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New York Market Resource Guide
New York Study Tour May 2014
Laurel Cross
ABSTRACT
The Retail Store Analysis contains visualmerchandising, storecharacteristics,
layout, and appearance merchandiseanalysis, customer service, and storeimage.
There are written summaries fromeach appointment attended, as well as a
summary of the individual store analysis of the M&M storeon Broadway.
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Retail Store Analysis
Visual Merchandising
Zara is known for their floor to ceiling window displays. The displays tend to be all glass
and this allows for the customer to see the merchandise in the store, as well as create awareness
around the brand. Zara does very little paper advertising and focuses more on the appeal of their
extravagant window displays. The location that I visited was a little bit smaller than I had
anticipated it would be, especially because it was in the center of New York City; however, there
was a flagship location just down the street at 52nd and 5th. This location, 101 fifth Ave (at 17th),
was narrow, but it did have two floors. The mannequins were dressed in the outfits that were
displayed beside it. I believe the idea here was to represent the way the apparel is structured
because many of the collections are inspired by lines and architecture. The inside of the store still
had an open feel even though it was crowded with tourists and locals shopping. The merchandise
was neatly folded and the associates were working hard to make sure that every little piece was
in its place. The overall vibe of the store was a combination of European and modern influences.
I did notice that there was different merchandise in this location than I saw in the Dallas location
at the Galleria. Zara does distribute apparel based on geographical location and how it fits in that
specific market. The lighting was modern and eye catching. The lights were displayed under the
cabinets to illuminate the apparel, and then beneath the apparel display there was recommended
shoes to pair with your outfit. The lighting made the space feel more modern and elegant,
especially for being a fast-fashion retailer. This was a unique attribute that I thought set Zara
apart from other retailers of its kind.
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Store Front
Store Characteristics, Layout, and Appearance
The approach that I believe Zara is taking is to present themselves in an upscale manner
but still be associated with low prices. I think that the modern lighting that is present under the
cabinets, under the hanging racks, and under the stairs allows the customer to associate this
brand with fashion forward products as well as quality. I was impressed with the displays and
how elegant the merchandise looked. The store was clean and organized; all of the merchandise
seemed to be in its place. The sales associated that were working the floor were constantly
refolding and straightening the shelves and displays. There was a security man at the door as
well as metal detectors to prevent theft. Most of the shopping was taking place downstairs even
though there were two separate levels. The second floor consisted of the more casual collection
and well as children’s clothing. The store was full of mirrors, which allowed the store to seem
larger than it actually was. There was a geometrical style layout; however, the square center
displays mimicked a boutique style. It seems as though they are mixing the styles to better serve
their customers. One of the negative aspects was that there were no bathrooms. I feel like this
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was a common thread in New York City and it was a struggle to travel for a given amount of
time and not be able to use the facilities, even if you purchased something from the actual store.
The cashier was located at the back of the first level and only consisted of two registers. My
impression of the store was that it was neat, organized, and busy; however, I did expect it to be
more extravagant than the Dallas location and it was pretty similar.
Merchandise Analysis
The merchandise is separated into sections, as most stores are. This location had a
women’s, men’s, and children’s department. The flagship location has a Zara Home in addition
to these departments, but it was not at the specific location that I visited. Within each section,
each piece was separated by color. This was visually appealing because if you were looking for a
certain color to wear to an event than you could walk right to the section you need and pick the
type of garment that you are looking for. In addition to separating the merchandise by color, it is
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also separated into casual or dressy work attire. The first floor housed most of the on trend
business attire and the new merchandise that is coming in, which is why most of the shopping
was taking place on the first floor. The second floor also housed women’s apparel but it was
more casual and had more color. Men’s was also located on the first floor but was smaller than
the women’s department. They had business and business casual attire that would be good for a
New Yorker. The apparel at this location differed greatly from the one that we have in Dallas.
The colors were darker and there was more apparel geared toward wet and cooler weather. The
location in Dallas has more yellow and white in the collection because it is hotter in Texas than
in New York. There was still color in the collections I saw, just not as much. The children’s
section was located in the back of the second floor. I am assuming that it is not the biggest seller
and needs a smaller portion of the selling space. They had dresses and casual wear for children,
similar to the other departments. The price range for this store is $39.00 to $199.00 depending on
what type of item you are looking to purchase. The dressy work attire outfits are more expensive.
Zara is a fast-fashion retailer but I feel the quality of the product is far greater than some of their
competition. I think that they found a gap in the market and are doing well there. They offer
affordable prices in addition to good quality pieces.
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Merchandise by Collection and Color
Customer Service
The customer service at this location was certainly not what I was expecting. We did not
receive any sort of greeting when we entered the store. I do not know if this was because the
store was so busy that they did not notice but it was slightly disappointing. Also, we had been
traveling over thirty blocks to get to this location and I asked to use the bathroom and the sales
associate simply said “no” and walked away. There was no explanation and apology and she
seemed quite rude actually. All of the sales associates were wearing headsets and seemed to be
extremely busy and too occupied to help actual customers. To their defense, the store did look
fantastic given the volume of customers in the store; however, the actual customer service was
not up to a standard that I am accustomed to in the Dallas location. The associated almost
seemed snobby in a way, which is not usually the case in fast-fashion retailers. The fitting rooms
were full and the line to try on clothing was extremely long. The sales associated were willing to
answer questions if you specifically asked them, but they would not approach you if you did not
have a question. I felt slightly ignored and I did not expect this type of service from such a
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reputable brand as Zara. The security guard that was at the door did not even greet us when we
entered the store. The attitude that I got was that the customers were an inconvenience to them
and interrupted them while they were trying to straighten the store. When we asked questions
about the merchandise they gave us one-word responses and were not helpful in finding other
sizes or colors. Therefore, I did not actually purchase anything from this location because I did
not really feel that comfortable in the store.
Store Image
In my opinion the store’s target customer is a mostly trendy professional woman from 13
to 31. There is a good portion of men that shop here for business casual clothing as well. I
envision Zara’s customer as a workingwoman that wants to remain in fashion and still look
professional. You can also wear these clothes casually or to a dinner; they are extremely
versatile. The image of the store is definitely not consistent with the image I had in my head
before visiting the store. I thought the customer service and layout would be more luxurious than
the Dallas location. I would actually prefer to shop at the Dallas location now that I have visited
that one. I did not know that Zara stores had multiple levels. I have not seen very many retail
stores in Texas with multiple shopping floors. This seems to be the norm in the heart of New
York where space is easier to accommodate vertically than horizontally. However, I was
impressed with the size of their men and children’s lines. These sections were larger than the
location in Dallas and were clean and organized. I was impressed with the use of the lighting
displays that illuminated the merchandise. It was also unique to be able to make the store feel big
with the placement of the clothing displays and lighting. The store was physically narrow, so I
felt that was a positive aspect of the retail space. The most impressive thing I noticed about this
specific location was the organization and neatness of the clothing displays. I am sure that it is
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difficult to maintain an organized environment when there are so many people in the store. I also
learned that this 101 location is a hub for international tourists, especially tourists from France.
While in the store, I heard more French speaking individuals than I heard English. I think that
this is due to the whole European feel of the merchandise and store layout. I almost felt like I
was in a different country with the amount of international tourists that were browsing in the
store. My overall experience with the store was disappointing in terms of service and physical
environment, but I was impressed with the organization and cleanliness of the store.
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Ross Analysis
Ross is an off-price retailer that specializes in discounted name brand apparel for men
and women. Isabella, the college recruiter for Ross stores, shared valuable perspectives on
different areas of business that include, planning, allocating, and merchandising. Ross operates
1200 stores and plans these stores by region, demographic, climate, and socioeconomic status’.
Melinda, the women’s wear buyer, spoke to us about what her job entails. She effectively
communicates and builds relationships with vendors to ensure Ross can obtain the best possible
purchase. Merchandise is separated into different classes; this allows buyers to focus on specific
areas. Ross does not use cost concessions, which is where the retailer will ask for additional
money from the vendor if merchandise did not sell through. In addition, markups on the
merchandise will vary depending on the vendor that Ross chooses to use. A typical Monday will
consist of pulling reports from the week before about how well the merchandise sold, what the
best seller consisted of, and what inventory is low. Tuesday will generally be vendor
appointments. Wednesday and Thursday will be making general buying decisions as well as
continuing to build vendor relationships and obtain inventory. Lastly, Friday consists of catching
up on reports or appointments that did not get finished through the week. She mentioned that the
majority of her job was the search for closeouts on vendor products. However, they do not
purchase too many of one SKU because Ross wants to ensure a “treasure hunt” mentality. This
increases the chance of an impulse buy from their customer and ultimately generates more
revenue. Ryan also spoke to us regarding planning and allocating, which falls on the more
analytical side of merchandising. There is also a ten week internship opportunity that entails
classroom training, floor training, goal of negotiating training, excel, and various systems, such
as POS and additional reports. This intern works closely with the buyer to learn the buying
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process and how to effectively negotiate with vendors to get the best possible cost for Ross. I
benefited most from Ryan’s advice, which was to be proficient in excel applications problem
solving skills. He mentioned that it is vital to understand how the details of the business work to
help you in making an effective problem solving decision.
