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Case study presented in senior level fashion merchandising class at LSU

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  1. 1. CASE 51Anthropologie: Display and Store Image<br />Amanda Mayeux, Rustin Steib, Kelsey Robinson, Christian Pohlman<br />
  2. 2. What brings you to Anthropologie?<br />Visual Displays <br />Merchandise <br />Catalog<br />Customer Service<br />Atmosphere<br />Affiliation with Urban Outfitters<br />
  3. 3. Do advertisements for any apparel products and retail stores effect your buying decision?<br />Would you shop at Anthropologie if they had advertisements?<br />
  4. 4. Do you like or dislike that Anthropologie pays more attention to visual displays than advertising? <br />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?<br />
  5. 5. Anthropologie Background<br />Philadelphia based chain store owned by Urban Outfitters Inc. <br />Opened its first store in 1992 in Wayne, PA<br />Currently operates over 135 retail stores in the United States<br />One-of-a-kind and compelling shopping experience that makes women feel beautiful, hopeful and connected<br />
  6. 6. Anthropologie Background<br />Doesn’t operate with the conventions of most retailers<br />Doesn’t interpret its fashion research fastidiously <br />Doesn’t run major advertising campaigns <br />
  7. 7. Target Market<br />Evolved as the Urban Outfitters store’s grew up<br />30 to 45 years of age<br />Suburban or ex-urban<br />College or post graduate educated<br />Married or committed relationship<br />More than 50% of peer group <br /> have children<br />Well traveled, well read, appreciate <br /> innovation, artfulness and good design<br />Enjoy cooking, gardening, movie going and wine tasting<br />
  8. 8. Buying aka ‘DIGS’<br />Each buyer equipped with its own unique style<br />Scour the world to find the most unique items<br />Operate in an almost entrepreneurial fashion<br />50% of stock is private label and 50% is market driven<br />Stocks vast numbers of a few trends<br />Buyer at Large: Keith Johnson<br />
  9. 9. Merchandise Policy<br />Outgrowth of its understanding of the target market<br />Uses focus groups and customer surveys<br />Each season the president, design staff, merchant staff, and visual team develop concepts together <br />Usually several simultaneous fashion themes or stories<br />
  10. 10. Merchandise Policy<br />Success from identifying trends for customer and showcasing them in stores<br />Set the mood in the store each season by creating a unique and varied store mix of apparel, linens, books, and furniture<br />
  11. 11. Merchandise Policy<br />Displays are changed several times during the 12 week cycle to keep the stores looking fresh<br />Inventory turns 6 times per year and new products appear 4 days per week<br />
  12. 12. Store Environment<br />Extremely eclectic product mix reflecting a range of product categories, each one edited in a unique way for the season<br />Price range from $4 bar of soap to $30,000 antique<br />Apparel is priced at the better range<br />Stores are densely and artfully presented<br />
  13. 13. Store Environment<br />Appeals to the customer’s senses of sound, sight, touch and smell<br />Experience feelings of discovery and escape<br />Does not encourage its sales personnel to come up to the customer directly and suggest merchandise for purchase<br />Assumes customer is educated and caught up in the store experience enough to make up her own confidence purchase<br />
  14. 14. Store Environment<br />
  15. 15. Store Environment<br />
  16. 16. Store Display Approach<br />Company takes 2% of sales normally spent on advertising and puts it into store execution<br />Every store employs two full-time display people<br />Apparel concepts inspire display elements that are crafted at each store<br />Unique merchandising approach been a worthwhile method for holding off competitors<br />
  17. 17. Store Display Approach<br />“Our visual philosophy is to make the store feel as if it's a one-off, to feel like it's the only one," <br />"We capitalize on existing architectural elements. All of the stores have a similarity to them, but none are exactly the same.“<br />"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,"<br />Kristin Norris, Creative Director<br />
  18. 18. In-store Display<br />Plastic and Styrofoam cups on wall over table wear display<br />
  19. 19. In-store Display<br />Horse made of wood and topped with rugs and bedding<br />
  20. 20. In-store Display<br />Giant wasp nests made from recycled newspaper and hanging birch tree<br />
  21. 21. In-store Display<br />Teacup and saucer fragments apron on mannequin<br />Glass bulbs hanging over home goods<br />
