Whether by mining the past or creating new opportunities for the future, retailers need to constantly innovate in order to survive and prosper in a rapidly changing world.
In a round table discussion Wednesday morning, Liz Rodbell, president of the Hudson’s Bay and Lord & Taylor divisions of Hudson’s Bay Co., said she often looks to the past for inspiration. With L&T celebrating its 190th birthday next year and Hudson’s Bay “345 years young,” there’s a lot of history in those banners.
She said L&T was the first department store on Fifth Avenue, had the first female president and offered the first personal shopping experience. And it’s historically been “very well-known for dresses.” So next year, she said, the New York City flagship will devote an entire floor to dresses as it seeks to fulfill its mission as “America’s Dress Address. We really want to stand for that in all stores,” Rodbell said.
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At Hudson’s Bay Co., which started life as a fur trader in 1670, the company is collaborating with a number of brands to “build on the story line behind the blanket.” One of Hudson Bay’s signatures is its multipoint striped blanket that it has used on several other products, including polos from Lacoste. A similar collaboration with Hershel backpacks is on tap for next year.
Federica Marchionni, chief executive officer of Lands’ End, pointed to the company’s technological advancements as part of what gives it an advantage. She said Lands’ End was the first e-commerce company and the first to offer a toll-free number and offering a “great online shopping experience” is still essential today.
Since taking the reins of the company in February, the former Samsung, Dolce & Gabbana and Ferrari executive said she has been working to “take care of our loyal customer,” many of whom write the firm often with their feedback and suggestions.
Marchionni hinted that a new ad campaign will soon be revealed that will speak directly to these shoppers and, at the same time, “conquer new customer acquisition.” She believes Lands’ End can win over new shoppers by enhancing the e-commerce experience and expanding globally.
The opening of pop-up stores in New York City and Boston next month is also expected to attract new customers, she said. She hopes the shops will create a connection with consumers and “get their attention.”
Laurent Potdevin, ceo of Lululemon Athletica Inc., reaches his customers in a more “archaic” way, he said. The activewear brand depends heavily on its 10,000 “educators” — or salespeople — and 1,500 “ambassadors,” who are “local heroes” dedicated to their chosen sport and the community in which they live. These nonpaid endorsers are an “integral part” of the Lululemon formula, he said, and help point the way toward growth opportunities. “When we listen, we can’t go wrong,” he said.
Communicating with customers through many different methods is also essential, the panelists agreed.
Rodbell said at Hudson’s Bay, the retailer looks at it as “all channels” rather than “omnichannel.” But call it what you like, the experience both in stores and online must be “seamless,” she said.
Rodbell pointed to three key priorities to ensure this is achieved: merchandise, service and environment. In terms of merchandise, she singled out the new Design Lab brand, which is the company’s answer to its fast-fashion competitors with pieces that all retail for under $100 and an aesthetic that is “younger and edgier.” The response since the launch has been “tremendously successful,” she said.
Turning to service, she said the three keywords here are “fast, friendly and fashion-savvy.”
These keywords are also important to the store environment. “The consumer today is time-starved so we have to be there as quickly as possible and make the environment relevant,” she said. Rodbell pointed to the 50,000 mannequins that are in store that are changed at least twice a month in order to provide “storytelling” cues to the customer.
Potdevin said that while Lululemon has a “light footprint” in terms of stores, each one is considered a “hub” for its core customers. Instead of just selling product, some locations have a concierge to make appointments at local yoga studios or undertake other helpful tasks.
Whether it’s a class at a local Bikram center or making a delivery to a local hotel, knowing what customers want today requires a different skill set than in the past, the panelists agreed.
Marchionni, whose background is primarily in technology, said when looking for someone to add to the Lands’ End team, she seeks someone who has a background in “transformation.” Being open to change is necessary, she believes, to build, expand and grow.
At Hudson’s Bay, Rodbell said that listening — both to associates and customers — is what will ultimately lead to success. “Everything is so much faster-paced today, so prioritizing is key,” she said. “We need to innovate because the world is changing so quickly.”
Marchionni agreed, adding that “strategic thinking” is also a key component to success.
For Potdevin, it boils down to “curiosity — that’s what brings innovation,” he said.