></ul><ul><ul><ul><li>2691/43917  =  6.13% of Target corps revenue </li></ul></ul></ul>
  12. 12. Marshall Field’s How the store is doing <ul><li>May Company can reinvent back to high service status </li></ul><ul><li>Not anticipating sales to decrease because of sale </li></ul><ul><li>Problems because of sale </li></ul><ul><ul><li>Charge card complaints </li></ul></ul><ul><ul><li>POS software </li></ul></ul>
  13. 13. Marshall Field’s Personal Impressions <ul><li>Overabundance of employees </li></ul><ul><li>Store was overwhelming </li></ul>
  14. 14. Neiman Marcus History <ul><li>Founded in 1907 by Herbert Marcus, Carrie Marcus Neiman and Al Neiman in Downtown Dallas, Texas </li></ul><ul><li>“ It’s never a good sale for Neiman Marcus, unless it’s a good buy for the customer.” </li></ul><ul><li>35 stores & 14 clearance stores located throughout the United States </li></ul><ul><li>Neiman Marcus Distinguished Service in the Field of Fashion </li></ul>
  15. 15. Neiman Marcus Store Layout <ul><li>Outdated, dull </li></ul><ul><li>Poor Lighting </li></ul><ul><li>Felt like a retirement home </li></ul><ul><li>Brands had their own alcove </li></ul><ul><li>Limited inventory on floor </li></ul><ul><li>Soft music </li></ul><ul><li>Fur coat trunk show </li></ul><ul><li>Cold environment </li></ul><ul><ul><li>Ignored customers based on financial status </li></ul></ul>
  16. 16. Neiman Marcus Website <ul><li>Online accounts </li></ul><ul><li>Latest trends </li></ul><ul><li>Easy shopping categories </li></ul><ul><li>E-mails about fashion & sales </li></ul><ul><li>www.neimanmarcus.com </li></ul>
  17. 17. Neiman Marcus Special Services <ul><li>Credit Card </li></ul><ul><ul><li>Incircle Rewards </li></ul></ul><ul><li>Personal Shopper </li></ul><ul><li>Bridal Registry </li></ul><ul><li>Catalog </li></ul>
  18. 18. Neiman Marcus Financials <ul><li>2003 </li></ul><ul><li>Net Profit X Asset X Leverage = Return on Equity </li></ul><ul><li> Margin Turnover </li></ul><ul><li> .035 X 1.523 X 1.788 = 0.095 </li></ul><ul><li>2002 </li></ul><ul><li>Net Profit X Asset X Leverage = Return on Equity </li></ul><ul><li> Margin Turnover </li></ul><ul><li> .034 X 1.55 X 1.81 = 0.095 </li></ul>
  19. 19. Neiman Marcus How the store is doing <ul><li>14% jump in same store sales </li></ul><ul><li>87% jump in net earnings </li></ul><ul><li>Planning to open 5 new stores by 2007 </li></ul>
  20. 20. Neiman Marcus Personal Impressions <ul><li>Plain </li></ul><ul><ul><li>Dark & Boring </li></ul></ul><ul><li>Unknowledgeable employees </li></ul>
  21. 21. Lord & Taylor History <ul><li>David May and Levi copper-riveted pants </li></ul><ul><li>Opened first store in 1888 in Denver, Colorado </li></ul><ul><li>54 Lord & Taylor stores </li></ul>
  22. 22. Lord & Taylor Layout <ul><li>7 Floors </li></ul><ul><ul><li>First Floor </li></ul></ul><ul><ul><ul><li>Accessories </li></ul></ul></ul><ul><ul><ul><li>Cosmetics </li></ul></ul></ul><ul><ul><li>All were very small </li></ul></ul><ul><li>Felt like a cheap, crowded department store </li></ul><ul><li>Light music in background </li></ul><ul><li>Store signs looked cheap </li></ul><ul><li>Plain mannequins </li></ul><ul><ul><li>No makeup </li></ul></ul><ul><ul><li>No faces </li></ul></ul><ul><li>Racks overflowing </li></ul>
  23. 23. Lord & Taylor Website <ul><li>Advertisements </li></ul><ul><li>Mailing Lists </li></ul><ul><li>www.lordandtaylor.com </li></ul>
  24. 24. Lord & Taylor Special Services <ul><li>Credit Card </li></ul><ul><li>Mailing Lists </li></ul><ul><ul><li>Catalogs </li></ul></ul>