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Tory Burch Analysis
Mickey, who is the CMO of the Tory Burch organization, initiated this appointment; she
manages client management, brand experience, and serves as a useful tool in striking a balance
between the client and the service provider. Tory Burch runs and operates over 100 stores
globally, so the market is certainly not saturated, and they maintain a good balance of quality and
price. Tory founded the brand in 2004, and they have a strong social media presence. The first
store was located on Elizabeth Street in downtown New York. The business is extremely
customer centric and is operates solely around the customer. Most of the employees that spoke
on the panel seemed genuinely happy to work for such a successful company that believes in
each other, and creates an environment for growth and success. Mickey mentioned that she finds
is important to find a mentor to bounce ideas off of; she also believes it is vital to be able to
navigate between science and art, to ensure each situation has been looked at and evaluated from
different perspectives. Gary Chang, the CRM, works with “Big Data” and essentially what the
customer is purchasing and how it is useful for the business. This entails, emails, cookies,
marketing interests, and all communication that is linked to the customer. His advice was to
make sure that you have a full professional resume, broken down by specific skills that are useful
for the company that you are applying to. He suggested proving how you would be valuable, and
that your passion will resonate with the company if it is a good fit for you. Victor, the digital and
marketing consulter, explained that it is important to not get caught up in the flashy name of the
company, but to ensure that the company culture is a good fit for you. He suggested to put
yourself in as many different business situations as possible to ensure you know how to handle
them in the future. Ellie’s position is to maintain local teams and set up Tory Burch events; she
also establishes overall company objectives and calendar alignment. Her advice was to, go for
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whatever you are passionate about, and be purposeful in your search for employment and
positions; this is a good indicator of what sets people apart from one another. Lindsey, head of
digital branding, focuses on corporate marketing and maintains relationships with Google and
other search engines to ensure the awareness of the brand is being fully represented. Her advice
was to take calculated risks and don’t always play it safe. In addition, if you mess something up,
then own it, and identify why it didn’t work out. Do not place blame on other co-workers. I
benefited from this appointment immensely and found that the advice that was given will be
extremely beneficial after my internship is finished and I am looking for full-time employment.
It made me believe in myself again and re-ignited a passion that I have for this industry. I am
excited to apply what I learned from this appointment in my internship and career.
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Foxcroft Analysis
Foxcroft is a better-priced separates line, with ranges of $69.00 to $99.00. The focus is on
the women’s division of the apparel group. The offices in the New York location entail
production, sales, and technical design. The Lewisville, Texas location houses accounting and IT
for the company. A few companies that are customers of Foxcroft are Nordstrom, Van Maur, Sue
Patrick, and over 700 specialty retail stores. They specialize in non-iron/wrinkle-free shirts. The
process of the wrinkle-free chemical is called a “wet finish”, which is a high temperature of
different chemicals. They also design varies shirts for Brooks Brothers, which encompasses
different stretch cottons and an assortment of designs and prints. These prints are created in
house and are associated with different trends found in the market at certain times. They also
look at different storyboards and pull inspiration from pictures and interpret the designs in a way
that will work for retailers. The company culture consists of an open-door policy, which consists
of open forums, weekly departmental meetings, cross-functional meetings, and opening up the
floor for feedback and suggestions. Company sales and results are available to everyone. This
allows for more associates to provide feedback on what is and is not working. The environment
is democratic and ensures everyone is focusing on the big picture. Foxcroft is always working on
a three-year plan and essentially what is good for the business and the company. Some of the job
duties include securing vendor appointments, discussing current business and changes in
business, presenting merchandise to retailers, ranking merchandise from 1-10, working on
retailers plans and deadlines, and ensuring a positive merchandising conversation with
employees and vendors. They mentioned it is important to know your customer and show them
what you think they would like, or what you think would be beneficial for them to have. They
also provide internships in New York and Lewisville. Their advice was to make sure that you
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know Excel and all aspects of retail math to set you apart from your competition. One example
that was given was the formula, Retail-Cost/Retail. She mentioned to not rely on a computer
program to calculate these formulas for you, but to actually know the product and how to
calculate the prices. The most beneficial aspect was the knowledge that I received from the
wholesale side of merchandising. Often times in our major we focus solely on retail and simply
forget where the product comes from or how it is manufactured. It was informative to see the
different processes that are involved in getting the product to the actual retail store.
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Maker & Company Analysis
Maker and Co. is a newer brand that was established by Chris Crowley in 2010. The idea
was to create an identity that would resonate with the customer as having impeccable
craftsmanship and a unique heritage. The story that Chris told was a story of a “maker” who
lived in Europe, who made clothes in the back and sold them in the front. The story is not real
but it has a unique idea and sets this company apart from any other. The logo of the bike was
supposed to represent what the man rode to work everyday. Chris mentioned that there is only
five people that work closely with him in the office that we visited, and this included sales,
design, and marketing. His garments are made for men, are collection oriented, and focus on
craftsmanship and minute details within the product. In the appointment, he showed us the
specific weave of the product that he got in Europe that had incredible wicking ability for water,
simply because of the tightness of the weave of the material. He also explained the placement of
the logo is essential in the marketing and wear ability of the brand. He wanted the product to be
more about the way the garment was made than on the importance of the logo. He just launched
at Nordstrom and profited by the 65 percent sell through. He mentioned it is essential in
maintaining a good business sense through the entire process as well. It is important to be
creative and make a quality product; however, that product will not sell if you do not know how
to market it correctly. He had just finished his spring/summer 2015 collection and we were able
to see some of the pictures of the garments in his personal portfolio. He mentioned that he travels
to Europe several times a year to get inspiration for his new collections and also to meet with
mills on the development of new materials. Some of the inspiration that he shared with us came
from different boats and nautical type items. Chris shared with us that it is important to position
your brand perfectly to ensure that the customer makes a positive connection between the
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product and the price. He told us he wanted to create something that had meaning so he could
channel his passion into his collections. His advice to us was to “put our mark on the world” and
“do what you enjoy doing.” These few words were the most beneficial to me out of the whole
New York trip. I found this meeting to be extremely inspiring and I felt I had more clarity when I
left his office. I felt I had lost a little of my vision in the corporate aspect of my degree and I was
deeply encouraged to follow the direction I had initially set out to do. When I went on this trip I
was focused on securing a job that would pay the bills; now I am certain that I eventually would
like to end up in the process of textile collaboration, focusing on aesthetic and design. I feel more
determined than ever and I am so grateful that I had the opportunity to meet such a focused and
successful designer that was relentless about his vision.
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Saks.com Analysis
Saks.com, which is part of HBC digital, is the e-commerce site that is responsible for
over $8 billion is retail sales. Michael, the CEO, was kind enough to bring several members of
his team to speak about the different parts of the e-commerce business. Lincoln Moore, the chief
site merchant, is responsible for marketing, technology, and events to drive consumers to the site.
Irene Hong is responsible for digital marketing, and national and international paid search
options. Maurice manages current promotions, editorials, emails, vendor marketing programs,
and unique campaigns to drive sales to the site. The panel shared with us that more than 70
percent of customers are digitally influenced. The customer journey is starting online and
becoming critical to any large retail company. The main goal of Saks.com is to create a
“seamless” customer experience between online and brick-and-mortar retailing. There is also a
true collaboration among team members, whether it be in-store teams, or merchants, to corporate
executives. The buying team consists of buyers, assistant buyers, and associate buyers that work
closely with the merchandise analyst and general merchandise manager to provide an appropriate
assortment of online merchandise. Saks.com maintains separate departments for planning and
allocating because the company is so large. The goal of Saks.com is to perfect the Omni-channel
experience for all of their customers. They are still in the transitioning stages and it will take time
to fully implement this technology. The digital marketing campaigns started in 2011, and began
in stores in 2012. They have paid search engine marketing that allows them to purchase bid
words that ensure consumers will see their site when they search specific words or products. In
addition, metrics are closely monitored to explain the returns on ad spend. This process includes
number of site visits and conversion rates. The digital team allow look at customer cookies and
have a total of 35 different emails tailored to fit the specific want and need of a particular
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customer. I benefited most from observing and hearing different language that revolves around
the world of e-commerce. This is an area that I was not too familiar with before the appointment
but I feel as though I have a better understanding of the certain roles that are present in this
digital field.
