high service retailers

High Service Retailers

Presented byMarcia CamachoJaime GleasonHeather JonasLindsey KlugBetsy Palm

Sarah Steuer

High Service Retailers

• Magnificent Mile

• Department Store

• Specialty Store

Marshall Field’s History

• Came to Chicago in 1856 as a well known salesman with a merchants instinct

• Immediately had a huge impact on retailing– High-quality goods– Built grand emporiums– Revolutionized the shopping experience

• “Give the Lady What She Wants”

• 1871 – Chicago Fire and the rebuild

• 62 locations in only 8 states

Marshall Field’sLayout

• Over 800,000 square feet • Lower level & 9 floors

– Men’s only on Second Floor– Women’s on Third, Fourth & Fifth Floor– Both have accessories on First Floor

Marshall Field’s Layout

• 2 Juice Bars in 2003– Bally Total Fitness– Crunch Fitness

• 3 restaurants– 7 on State– Café– Walnut Room

• 2 food courts• Australian Homemade Ice Cream• 2 Starbucks coffee bars

Tiffany Dome

•Made of 1.7 million pieces

•6,000 square feet

•Largest glass mosaic of its kind

•First dome ever built in iridescent glass

•Largest example of Tiffany favrile glass in world

Marshall Field’s Layout

• Lighting, music & decor determined by department

• Shoes Department– 16,000 square feet

• Cosmetic Departments – 26,000 square feet

Marshall Field’s Layout & Displays

• Crowded• Stocked like a

department store• Primary displays,

few secondary displays

• Lots of racks• Hectic, congested

transportation between floors

Marshall Field’s Website

• Easy Access• Accessible to information• Emails about sales• Shopping online under construction

• http://www.fields.com

Marshall Field’s Special Services

• Credit Card– Rewards

• Personal Shoppers

• Gift/Bridal Services

• Weekly Advertisement

Marshall Field’s Financials

• 2003 – Asset Turnover

• 2584/2153  = 1.200

– Marshall Fields Revenue/Target Corp Revenue• 2584/48163  = 5.37% of Target Corp Revenue

• 2002 – Asset Turnover

• 2691/2202  =  1.22

– Marshall Fields Revenue/Target Corp Revenue• 2691/43917  =  6.13% of Target corps revenue

Marshall Field’sHow the store is doing

• May Company can reinvent back to high service status

• Not anticipating sales to decrease because of sale

• Problems because of sale– Charge card complaints– POS software

Marshall Field’sPersonal Impressions

• Overabundance of employees

• Store was overwhelming

Neiman Marcus History

• Founded in 1907 by Herbert Marcus, Carrie Marcus Neiman and Al Neiman in Downtown Dallas, Texas

• “It’s never a good sale for Neiman Marcus, unless it’s a good buy for the customer.”

• 35 stores & 14 clearance stores located throughout the United States

• Neiman Marcus Distinguished Service in the Field of Fashion

Neiman MarcusStore Layout

• Outdated, dull• Poor Lighting• Felt like a retirement home• Brands had their own alcove• Limited inventory on floor• Soft music• Fur coat trunk show • Cold environment

– Ignored customers based on financial status

Neiman MarcusWebsite

• Online accounts

• Latest trends

• Easy shopping categories

• E-mails about fashion & sales

• www.neimanmarcus.com

Neiman MarcusSpecial Services

• Credit Card– Incircle Rewards

• Personal Shopper

• Bridal Registry

• Catalog

Neiman MarcusFinancials

• 2003 Net Profit X Asset X Leverage = Return on

Equity Margin Turnover

.035 X 1.523 X 1.788 = 0.095

• 2002 Net Profit X Asset X Leverage = Return on

Equity Margin Turnover

.034 X 1.55 X 1.81 = 0.095

Neiman MarcusHow the store is doing

• 14% jump in same store sales

• 87% jump in net earnings

• Planning to open 5 new stores by 2007

Neiman MarcusPersonal Impressions

• Plain– Dark & Boring

• Unknowledgeable employees

Lord & Taylor History

• David May and Levi copper-riveted pants

• Opened first store in 1888 in Denver, Colorado

• 54 Lord & Taylor stores

Lord & TaylorLayout

• 7 Floors – First Floor

• Accessories• Cosmetics

– All were very small

• Felt like a cheap, crowded department store

• Light music in background• Store signs looked cheap• Plain mannequins

– No makeup– No faces

• Racks overflowing

Lord & TaylorWebsite

• Advertisements

• Mailing Lists

• www.lordandtaylor.com

Lord & TaylorSpecial Services

• Credit Card

• Mailing Lists– Catalogs

Lord & Taylor Financials

• May Company’s 2003 Net Sales– $13.3 Million

• Lord & Taylor was 7.32% of May’s 2003 Net Sales– $1.8 Million

Lord and TaylorHow the store is doing

• Closing many stores

• May Company only opened 1 store in 2004

• Trying to reposition back to the status it once had

Lord & TaylorPersonal Impression

• Unprofessional, nonexistent staff

• Extremely rude

NordstromHistory

• Originated as a shoe store, Wallin & Nordstrom– Later became Nordstrom, Inc.

• Nordstrom was based on exceptional service, selection, quality & value

• 1960’s began growing rapidly– Added the clothing market

NordstromLayout

• Easy to read map

• Very Spacious

• Customer Friendly Shopping Environment– Comfy Chairs

• Main Level– Cosmetics – Women’s Shoes

• Second Level– Men’s Merchandise

• Third Level– Women’s Apparel– High-end designer

lines

• Classic or Conservative Collections– Wood trim

• Modern Collections– Vibrant colors– Lighting displays

• Clean displays to accent special items

• Add home décor to give display style

• Racks are not stuffed full

NordstormLayout & Display

NordstromLayout & Displays

• Displays include everything including accessories

• Every displays has a certain look to it

• Each display pulled products together

$1300.00 for pure fashion

- 40% Discount

= $780.00 almost affordable

Wearing a coat made out of every part of the animal…Priceless

Price for High Fashion

Website

• Online accounts

• Easy shopping

• E-mails

• Access to all services

• www.nordstrom.com

NordstromSpecial Services

• Credit Card

• Catalog

• Wedding Shop

• Customer Service

NordstromFinancials

• 2003 Net Profit X Asset X Leverage = Return on

Equity Margin Turnover

.037 X 1.454 X 2.734 = 0.147

• 2002 Net Profit X Asset X Leverage = Return on

Equity Margin Turnover

.015 X 1.46 X 2.99 = .065

NordstromHow the store is doing?

• 1st quarter sales of 2004– Increased 16.6%– Profits increased 153%

• Future Plans– Open 4 full line stores in 2005– Next 4 years to compete with Marshall

Field’s & Macy’s

NordstromPersonal Impression

• Staff was– Knowledgeable– Friendly– Helpful– Empowered