3. A flagship retail background.....
• During the last 20 years the role of
the flagship store appeared to
diminish.
• The vast majority of worldwide
retailers delivered growth through
new space and acquisitions rather
than focusing on key flagship
locations.
• These are just some of the
companies that invested heavily in
new space, but are now reviewing
their portfolio to focus more
towards having major flagship stores
as a beacon for their brand and their
products.
4. Current Debenhams Flagship Experience
• Most of the stores internally
recognised as Flagship would not be
recognised as such by our customers
• Due to underinvestment at best we
are in line with the competition but
haven't yet exceeded them until
now.... with Oxford Street 2013!
• Debenhams business was historically
attracted by the 40% R.O.I. that new
stores delivered.
• Until C.2009 the preffered aim was to
achieve maturity within the UK in
traditional bricks and mortar
destinations, with an online
operation to support the store
portfolio
• The past decade our focus was aimed
at consistency across the estate and
delivering the minimum required to
generate a ROI.
5. 2013 - The game has changed!
• The internet, mobile, tablet, and app customers already make up 13%
of Debenhams sales, and this is predicted to grow to 25% of total
business in the medium term. (£1 Billion of sales)
• The UK has the highest proportion in the world of Online spending at
13.2% of all retail sales in 2012 (according to the centre for Retail
Research)
• Retailers now recognise to grow in this Multichannel world, you need
Regional/National/International flagship stores that act as beacons to
customers.
• The Burberry Experience in Regent Street, showcases how even the
most premium retailer has to adapt and change to survive and grow.
6. How Debenhams flagships will change
• More experiential based retailing
• They will be our biggest "Showroom Shopping" destinations
• Product displays and handling that is more inspiring than in our core stores
• Greater focus on store services that aid the multi channel experience (CFS,
Orders,WIFI)
• First to trial new ideas, brands and concepts
• Importers of the best people, exporters of strong leaders
• The best developers of people
• Showcase for our investors and a beacon of the brand in their area.
• Educators for the other stores in the chain
Experience - Showroom -Displays -inspiring- Services -Trial -Beacons
7. The Opportunities
• Create displays that look
Flagship - not just good!
• Commence the constant chase
of Oxford Street - strive to outdo
at every opportunity.
• Create a culture of Multi Chanel
before the rest of the chain.
• To find new ways to promote
the exclusivity of ranges
• Create Brand Ambassadors -
people who buy into the brand
and own it (Shoe specialists etc)
• Converting the natural flow,
through engaged people.
• Use the stores payroll in a more
targeted approach.
• Catchment is larger - look for
opportunities to maximise
strengths and weaknesses
• Offer the best Services
experiences (NSNS, CFS)
• Give feedback into the Centre
Threats
• The instore experience not
being as good or consistent
as the web
• Competitors investing faster
• Reducing payroll but
increasing expectation
• Our cost base is high with
pressures on EBITDA and this
will grow.
• Majority of Capex going on
.com and system
improvements just to keep
up with the pace of advance
in customer expectation.
• Workload increase for the
colleagues / Managers.
8. Adapting my style
• Its about my leadership first
• Be ruthless with time management
• Empower my people to behave differently.
• The message must reach everyone or it simply
wont work.
• Talk multi channel not single channel at at all levels
of communication.
• Be an "educator"of the Flagship future.
• Encourage and recognise those who have embraced
multichannel behaviour.
• Behave as a more senior manager acting as
"consultant" to my teams so they learn
• Be consistent in my approach and help others
manage change - especially around payroll
management
• Already exploring the opportunity to work
externally
• Always up to date with latest thinking and
competitor activity