  25. 25. Lord & Taylor Financials <ul><li>May Company’s 2003 Net Sales </li></ul><ul><ul><li>$13.3 Million </li></ul></ul><ul><li>Lord & Taylor was 7.32% of May’s 2003 Net Sales </li></ul><ul><ul><li>$1.8 Million </li></ul></ul>
  26. 26. Lord and Taylor How the store is doing <ul><li>Closing many stores </li></ul><ul><li>May Company only opened 1 store in 2004 </li></ul><ul><li>Trying to reposition back to the status it once had </li></ul>
  27. 27. Lord & Taylor Personal Impression <ul><li>Unprofessional, nonexistent staff </li></ul><ul><li>Extremely rude </li></ul>
  28. 28. Nordstrom History <ul><li>Originated as a shoe store, Wallin & Nordstrom </li></ul><ul><ul><li>Later became Nordstrom, Inc. </li></ul></ul><ul><li>Nordstrom was based on exceptional service, selection, quality & value </li></ul><ul><li>1960’s began growing rapidly </li></ul><ul><ul><li>Added the clothing market </li></ul></ul>
  29. 29. Nordstrom Layout <ul><li>Easy to read map </li></ul><ul><li>Very Spacious </li></ul><ul><li>Customer Friendly Shopping Environment </li></ul><ul><ul><li>Comfy Chairs </li></ul></ul>
  30. 30. <ul><li>Main Level </li></ul><ul><ul><li>Cosmetics </li></ul></ul><ul><ul><li>Women’s Shoes </li></ul></ul><ul><li>Second Level </li></ul><ul><ul><li>Men’s Merchandise </li></ul></ul><ul><li>Third Level </li></ul><ul><ul><li>Women’s Apparel </li></ul></ul><ul><ul><li>High-end designer lines </li></ul></ul><ul><li>Classic or Conservative Collections </li></ul><ul><ul><li>Wood trim </li></ul></ul><ul><li>Modern Collections </li></ul><ul><ul><li>Vibrant colors </li></ul></ul><ul><ul><li>Lighting displays </li></ul></ul>
  31. 31. <ul><li>Clean displays to accent special items </li></ul><ul><li>Add home décor to give display style </li></ul><ul><li>Racks are not stuffed full </li></ul>Nordstorm Layout & Display
  32. 32. Nordstrom Layout & Displays <ul><li>Displays include everything including accessories </li></ul><ul><li>Every displays has a certain look to it </li></ul><ul><li>Each display pulled products together </li></ul>
  33. 33. $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
  34. 34. Website <ul><li>Online accounts </li></ul><ul><li>Easy shopping </li></ul><ul><li>E-mails </li></ul><ul><li>Access to all services </li></ul><ul><li>www.nordstrom.com </li></ul>
  35. 35. Nordstrom Special Services <ul><li>Credit Card </li></ul><ul><li>Catalog </li></ul><ul><li>Wedding Shop </li></ul><ul><li>Customer Service </li></ul>
  36. 36. Nordstrom Financials <ul><li>2003 </li></ul><ul><li>Net Profit X Asset X Leverage = Return on Equity </li></ul><ul><li> Margin Turnover </li></ul><ul><li> .037 X 1.454 X 2.734 = 0.147 </li></ul><ul><li>2002 </li></ul><ul><li>Net Profit X Asset X Leverage = Return on Equity </li></ul><ul><li> Margin Turnover </li></ul><ul><li> .015 X 1.46 X 2.99 = .065 </li></ul>
  37. 37. Nordstrom How the store is doing? <ul><li>1 st quarter sales of 2004 </li></ul><ul><ul><li>Increased 16.6% </li></ul></ul><ul><ul><li>Profits increased 153% </li></ul></ul><ul><li>Future Plans </li></ul><ul><ul><li>Open 4 full line stores in 2005 </li></ul></ul><ul><ul><li>Next 4 years to compete with Marshall Field’s & Macy’s </li></ul></ul>
  38. 38. Nordstrom Personal Impression <ul><li>Staff was </li></ul><ul><ul><li>Knowledgeable </li></ul></ul><ul><ul><li>Friendly </li></ul></ul><ul><ul><li>Helpful </li></ul></ul><ul><ul><li>Empowered </li></ul></ul>

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