No Turn On Red

The Channel Checkers are reporting that Kohl’s has started selling Vera Wang merchandise earlier than the advertised street date of September 9:

We have been surprised so far in our survey. 12 of the 25 (48%) stores we have called this week have told us that they already have the Vera Wang line and are selling it. We were told there is a Vera Wang perfume on sale at Kohl’s now too. Many of the stores that have the line appear to be in the Pacific Northwest and the Southeast. Stores in Washington and Oregon and South Carolina and Georgia provided the bulk of our positive responses. We called one store in New York City and they claim to be stocking the line already as well.

Read more at their site under: Vera Wang Line Sneaking Into Kohl’s Early.

In the past, Kohl’s generally rolls out their national branch launches in highly coordinated affairs, unveiling the new line in all of the markets on the same day. We saw this in 2005 with the launch of Candies, as an exclusive Kohl’s brand, and we’ve seen it through the past few years of growth in the Chaps brand. These launches, from new fixturing to promotions to actual merchandise are all tied in to hit the stores on the same day, with major national ad campaigns behind them.

There are exceptions to this: Casa Cristina rolled out in the Southwest in Q4 2006 prior to a national launch in early 2007. More contemporary lines, such as Elle and Stamp 10, have seen staggered growth after successful launches. The retailer has also tested new products and concepts on smaller levels before rolling out nationally - case in point is the recent addition of a private-label tuxedo line to the menswear departments of their stores in a slow rollout.

It does surprise me to hear that Kohl’s may have let this merchandise out early. It seems to be against their past behavior. Is Kohl’s really selling Vera Wang merchandise early in an attempt to reach out to some test markets? This is the largest brand launch in the retailer’s history - so perhaps it is time to do things differently than they have in the past.

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To update last week’s story about the sweatshop allegations levied against a factory that produces Daisy Fuentes clothing for Kohl’s, it appears that things are straight now and they have agreed to update their policies and follow proper labor laws:

A Guatemalan factory that makes some of Daisy Fuentes’ clothing for Kohl’s Corp. has agreed to make changes following allegations it was a sweatshop, a workers’ rights group said Thursday.

The National Labor Committee issued a report on the Fribo factory last month, saying workers told a related group they are humiliated and forced to work unpaid overtime.

[…]

The NLC said the factory owner, a South Korean national, has agreed to weekly inspections by CEADEL, the Center for Studies and Support of Labor Development in Guatemala, which told NLC of workers’ complaints.

More on this from Forbes.

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Imagine it is Friday at 5:00PM and someone just posted, on their blog, about a horrible shopping experience they had at your store. Maybe a cashier was rude or maybe a store was disgusting - but whatever their frustration, they just posted their thoughts online and now it’s gotten linked to from two dozen websites and now people are talking about it across the country.

In this day, do you really want to wait until corporate PR gets into the office at 9:00AM on Monday morning before someone even thinks about reacting to this story? Monday is too late when there’s the potential that someone, reading the blog post, has decided not to shop at your store on Sunday.

Think it is far-fetched? I talked about this earlier in the year, when one consumer posted about their bad experience at a Kohl’s.

Think something like this can’t happen to your business? I can tell you that no matter how well you think you are training your employees, something somewhere is going to happen and someone is going to talk about it online. The next big story could be affecting your retail chain.

Today I read, over at Consumerist, about an unpleasant experience a person had returning items at Victoria’s Secret. Look through the comments and you will see a range of responses - some agree with the poster and complain about Victoria’s Secret customer service, while some stick up for Victoria’s Secret, while others debate the quality of merchandise Victoria’s Secret carries.

You know what I would love to see? Someone from Limited Brands posting a comment in that thread. Maybe they say that they are sorry for the experience, that they will look into it, and get in touch with the original poster privately. They could talk about how they are going to look into the policy and figure out if the sales person was poorly trained, rude, or even correct in what they do. A personal face of the corporation, being honest and engaging conversation, could stop an already bad experience from spiraling out of control. A personal face who could prevent the same situation from happening again.

This is the role of an online Community Manager: someone who represents a brand, online, and engages in honest communication with managers. It’s not hard to go through blogs, social networks, and community websites to find out what is being said about your brand. It’s not that hard to engage and welcome conversation and criticism. It’s not that hard to admit that, hey maybe someone made a mistake at the store level but it was due to poor training and we are going to correct that.

People make mistakes and they want to see big businesses admit that they do, as well. But a retailing remaining silent and ignoring the conversation around them is going to hurt their business and drive away customers.

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Looks like Kohl’s is on the receiving end of some sweatshop allegations:

Kohl’s Corp. removed some lines of its Daisy Fuentes clothing brand following allegations that the Guatemalan factory where the clothes are made is a sweatshop, where workers are humiliated and forced to work unpaid overtime.

The National Labor Committee, a New York-based workers rights group, issued a report after learning of complaints by workers at the Fribo factory in rural Santa Maria Cauque de Sacatepequez, Guatemala.

