Anthropologie

CASE 51Anthropologie: Display and Store Image
Amanda Mayeux, Rustin Steib, Kelsey Robinson, Christian Pohlman

What brings you to Anthropologie?
Visual Displays
Merchandise
Catalog
Customer Service
Atmosphere
Affiliation with Urban Outfitters

Do advertisements for any apparel products and retail stores effect your buying decision?
Would you shop at Anthropologie if they had advertisements?

Do you like or dislike that Anthropologie pays more attention to visual displays than advertising?
If less attention was given to the visual displays and more given to advertising, do you think Anthropologie would be as successful as it is?

Anthropologie Background
Philadelphia based chain store owned by Urban Outfitters Inc.
Opened its first store in 1992 in Wayne, PA
Currently operates over 135 retail stores in the United States
One-of-a-kind and compelling shopping experience that makes women feel beautiful, hopeful and connected

Anthropologie Background
Doesn’t operate with the conventions of most retailers
Doesn’t interpret its fashion research fastidiously
Doesn’t run major advertising campaigns

Target Market
Evolved as the Urban Outfitters store’s grew up
30 to 45 years of age
Suburban or ex-urban
College or post graduate educated
Married or committed relationship
More than 50% of peer group
have children
Well traveled, well read, appreciate
innovation, artfulness and good design
Enjoy cooking, gardening, movie going and wine tasting

Buying aka ‘DIGS’
Each buyer equipped with its own unique style
Scour the world to find the most unique items
Operate in an almost entrepreneurial fashion
50% of stock is private label and 50% is market driven
Stocks vast numbers of a few trends
Buyer at Large: Keith Johnson

Merchandise Policy
Outgrowth of its understanding of the target market
Uses focus groups and customer surveys
Each season the president, design staff, merchant staff, and visual team develop concepts together
Usually several simultaneous fashion themes or stories

Merchandise Policy
Success from identifying trends for customer and showcasing them in stores
Set the mood in the store each season by creating a unique and varied store mix of apparel, linens, books, and furniture

Merchandise Policy
Displays are changed several times during the 12 week cycle to keep the stores looking fresh
Inventory turns 6 times per year and new products appear 4 days per week

Store Environment
Extremely eclectic product mix reflecting a range of product categories, each one edited in a unique way for the season
Price range from $4 bar of soap to $30,000 antique
Apparel is priced at the better range
Stores are densely and artfully presented

Store Environment
Appeals to the customer’s senses of sound, sight, touch and smell
Experience feelings of discovery and escape
Does not encourage its sales personnel to come up to the customer directly and suggest merchandise for purchase
Assumes customer is educated and caught up in the store experience enough to make up her own confidence purchase

Store Environment

Store Display Approach
Company takes 2% of sales normally spent on advertising and puts it into store execution
Every store employs two full-time display people
Apparel concepts inspire display elements that are crafted at each store
Unique merchandising approach been a worthwhile method for holding off competitors

Store Display Approach
“Our visual philosophy is to make the store feel as if it's a one-off, to feel like it's the only one,"
"We capitalize on existing architectural elements. All of the stores have a similarity to them, but none are exactly the same.“
"We don't send specific direction on placement by item; it's more general direction about type of mood, color, silhouette, trend -- we create direction that supports those things,"
Kristin Norris, Creative Director

In-store Display
Plastic and Styrofoam cups on wall over table wear display

In-store Display
Horse made of wood and topped with rugs and bedding

In-store Display
Giant wasp nests made from recycled newspaper and hanging birch tree

In-store Display
Teacup and saucer fragments apron on mannequin
Glass bulbs hanging over home goods

In-store Display
Paper Mache elephant
Ostrich made with recycled paper from books and newspaper

In-store Display
Paper leaves hanging from ceiling
Paint dipped clothes pins hanging from ceiling in fitting rooms

Window Display
Ornaments hanging from decorative ropes, hand made paper garland

Window Display
Ornaments in their containers

Window Display
Hand cut snow flakes hung from window

Window Display
Hand made paper garland

Window Display
Marshmallow garland, coffee cups, and paper snowflakes

Window Display
Igloo made of recycled milk jugs

Window Display
Winter snow made from paper

Window Display
Snow made from white rope and paper Snow made from recycled Styrofoam cups

Window Display
Snow balls made from foam balls- then dusted in paper shavings

Window Display
Vintage sleds covered in yarns and fabric

Store Display Concerns
Customized visual merchandising approach difficult to manage across many units
Current retail environment : strong competing chains, new customers and attractive print and TV campaigns
All vying for the attention of the Anthropologie customer

Major Question
Would Anthropologie benefit from cutting display persons in each store and putting more budget toward advertising?

