Black Friday will not save retailers

The question of whether Black Friday is still a thing is moot at this point. There will always be shoppers who enjoy the experience of running through a department store door at 6 am because that’s what Black Friday is about. The experience.

Black Friday
Even Black Friday scenes like this won’t save retailers.

But any hang wringing on whether employees should work on Thanksgiving or how Black Friday’s sales results will be affected by early sales comes down to one thing. It’s still business.

Amazon has already started its Black Friday sales, and now comes word that JC Penney and Kohl’s are starting sales early too. Both retailers will open on Thanksgiving in an attempt to get a head start. They are just two of the multitudes of retailers who are hoping to make their years during this holiday season.

There are a couple of things to note here. Some are congratulating retailers for letting their employees have Thanksgiving off. That wasn’t done out of kindness. They’d be open too if Thanksgiving Day sales were successful for those retailers. It’s still business.

Black Friday is just a band-aid for retailers.

The early promotions will dilute Black Friday, but it doesn’t really matter. The revenue still goes into the same pot, so it doesn’t matter which day it falls on. Black Friday isn’t really about the sales. It’s about the experience for some shoppers.

Recently, I got into a minor Twitter spat with a retail organization over the importance of the holiday season to retailers. True, most retailers see 50% of their revenue from it so, as the organization reported, a good holiday season means a good year.

But it’s that kind of short-minded thinking that has put many retailers on the edge of irrelevancy and, in some cases, extinction. They are only looking ahead to the next quarter, not building any long-lasting preference that would keep them viable.

The retail industry has so many problems that it’s best for them to check out solutions here and here. As for starting Black Friday early, I say go ahead. You should gobble as much revenue as you can. Reality will set in once the holiday season is over and the lack of preference will continue to haunt.

Department Store Rebranding: Mandatory

Department Store Rebranding
Merchandise is too crowded

Why talk about department store rebranding? Because the department store market and the retail industry needs a complete reset (read a detailed market study of the entire retail category here). Department store chains are closing stores.

Malls are empty, traffic is down 5.8% from last year nationwide. Consumers spend their money on experiences (hold that thought), such as dining or travel rather than shopping. And too many retailers count on bountiful holiday sales to save their year.

Department Store Rebranding What the retail industry truly needs is clear: Department store rebranding— a complete rethinking of the model.

Department store rebranding is the highest priority. Change is needed. Without change, retailers that depend on sales from their brick and mortar locations are irrelevant.

It is worse and more desperate for major department stores. They will become extinct. This is especially the case for the legacy department stores. In a nutshell this is the entire argument for department store rebranding. Change now or die.

Amazon in particular and the web in general is the new normal for shoppers, dominating the retail industry. Amazon dominates by being an online portal for items ranging from electronics to toys to apparel. You would be hard pressed to find anyone who has not purchased through the online giant.

Department stores. What’s next?

Department Store Rebranding So what are retailers to do? More specifically, what are department stores to do? There are all sorts of tactics they can employ to stem the plunge of market share. But they will fail.

Department store rebranding from the ground-up is a needed strategic decision and not just a tactical one. Without this complete overhaul of department store rebranding initiatives and the total repositioning this means the vaunted old brands are finished.  And finished soon.

We’ve dissected many retailers, including a report written for the Retail Customer Experience which encourages retailers to merge their in-store and online personalities.

We’ve also said “stop trying to be everything to everybody”. But tactical changes won’t save department stores. They need strategic change. They must redefine the value proposition for the target shoppers and convince them that their brands are relevant.

Department store rebranding restores relevancy.

Department Store Rebranding One way you recapture relevancy in a market — and even succeed — is rebranding. Department store rebranding pulls them out of the ditch because, done properly, they are meaningful to target audiences. And the store is more important than simply restating product or category benefits.

Without that preference, no tactic or strategy can ensure the brands future success. If you are a department store, rebranding is the only way you can survive.

Rethinking is more than just rebranding department stores and their messages.

Department Store Rebranding Rebranding department stores is more than just a new name, logo and tag line. It is fundamental change— real changes in operations and structure. Changes implemented to magnify and support the new brand strategy.