Kohl’s (nyse: KSS - news - people ), based in Menomonee Falls, Wis., has pulled only a few styles of Daisy merchandise, from its stores and online, spokeswoman Vicki Shamion said. Kohl’s buys Fuentes merchandise from P.A. Group LLC and does not oversee production, she said.

Workers at the Guatemalan factories say they were forced to work overtime, much of it unpaid, and forced to endure harsh conditions in hot factories with little access to bathrooms or clean water.

More coverage from Forbes.

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This weekend, the New York Times ran a pretty interesting piece examining how some supermarkets are changing to a one line for all registers approach, versus the traditional one line for each register. Called A Long Line for a Shorter Wait at the Supermarket, they explain:

By 7 p.m. on a weeknight, the lines at each of the four Whole Foods stores in Manhattan can be 50 deep, but they zip along faster than most lines with 10 shoppers.

Because people stand in the same line, waiting for a register to become available, there are no “slow” lines, delayed by a coupon-counting customer or languid cashier. And since Whole Foods charges premium prices for its organic fare, it can afford to staff dozens of registers, making the line move even faster.

This approach has worked well for banks for years and has been adopted by some retailers and department stores. I believe that it (usually) a great way to expedite the checkout process, as I hate when I get in a line and realize that a person is paying by check and making a dozen exchanges and has questions about all of the merchandise.

My local Old Navy usually maintains a single line for all registers - but I’m not sure if it is by Old Navy’s design or whether the customers who frequent the store have adopted the practice on their own. I’ve yet to see the same thing happen at any other Old Navy.

I know Kohl’s has their stores running a similar program during the holiday season and it works. It not only helps to create a (more) efficient checkout experience, but it also cuts down on the confusion that would be created from long lines for each register. On the busiest of busy days, I know it even cuts down on arguments between customers!

So, I support the single line process but I wonder how well it will translate to supermarkets. I can see some supermarkets adopting this policy, but on a whole, traditional food retailers will shy away from this innovation. Fact is that the majority of supermarkets aren’t designed for a system like this and a single line would eventually force customers down aisles and block merchandise. If a retailer redesigns their supermarket layout, with a single line concept in mind, they can get it to work. But the majority of supermarkets will never see this.

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Another day, another collection of stories on the web that I’ve come across today.

The New York Times has a great look at how Wal-Mart’s own policies and methods have hurt the retailer. Wake Up Wal-Mart asks, Is Wal-Mart too cheap for their own good?

Not too long after Wal-Mart revealed more information on their plans to enter India in 2008 (read more here and here), Marketwatch is reporting that Best Buy is in talks to enter India through a deal with Vivek.

Steve Miller at Two Hat Marketing is talking about return policies. I agree with him that liberal return policies create more loyal customers. While they may create loyal customers who abuse the system, they are outweighed by the loyal customers created who appreciate not being looked at like a thief if something doesn’t fit or they change their mind. Retailers like Nordstrom and Kohl’s are using their return policies to distinguish themselves from their competition.

And finally, some interesting tidbits related to the airline industry:

A customer service tale, of people going above and beyond what is expected, involving the TSA? That can’t be right! But indeed, Christ at The Diff shares a positive story about the TSA that also involves holday air travel. Good story to read.

While The Airline Hub is reporting on a change in United’s policy on delayed flights, maybe United should take a look at Service Untitled’s thoughts on ways airlines could improve customer service.

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Threadless is an innovative apparel maker who has built a fantastic online community and delivered great products. Guy Kawasaki has visited their office and brought back some photos of their awesome pad.

Last week at Big Box Watch, I compiled a wrap up of the pre-opening preparations for the new Ikea in Draper, UT. Now, the Salt Lake Tribune has a recap of the grand opening festivities. When Ikea opens, they open big.

Kohl’s has grand re-opened this year’s batch of remodeled stores. Here’s a quick article about the remodeled Frederick, MD location with a small photo of the new Chaps home (bath/bedding) shop.

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San Fransico Business Times, via MSNBC, has an article looking at new strategies being employed by the denim maker, Levi’s (see: Seeking a stylish strategy, Levi’s tries on girls’ jeans). Looking for a way to expand their market share and regain their position as a market leader, Levi’s is better look at styles they offer and rolling our new retail locations:

Opening its own stores is one way Levi’s can counter changes in the wholesale market, analysts say. It has already opened seven of a projected 20 stores in 2007. There are 45 U.S. stores now open.

“If you are an apparel supplier, it is imperative that you develop your own retail stores to protect your business,” said Howard Davidowitz, chairman of Davidowitz & Associates Inc., a national retail consulting firm. Though Levi’s still has an 80 percent share in department stores, “You can’t put your faith in department stores, who are pushing brands less and less and private label more and more.”

Retailers, like Kohl’s and JCPenney, have been aggressively pushing their private label brands over the national brands that were the cornerstones of their stores. This is not a trend unique to these mid-tier retailers, as this private label push is seen all throughout the retail spectrum. This doesn’t mean that iconic, national brands like Levi’s are going to disappear from stores anytime soon, but it does mean that they have to adapt to the marketplace and become more self-sufficient.

