Week 2 - Are you paying attention?

1. Observations, Insights & Opportunities
Paul Holcomb

3.  Store located in modern, clean strip mall
◦ Rustic, desert-color exterior; palm trees and desert
plants in front of building – this surprised me as I
normally associate Dollar Tree stores with
standalone metal buildings in the “bad part of
town” or locations in rundown strip malls
◦ Inside was as expected: narrow aisles, mostly no-
name merchandise made outside the U.S.A. - Junk
for sale!
◦ Received a “Hi, welcome to Dollar Tree” greeting
upon entering; cashier who extended greeting did
not look up from the items she was scanning for
another customer

4.  Goal should be to become a mini “Target” or a go-to
place for “Made in U.S.A.” merchandise
 More focus on stocking “Made in U.S.A.” merchandise,
mainly paper and packing products, liquid cleaners
and shampoo
 Stock a wider array of “Made in U.S.A.” items, then
change from “Dollar Tree” to “Stars and Stripes” or
something patriotic
 Like Dollar Tree, most items at Target are produced
elsewhere but unlike Dollar Tree, Target store
interiors are modern and their merchandise appears
to be of good quality
◦ Adopt wider aisles
◦ Implement better décor – make this particular Dollar Tree
appear on the inside the way it appears on the outside

6.  No customer service – not unexpected
 Modern, clean store; middle-class clientele
 Surprisingly high-quality running/jogging
gear
◦ Merchandise might be irregular or outdated but still
the store had a nice selection of socks, shorts, and
headphones
◦ No running shoes, watches or iPods

7.  Avid runners do NOT like change
◦ Running gear changes constantly – color, construction,
pricing
◦ Many runners feel change is not necessarily better or
wanted
 Many would continue wearing the same gear year
after year if it were available
 This presents an opportunity for T.J. Maxx to
create an in-store “Runners World” or runners
kiosk
◦ Fill with quality out-of-date gear for runners who like
consistency year after year
◦ T.J. Maxx should stock and market running merchandise
to a fitness-minded customer base

9.  Message upon entering: “Excellent Customer
Service is Our Goal!”
◦ Who associates “customer service” with a grocery
store?
◦ Walked around store ~30 minutes; nobody asked if
I needed help although plenty of employees were
present
 Open freezers/refrigerators
◦ Wasted energy? More efficient for customers or
workers?

10.  Smith’s should look at replacing open-bay
refrigerators and freezers with those that have doors
◦ Energy/cost savings? Advertise conservation to attract
conscientious consumers
◦ Gives store a more modern look
 Customer Service
◦ Smith’s ought to consider the extent to which they’re
offering “Excellent Customer Service”
◦ If they’re going to post such a claim, they should extend
their customer service beyond checkers and the services
counter to the fruit dept., meat dept., and all areas of the
store
◦ Many already look at Smith’s as being a higher-class store;
actually providing excellent customer service might bring in
add’l customers

12.  A Starbucks in a strip mall does not have the
same appeal as a Starbucks on a trendy street
corner in Seattle
◦ Where’s the indie art? Poetry reading? Comfy,
overstuffed seating?
◦ Customers: Mom’s with kids and shopping bags are
cool, but where’s the “in” crowd?
◦ And why is the floor so sticky? Reminds me of
McDonald’s
 Tall? Grande? Venti? Trenta? Really?
◦ At Starbucks, “Tall” = a very small drink; “Grande” ≠
mucho large; Venti and Trenta…huh?

13.  Starbucks is likely too big to ever go back to its roots
and the things that appeal to the Bohemian coffee
crowd, however, they ought to NOT continue
becoming just another business in a strip mall
 The selling out of Starbucks to the almighty $ means
opportunity for entrepreneurs
 Don’t insult the customer, call it what it is: Small,
Medium, and Large

15.  Greeted within seconds by a young sales clerk
 No high-pressure sales tactics – this was
surprising!
 Cell phone plans are very confusing – is this on
purpose?
◦ Most customers likely purchase a higher-priced plan
than necessary
◦ Like any technology-related purchase, the consumer
likely pays for “bells and whistles” he’ll never use
 No brochures available; sales clerk did photocopy
a pricing list for me, though – very tacky!

16.  Create a better, honest buying experience
◦ Combination of older and younger sales clerks
◦ Create a readily available, easy-to-read and easy-
to-understand pricing brochure
◦ Simple explanations on critical information – how
much data do I really need to share?
◦ Create an easy-to-use app/web program so
customers can determine needs before entering
store
 Bottom line: the goal should be to a gain a
broad, loyal customer base

18.  Standalone corner business catering to auto
care and convenience-store customers
 The idea is good: Provide “comfort”
merchandise to auto care customers - junk
food, gambling, alcohol, cigarettes, etc. –
one-stop shopping for one’s “gluttony” needs
 Younger, unsophisticated clientele
 Overall unhealthy atmosphere that seems to
make a lot of $$

19.  It’s a risk, but Freddy ought to consider
offering some healthy “comfort” foods/items
 Providing more sophisticated merchandise
might draw more sophisticated
customers…and their wallets
 However, it may also chase away the current
customer base
 One idea to gain sophisticated customers
while keeping current customers: Establish a
trendy coffee shop on the property but NOT
directly attached to Freddy’s current building