Of Innovation and Reinvention

J.Crew chairman Mickey Drexler recently said that retailers cannot win on price alone. He believes that merchants must have a differentiating factor, since a competitor can always price its merchandise lower. His approach has been to continually improve and edit the assortments until they sell well, and he is convinced that his reinvention of J.Crew is dependent on product, design, color, service and quality.

Jane Elfers, CEO of Lord & Taylor, is focusing her company on modern, contemporary brands that represent a lifestyle approach. Her stores now
feature a preponderance of new vendors to achieve this goal. And Bloomingdale’s CEO Michael Gould deserves a lot of credit for the vigorous restyling of the company’s 59th Street headquarters store in Manhattan, as well as the new units Bloomingdale’s has opened on the West Coast.

These stores shine because every floor in every store reflects the upgraded merchandise that appeals to a luxury customer with taste. The store’s momentum has never been stronger because it has renewed itself with better merchandise and more designer fashion brands while reshaping its appeal through innovative promotions.

Hope for tomorrow
I am looking for creativity in the retail industry. I think each segment should have spokespersons that make me feel that retailing is exciting and innovative. I want to know that tomorrow will bring more new fashion trends that will excite the customer and have her rushing to stores. I want to be sure that the foundation of this industry is solid, and that every ounce of energy is being devoted to improving the relationship with the customers.

In my book, customers still come first: They determine whether bulky sweaters are “in” – and that they want to wear them with skinny jeans. While stores select fashions, it is the savvy customer who determines what fashion colors she likes. At the same time, consumer preferences for certain HDTVs or MP3 players make the electronics department a destination point in many stores.

As retailers create momentum for certain products, they also create an image for their stores: By editing their assortments, they determine what is important and what is irrelevant. This is the only way they can achieve strong focus on the image they try to create and develop successful customer relationships.

Passion, entrepreneurship, vision
I believe that the passion of Mike Gould, the entrepreneurship of Mickey Drexler and the vision of Jane Elfers will lead to continuing innovation. Even within a chain store there is the ability to change course – such as JCPenney’s introduction of new products, including Sephora cosmetics and fragrances. This can significantly alter the appeal of a store and attract a younger customer.

Similarly, Target does not rely on basic discount formulas: it creates fresh ideas, and has chosen to add new designers as a platform for new fashions and creativity.

Some store executives speak about efforts to sustain the planet. This is an important investment of their time, and I plan to write about this in next month’s column, as I believe the customer wants this as part of a store’s initiatives.