Even traditional rebranding does not go far enough. Retailers must rethink everything.

The market, especially those large department stores like Macy’s, Belk’s, JC Penney, Harrods, Bergdorf Goodman, Lord & Taylor, Bloomingdale’s, Sears, Debenhams, Meijer, Von Maur, Boscov’s, The Bon-Ton, and the like, are sliding into irrelevancy and, in many ways, are already irrelevant to the new shopper.

Department Store Rebranding Shoppers vote with their dollars. And the department stores feel like they have passed their own time limit on this earth.

Right?

Probably right. Department stores: Be something different than what you are today. That’s how you survive. The ongoing sales promotions and specials that you rely on don’t do the trick. Black Friday won’t save you.

Their stores are overcrowded with product, there are no sight-lines, crowded shelves does not say variety rather it creates a feeling of being hurried. As a result shopping for apparel is boring at best and harried at its worst.

Department store rebranding for experience.

Department Store Rebranding Remember, earlier on when we spoke about consumers spending money on experiences? Shopping in department stores is mundane and it does not get the pulse rising. Part of department store rebranding is to revitalize the experience and make it deeply personal.

It’s especially problematic for women. There is more selection and yet more difficulty in finding clothes that both fit and are appealing.

Men walk into a store, know their inseam, waist, arm and neck sizes and, voila, there is a suit. As a result, men are free to purchase based on the look, style, price and brand. They find what is available in their size and they buy it. Minor alterations are acceptable and easy to accomplish. Many times, off the rack is a real phenomenon.

Department Store Rebranding
The problems at Macy’s are systematic of the retail space.

Women shop on size and department, which varies by store and by brand. Go into a Macy’s, for instance, and find a size 4 that’s a size 2 at another department store. It’s even worse than that. Shoppers shop in that same Macy’s, find a size 2 that fits and another size 2 that doesn’t.

That variation in experience is confusing and…dull. Women look at overcrowded and jammed racks in poorly set up departments. And all this to find a garment that appeals to them aesthetically.

As a result they are forced to search the jammed racks for that design or style in their size – even though they know that label size is no guarantee of proper fitting. This means they try on everything and sort through all sorts of retail disappointment. This is not an experience. It is a nightmare.

That’s not shopping, either. It does not translate into purchases. That’s solving the Pythagorean theorem.

An example of rethinking everything at department stores.

Department Store Rebranding Large department stores must rethink everything, from their brand to their operations to really rebrand effectively. Rethink the in-store experience. Attract more women shoppers. REAL preference is job number one.

Ladies apparel is a $225 billion business; so preference, not just dropping in, is immensely profitable and increases relevancy in a dying industry. It is optimal to make the department store the destination. And not just for Christmas.

Is the solution transitioning to on-line?

That still raises important business facts. Department stores own large amounts of real estate. They have expensive long-term leases. What does it do to profitability if the great department store chains are forced to retreat and rely on web sales only?
Can they survive that sort of apocalypse? There is another answer. There has to be.

Department Store Rebranding and AmazonIf the Amazon model IS the future then bankruptcy and chapter 11 is the interim step to treading water and waiting for the merciful euthanasia. Any numbskull can suggest the move to on-line sales.

The problem is it won’t work with the current structures. Department stores desperately need an answer that lets them protect the brick and mortar investments that revitalizes shoppers today and in the future.

Success leaves clues. Shoe department retailing.

Department Store Rebranding
Shoe departments hold the clues to success

So back to the problem of finding the right fit. That is not a problem when shoppers shop for shoes or handbags. Consumers easily see what’s offered without the clutter, find the style they like in the right size and are off with it.

Shoe sizes are universal. The shopping experience is positive. Shoes are displayed on roomy racks and displays and the shopper scans all the shoes (including style, color and form) and then the shoe salesperson bring the shopper the shoes in their size.

Funny how simple it is. How civilized the experience, despite being in the morass of other crowded and jammed departments of clothing.

Department Store Rebranding Why can’t women’s apparel be like that? Department stores rebranding is possible building on that successful model.