I’ve been to the Levi’s store in Atlantic City and it’s great. Every style of denim that one would be looking for is there, with great visual merchandising and one of the best denim presentations you will find anywhere. Levi’s knows how to create a destination shopping experience and make themselves look good.

These store fronts work in conjunction with the department stores that already carry Levi product. The department stores will, typically, serve as a means for the masses to pick up the go-to Levi styles, like the 501, 505, and 550. The Levi storefront reenforces the iconic nature of Levi and enhances awareness of the premium offerings that they have, including the $260 Redwire iPod jeans.

While Levi’s still has a good presence in department stores, I wonder how much of the overall denim has shifted away from department stores (and the Levi brand) and towards teen retailers such as Abercrombie & Fitch and American Eagle. I have to imagine that it has been a signifigent share.

The increased retail locations work well for Levi’s. They will increase brand awareness and drive bottom line results. But they still have to stay on top of the game, as far as trend and style, and it appears that they are:

For men, she’s chasing what she calls a “scene stealer,” a college-aged guy who’s fashion aware and spends more on clothing. His female counterpart is another that Levi’s is “aggressively pursuing.”

To reach these consumers, Zakem has overseen the design of a “slouch fit” jean for men that combines skate and urban cultures with a loose fit in the hips and seat but a tight fit at the lower leg. For women there’s a “perfectly slimming” jean that has a girdle-like technology in the waist.

Zakem said she will seed the coasts with these products, and if they succeed, they will work their denimmy way into the heartland and less edgy retailers.

The most important part of that section is how they say that they will seed the market with these new designs. Trends are important in fashion, but will make or break apparel makers depending on how they react to them. I don’t think that denim makers have seen the payoff in the skinny jean trend like they did with the boot cut/destroyed denim look of just a few years ago.

I am most excited about the growth of retail store locations by Levi’s. As I’ve already said, I think they are a great destination shopping experience. Excellent merchandising and visual presentation is something every shopper needs to see more of.

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Recently, I talked about the enhanced contemporary fashion offerings at Kohl’s. Now there is more coverage about the new Intimates lines that are being launched. MediaPost provides more commentary on this launch, noting that as Kohl’s expands their offerings, Victoria Secret is cutting back their ad budget.

While talking about Kohl’s, one Akron OH woman has won a discrimination lawsuit against the retailer.

Is A Finish Line Inc. Turnaround Approaching? from Retail Stocks/Seeking Alpha. A good look, from an investment angle, on the mall-based active apparel/footwear retailer.

Finally, I enjoy this MacNN article about Sony playing catch up with Apple in the retail sector. They quote “several retail consultants” as saying that Sony “doesn’t get retail”. I completely aggree with this. Sony doesn’t produce bad products, but their retail locations don’t provide the same kind of experience you get from walking into an Apple store.

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It has been a long time coming, but we are all one step closer to seeing Vera Wang’s new collection in Kohl’s stores. A preview night was held last week, were the press and the public got to see the first glimpses of the collection, known as Simply Vera. WWD released some preview photos of the collection:

This style is much more fashion forward than anything else Kohl’s is currently offering. But I’m excited to see what the individual pieces look like when the line rolls out in September.

I first talked about this collection last August (here and here) and personally, I think this is a huge move for Kohl’s. When it was announced, it may not have seemed like a perfect fit between the designer and the retailer. Why Kohl’s? But as Kohl’s has unveiled other brand launches and grown their contemporary fashion offerings over the past few seasons, it now seems like all the wheels are in motion for a very huge launch.

After announcing a very positive Q1 results on today’s conference call, the retailer outlined some of their future merchandising plans:

The launch of the Simply Vera collection and the new housewares line by Food Network will be supported by new fixturing. This is on top of new fixturing that most stores already received this year for the expansion of Chaps into the Home and Plus Size areas.

Intimates will see much growth in the so-called contemporary and updated areas with the launch of Simply Vera, the expansion of the Daisy Fuentes line into more doors, and the launch of a new private label Intimates brand called Moments. The new line will launch in 200 doors in June with further growth in the Fall and will be available in all stores by Q1 2008.

Also on the growth front, they say that the launch of the new Elle line in Misses is going so well that they are ramping up the rollout with an additional 250 stores receiving the product in September and all stores carrying the line by Q1 2008.

Like I said before, it may have seemed that the match between designer and retailer may not have seemed to mesh with the core Kohl’s shopper. But as I look across the ‘blogosphere’, I’m seeing a lot of early positive reaction to these preview photos. Judging by the comments, Kohl’s is attracting attention from people who previously hadn’t shopped at the retailer.

Just a few of the blogs that I’m seeing activity on: Miss Lovely, The Budget Fashionista, Catwalk Queen, nitro:licious, MTV Style Blog, and FabSugar.

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