Alternative #1
Cut display people and put money into advertising
Pros
Expand client base
Cons:
Lose uniqueness of stores
Still need someone to create displays-who would now do this?
May not be worth it – increased traffic doesn’t mean increased sales
Increased traffic = increased theft

Alternative #2
Cut just ONE display person in the stores and put the money saved towards advertising/marketing
Pros:
There would still be one experienced display person
Cons:
Work load is too much for one person
May not be worth it – increased traffic doesn’t mean increased sales
Increased traffic = increased theft

Alternative #3
Have a visual team of 2-3 part-time associates instead of full-time
Pros:
Part-time associates are cheaper than Full time – money saved can be put towards advertising
Cons:
Part time employees may leave for a better job/benefits
With having more people involved in the execution of displays, there may not be a cohesive look of the store

Alternative #4
Leave everything as is
Pros:
The company is successful already without the advertising
The company keeps their uniqueness and competitive advantage in visual merchandising
Keeps the loyal customer client base
Cons:
Not increasing client base through advertising

Our Response
We believe Anthropologie should KEEP their store display personnel and forgo advertising practices used by other retailers

Reason #1
Its what makes Anthropologie unique
"One of our core philosophies is that we spend the money that other companies spend on marketing to create a store experience that exceeds people's expectations. We don't spend money on messages -- we invest in execution.“
Glen Senk, Anthropologie president

Reason #2
They know their target market- and don’t need to advertise to everyone
"Most stores cater to a broad base of
customers or specialize in a product
category. We specialize in one customer.
And we offer her everything from
clothing to bed linens to furniture
to soap.“
Glen Senk, Anthropologie president

Reason #3
Unique approach draws customers in- and they stay to explore
Have never advertised, yet customers stay longer in the stores than most chain shoppers
Average visit lasts an hour and 15 minutes- some customers stay even longer

Reason #4
Customers are buying- and they spend more
Average sales per square foot is over $600
Average customer spend per visit is
a relatively high $80
Net sales in 2009 :$1.83 billion
up 21.7% from 2008
Gross profit in 2009: $713,478
Numbers don’t lie!

Reason #5
They will never publish misleading advertising
Many retailers create advertisements that do not relate to what is in their stores
See an add for Gap with celebrities looking great and loving life, then visit a store and cant make the connection between advertising and product

Reason #6
Displays are not as expensive as corporate made displays- and therefore should remain as is
Often created using recycled goods and are not expensive
Another unique aspect of Anthropologie displays
All 3 window displays made with recycled paper

Sources
http://www.fastcompany.com/magazine/65/sophisticated.html?page=0%2C0
http://www.katyelliott.com/blog/2008/07/new-anthropologie-windows.html
http://www.b3designers.co.uk/blog/tag/anthropologie/
http://anthropologieaddict.blogspot.com/2009/07/seducing-us-softly-anthropologie.html
http://tentdreams.com/2009/12/23/shopping-for-anthropologie/
http://www.apartmenttherapy.com/chicago/blogging/anthropologies-antiques-buyer-1stdibs-style-compass-061533
http://issuu.com/aprileelcich/docs/anthroannual
http://2sistersblog.com/2010/01/07/anthro-winter-windows/
http://www.chicfaced.com/?tag=anthropologie
http://mariamccabe.wordpress.com/2010/01/04/influential-retail-design/
http://www.businessoffashion.com/2009/12/lessons-from-the-high-street-brand-culture-and-the-retail-experience.html

Anthropologie

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