I. K.an’t E.nter A.nymore

I really admire the way IKEA, that little 60’s upstart from Scandinavia, conducts their business. They are a model employer, through training and development and progressive human resources policies that allow flexibility and balance in people’s lives. IKEA knows how to treat their employees and really tries to deliver value and trendy designs for their customers who are looking to spice up their homes or offices.

But I can’t walk into their stores anymore. I just can’t. Every time I do, I get lost and it takes way too long to get something done in that stacked warehouse of theirs. The last time I was there, I wanted one item (silly me). By the time I found it (the signage is confusing and contrary to popular opinion, there are no shortcuts), 30 minutes into the journey, I then had to travel another 5000 feet to get to the check out line, which was a mile long and was taking forever.

This is not the first time I have had that experience but I keep trying to give them the benefit of the doubt because IKEA really is a terrific company. IKEA has been a model organization in developing global talent. It has expanded carefully and prudently, learning about the different countries it enters and adapting beautifully from assortments to dimensions of product, to, yes, store layouts. IKEA marketing is clever and memorable and its meatballs are tasty.

But I have had it. In this day and age, I do not have an hour or two any more to wander through a ton of departments that don’t interest me. I want to get in and get out, even if there are a half dozen items on my list. If Home Depot can do it, IKEA can do it. If Lowe’s can do it, so can IKEA.

People just don’t have the time nor the attention spans any longer, even to save a few bucks. It’s time that IKEA re-thinks their in-store experience. How can someone get in and get out much quicker? IKEA must ensure there are enough cashiers to guarantee the lines move faster – this is a cardinal sin in this day and age. I actually had to leave my purchase on the end cap because it was taking way too long and I had to run. I realy needed the item too! But the 4 lines that were open were jammed and 10 or more were idle. None of the lines moved quickly and it was extremely frustrating.

It seems like these are some easy fixes. IKEA, please let me know when you have overhauled your stores and I will come back then, because I still admire the way you conduct your business and how you treat your employees. It’s time to put some additional energy into your customer store experience.

TheRetailTherapist

The Bizarre Bazaar

Thanks to our good friend the “retailfanatic”, I am reminded of another what you could call “new age” drug store, although the concept has been in existence for over 60 years. Called London Drugs after King George VI’s home town, it became revolutionary almost right away. A camera shop was going to close right next door to their very first location in Vancouver, British Columbia. They decided to buy the leftover stock and sell cameras in a traditional drug store. That seemed to be the beginning of many unorthodox moves.

However, when you look at those moves, are they truly unorthodox when they have achieved unfettered success for over 60 years? Not only were they the first pharmacy to extend their hours to evenings and weekends (because people actually get sick at those times as well), but they started carrying categories that consumers wanted to buy in order to further convenience them. Cosmetics (for the same reasons as Shopper’s started emphasizing this category – the poor performance of department stores), small household appliances, consumer electronics and yes, computers and software were carried when they became available and desired.

If you happen to walk into one of their 68 stores, it is less slick and less polished than the “new age” Shoppers, but I believe that is the point. It is supposed to be a bit of a treasure hunt – you are supposed to be pleasantly surprised as you turn into each and every aisle. The stores are loaded with merchandise and they do huge volumes because they have been trusted to know exactly what their consumer wants and needs and they respond in a timely fashion. That, in essence, is their brand.

If you were to formally outline a strategy for this “concept” in some boardroom somewhere, you would never hit on the current assortment that London Drugs currently carries. That is the lesson here. Fundamentally, retailing isn’t as much about strategy and boardrooms, but about what the consumer actually wants and how the consumer responds. Retailing is still about giving the consumer what he/she wants when he/she wants it at a price he/she is comfortable with. Period.

London Drugs has done that for over 60 years. But not because it has “stuck to its knitting”. They have morphed their assortments every decade since inception because they identified trends, knew their customers intimately and were willing to take some calculated risks for them. Not only were they the first to discount dispensing fees, extend their hours, add consulting bays for consumers to speak privately with pharmacists, create one of the first digital photo kiosks to develop one’s own photos but the reason they have done these types of things time and time again was solely on behalf of their consumer.

The rarity in this day and age is that they have no target market, they have no high concept store design – they target everyone who shops (or, at times, doesn’t feel well), the store is very utilitarian in its layout and approach and it works. People love to shop there.

I guess London Drugs isn’t that bizarre after all.

TheRetailTherapist

The New Age Apothecary

It’s really fascinating to witness the evolution of a chain of stores let alone the transformation of an entire retail category. Shopper’s Drug Mart just opened their latest large format concept store down the block in my neighbourhood. My son and I wandered in there and we were both truly amazed.

The only resemblance to its roots or the apothecary of old is that it is predominantly white – shelving, walls, floors and bright lighting make it seem clean and almost sterile. It certainly gleams from the street and I have never been in one of these as large as this one. It has to be close to 15,000 square feet.

Let’s examine what Shopper’s has become: Yes, they have a stylized pharmacy counter and they are certainly profiting in this space with the aging population and the preponderance of new drugs being designed for just about any affliction be it mental or physical; they have a huge presence in cosmetics and fragrances as they smartly took advantage of the merchandising and financial woes of the department stores here in Canada; but what is most surprising is the amount of food and consumables they are carrying today. It is as if they are taking on all comers across categories to become the 21st century version of the “General Store”. The only thing that is missing is apparel like our friends at Loblaws has proffered.

I know that Tesco has opened up Fresh & Easy stores in the U.S. and once mighty 7/11 has almost disappeared from consciousness. Canadian Tire has tried its hand at convenience stores but I believe that Shopper’s is trying to take it to a brand new level. This is an excellent example of extending your brand and the product selection that your core customer buys anyway. It’s all about convenience for their loyal customer base and increasing the basket size to drive higher returns to justify the huge increases in store size across the country.

So what does this mean? It is another way to look at consolidation except instead of the traditional mergers or acquisitions route, Shopper’s has decided to roll up categories organically and out-assort department stores, convenience stores and general stores. The strategy certainly seems to be working.

What is worthwhile to note is that the mastermind behind this strategy was a guy named Glenn Murphy who is now CEO of Gap, Inc. What is ironic is that Gap’s strategy actually needs to be the opposite of Shopper’s successful strategy that he implemented. The assortments and stores need paring down in both Old Navy and Gap brands, not expanding.

Is this really his strong suit? Only time will tell.

TheRetailTherapist