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JCPenney Analysis
The JCPenney appointment was a walk through of the store and an explanation of the soft
and hard shops, and essentially why they are positioned in a certain manner to reflect consumer-
buying patterns. The store manager was kind enough to show us the entire sales floor. We started
with Mango, which is a hard shop. The manager explained that the mannequins are really what
sell the product to the consumer. There are various price check stations that are available for the
consumer. She also mentioned that JCPenney carries multiple private label merchandise that
generates the majority of their profits because you can only purchase them at JCPenney stores.
Some of the private labels include, St. John’s Bay, Worthington, and Arizona. The manager
helped us to understand the importance of ADA compliance standards for the in-store traffic.
There has to be a certain amount of space between aisles to ensure that people with wheelchairs
are able to access the merchandise, which has to be at least 36 inches from one another. There
has to be a clear path between aisles and the store must remain clean and organized at all times.
This specific JCPenney location was the most stocked and organized that I have personally seen
in the past. How the store looks is important to the eye of the consumer. There was a “red
landing” in front of the entrance of the retail store. This is where store meetings take place before
the store opens each morning. There is a team of 20 that come in at night and stock and re-
organize the store for the morning crew. The store has a traditional department store layout.
There are different departments, such as Women’s, Juniors, Kitchen, Home, Men’s (located on
C2), Children, Jewelry (commission based) and more. There are associates that are assigned to
these departments; however, they are cross-trained to be able to assist associates in different
departments when a bottleneck occurs. They also maintain a store-within-a-store mentality,
which creates a boutique type of layout for the consumer. An example of this would be the well-
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known makeup retailer Sephora. Ron Johnson also created “streets” within the store to make the
shopping experience better for the customer. The most beneficial aspect of this appointment was
to experience how the different aspects of the retail environment end up affecting the purchase of
the consumers. It was helpful to be able to put a visual to some of the principles that we learn in
our retailing course.
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The Container Store Analysis
The Container Store was founded in 1978, in Coppell Texas; there is still a distribution
center located there. They are a publically traded company, with 66 retail locations, and over
10,000 product SKU’s. The main focus and vision of The Container Store is to “save space” and
“save time.” They rely heavily on their foundation principles, which emphasize the happiness
and knowledge of their employees. Another one of their foundation principles is one = three,
which means that one great person will equal three good people. They have consistently made
the Fortune’s 100 top companies to work for. There is a focus on conscious capitalism ensuring
that people are treated with respect and fairness before profits. The speaker’s position was Vice
President of Visual Sales and included an array of duties: correct signs and pricing, supports
merchandisers vision by depth of products, experts on products, training, and operational needs.
The layout is inspired by a traditional grocery store layout to ensure the product is the star and is
easy to find. The products are presented with props that represent a balance of color and material.
The sections of the store are signed and organized. The merchandise is organized by solution to
make it easier for the consumer to find exactly what they might be looking for. Front features,
headers, mass outs, and store box plinths are used to advertise products in the store. They use
merchandise processing, which is the associates continuing to straighten shelves and organize
items while helping customers. There is an extensive training program that includes 200 hours of
formal and floor training for each new employee. This includes 24 hours of classroom training
before the employee is able to step foot on the sales floor. Elfa is the number one seller
throughout all of the locations. This is a closet organization and storage solution device that
helps the consumer save time and money. The idea is to create a “WOW closet.” The most
beneficial part of this appointment was the terms that I learned in relation to different types of
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products. I am accustomed to terms that are associated or related to apparel, but it was helpful to
hear terms that are used in other types of retail stores. The speaker was also passionate and
energetic about his position and it seemed as though it is a great company to work for. I also
learned a great deal about the company’s vision and principles.
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Fossil Showroom Analysis
Fossil is the biggest fashion watch business today and that has ever been. They are
vertically integrated and operate warehouses and maintain global distribution. The showroom
was beautiful and housed a variety of designers. The panel of speakers spoke to us regarding
their past jobs, their current positions, and the daily tasks that go along with their position. The
first speaker was Katie and has been with Fossil for the last seven years. She graduated from FIT
and majored in buying and merchandising. She handles Marc Jacobs and Tory Burch accounts, is
responsible for building lasting relationships with those brands, and also for daily tasks such as
planning, projecting, and forecasting. Liz is an account executive, has been with Fossil for five
years. She handles Karl Lagerfield, and DKNY accounts. She interned at Fossil in Public
Relations and ended up switching departments when a positioned opened up as a sales
coordinator. She was promoted from the support role of sales coordinator to associate account
manager, which manages smaller accounts with supervision. Then she was promoted again to her
final role as account executive. A few aspects of this position include creative solutions for brand
challenges, building relationships teamwork, establishing positive brand image, and daily
communication with each brand on what is and is not working for them. Sarah is currently a
sales coordinator, which tracks weekly sales, handles emails, communicating with each
department as well as vendors, and copying images to different accounts online. Kirsten is also a
sales coordinator and has been with Fossil for two years. She is responsible for recapping sales
and pulling reports, working with the showroom and visual merchandiser. Lastly, Laura is the
showroom manager who is solely responsible for Fossil’s market weeks. The market weeks are
four times a year and two seasons ahead. She prepares samples, organizes the showroom,
manages catering, meetings, and any kind of basic showroom need. There are internship
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opportunities in Dallas as well as New York; however, the majority of the positions will be in the
Dallas location because it is a lot larger than the showroom. I benefited from learning the
different brands that Fossil carries as well as the different positions that are available within the
company. It was also helpful to physically see how a showroom actually looks and how it is
presented to buyers. The panel was kind and informative on the brand and what each of their
positions entails.
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WGSN/StyleSight.com Analysis
Stylesight is a trend forecasting company that is available to companies on a month-to-
month subscription. The services are expensive so it tends to be larger corporations that use their
services. Mike Burns, the account manager at Stylesight spoke with us about how the site works
and its many functions. In the past, trends were forecasted from trend books that were assembled
in France twice a year. With the progression of technology, the Internet has made trend
forecasting available 24/7. Currently, there are two trend days that take place in London and
New York that forecast the Mega Trends. These trends are what depict the apparel that is going
to hit the market in the future. Socioeconomic trends, political trends, and pass trends are all
influential factors that come into play when establishing these Mega Trends. In addition, these
trends are always two years ahead; therefore, Stylesight just finished forecasting for
Spring/Summer 2016. After the Mega Trends are identified, then the trend trickles down to
women’s wear, then color, then season. The content team on 39th street manages this specific
content, which is a total of 90 people working together to establish these trends. There are also
200 people in London working on a content team as well. Stylesight has an image library that
consists of 1700 images; including images from retail locations, street shots and runway events.
In addition, the content team works specifically on developing reports, analysis of trends going
to festivals and shows, and product development experience. Forecasting is a large portion of the
job and the inspiration is pulled from fabrics, concepts, past trends, current market trends,
cultural influences, and essentially how these trends translate into apparel. The internship
opportunities tend to be difficult to get because of the amount of prestige that comes with the
position. They are available year round; however, you must be on point with artists, designers,
and all trends to prove you know your history. The most beneficial aspect of this appointment
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was the knowledge Mike shared regarding trend forecasting. I did not have any prior knowledge
about how trends were actually developed or forecasted before this appointment. I am going to
take his advice and start researching designers and what they are influenced by to be able to
stand out from the next applicant.
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Macy’s Analysis
Macy’s is a better-priced department store with 800 stores in the U.S. There are seven
major regions and each region is then separated into districts. Macy’s is over 100 years old and is
known for many iconic traditions. One of the traditions is the Macy’s Thanksgiving Day Parade,
which is highly tied to the Christmas season. They have a Marketing Parade Floor, which
handles all of the logistics of the parade and different events. Macy’s plan’s July 4th firework
shows and also transforms multiple Macy’s flagship stores with seasonal flowers. They are well-
known as being the American department store, usually displaying red, white, and blue in
multiple ad campaigns. Macy’s encourages giving back to the community at the local Salvation
Army and food banks. The Macy’s culture also prides themselves on diversity, with multiple
diverse vendors and females in power. In addition, Macy’s has seen a growth in sales over the
last four to five years of $4 billion, while other retailers struggle to stay afloat. They
implemented major changes during the recession when other retailers were too afraid to take a
risk of restructuring. Last year alone Macy’s hired over 1000 college graduates and continue to
add to that number. A business strategy that is valued at Macy’s is the MOMM strategy. This is
an acronym for My Macy’s Localization, Omni-channel, Magic Selling, and Millennial. My
Macy’s Localization is the splitting of 10 to 12 stores into district teams that gives feedback to
the corporate buying office. Omni-channel is the process of integrating a seamless shopping
experience online and in-store. Magic Selling is the shopping experience that is taught company
wide to ensure a “magical” experience for the customer. Lastly, Millennial stands for the $64
billion buying power of the Millennial, which is Macy’s prime target market. This encompasses
college age consumers, ages 13-31 who covers an array of different areas. The Millennial is in
college, starting their careers, getting married, and having children; therefore, there has to be a
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lot of different options to cover all of these types of consumers. I benefited most from the
information that Danica gave regarding Macy’s business strategies and their target market. I did
learn a good deal about the company and how they desire to be viewed from the millennial point
of view. I also learned that the Macy’s Harold’s square location is the largest department store in
the world, which is impressive.
