Observation exercise—4 retail outlets
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The document summarizes Bill Gripman's observations of four retail outlets located in malls: Windsor, Wet Seal, American Eagle Outfitters, and Dicks Sporting Goods. It notes that the stores are designed first for profitability and innovation is driven by this need. The stores observed tended to have similar layouts and focus on cost control and brand image to drive profitability. Lighting, colors, displays, and merchandise were ways the stores innovated within these constraints, while other aspects like staffing, layout, and inventory levels were more standardized.
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Observation exercise—4 retail outlets
- 1. Observation Exercise—4 Retail Outlets { Bill Gripman
- 2. Stores are designed for profitability first The need to be profitable tends to drive innovation into narrow channels The keen observer must see both detail and “big picture” elements Substance matters Summary
- 3. Windsor Mall sited, women's clothing Wet Seal Mall sited, women's clothing American Eagle Outfitters Mall sited, clothing for men and women Dicks Sporting Goods Big box sporting goods and clothing Stores Observed
- 4. Profitability for a mall store has the following elements: Variety and availability drive volume Profitability comes from both cost control and from brand image Stores tend to be laid out in similar fashion, at least in part for security reasons Increasing browsing time seems to be a function of lighting as well as selection Signs at mall stores are less descriptive, the key there is the window display The Drive for Profitability Dictates the Opportunity to Innovate
- 5. Lighting and colors Lighting encourages looking Colors set the tone, dark for aggressive partiers, lighter for the style conscious Building materials Merchandise and how it was displayed was a key area for innovation. Stores could easily create a brand image with the window displays alone There were also opportunities for customers to innovate by arranging merchandise in ways that customers could easily design outfits rather than relying on wall displays Where Stores seemed to Innovate
- 6. Sales people tended to be exclusively young and match the store’s brand image Layouts were almost cookie cutter, geared to a great degree to reduce theft Expensive/pilferable items at the back Cash register in the middle of the store Quantity of inventory was about the same Where Stores didn’t Innovate