Rebranding requires retailers to rethink their stores operations and how technology is utilized. Sadly, the highest level of technology in retail today is a copy of Amazon’s model. Order online and pick up.

But apparel is a different animal, especially in women’s apparel. The sizing of women’s garments is useless. A standard that unifies sizing everywhere sounds like the big answer. Is it?

Yes, absolutely. The sheer amount of returns because clothing does not fit is an issue for Amazon too. There is no regulatory agency to govern sizing so that changes takes real effort from the industry.

Use digital tailoring software. Make the experience personal.

Department Store Rebranding Instead, we recommend retailers of women’s apparel adopt the sizing structure that works in the shoe department model. That is, just use measurements. Display style samples and have sizes in the back warehouse.

Even that is unmanageable because women, unlike men, don’t share a basic shape.

However, the playing field changes as shoppers provide a profile of their exact measurements. Can high-end apparel stores  digitally measure the consumer and privately store those measurements in a private file? Of course they can.

Is it then possible to alter custom fit clothes to their specifications? Yes, but that is not the best model. Executing that on a mass scale so a Macy’s or Dillard’s use it is a challenge.

Department stores can afford to automate it. Do it digitally.

As a customer visits your store for the first time, direct them to a private dressing room and digitally scan their measurements. Their exact measurements are stored in their personal and branded app.

Department Store Rebranding
Use technology to customize customer service

As customers shop in the newly designed departments with newly redefined department titles based upon lifestyle rather than the traditional Juniors, Petite etc., departments.  Shoppers can look at every offering, all displayed in a size 4. They now shop by cut, fabric, color, brand and style. Not size because only one size needs to be on display (just like the shoe department model we discussed earlier).

The convenience of their smart phone is utilized, They scan the code of the item of interest and the app stores the choice. The store is no longer jammed with every offering in every size. The result? The branded experience of shopping is civilized.

The racks are not crowded and the styles themselves are highlighted. The retailers use their merchandising skills to highlight offering. Suddenly, there are sight lines in the department store and an opportunity for the retailer to practice their skill at displaying wares and merchandising.

How it benefits you.

Department Store Rebranding
High-End stores have the right merchandising model

Here’s how this complete department store rebranding works. Simplify the offerings on the store floor much like high-end retailers. Customers actually see the garments in lengthy and leisurely glance. Consumers develop a digital profile on their measurements that is part of the retailers database. Because you know them and they now know you, a relationship is established.

When they return to the department store, consumers open the app to say they are in the store and what, in general, they are looking for.

Department Store Rebranding If the garments are bar coded by actual measurements, then a warehouse employee gathers those garments in real time from the back warehouse (remember the shoe model) that actually fit that customer.

When shopping is done, the shopper tells the app and are assigned a dressing room. The promise is that, in 10 minutes, everything they scanned will be in their dressing room and in their size.

Better yet, customers could use the app to say they are coming to the store and to get their personal rack ready and pre-placed in a dressing room.

Think about this. If implemented, it creates a preference for the department store brand (which reflects the change in the retail experience) and a database is established to enable more effective buys from designers and better PERSONALIZED service (read how affinity programs fail here). The customer chooses if they want the clothing in the dressing room or if they require human assistance.

The newly branded department store experience.

Department Store Rebranding
It is about the experience of shopping

The new experience reconfigures the department store experience and decreases the display space and increases the warehousing. It requires an investment in logistics and warehouse systems.

But the new department store is now an adventure in experience and we know that customers covet that. The department store rebranding process combined with new thinking provides new preference.

Think it’s not possible? Amazon can do it, and Amazon is the retailer that terrifies the rest of the industry. The online retail giant, who just announced plans to open brick and mortar stores, is threatening to take over the entire industry while its players stand still and watch.

Amazon transports product anywhere in the world overnight. Is a tight logistics system that creates in-store logistics providing results in 15 minutes impossible? Believe that and you are doomed.

The future in department store rebranding is in personalized automation.

Department Store Rebranding All it takes is an automated, software system that makes it easy to find the right clothes at the right time from your warehouse space. It, therefore, allows the shopper to buy and shop based on taste, style and color, just like they do with shoes and handbags. It means sales improve because shoppers see the entire inventory.