29
Oscar de la Renta Analysis
Oscar de la Renta offered seven panel speakers for our agenda. Melissa-Lefere-Cobb,
SVP Merchandising and Sales, Robert Kogan, the VP International Sales, Erika Bearman, SVP
communication, Elkin Nance, Director, E-Commerce, Daniel, Lawler, VP Footwear Design,
Taylor Cantrell, Sales and Merchandising Assistant and Claudine Jorgensen, the VP Human
Resources. Melissa was the founder of the Merchandising department and has worked for Oscar
for ten years. She built and sold look books and focused on combining data to form the program.
Classification Recap consists of 150 styles, what the sell through was, what sold at market and
requires constant analyzing to stay on top of emerging trends and sales. A good price point for
day dresses at Oscar de la Renta is $2000 and a sweet spot for jewelry is $595. The aspects of
Sales analysis require extensive retail math, formulas for price points, cost sheets, design teams,
relationships with designer, and maintaining a bridge between designer and sales. In addition, the
marketing team identifies what is important for the particular season and makes appearances on
social media sites. Oscar de la Renta works on three seasons at a time. They just finished the
Resort collection for 2015, which will ship in October. Pre-fall and fall are currently shipping.
Melissa explained that communication and networking between brands is essential in the fashion
industry. For example, Harvey Sanders, the CEO of Nautica helped assist her in job placement.
She mentioned we should be utilizing LinkedIn, networks, and groups from school to take every
opportunity to get in touch with people from the fashion industry. Erika Bearman started the blog
for Oscar called Oscar’s PR girl. This provides insight on the company and events that take place
within the industry. Many members from the panel shared with us that working harder, longer,
and smarter than the other employees will get you noticed and set you apart from others.
Claudine mentioned that she prefers hand-written notes to say thank you because it takes extra
30
effort to send it in the mail. She also said it is important to have strong written and oral
communication skills because it can be one of the first indicators of your character and skill set.
They put emphasis on being familiar with the arts, designers, trends, collections, influences, and
architecture. The most beneficial aspect of this meeting was to see inside a luxury retailer and be
able to communicate with executives on their daily business tasks. They had a lot of good
information regarding interviewing for positions in the fashion industry and how to stand out
from the other applicants.
31
Ralph Lauren Analysis
This appointment was a little bit different from the others because it required a personal
perspective and tour of the store as opposed to a sit down meeting of the company and brand.
However, Ralph Lauren has a prominent brand with a strong brand image that resonates
throughout the stores. There are many types of men that could relate to this store because there
were four levels depicting different collections. The atmosphere when I walked into the store
was rustic, parlor like. It felt as though a group of men were going to walk in with a cigar and a
glass of scotch, sit down on the couches and start talking about the events of the golf course.
There were old painted pictures of men and dogs on the walls and above the staircase. The
staircase was a replica of an old staircase in London. There was cologne sprayed in each level to
further that elegant and manly vibe. The sales associates were dressed differently on each floor,
representative of the floor that they were on. The whole mansion had a homey feel to it with
strategically placed trunks and books to make it feel like you are in someone’s home. There was
a rustic wood floor and carpet in areas that were representative of a den. There was an elevator to
take you to whatever floor you wanted to go to. The elevator also had an attendant that was able
to assist you with anything you might need. There were fresh flowers on all of the tables and
made the atmosphere that much more elegant. The first floor consisted of timepieces, fragrances,
and footwear. The second floor housed the most prestigious collection, the Purple Label. This
label had clothing and furniture that represented extreme wealth. The third floor consisted of
Polo by Ralph Lauren, which is all of the bright colored polo’s and pants as well as accessories.
The fourth floor housed the Black Label, which is business attire, suits, and expensive denim and
accessories. The different floors each represented a different lifestyle and they did a fantastic job
representing them on the specific floors. I benefited most from actually seeing the visual
32
merchandising and actual merchandise of the Ralph Lauren brand. They did such a wonderful
job representing the different types of customers with the furniture props used on each floor. This
flagship location was Ralph Lauren branded perfectly.
33
Individual Store Analysis
Unique Retail Concept
I would classy my trip to the M&M store an experience rather than a retail location. As
soon as you walk into the doors, which are floor to ceiling glass, you encounter a giant, rotating
blue Elvis m&m. I was personally not expecting the overall extravagance of the store. The walls
were covered in merchandise that ranged from small baby outfits to adult T-shirts. The first floor
was covered in merchandise and had different sections that allowed for easy navigation. The
most noticeable and eye catching display was the wall of m&m’s. I have never seen anything
like this display before. There were tubes of m&m’s that started on the third floor of the store
and went directly down to the first floor. Each of the tubes was completely filled with different
varieties of m&m’s. To make it more interesting, there were different mixes that filled each tube
that you would not be able to find in other retail stores. If you wanted to purchase a mix, an
attendant would give you a plastic bag and you would press down on the lever of the tube and it
would fill up the bag. The cost of your bag is dependent on how many pounds that you want to
purchase. Another unique aspect of the M&M store was the personalization of the products to
match New York. For example, I saw figurines that looked like the Statue of Liberty that were
filled with m&m’s. I noticed a portion of the ceiling was painted with Times Square. There was a
lot of merchandise that said New York City on it. I also found it interesting that the merchandise
was positioned a lot lower than normal retail locations. I believe the idea was to influence
children to grab merchandise, which would lead their parents to buy it for them. However, I also
feel like this could be a potential problem with theft, simply because the store is so busy and
there is multiple levels. While we were checking out the sales associate told us we had to take a
bag because they wanted to make sure that we were not stopped for shoplifting. I think that is
34
one of the guidelines that they follow to reduce theft. The lighting in the store was mainly track
lighting that light up merchandise. There were so many displays in the store and it made it a little
difficult to move around easily. The store was so busy that it was a struggle to have any room to
shop at all. There were multiple escalators that allowed customers to move between floors easily.
It was also an open concept, so you could see the merchandise below as you went up the
escalators. This was a unique experience and allowed you to see more easily just how big the
store was. The merchandise was also categorized by color, which made it easy for customers to
find the color they liked and shop in that section. There was hundreds of merchandise bins with
different assortments of merchandise in them. These bins usually lined the glass wall that runs
throughout the store. This store is somewhere that you can take the whole family and they will
all be able to find something they like. You can find shirts, coffee mugs, costumes, bags, and
candy; everyone likes candy.
I find that the M&M store is more of a destination location and I feel it would be
beneficial to place one in the Vista Ridge Mall in Lewisville. This mall has been struggling for
years and a destination location like this could completely turn this mall around. The digital
graphics and marketing that is implemented in the New York location could be instrumental in
launching this mall into a new era. For years, Vista Ridge has been behind the times and does not
appear to be catching up anytime soon; this store could revolutionize the way that customers
view this mall altogether. Even if the mall implemented small changes such as rotating displays
or interesting and modern light displays on the merchandise, this could really improve the
appearance of the merchandise to the eye of the consumer. It would be huge to be able to
implement a two-floor retail space. That would make this retailer one of a kind and would
definitely set this mall apart from other retailers. I know the Galleria has several two-story
35
retailers, but implementing it in a mall that is further away from Dallas could bring a better
reputation to this specific mall. This would also be a good strategy because the foot traffic at
malls are constantly decreasing, so building a destination store would help additional stores in
the mall as well.
36
References
• 5taavenida.com (2014, May). 101 5th Avenue NY | Zara Apparel. Retrieved from
http://5taavenida.com/101-5th-avenue-ny-zara-apparel/
• Lash Magazine (2014, May). Zara Opens Its New Global Concept « Lash Magazine.
Retrieved from http://www.lashmagazine.com/zara-opens-its-new-global-concept/
• Ozler, L. (2012, March 15). Zara Opens Its New Global Concept Store on Fifth Avenue.
Retrieved from www.dexigner.com/news/24753
• Time Out New York (2011, February 25). Zara | 101 Fifth Ave | Shops | Time Out New
York. Retrieved from http://www.timeout.com/newyork/shopping/zara-6
• Yennetta, T. (2012, March 14). Zara's Gigantic Fifth Avenue Flagship Opens Tomorrow
- Now (Almost) Open - Racked NY. Retrieved from
http://ny.racked.com/archives/2012/03/14/zaras_gigantic_fifth_avenue_flagship_opens_t
omorrow.php
• Zara (2014, May). Dresses & Jumpsuits - Women | ZARA United States. Retrieved from
http://www.zara.com/us/en/woman/dresses-c358003.html
• Zong-Liscum, A. (2013, July 18). Zara: The Millennial Fashion Shopper - Emploom.
Retrieved from http://www.emploom.com/zara-the-millennial-fashion-shopper/

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New York Market Resource Guide

  • 1. New York Market Resource Guide New York Study Tour May 2014 Laurel Cross ABSTRACT The Retail Store Analysis contains visualmerchandising, storecharacteristics, layout, and appearance merchandiseanalysis, customer service, and storeimage. There are written summaries fromeach appointment attended, as well as a summary of the individual store analysis of the M&M storeon Broadway.
  • 2. 2 Retail Store Analysis Visual Merchandising Zara is known for their floor to ceiling window displays. The displays tend to be all glass and this allows for the customer to see the merchandise in the store, as well as create awareness around the brand. Zara does very little paper advertising and focuses more on the appeal of their extravagant window displays. The location that I visited was a little bit smaller than I had anticipated it would be, especially because it was in the center of New York City; however, there was a flagship location just down the street at 52nd and 5th. This location, 101 fifth Ave (at 17th), was narrow, but it did have two floors. The mannequins were dressed in the outfits that were displayed beside it. I believe the idea here was to represent the way the apparel is structured because many of the collections are inspired by lines and architecture. The inside of the store still had an open feel even though it was crowded with tourists and locals shopping. The merchandise was neatly folded and the associates were working hard to make sure that every little piece was in its place. The overall vibe of the store was a combination of European and modern influences. I did notice that there was different merchandise in this location than I saw in the Dallas location at the Galleria. Zara does distribute apparel based on geographical location and how it fits in that specific market. The lighting was modern and eye catching. The lights were displayed under the cabinets to illuminate the apparel, and then beneath the apparel display there was recommended shoes to pair with your outfit. The lighting made the space feel more modern and elegant, especially for being a fast-fashion retailer. This was a unique attribute that I thought set Zara apart from other retailers of its kind.
  • 3. 3 Store Front Store Characteristics, Layout, and Appearance The approach that I believe Zara is taking is to present themselves in an upscale manner but still be associated with low prices. I think that the modern lighting that is present under the cabinets, under the hanging racks, and under the stairs allows the customer to associate this brand with fashion forward products as well as quality. I was impressed with the displays and how elegant the merchandise looked. The store was clean and organized; all of the merchandise seemed to be in its place. The sales associated that were working the floor were constantly refolding and straightening the shelves and displays. There was a security man at the door as well as metal detectors to prevent theft. Most of the shopping was taking place downstairs even though there were two separate levels. The second floor consisted of the more casual collection and well as children’s clothing. The store was full of mirrors, which allowed the store to seem larger than it actually was. There was a geometrical style layout; however, the square center displays mimicked a boutique style. It seems as though they are mixing the styles to better serve their customers. One of the negative aspects was that there were no bathrooms. I feel like this
  • 4. 4 was a common thread in New York City and it was a struggle to travel for a given amount of time and not be able to use the facilities, even if you purchased something from the actual store. The cashier was located at the back of the first level and only consisted of two registers. My impression of the store was that it was neat, organized, and busy; however, I did expect it to be more extravagant than the Dallas location and it was pretty similar. Merchandise Analysis The merchandise is separated into sections, as most stores are. This location had a women’s, men’s, and children’s department. The flagship location has a Zara Home in addition to these departments, but it was not at the specific location that I visited. Within each section, each piece was separated by color. This was visually appealing because if you were looking for a certain color to wear to an event than you could walk right to the section you need and pick the type of garment that you are looking for. In addition to separating the merchandise by color, it is
  • 5. 5 also separated into casual or dressy work attire. The first floor housed most of the on trend business attire and the new merchandise that is coming in, which is why most of the shopping was taking place on the first floor. The second floor also housed women’s apparel but it was more casual and had more color. Men’s was also located on the first floor but was smaller than the women’s department. They had business and business casual attire that would be good for a New Yorker. The apparel at this location differed greatly from the one that we have in Dallas. The colors were darker and there was more apparel geared toward wet and cooler weather. The location in Dallas has more yellow and white in the collection because it is hotter in Texas than in New York. There was still color in the collections I saw, just not as much. The children’s section was located in the back of the second floor. I am assuming that it is not the biggest seller and needs a smaller portion of the selling space. They had dresses and casual wear for children, similar to the other departments. The price range for this store is $39.00 to $199.00 depending on what type of item you are looking to purchase. The dressy work attire outfits are more expensive. Zara is a fast-fashion retailer but I feel the quality of the product is far greater than some of their competition. I think that they found a gap in the market and are doing well there. They offer affordable prices in addition to good quality pieces.
  • 6. 6 Merchandise by Collection and Color Customer Service The customer service at this location was certainly not what I was expecting. We did not receive any sort of greeting when we entered the store. I do not know if this was because the store was so busy that they did not notice but it was slightly disappointing. Also, we had been traveling over thirty blocks to get to this location and I asked to use the bathroom and the sales associate simply said “no” and walked away. There was no explanation and apology and she seemed quite rude actually. All of the sales associates were wearing headsets and seemed to be extremely busy and too occupied to help actual customers. To their defense, the store did look fantastic given the volume of customers in the store; however, the actual customer service was not up to a standard that I am accustomed to in the Dallas location. The associated almost seemed snobby in a way, which is not usually the case in fast-fashion retailers. The fitting rooms were full and the line to try on clothing was extremely long. The sales associated were willing to answer questions if you specifically asked them, but they would not approach you if you did not have a question. I felt slightly ignored and I did not expect this type of service from such a
  • 7. 7 reputable brand as Zara. The security guard that was at the door did not even greet us when we entered the store. The attitude that I got was that the customers were an inconvenience to them and interrupted them while they were trying to straighten the store. When we asked questions about the merchandise they gave us one-word responses and were not helpful in finding other sizes or colors. Therefore, I did not actually purchase anything from this location because I did not really feel that comfortable in the store. Store Image In my opinion the store’s target customer is a mostly trendy professional woman from 13 to 31. There is a good portion of men that shop here for business casual clothing as well. I envision Zara’s customer as a workingwoman that wants to remain in fashion and still look professional. You can also wear these clothes casually or to a dinner; they are extremely versatile. The image of the store is definitely not consistent with the image I had in my head before visiting the store. I thought the customer service and layout would be more luxurious than the Dallas location. I would actually prefer to shop at the Dallas location now that I have visited that one. I did not know that Zara stores had multiple levels. I have not seen very many retail stores in Texas with multiple shopping floors. This seems to be the norm in the heart of New York where space is easier to accommodate vertically than horizontally. However, I was impressed with the size of their men and children’s lines. These sections were larger than the location in Dallas and were clean and organized. I was impressed with the use of the lighting displays that illuminated the merchandise. It was also unique to be able to make the store feel big with the placement of the clothing displays and lighting. The store was physically narrow, so I felt that was a positive aspect of the retail space. The most impressive thing I noticed about this specific location was the organization and neatness of the clothing displays. I am sure that it is
  • 8. 8 difficult to maintain an organized environment when there are so many people in the store. I also learned that this 101 location is a hub for international tourists, especially tourists from France. While in the store, I heard more French speaking individuals than I heard English. I think that this is due to the whole European feel of the merchandise and store layout. I almost felt like I was in a different country with the amount of international tourists that were browsing in the store. My overall experience with the store was disappointing in terms of service and physical environment, but I was impressed with the organization and cleanliness of the store.
  • 9. 9 Ross Analysis Ross is an off-price retailer that specializes in discounted name brand apparel for men and women. Isabella, the college recruiter for Ross stores, shared valuable perspectives on different areas of business that include, planning, allocating, and merchandising. Ross operates 1200 stores and plans these stores by region, demographic, climate, and socioeconomic status’. Melinda, the women’s wear buyer, spoke to us about what her job entails. She effectively communicates and builds relationships with vendors to ensure Ross can obtain the best possible purchase. Merchandise is separated into different classes; this allows buyers to focus on specific areas. Ross does not use cost concessions, which is where the retailer will ask for additional money from the vendor if merchandise did not sell through. In addition, markups on the merchandise will vary depending on the vendor that Ross chooses to use. A typical Monday will consist of pulling reports from the week before about how well the merchandise sold, what the best seller consisted of, and what inventory is low. Tuesday will generally be vendor appointments. Wednesday and Thursday will be making general buying decisions as well as continuing to build vendor relationships and obtain inventory. Lastly, Friday consists of catching up on reports or appointments that did not get finished through the week. She mentioned that the majority of her job was the search for closeouts on vendor products. However, they do not purchase too many of one SKU because Ross wants to ensure a “treasure hunt” mentality. This increases the chance of an impulse buy from their customer and ultimately generates more revenue. Ryan also spoke to us regarding planning and allocating, which falls on the more analytical side of merchandising. There is also a ten week internship opportunity that entails classroom training, floor training, goal of negotiating training, excel, and various systems, such as POS and additional reports. This intern works closely with the buyer to learn the buying
  • 10. 10 process and how to effectively negotiate with vendors to get the best possible cost for Ross. I benefited most from Ryan’s advice, which was to be proficient in excel applications problem solving skills. He mentioned that it is vital to understand how the details of the business work to help you in making an effective problem solving decision.
