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Case study presented in senior level fashion merchandising class at LSU

Case study presented in senior level fashion merchandising class at LSU

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  • 1. CASE 51Anthropologie: Display and Store Image
    Amanda Mayeux, Rustin Steib, Kelsey Robinson, Christian Pohlman
  • 2. What brings you to Anthropologie?
    Visual Displays
    Customer Service
    Affiliation with Urban Outfitters
  • 3. Do advertisements for any apparel products and retail stores effect your buying decision?
    Would you shop at Anthropologie if they had advertisements?
  • 4. 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?
  • 5. 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
  • 6. Anthropologie Background
    Doesn’t operate with the conventions of most retailers
    Doesn’t interpret its fashion research fastidiously
    Doesn’t run major advertising campaigns
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. Store Environment
  • 15. Store Environment
  • 16. 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
  • 17. 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
  • 18. In-store Display
    Plastic and Styrofoam cups on wall over table wear display
  • 19. In-store Display
    Horse made of wood and topped with rugs and bedding
  • 20. In-store Display
    Giant wasp nests made from recycled newspaper and hanging birch tree
  • 21. In-store Display
    Teacup and saucer fragments apron on mannequin
    Glass bulbs hanging over home goods
  • 22. In-store Display
    Paper Mache elephant
    Ostrich made with recycled paper from books and newspaper
  • 23. In-store Display
    Paper leaves hanging from ceiling
    Paint dipped clothes pins hanging from ceiling in fitting rooms
  • 24. Window Display
    Ornaments hanging from decorative ropes, hand made paper garland
  • 25. Window Display
    Ornaments in their containers
  • 26. Window Display
    Hand cut snow flakes hung from window
  • 27. Window Display
    Hand made paper garland
  • 28. Window Display
    Marshmallow garland, coffee cups, and paper snowflakes
  • 29. Window Display
    Igloo made of recycled milk jugs
  • 30. Window Display
    Winter snow made from paper
  • 31. Window Display
    Snow made from white rope and paper Snow made from recycled Styrofoam cups
  • 32. Window Display
    Snow balls made from foam balls- then dusted in paper shavings
  • 33. Window Display
    Vintage sleds covered in yarns and fabric
  • 34. 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
  • 35. Major Question
    Would Anthropologie benefit from cutting display persons in each store and putting more budget toward advertising?
  • 36. Alternative #1
    Cut display people and put money into advertising
    Expand client base
    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
  • 37. Alternative #2
    Cut just ONE display person in the stores and put the money saved towards advertising/marketing
    There would still be one experienced display person
    Work load is too much for one person
    May not be worth it – increased traffic doesn’t mean increased sales
    Increased traffic = increased theft
  • 38. Alternative #3
    Have a visual team of 2-3 part-time associates instead of full-time
    Part-time associates are cheaper than Full time – money saved can be put towards advertising
    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
  • 39. Alternative #4
    Leave everything as is
    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
    Not increasing client base through advertising
  • 40. Our Response
    We believe Anthropologie should KEEP their store display personnel and forgo advertising practices used by other retailers
  • 41. 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
  • 42. 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
  • 43. 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
  • 44. 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!
  • 45. 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
  • 46. 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
  • 47. Sources