Observations, Insights & Opportunities
                            Paul Holcomb
   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
   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
   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    ◦ Merchandise might be irregular or outdated but still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
   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    ◦ Fill with quality out-of-date gear for runners who like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
   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?
   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
   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?
   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
   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!
   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
   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 $$
   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

Six stores in Las Vegas

  • 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