Plus, in the spirit of discovery, the store adds a few surprises— a few alternatives for that shopper based upon the customer profile and design preference. All of this accomplished by an algorithm.

Department stores, don’t get caught up in — “That can’t be done.”

Department Store Rebranding Change or die. That’s the simple truth. This is just one idea. The point is that department store retailers, whether they are in apparel or not— let go of age-old habits. Dead brands are full of leaders who once said, “That can’t be done.”

Department store retailers must do two things. 1) Consider a total rebrand because few retailers position the brands against the competition and as a result are not meaningful enough to target audiences. (Here’s how we rebrand for our clients.)

2) Rethink everything. Ask the right questions in brand research that goes beyond simple usage and attitudes. The current model is a rapidly dying one. And given the current trajectory, there will only be room for one of the major department stores.

There is a third strategy retailers can adopt (and many are). Do nothing and watch Amazon destroy your business. But, as in most things, victory belongs to the first mover.

 

Read more about the retail market and department stores here:

Amazon and Black Friday

Macy’s loses importance

Another retail casualty the CEO of Stein Mart

Macy’s National Hiring Day

Macy’s should have known better

Which retailers will survive?

Retail in a nutshell

The blinding of Sears and JC Penny

Brookstone needs rebranding

Staples is not fixed

Promotions and Millennials

Bad experiences at Best Buy

Why Sports Authority Died

What about Black Friday?

Amazon Prime Day 

Here are some articles and blogs on REBRANDING

Rebranding GlenGuard

Grocery Rebranding and Amazon

Rebranding of Mastercard

Rebranding Electrolux

Rebranding is all about mindset

Rebranding Steven Colbert

Rebranding Constantly

Stealing Share. Rebranding Experts.

Choosing a rebranding company. The rules.

Rebranding Newspapers. Finding new importance

Analyzing a brand for rebranding opportunities

Amazon Black Friday won’t kill the day

Normally, I appreciate most of what Amazon does. The brand has a well thought out and executed brand strategy, with most of its moves being a reflection of that strategy. Retailers may not like what Amazon does but they are trying to copy it, if not improve on it.

Amazon Black Friday
Amazon Black Friday is a tad redundant.

With 54 shopping days left until Christmas, Amazon has unilaterally declared the days from today until Black Friday as the Countdown to Black Friday. Further, Amazon has decided that it will continue its Black Friday sales until December 22, extending the made up retailing holiday over the course of two months.

But the real savings are not scheduled to start until after Veteran’s Day. The crazy bash-the-door-down markdowns won’t hit the virtual shelves until the week of Thanksgiving.

But don’t worry, retailers, the Amazon Black Friday era did not just kill the supposed holiday.

What Amazon Black Friday is intended to achieve.

Amazon Black Friday is an attempt to prompt shopper to no longer wait for local brick and mortar or even online shop to have its own event. Amazon Black Friday is intended to make you purchase today what you would have bought immediately after Thanksgiving.

However, I am not all together sure that it will actually keep people out of stores. For some, Amazon purchases will just be spread out a bit more over the 54 shopping days left. They won’t necessarily be made today.

Personally, I think that most people who shop on Black Friday simply do it for the sport of it. It’s the experience of it. The game for Amazon should be to change a behavior and that behavior won’t change with a simple promotion. Retailers need Black Friday. So as long as they open up at 2am with $210 TVs, there will always be people willing to wait in a line that circles a city block for a chance to get one.

Why this is redundant.

Amazon will have a degree of success with this promotion, but it alone will not kill Black Friday. Consumers have been shifting their purchasing from traditional brick and mortar to online anyway. But it will be difficult for Amazon to say exactly what percentage of sales increases were due to the promotion versus which ones that would have happened anyway.

The real numbers will show up when Amazon releases profit numbers for the quarter. Extending the season requires additional resources, remember, and cost money.

At the end of the day, this promotion will do little to change human behavior. That’s the highly sought-after effect from any promotion. People will still wait in line, knock down doors and trample over one and other to be the first one to get the latest Furby, gaming console or pet rock.