  22. 22. In-store Display<br />Paper Mache elephant <br />Ostrich made with recycled paper from books and newspaper <br />
  23. 23. In-store Display<br />Paper leaves hanging from ceiling<br />Paint dipped clothes pins hanging from ceiling in fitting rooms<br />
  24. 24. Window Display<br />Ornaments hanging from decorative ropes, hand made paper garland<br />
  25. 25. Window Display<br />Ornaments in their containers <br />
  26. 26. Window Display<br />Hand cut snow flakes hung from window<br />
  27. 27. Window Display<br />Hand made paper garland<br />
  28. 28. Window Display<br />Marshmallow garland, coffee cups, and paper snowflakes<br />
  29. 29. Window Display<br />Igloo made of recycled milk jugs<br />
  30. 30. Window Display<br />Winter snow made from paper <br />
  31. 31. Window Display<br /> Snow made from white rope and paper Snow made from recycled Styrofoam cups<br />
  32. 32. Window Display<br />Snow balls made from foam balls- then dusted in paper shavings<br />
  33. 33. Window Display<br />Vintage sleds covered in yarns and fabric<br />
  34. 34. Store Display Concerns<br />Customized visual merchandising approach difficult to manage across many units<br />Current retail environment : strong competing chains, new customers and attractive print and TV campaigns <br />All vying for the attention of the Anthropologie customer<br />
  35. 35. Major Question<br />Would Anthropologie benefit from cutting display persons in each store and putting more budget toward advertising?<br />
  36. 36. Alternative #1<br />Cut display people and put money into advertising<br />Pros<br />Expand client base <br />Cons:<br />Lose uniqueness of stores<br />Still need someone to create displays-who would now do this?<br />May not be worth it – increased traffic doesn’t mean increased sales<br />Increased traffic = increased theft<br />
  37. 37. Alternative #2<br />Cut just ONE display person in the stores and put the money saved towards advertising/marketing<br />Pros:<br />There would still be one experienced display person<br />Cons:<br />Work load is too much for one person<br />May not be worth it – increased traffic doesn’t mean increased sales<br />Increased traffic = increased theft<br />
  38. 38. Alternative #3<br />Have a visual team of 2-3 part-time associates instead of full-time<br />Pros:<br />Part-time associates are cheaper than Full time – money saved can be put towards advertising<br />Cons:<br />Part time employees may leave for a better job/benefits<br />With having more people involved in the execution of displays, there may not be a cohesive look of the store<br />
  39. 39. Alternative #4<br />Leave everything as is<br />Pros:<br />The company is successful already without the advertising<br />The company keeps their uniqueness and competitive advantage in visual merchandising<br />Keeps the loyal customer client base<br />Cons:<br />Not increasing client base through advertising<br />
  40. 40. Our Response<br />We believe Anthropologie should KEEP their store display personnel and forgo advertising practices used by other retailers <br />
  41. 41. Reason #1<br />Its what makes Anthropologie unique<br />"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.“<br />Glen Senk, Anthropologie president<br />
  42. 42. Reason #2<br />They know their target market- and don’t need to advertise to everyone<br />"Most stores cater to a broad base of <br /> customers or specialize in a product <br /> category. We specialize in one customer. <br /> And we offer her everything from <br /> clothing to bed linens to furniture <br /> to soap.“<br />Glen Senk, Anthropologie president<br />
  43. 43. Reason #3<br />Unique approach draws customers in- and they stay to explore<br />Have never advertised, yet customers stay longer in the stores than most chain shoppers<br />Average visit lasts an hour and 15 minutes- some customers stay even longer<br />
  44. 44. Reason #4<br />Customers are buying- and they spend more<br />Average sales per square foot is over $600<br />Average customer spend per visit is<br /> a relatively high $80<br />Net sales in 2009 :$1.83 billion<br /> up 21.7% from 2008<br />Gross profit in 2009: $713,478<br />Numbers don’t lie!<br />
  45. 45. Reason #5<br />They will never publish misleading advertising<br />Many retailers create advertisements that do not relate to what is in their stores<br />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<br />
  46. 46. Reason #6<br />Displays are not as expensive as corporate made displays- and therefore should remain as is<br />Often created using recycled goods and are not expensive<br />Another unique aspect of Anthropologie displays<br />All 3 window displays made with recycled paper<br />
  47. 47. Sources<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />