1. Observation Lab
Opportunities for NY retail stores
A Crash Course on Creativity, Assignment #2
10/30/2012
2. Background
• I visited 6 different stores in New York City,
along 8th avenue from 52nd st to 59th st
(Columbus Circle)
1. Duane Reade
2. Balducci’s
3. TJ Maxx
4. FedEx Office
5. Whole Foods
6. Cole Haan
3. Store 1: Duane Reade
Insight #1
I’m amazed what effect the space and
color have on my mindset. I really did not
want to stay in Duane read for very long:
• The white ceilings and crowded
shelves made me feel like leaving the
store. Immediately.
• The black floor is a nice touch that
added some comfort.
4. Store 1: Duane Reade
Insight #2
It was surprising how many of the
products that had associated reward
points incentivizing purchase were at eye
level. Something I never really was
conscious of before.
5. Store 1: Duane Reade
Hidden Opportunity
IDEO did a redesign of the pharmacy
space for Walgreen’s (Duane Reade’s
parent company) and you can really see
the impact in this picture:
• The areas for pickup and consultation
are clearly demarcated
• The signage is bright and welcoming
• The counter is surrounded by a large
open space
Duane Reade could really apply these
qualities to other areas of the store to
encourage more browsing and additional
sales.
6. Store 2: Balducci’s
Insight #1
For years I passed by Balducci’s and never
noticed it dismissing it forjust another
convenience store. But they started
putting subtle hints on the door including
this Italian Gelato picture. All of a sudden
I was curious…
7. Store 2: Balducci’s
Insight #2
I also noticed that the store had a
very “kitchen” like feel to it.
The setup was very spacious and
well-lit in an ambient way. It made
you want to pick up some
ingredients and cook. I felt at
home.
8. Store 2: Balducci’s
Hidden Opportunity
I think Balducci’s could provide a more holistic experience to
its customers. Right now it is set up to
The setup was very spacious and well-lit in an ambient way.
It made you want to pick up some ingredients and cook. I felt
at home.
9. Store 3: TJ Maxx
Insight #1
TJ Maxx has long been a source of some of
my last minute everyday needs such as socks
and belts. I never really paid attention in the
store though. I realized their store has a sort
of organized disarray:
• The store has large main sections
indicated by signs from the ceiling
• However finding what you want is a chore.
Labeling is discreet, it requires quite a bit
of browsing to find something you like.
Unexpected reward = higher satisfaction?
10. Store 3: TJ Maxx
Insight #2
Most of the employees wore fairly non-
descript, inexpensive clothes. Adds to the
feeling that this is a bargain shop.
Probably to relate to the customers
11. Store 3: TJ Maxx
Hidden Opportunity
I think the organization could actually improve by adding some
value to the clothes on the racks. Right now the perceived
value is quite low, feels like some clothes just randomly placed
out. They could cater to more tiers of customers by limiting
quantity for some items, and featuring more distinguished
items.
12. Store 4: FedEx Office
Insights
FedEx Office is set up like any
other office in corporate
America. It has printers,
copiers, and desks with plenty
of supplies.
• The store entrance actually
is positioned on the street
corner, which makes it feel
more inviting
• Half the store is the service
area, with a very large
counter and signage very
similar to Duane Reade
• The impulse items (candy)
seem to be out of place
though
13. Store 4: FedEx Office
Insights
Placement of objects on
shelves seems to follow a
Expensive,
functional categorization, but $17
the pricing does not take into
account eye level items.
Expensive items are on the
Cheap, $4
top and bottom as can be
seen in this picture.
Expensive,
$15
14. Store 4: FedEx Office
Hidden Opportunity
FedEx Office’s main goal is volume purchasing. Every print,
copy, etc. has a margin which customers pay because of the
convenience.
But imagine if the company could offer higher margin items like
information services. These could be offered with minimal
additional overhead using existing infrastructure. Business
professionals need this information and could leverage their
time at the store to gain additional value.
15. Store 5: Whole Foods
Insights
Whole Foods in Columbus
Circle, NYC has a position right
at the center of the store in
the basement
• It almost seems like the
escalators are sucking you
in, the downwards one is
positioned on the left hand
side to route you through
the store
• The signage is really bright
and colorful and makes you
hungry with pictures of
dishes
16. Store 5: Whole Foods
Insights
In fact the whole store has
customer routing
embedded in its design:
• Check out lines are even
systemized with color /
number schemes
• Aisles are very narrow
making you feel like you
cannot stay in place, you
must move
• This is driving people to
make quick purchasing
decisions
17. Store 5: Whole Foods
Hidden Opportunities
I think Whole Foods could make at least part of the store
focused on encouraging customer browsing to encourage
multiple purchases. I know that high customer throughput
increases purchasing decisions, but it also is a bit stressful. I
might buy more items if I felt I had more time to browse.
18. Store 6: Cole Haan
Insights
I never have been inside a Cole
Haan store, but it was really
comforting when I went inside:
• It felt like a giant duplex
apartment, very homey
• The mahogany + white design +
color accents of sold items was
very comforting
• Customers are greeted
immediately upon entry. I told
the greeter up front I was here
for a class project. He told me
not to tell anyone…
19. Store 6: Cole Haan
Insights
Picture quality is a little blurry,
because I did not want to be too
obvious. But here you can see the
setup is typical of these types of
stores. Center pieces and display
cases.
I did not realize that sale items were
made to be so obscure (they were
behind some corner near the
staircase. I guess they want to push
the high end image.
20. Store 6: Cole Haan
Hidden Opportunities
I mean I think they do a good job with the store, they
could increase customer purchasing by improving
routing.
Browsing should be encouraged, but they can also
press customers to make a choice. Will increase
customer throughput. Kind of like Whole Foods.
