The New York Times has a look Red Hook, Brooklyn, just a couple of months after the Ikea there opened. Many community residents were against the opening of this location, as they feared the traffic and noise impact on the local community. Ikea also tore down several historic buildings to make room for this location. But now, just two months after the retailer opened there, some residents in the community are finding positives in what Ikea has brought to the community.
The stimulus checks have been (presumably) spent, back to school shopping is underway, and the retail sales numbers for July are in and they are, well, pretty ugly. A lot of retailers posting negative same-store-sales numbers for the month, many of them posting numbers that fell below Wall Street’s expectations. Wall Street is responding - as of 12:30, the S&P Retail Index is down around $7.
The negative results are hitting all segments of retailers - from department stores to the mall, teen retailers to mass market merchandisers. Wal-Mart posted a positive sales increase of 3.0%, but that is less than the 3.5% increase that Wall Street was looking for. Target saw same store sales drop 1.2% in the month of July and warn that August isn’t going to be much better. JCPeneny’s sales dropped 6.5% but raised their Q2 guidance “due to better than expected sell-through of promotionally priced merchandise and continued expense management measures.” Kohl’s saw a steep 10.4 drop in same store sales in the month.
Gap saw negative numbers across all brands - Old Navy down 16%, Banana Republic down 8%, and Gap North America down 6%. When are they going to spin off the Old Navy brand, sell it, and let someone else deal with the turnaround?
Teen retailers aren’t seeing the Back to School numbers they hoped for with American Eagle down 7%, PacSun was down 4%, Abercrombie & Fitch (as a company) was down 7% (with only A&F proper posting flat numbers, up 1% for the month. Hollister was down 11% - blowing away the 4.1% decrease expected by analysts), but Aeropostale saw sales jump 13%.
Social Shopping is an emerging field and E-Commerce Times has a great post that explains what is is, provides a rundown of different social shopping services, and opportunities for retailer involvement within the field.
With social media transforming the way we work and interact, there becomes less of a distinction between the time we spend on and off the clock, so to say. Steve Bendt provides a great look into the ramifications of wage laws in the United States and the impact they have on retailers who look to use social media to connect with their customers.
Get Elastic is talking about the viral marketing video campaign from Office Max that ties in to their Back to School “Penny” marketing. I really like this campaign. It is a series of fun videos that ties in well with the overall brand position for Officemax for this season. Good job by Officemax, I think.
A few of the stories I’m reading and wanted to share today:
John Zogby’s got a very insightful look into the political trends of retail consumers and dives behind the numbers to make sense of it all. He looks at presidential election polling numbers, the retailers the customers shop at, and how this relates to the retailers’ branding.
.. and finally - Starbucks is offering a $2 discount on iced beverages in the afternoon when you buy a drink in the morning. I think this is a smart move that should drive repeat business throughout the day. Besides that, I’m selfish and now look forward to saving a little bit of money on my second trip to Starbucks every day.
Today, JCPenney has announced the launch of a new activewear line called Xersion. The line, developed, sourced, and designed by the retailer, fits in the “better” pricepoint of Womens activewear. This is one of the six brands JCPenney is launching with this back to school season.
Boscov’s Inc., the 9,500-employee department-store chain founded in 1911 in Reading, Pennsylvania, filed for Chapter 11 bankruptcy protection in Wilmington, Delaware, today, citing decreased consumer spending.
Boscov’s, which said in court papers that it’s the biggest family-owned full-service department store chain in the U.S., will immediately close 10 of its 49 stores. The company said it will borrow as much as $250 million from a group of lenders led by Bank of America Corp. to help it restructure.
MARYLAND
Marley Station Mall, Glen Burnie
Owings Mills Mall, Owings Mills
White Marsh Mall, Baltimore
NEW JERSEY
Monmouth Mall, Eatontown
PENNSYLVANIA
Harrisburg East Mall, Harrisburg
Monroeville Mall, Monroeville
Montgomery Mall, North Wales
Oxford Valley Mall, Langhorne
South Hills Village Mall, Bethel Park
This is a blow to the retailer that touts itself as American’s largest family owned department store. In an age of consolidation and rapid, national, retail expansion, Boscov’s was one of the last regional department store chains that we had here in the Mid-Atlantic.
I wonder how many of these locations are being scouted by JC Penney and Kohl’s.
As always, I’m looking at a ton of e-commerce sites lately. Decided to run through some of the landing pages that I am seeing around the web right now to show off the variety of promotions and marketing going on. Though it’s not as denim-centric as it was two years ago, it’s obvious denim is still the #1 push in the back to school season.
Let’s play a game. I’ll name two retailers and you guess which one has more locations in the five boroughs of New York City. Ready?
Starbucks vs. Dunkin’ Donuts
McDonald’s vs. Burger King
Rite Aid vs. CVS
Coach vs. H&M vs. Pinkberry
Best Buy vs. American Apparel
According to a new study from the NYC-based think tank, Center for an Urban Future, the numbers are suprising.
Dunkin Donuts has more locations (341) in the five boroughs than Starbucks (235). Though Starbucks’ has more than double the amount of Manhattan locations (186 vs 78). McDonald’s has 248 locations compared to Burger King’s paltry 92. Rite Aid has 209 locations to CVS’s 108, but not as much as NYC-favorite Duane Reade (with 216 locations). Coach and H&M have as many NYC locations as California upstart Pinkberry (all with 12 locations in the city) and would you believe that American Apparel has more locations than Best Buy (16 vs 9).
The details revealed by the study are interesting, with a thorough breakdown of how many locations each retailer has in each borough. It is worth downloading the PDF and taking a look at their results.
A racy advert for JC Penney has been making it’s way around the internet over the past few days. The ad, which won a prize at this weekend’s Cannes Lions Awards, features two teens practicing putting their clothes back on quickly before heading down to the basement for a romp. Problem is, it may not be a legitimate JC Penney ad.
Because the spot is so well made, and because someone had to enter it it at Cannes, JC Penney is blaming its ad agency, Saatchi & Saatchi. The ad agency, in turn, is pointing the finger at production company, Epoch Films of New York, which is indeed the listed entrant. There is speculation “the video may have been filmed after hours by a producer at Epoch who was working on the Penney ads for Saatchi.”
A commercial like this won’t land with the core demographic of JCP’s shoppers. But on the flip side, teens are too smart for a commercial like this. It fails on both fronts. It pisses off their core and doesn’t the brand’s desirability with teens.
This video is spreading quickly through blogs, social networks, and Twitter. The retailer will need to work quickly to counter it’s message. This is a great opportunity for them to use social media effectively and distance themselves from the video. I’d like to see the retailer working with bloggers to get their message out there. Otherwise, the video is going to continue to spread and fewer eyeballs are going to see their retraction.
Of course, this is a moot point if the retailer, in any way, authorized this advertisement. Then it’s even more of a tangled mess and the only way to resolve it is with honesty and transparency.
It will be interesting to watch how this develops over the next few days and how the retailer responds.
The advert in question is below. As a warning, it does show people dressing and undressing, so it might be slightly NSFW:
No Turn On Red is a blog talking about the retail industry, social media, branding, and how to connect with your customer. Started in 2006, it is written by Tom Sullivan who is a UI Specialist at Media-Hive.