  • 11. 11 Tory Burch Analysis Mickey, who is the CMO of the Tory Burch organization, initiated this appointment; she manages client management, brand experience, and serves as a useful tool in striking a balance between the client and the service provider. Tory Burch runs and operates over 100 stores globally, so the market is certainly not saturated, and they maintain a good balance of quality and price. Tory founded the brand in 2004, and they have a strong social media presence. The first store was located on Elizabeth Street in downtown New York. The business is extremely customer centric and is operates solely around the customer. Most of the employees that spoke on the panel seemed genuinely happy to work for such a successful company that believes in each other, and creates an environment for growth and success. Mickey mentioned that she finds is important to find a mentor to bounce ideas off of; she also believes it is vital to be able to navigate between science and art, to ensure each situation has been looked at and evaluated from different perspectives. Gary Chang, the CRM, works with “Big Data” and essentially what the customer is purchasing and how it is useful for the business. This entails, emails, cookies, marketing interests, and all communication that is linked to the customer. His advice was to make sure that you have a full professional resume, broken down by specific skills that are useful for the company that you are applying to. He suggested proving how you would be valuable, and that your passion will resonate with the company if it is a good fit for you. Victor, the digital and marketing consulter, explained that it is important to not get caught up in the flashy name of the company, but to ensure that the company culture is a good fit for you. He suggested to put yourself in as many different business situations as possible to ensure you know how to handle them in the future. Ellie’s position is to maintain local teams and set up Tory Burch events; she also establishes overall company objectives and calendar alignment. Her advice was to, go for
  • 12. 12 whatever you are passionate about, and be purposeful in your search for employment and positions; this is a good indicator of what sets people apart from one another. Lindsey, head of digital branding, focuses on corporate marketing and maintains relationships with Google and other search engines to ensure the awareness of the brand is being fully represented. Her advice was to take calculated risks and don’t always play it safe. In addition, if you mess something up, then own it, and identify why it didn’t work out. Do not place blame on other co-workers. I benefited from this appointment immensely and found that the advice that was given will be extremely beneficial after my internship is finished and I am looking for full-time employment. It made me believe in myself again and re-ignited a passion that I have for this industry. I am excited to apply what I learned from this appointment in my internship and career.
  • 13. 13 Foxcroft Analysis Foxcroft is a better-priced separates line, with ranges of $69.00 to $99.00. The focus is on the women’s division of the apparel group. The offices in the New York location entail production, sales, and technical design. The Lewisville, Texas location houses accounting and IT for the company. A few companies that are customers of Foxcroft are Nordstrom, Van Maur, Sue Patrick, and over 700 specialty retail stores. They specialize in non-iron/wrinkle-free shirts. The process of the wrinkle-free chemical is called a “wet finish”, which is a high temperature of different chemicals. They also design varies shirts for Brooks Brothers, which encompasses different stretch cottons and an assortment of designs and prints. These prints are created in house and are associated with different trends found in the market at certain times. They also look at different storyboards and pull inspiration from pictures and interpret the designs in a way that will work for retailers. The company culture consists of an open-door policy, which consists of open forums, weekly departmental meetings, cross-functional meetings, and opening up the floor for feedback and suggestions. Company sales and results are available to everyone. This allows for more associates to provide feedback on what is and is not working. The environment is democratic and ensures everyone is focusing on the big picture. Foxcroft is always working on a three-year plan and essentially what is good for the business and the company. Some of the job duties include securing vendor appointments, discussing current business and changes in business, presenting merchandise to retailers, ranking merchandise from 1-10, working on retailers plans and deadlines, and ensuring a positive merchandising conversation with employees and vendors. They mentioned it is important to know your customer and show them what you think they would like, or what you think would be beneficial for them to have. They also provide internships in New York and Lewisville. Their advice was to make sure that you
  • 14. 14 know Excel and all aspects of retail math to set you apart from your competition. One example that was given was the formula, Retail-Cost/Retail. She mentioned to not rely on a computer program to calculate these formulas for you, but to actually know the product and how to calculate the prices. The most beneficial aspect was the knowledge that I received from the wholesale side of merchandising. Often times in our major we focus solely on retail and simply forget where the product comes from or how it is manufactured. It was informative to see the different processes that are involved in getting the product to the actual retail store.
  • 15. 15 Maker & Company Analysis Maker and Co. is a newer brand that was established by Chris Crowley in 2010. The idea was to create an identity that would resonate with the customer as having impeccable craftsmanship and a unique heritage. The story that Chris told was a story of a “maker” who lived in Europe, who made clothes in the back and sold them in the front. The story is not real but it has a unique idea and sets this company apart from any other. The logo of the bike was supposed to represent what the man rode to work everyday. Chris mentioned that there is only five people that work closely with him in the office that we visited, and this included sales, design, and marketing. His garments are made for men, are collection oriented, and focus on craftsmanship and minute details within the product. In the appointment, he showed us the specific weave of the product that he got in Europe that had incredible wicking ability for water, simply because of the tightness of the weave of the material. He also explained the placement of the logo is essential in the marketing and wear ability of the brand. He wanted the product to be more about the way the garment was made than on the importance of the logo. He just launched at Nordstrom and profited by the 65 percent sell through. He mentioned it is essential in maintaining a good business sense through the entire process as well. It is important to be creative and make a quality product; however, that product will not sell if you do not know how to market it correctly. He had just finished his spring/summer 2015 collection and we were able to see some of the pictures of the garments in his personal portfolio. He mentioned that he travels to Europe several times a year to get inspiration for his new collections and also to meet with mills on the development of new materials. Some of the inspiration that he shared with us came from different boats and nautical type items. Chris shared with us that it is important to position your brand perfectly to ensure that the customer makes a positive connection between the
  • 16. 16 product and the price. He told us he wanted to create something that had meaning so he could channel his passion into his collections. His advice to us was to “put our mark on the world” and “do what you enjoy doing.” These few words were the most beneficial to me out of the whole New York trip. I found this meeting to be extremely inspiring and I felt I had more clarity when I left his office. I felt I had lost a little of my vision in the corporate aspect of my degree and I was deeply encouraged to follow the direction I had initially set out to do. When I went on this trip I was focused on securing a job that would pay the bills; now I am certain that I eventually would like to end up in the process of textile collaboration, focusing on aesthetic and design. I feel more determined than ever and I am so grateful that I had the opportunity to meet such a focused and successful designer that was relentless about his vision.
  • 17. 17 Saks.com Analysis Saks.com, which is part of HBC digital, is the e-commerce site that is responsible for over $8 billion is retail sales. Michael, the CEO, was kind enough to bring several members of his team to speak about the different parts of the e-commerce business. Lincoln Moore, the chief site merchant, is responsible for marketing, technology, and events to drive consumers to the site. Irene Hong is responsible for digital marketing, and national and international paid search options. Maurice manages current promotions, editorials, emails, vendor marketing programs, and unique campaigns to drive sales to the site. The panel shared with us that more than 70 percent of customers are digitally influenced. The customer journey is starting online and becoming critical to any large retail company. The main goal of Saks.com is to create a “seamless” customer experience between online and brick-and-mortar retailing. There is also a true collaboration among team members, whether it be in-store teams, or merchants, to corporate executives. The buying team consists of buyers, assistant buyers, and associate buyers that work closely with the merchandise analyst and general merchandise manager to provide an appropriate assortment of online merchandise. Saks.com maintains separate departments for planning and allocating because the company is so large. The goal of Saks.com is to perfect the Omni-channel experience for all of their customers. They are still in the transitioning stages and it will take time to fully implement this technology. The digital marketing campaigns started in 2011, and began in stores in 2012. They have paid search engine marketing that allows them to purchase bid words that ensure consumers will see their site when they search specific words or products. In addition, metrics are closely monitored to explain the returns on ad spend. This process includes number of site visits and conversion rates. The digital team allow look at customer cookies and have a total of 35 different emails tailored to fit the specific want and need of a particular
  • 18. 18 customer. I benefited most from observing and hearing different language that revolves around the world of e-commerce. This is an area that I was not too familiar with before the appointment but I feel as though I have a better understanding of the certain roles that are present in this digital field.
  • 19. 19 JCPenney Analysis The JCPenney appointment was a walk through of the store and an explanation of the soft and hard shops, and essentially why they are positioned in a certain manner to reflect consumer- buying patterns. The store manager was kind enough to show us the entire sales floor. We started with Mango, which is a hard shop. The manager explained that the mannequins are really what sell the product to the consumer. There are various price check stations that are available for the consumer. She also mentioned that JCPenney carries multiple private label merchandise that generates the majority of their profits because you can only purchase them at JCPenney stores. Some of the private labels include, St. John’s Bay, Worthington, and Arizona. The manager helped us to understand the importance of ADA compliance standards for the in-store traffic. There has to be a certain amount of space between aisles to ensure that people with wheelchairs are able to access the merchandise, which has to be at least 36 inches from one another. There has to be a clear path between aisles and the store must remain clean and organized at all times. This specific JCPenney location was the most stocked and organized that I have personally seen in the past. How the store looks is important to the eye of the consumer. There was a “red landing” in front of the entrance of the retail store. This is where store meetings take place before the store opens each morning. There is a team of 20 that come in at night and stock and re- organize the store for the morning crew. The store has a traditional department store layout. There are different departments, such as Women’s, Juniors, Kitchen, Home, Men’s (located on C2), Children, Jewelry (commission based) and more. There are associates that are assigned to these departments; however, they are cross-trained to be able to assist associates in different departments when a bottleneck occurs. They also maintain a store-within-a-store mentality, which creates a boutique type of layout for the consumer. An example of this would be the well-
  • 20. 20 known makeup retailer Sephora. Ron Johnson also created “streets” within the store to make the shopping experience better for the customer. The most beneficial aspect of this appointment was to experience how the different aspects of the retail environment end up affecting the purchase of the consumers. It was helpful to be able to put a visual to some of the principles that we learn in our retailing course.
  • 21. 21 The Container Store Analysis The Container Store was founded in 1978, in Coppell Texas; there is still a distribution center located there. They are a publically traded company, with 66 retail locations, and over 10,000 product SKU’s. The main focus and vision of The Container Store is to “save space” and “save time.” They rely heavily on their foundation principles, which emphasize the happiness and knowledge of their employees. Another one of their foundation principles is one = three, which means that one great person will equal three good people. They have consistently made the Fortune’s 100 top companies to work for. There is a focus on conscious capitalism ensuring that people are treated with respect and fairness before profits. The speaker’s position was Vice President of Visual Sales and included an array of duties: correct signs and pricing, supports merchandisers vision by depth of products, experts on products, training, and operational needs. The layout is inspired by a traditional grocery store layout to ensure the product is the star and is easy to find. The products are presented with props that represent a balance of color and material. The sections of the store are signed and organized. The merchandise is organized by solution to make it easier for the consumer to find exactly what they might be looking for. Front features, headers, mass outs, and store box plinths are used to advertise products in the store. They use merchandise processing, which is the associates continuing to straighten shelves and organize items while helping customers. There is an extensive training program that includes 200 hours of formal and floor training for each new employee. This includes 24 hours of classroom training before the employee is able to step foot on the sales floor. Elfa is the number one seller throughout all of the locations. This is a closet organization and storage solution device that helps the consumer save time and money. The idea is to create a “WOW closet.” The most beneficial part of this appointment was the terms that I learned in relation to different types of
  • 22. 22 products. I am accustomed to terms that are associated or related to apparel, but it was helpful to hear terms that are used in other types of retail stores. The speaker was also passionate and energetic about his position and it seemed as though it is a great company to work for. I also learned a great deal about the company’s vision and principles.
  • 23. 23 Fossil Showroom Analysis Fossil is the biggest fashion watch business today and that has ever been. They are vertically integrated and operate warehouses and maintain global distribution. The showroom was beautiful and housed a variety of designers. The panel of speakers spoke to us regarding their past jobs, their current positions, and the daily tasks that go along with their position. The first speaker was Katie and has been with Fossil for the last seven years. She graduated from FIT and majored in buying and merchandising. She handles Marc Jacobs and Tory Burch accounts, is responsible for building lasting relationships with those brands, and also for daily tasks such as planning, projecting, and forecasting. Liz is an account executive, has been with Fossil for five years. She handles Karl Lagerfield, and DKNY accounts. She interned at Fossil in Public Relations and ended up switching departments when a positioned opened up as a sales coordinator. She was promoted from the support role of sales coordinator to associate account manager, which manages smaller accounts with supervision. Then she was promoted again to her final role as account executive. A few aspects of this position include creative solutions for brand challenges, building relationships teamwork, establishing positive brand image, and daily communication with each brand on what is and is not working for them. Sarah is currently a sales coordinator, which tracks weekly sales, handles emails, communicating with each department as well as vendors, and copying images to different accounts online. Kirsten is also a sales coordinator and has been with Fossil for two years. She is responsible for recapping sales and pulling reports, working with the showroom and visual merchandiser. Lastly, Laura is the showroom manager who is solely responsible for Fossil’s market weeks. The market weeks are four times a year and two seasons ahead. She prepares samples, organizes the showroom, manages catering, meetings, and any kind of basic showroom need. There are internship
  • 24. 24 opportunities in Dallas as well as New York; however, the majority of the positions will be in the Dallas location because it is a lot larger than the showroom. I benefited from learning the different brands that Fossil carries as well as the different positions that are available within the company. It was also helpful to physically see how a showroom actually looks and how it is presented to buyers. The panel was kind and informative on the brand and what each of their positions entails.
  • 25. 25 WGSN/StyleSight.com Analysis Stylesight is a trend forecasting company that is available to companies on a month-to- month subscription. The services are expensive so it tends to be larger corporations that use their services. Mike Burns, the account manager at Stylesight spoke with us about how the site works and its many functions. In the past, trends were forecasted from trend books that were assembled in France twice a year. With the progression of technology, the Internet has made trend forecasting available 24/7. Currently, there are two trend days that take place in London and New York that forecast the Mega Trends. These trends are what depict the apparel that is going to hit the market in the future. Socioeconomic trends, political trends, and pass trends are all influential factors that come into play when establishing these Mega Trends. In addition, these trends are always two years ahead; therefore, Stylesight just finished forecasting for Spring/Summer 2016. After the Mega Trends are identified, then the trend trickles down to women’s wear, then color, then season. The content team on 39th street manages this specific content, which is a total of 90 people working together to establish these trends. There are also 200 people in London working on a content team as well. Stylesight has an image library that consists of 1700 images; including images from retail locations, street shots and runway events. In addition, the content team works specifically on developing reports, analysis of trends going to festivals and shows, and product development experience. Forecasting is a large portion of the job and the inspiration is pulled from fabrics, concepts, past trends, current market trends, cultural influences, and essentially how these trends translate into apparel. The internship opportunities tend to be difficult to get because of the amount of prestige that comes with the position. They are available year round; however, you must be on point with artists, designers, and all trends to prove you know your history. The most beneficial aspect of this appointment
  • 26. 26 was the knowledge Mike shared regarding trend forecasting. I did not have any prior knowledge about how trends were actually developed or forecasted before this appointment. I am going to take his advice and start researching designers and what they are influenced by to be able to stand out from the next applicant.
  • 27. 27 Macy’s Analysis Macy’s is a better-priced department store with 800 stores in the U.S. There are seven major regions and each region is then separated into districts. Macy’s is over 100 years old and is known for many iconic traditions. One of the traditions is the Macy’s Thanksgiving Day Parade, which is highly tied to the Christmas season. They have a Marketing Parade Floor, which handles all of the logistics of the parade and different events. Macy’s plan’s July 4th firework shows and also transforms multiple Macy’s flagship stores with seasonal flowers. They are well- known as being the American department store, usually displaying red, white, and blue in multiple ad campaigns. Macy’s encourages giving back to the community at the local Salvation Army and food banks. The Macy’s culture also prides themselves on diversity, with multiple diverse vendors and females in power. In addition, Macy’s has seen a growth in sales over the last four to five years of $4 billion, while other retailers struggle to stay afloat. They implemented major changes during the recession when other retailers were too afraid to take a risk of restructuring. Last year alone Macy’s hired over 1000 college graduates and continue to add to that number. A business strategy that is valued at Macy’s is the MOMM strategy. This is an acronym for My Macy’s Localization, Omni-channel, Magic Selling, and Millennial. My Macy’s Localization is the splitting of 10 to 12 stores into district teams that gives feedback to the corporate buying office. Omni-channel is the process of integrating a seamless shopping experience online and in-store. Magic Selling is the shopping experience that is taught company wide to ensure a “magical” experience for the customer. Lastly, Millennial stands for the $64 billion buying power of the Millennial, which is Macy’s prime target market. This encompasses college age consumers, ages 13-31 who covers an array of different areas. The Millennial is in college, starting their careers, getting married, and having children; therefore, there has to be a
  • 28. 28 lot of different options to cover all of these types of consumers. I benefited most from the information that Danica gave regarding Macy’s business strategies and their target market. I did learn a good deal about the company and how they desire to be viewed from the millennial point of view. I also learned that the Macy’s Harold’s square location is the largest department store in the world, which is impressive.
  • 29. 29 Oscar de la Renta Analysis Oscar de la Renta offered seven panel speakers for our agenda. Melissa-Lefere-Cobb, SVP Merchandising and Sales, Robert Kogan, the VP International Sales, Erika Bearman, SVP communication, Elkin Nance, Director, E-Commerce, Daniel, Lawler, VP Footwear Design, Taylor Cantrell, Sales and Merchandising Assistant and Claudine Jorgensen, the VP Human Resources. Melissa was the founder of the Merchandising department and has worked for Oscar for ten years. She built and sold look books and focused on combining data to form the program. Classification Recap consists of 150 styles, what the sell through was, what sold at market and requires constant analyzing to stay on top of emerging trends and sales. A good price point for day dresses at Oscar de la Renta is $2000 and a sweet spot for jewelry is $595. The aspects of Sales analysis require extensive retail math, formulas for price points, cost sheets, design teams, relationships with designer, and maintaining a bridge between designer and sales. In addition, the marketing team identifies what is important for the particular season and makes appearances on social media sites. Oscar de la Renta works on three seasons at a time. They just finished the Resort collection for 2015, which will ship in October. Pre-fall and fall are currently shipping. Melissa explained that communication and networking between brands is essential in the fashion industry. For example, Harvey Sanders, the CEO of Nautica helped assist her in job placement. She mentioned we should be utilizing LinkedIn, networks, and groups from school to take every opportunity to get in touch with people from the fashion industry. Erika Bearman started the blog for Oscar called Oscar’s PR girl. This provides insight on the company and events that take place within the industry. Many members from the panel shared with us that working harder, longer, and smarter than the other employees will get you noticed and set you apart from others. Claudine mentioned that she prefers hand-written notes to say thank you because it takes extra
  • 30. 30 effort to send it in the mail. She also said it is important to have strong written and oral communication skills because it can be one of the first indicators of your character and skill set. They put emphasis on being familiar with the arts, designers, trends, collections, influences, and architecture. The most beneficial aspect of this meeting was to see inside a luxury retailer and be able to communicate with executives on their daily business tasks. They had a lot of good information regarding interviewing for positions in the fashion industry and how to stand out from the other applicants.
  • 31. 31 Ralph Lauren Analysis This appointment was a little bit different from the others because it required a personal perspective and tour of the store as opposed to a sit down meeting of the company and brand. However, Ralph Lauren has a prominent brand with a strong brand image that resonates throughout the stores. There are many types of men that could relate to this store because there were four levels depicting different collections. The atmosphere when I walked into the store was rustic, parlor like. It felt as though a group of men were going to walk in with a cigar and a glass of scotch, sit down on the couches and start talking about the events of the golf course. There were old painted pictures of men and dogs on the walls and above the staircase. The staircase was a replica of an old staircase in London. There was cologne sprayed in each level to further that elegant and manly vibe. The sales associates were dressed differently on each floor, representative of the floor that they were on. The whole mansion had a homey feel to it with strategically placed trunks and books to make it feel like you are in someone’s home. There was a rustic wood floor and carpet in areas that were representative of a den. There was an elevator to take you to whatever floor you wanted to go to. The elevator also had an attendant that was able to assist you with anything you might need. There were fresh flowers on all of the tables and made the atmosphere that much more elegant. The first floor consisted of timepieces, fragrances, and footwear. The second floor housed the most prestigious collection, the Purple Label. This label had clothing and furniture that represented extreme wealth. The third floor consisted of Polo by Ralph Lauren, which is all of the bright colored polo’s and pants as well as accessories. The fourth floor housed the Black Label, which is business attire, suits, and expensive denim and accessories. The different floors each represented a different lifestyle and they did a fantastic job representing them on the specific floors. I benefited most from actually seeing the visual
  • 32. 32 merchandising and actual merchandise of the Ralph Lauren brand. They did such a wonderful job representing the different types of customers with the furniture props used on each floor. This flagship location was Ralph Lauren branded perfectly.
  • 33. 33 Individual Store Analysis Unique Retail Concept I would classy my trip to the M&M store an experience rather than a retail location. As soon as you walk into the doors, which are floor to ceiling glass, you encounter a giant, rotating blue Elvis m&m. I was personally not expecting the overall extravagance of the store. The walls were covered in merchandise that ranged from small baby outfits to adult T-shirts. The first floor was covered in merchandise and had different sections that allowed for easy navigation. The most noticeable and eye catching display was the wall of m&m’s. I have never seen anything like this display before. There were tubes of m&m’s that started on the third floor of the store and went directly down to the first floor. Each of the tubes was completely filled with different varieties of m&m’s. To make it more interesting, there were different mixes that filled each tube that you would not be able to find in other retail stores. If you wanted to purchase a mix, an attendant would give you a plastic bag and you would press down on the lever of the tube and it would fill up the bag. The cost of your bag is dependent on how many pounds that you want to purchase. Another unique aspect of the M&M store was the personalization of the products to match New York. For example, I saw figurines that looked like the Statue of Liberty that were filled with m&m’s. I noticed a portion of the ceiling was painted with Times Square. There was a lot of merchandise that said New York City on it. I also found it interesting that the merchandise was positioned a lot lower than normal retail locations. I believe the idea was to influence children to grab merchandise, which would lead their parents to buy it for them. However, I also feel like this could be a potential problem with theft, simply because the store is so busy and there is multiple levels. While we were checking out the sales associate told us we had to take a bag because they wanted to make sure that we were not stopped for shoplifting. I think that is
  • 34. 34 one of the guidelines that they follow to reduce theft. The lighting in the store was mainly track lighting that light up merchandise. There were so many displays in the store and it made it a little difficult to move around easily. The store was so busy that it was a struggle to have any room to shop at all. There were multiple escalators that allowed customers to move between floors easily. It was also an open concept, so you could see the merchandise below as you went up the escalators. This was a unique experience and allowed you to see more easily just how big the store was. The merchandise was also categorized by color, which made it easy for customers to find the color they liked and shop in that section. There was hundreds of merchandise bins with different assortments of merchandise in them. These bins usually lined the glass wall that runs throughout the store. This store is somewhere that you can take the whole family and they will all be able to find something they like. You can find shirts, coffee mugs, costumes, bags, and candy; everyone likes candy. I find that the M&M store is more of a destination location and I feel it would be beneficial to place one in the Vista Ridge Mall in Lewisville. This mall has been struggling for years and a destination location like this could completely turn this mall around. The digital graphics and marketing that is implemented in the New York location could be instrumental in launching this mall into a new era. For years, Vista Ridge has been behind the times and does not appear to be catching up anytime soon; this store could revolutionize the way that customers view this mall altogether. Even if the mall implemented small changes such as rotating displays or interesting and modern light displays on the merchandise, this could really improve the appearance of the merchandise to the eye of the consumer. It would be huge to be able to implement a two-floor retail space. That would make this retailer one of a kind and would definitely set this mall apart from other retailers. I know the Galleria has several two-story
  • 35. 35 retailers, but implementing it in a mall that is further away from Dallas could bring a better reputation to this specific mall. This would also be a good strategy because the foot traffic at malls are constantly decreasing, so building a destination store would help additional stores in the mall as well.
  • 36. 36 References • 5taavenida.com (2014, May). 101 5th Avenue NY | Zara Apparel. Retrieved from http://5taavenida.com/101-5th-avenue-ny-zara-apparel/ • Lash Magazine (2014, May). Zara Opens Its New Global Concept « Lash Magazine. Retrieved from http://www.lashmagazine.com/zara-opens-its-new-global-concept/ • Ozler, L. (2012, March 15). Zara Opens Its New Global Concept Store on Fifth Avenue. Retrieved from www.dexigner.com/news/24753 • Time Out New York (2011, February 25). Zara | 101 Fifth Ave | Shops | Time Out New York. Retrieved from http://www.timeout.com/newyork/shopping/zara-6 • Yennetta, T. (2012, March 14). Zara's Gigantic Fifth Avenue Flagship Opens Tomorrow - Now (Almost) Open - Racked NY. Retrieved from http://ny.racked.com/archives/2012/03/14/zaras_gigantic_fifth_avenue_flagship_opens_t omorrow.php • Zara (2014, May). Dresses & Jumpsuits - Women | ZARA United States. Retrieved from http://www.zara.com/us/en/woman/dresses-c358003.html • Zong-Liscum, A. (2013, July 18). Zara: The Millennial Fashion Shopper - Emploom. Retrieved from http://www.emploom.com/zara-the-millennial-fashion-shopper/