How Levi's Capitalizes on Their Latent Store Potential and Innovates for the Future
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Levi Strauss & Co. has never been hotter. Carrie Ask, Levi’s EVP and President of Global Retail, takes our stage to share how insights gleaned from an intensive corporate soul searching came to reinvigorate the iconic clothing brand. Learn how Levi’s made their stores more compelling and relevant by such counter-intuitive moves as reducing the amount of space dedicated to product; discover how they profited from having fewer customers in their stores and much more.
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How Levi's Capitalizes on Their Latent Store Potential and Innovates for the Future
- 1. HOW LEVI’S® DELIVERED A STORE THAT IS MORE
- 2. 2015 2016 2017 Q1 2018 Q2 2018 “mid single-digits” 12% 15% 18% 15% DTC IS ACCELERATING
- 4. LEVI’S® RETAIL TRANSFORMATION FLYWHEEL 4 Elevate Consumer Experience Strengthen Financial Performance Invest in Capabilities Amplify the Brand 25% of LS&Co. >30% of LS&Co.
- 5. We check our Smart Phones expect a consistent experience wherever they engage. 75% of consumers 4 out of 5 shoppers use their mobile phones inside physical stores. 86 times a day.47
- 8. AT OUR BEST WHEN WE’RE AT THE CENTER OF CULTURE
- 9. AT OUR BEST WHEN WE’RE AT THE CENTER OF CULTURE
- 10. SIX YEARS AGO NOW Geography Channel Product Consumer WE’RE A DIFFERENT COMPANY THAN SIX YEARS AGO 10 OUR BUSINESS IS MUCH MORE DIVERSIFIED
- 11. 50,000POINTS OF DISTRIBUTION 2,900 BRANDED STORES
- 14. CONSUMER JOURNEY MAPPING 875+ Consumer Journeys 1,500 Shopper Surveys 6 Cities 24,248 Inventory/In Stocks (PC13 level) 1,175 Fitting Room Journeys 1,200+ “Snapshots” of Stylist Time
- 15. Purchase intent is MUCH higher than expected > 50%
- 16. KEY INSIGHTS Tough to navigate Top purchase driver: OUT OF STOCK
- 18. KEY INSIGHTS Tough to navigate Top purchase driver: OUT OF STOCK Our fitting rooms drive: 60-70% of sales 1.4x More likely to buy with ‘great experience’ 40% Interested in personalized clothing 50% For 16-24 and 25-39 age groups
- 19. FIT & STYLE IMPROVED IN-STOCKS PERSONALIZATION & CUSTOMIZATION
- 20. FIT & STYLE
- 24. Fitting room lounge area Mobile checkout stations Simplified navigation Head to toe inspiration Cash Wrap minimized Levi’s® Tailor Shop
- 26. >30%growth YOY in revenue, GM$ and EBIT
- 27. “I just finished visiting the Soho store. Love it, love it!!!” “I like how the store is spaced and sectioned out so you know what kind of jeans you’re looking for.” “This was the best retail experience I have ever had!” “Perfect” “Helpful” “Friendly” “Hip” “Comfortable” “Inviting” “Versatile”“Great Lighting”
- 30. LEVI’S® RETAIL TRANSFORMATION FLYWHEEL 30 Elevate Consumer Experience Strengthen Financial PerformanceAmplify the Brand Invest in Capabilities
- 31. REGENT ST. PRINT BAR
- 32. THANK YOU!
Editor's Notes
- To put our company on the path to sustainable growth, we have committed to the following strategies: Grow the core: our profitable business and brands Expand for more by gaining ground in key areas that need to become greater profit drivers Become a leading omni-channel retailer Make our cost structure more competitive And we’re doing all of this while consistently delivering profits through principles. Let’s take a closer look at each of our strategies, as well as our commitment to doing what’s right over what’s easy. 2016 Highlights: Net revenue was $4.6 billion, up 1 percent in reported dollars and up 3 percent on a constant-currency basis, both versus prior year. • Gross margins were 51.2 percent on a reported basis, up from 50.5 percent last year. • Net income grew approximately 40 percent over the prior year, to $291 million from $209 million • Our shareholder dividend of $70 million, a $10 million increase over last year, will be paid in two $35 million installments in 2017.
- Our brands have also come to symbolize youthful optimism, rebellion and cool iconic style. Our products, and those who choose to wear them, embody the energy and events of our time — like the legendary Woodstock Festival in 1969, where Levi’s® reigned. Our products echo the spirit of freedom exemplified by the people who have worn our brands — like the Levi’s®-clad fans who gathered atop the Berlin Wall when it fell in 1989.
- Our business is more diversified today than it was 6 years ago and this did not happen by accident. The areas we focused on and invested behind are all making substantial progress.