So I say bah humbug, Amazon, you just made an already insufferable shopping season longer.

What retailers can do about Black Friday

It’s their own fault. As forecasts predict declining sales on Black Friday this week, the retailers only have themselves to blame. What was once considered a special event – a social one, even – has been diluted by sales before and after the day, while online sales continue to rise.

Based on a survey by retail consultancy WSL Strategic Retail, only 29% of women (the primary audience for Black Friday) intend to shop that day.

Now that doesn’t mean retailers are going in the tank that day. Black Friday will still exist, but it may never be the special day that it once was. The impact of online shopping is one reason, with 33% of women saying they will shop online (including 71% of Millennial women), which is simply the way of the world now.

Black Friday
Improve the experience and Black Friday may yet return.

The problem for major retailers is that a vast majority of those online shoppers will head over to Amazon, the single biggest threat to the brick and mortar stores that have long been the bedrock of holiday shopping.

But it was the retailers’ own greed that has done them in. In the rush to claim as much space in the holiday shopping market, retailers began Black Friday earlier and earlier. (That’s why our own senior brand strategist, Corbin Rusch, applauded REI for its no Black Friday promotion.)

In fact, one of the reasons why women in the WSL survey said they wouldn’t shop on Black Friday is because sales aren’t as good as they used to be (73%) and, more importantly, because sales are just as good before and after Thanksgiving (78%).

As a whole, retailers may make out OK this holiday season, although I suspect Amazon is going to eat up a large chunk of that market share.

How to fix Black Friday.

So what’s a retailer to do? For one, retailers need to stop trying to “out open” each other by pushing back the clock further and further until the sales start on Halloween.

For another, they need to face the biggest problem in retail: The lack of brand identity for the individual chains and brick and mortar shopping itself.

Black Friday has long focused solely on sales, getting the best price for a gift. That trigger has lost its impact now that sales start when the kids are trick and treating and last until Christmas Eve.

Instead, to re-build the category of Black Friday, retailers need to highlight the fun of the event itself. The social interaction (even though sometimes they lead to fights) should be improved as a whole so that shoppers feel like they are having fun.

Right now, Black Friday feels worthless because you fight crowds for prices shoppers can get elsewhere and at another time. But the day used to be something a little bit exciting. Market the day, not the low prices.

REI Black Friday a goner

REI Black Friday campaign is a mistake.

I have never minced my words when it comes to my distain over the Black Friday hoopla that happens each year or that I was pleased as punch to report that sales were down by 11% last year.

That’s why I am surprised by my general chagrin towards the REI Black Friday campaign, #OptOutside, and it’s zealous crusade against Black Friday.

REI Black Friday
The REI Black Friday campaign is a missed opportunity.

While I dislike Black Friday and its cultural significance, I recognize that it is a powerful tool to sell. Actually, it’s strong enough to equate to 10% of yearly sales for REI.

Which leaves me dumbfounded. What’s the point in REI closing up shop for the night?

The REI Black Friday strike is a stab too far.

It’s always important for brands to be different than the competition, otherwise you don’t present a real choice to your audience. But it’s ludicrous to say “no” to Black Friday shopping when it’s such a powerful tool, is it not?

If REI isn’t fond of the midnight shopping frenzy (I am not either, for that matter), then why not operate with normal hours instead? Instead, “REI will have no Black Friday promotions and won’t process any online orders until Saturday. Just a small handful of its approximately 12,000 employees will be on call, while the rest get a paid day off.”

REI Black Friday could exist.

Here is my biggest complaint with the REI Black Friday campaign: REI is alienating it’s loyal customers.

When you think about the kind of person that shops at REI, a specific image and ideal comes to mind. These folks thrive on being active and enjoying the outdoors. The mindset of REI should not be one of telling customers to “#OptOutside” but, rather, to remind its customers of the goods they can use, which REI sells, while being outside this holiday season.

Recognize your customers, REI. Don’t pander to the general public. The REI Black Friday campaign is not your style and it’s not your place in the market.