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jerryking : downsizing   18

The incredible shrinking grocery store
NOVEMBER 8, 2010 | The Globe and Mail | RASHA MOURTADA.

Today's urban shoppers – whether they're 35 or 65 – are generally looking for two things in a grocery store: prepared food that tastes homemade and household staples such as paper towels and dishwashing detergent. They want a shopping experience that's more contained but still meets all their needs....Grocery store guru Paco Underhill on three trends he expects to see in North American supermarkets:

Hybrid stores: Think part traditional shopping, part Internet shopping. He expects customers to shorten trips by submitting shopping lists in advance to stores and selecting only certain items – produce and meat, for instance – themselves when they pick up their order.

Refillable containers: He expects a bulk shopping model – widespread today for dry goods – to take off for household supplies such as laundry soap, where shoppers will bring back large containers for refills.

Private label 'stores': Imagine all of Loblaws' President's Choice products in one spot within the store. "Rather than shelving these products throughout the store, they're concentrated in one area, so the shopper looking for the best price sees it all together," says Mr. Underhill.
big-box  boutiques  grocery  Highland_Farms  retailers  small_spaces  supermarkets  Wal-Mart  Paco_Underhill  trends  downsizing  prepared_meals 
october 2018 by jerryking
Nordstrom Tries On a New Look: Stores Without Merchandise - WSJ
By Suzanne Kapner
Sept. 10, 2017

Nordstrom Local, doesn't stock clothes.....it's a new concept as retailers across the U.S. are wrestling with how to best to use their physical spaces and attract customers who are migrating to the web. For department-store chains like Macy’s Inc., J.C. Penney Co. , Kohl’s Corp. and Sears Holdings Corp. , one answer has been to shrink their footprint by closing stores or experimenting with smaller ones......consumer habits are changing.....“There aren’t store customers or online customers—there are just customers who are more empowered than ever to shop on their terms,”...Nordstrom Local, scheduled to open Oct. 3 in West Hollywood, Calif., will span 3,000 square feet, far less than the 140,000 square feet of one of Nordstrom’s standard department stores. It will contain eight dressing rooms, where shoppers can try on clothes and accessories, though the store won’t stock them. Instead, personal stylists will retrieve goods from nine Nordstrom locations in Los Angeles, or through its website. The stylists can also pull together looks for shoppers through a “style board” app.

“Shopping today may not always mean going to a store and looking at a vast amount of inventory,” said Shea Jensen, Nordstrom’s senior vice president of customer experience. “It can mean trusting an expert to pick out a selection of items.”..In addition to manicures, Nordstrom Local shoppers will be able to order wine, beer, coffee or juice from an in-store bar, and those who place orders on Nordstrom.com by 2 p.m. can pick them up there that day. They will also be able to return items at the store that they bought online or from other Nordstrom locations. Tailors will be available for alterations or to help members of Trunk Club, an online clothing service that Nordstrom acquired in 2014, select fabrics for custom garments.

Other retailers have experimented with inventory-free stores, including Bonobos, the men’s fashion brand bought by Wal-Mart Stores Inc. over the summer. Stores such as Pirch, a purveyor of high-end home appliances and decorative plumbing, have taken the experiential route, inviting shoppers to bring bathing suits to test their $1,000 showerheads....the traditional retail store hasn’t changed much over the years. One hindrance, according to Doug Stephens, founder of the consulting firm Retail Prophet, is that Wall Street measures success by sales per square foot and other metrics that are becoming outdated in a world where shoppers still visit stores but increasingly make their purchases online.
Nordstrom  Nordstrom_Local  Macy  personal_stylists  BOPIS  Doug_Stephens  retailers  sales_per_square_foot  physical_space  experiential_marketing  small_spaces  curation  department_stores  inventory-free  e-commerce  store_footprints  downsizing  Bonobos  metrics  in-store 
september 2017 by jerryking
Inside the brutal transformation of Tim Hortons - The Globe and Mail
MARINA STRAUSS
THE GLOBE AND MAIL
LAST UPDATED: WEDNESDAY, FEB. 22, 2017

Since taking over the iconic chain in 2014, its new Brazilian owner, 3G Capital, has purged head office, slashed costs and squeezed suppliers. Shareholders are happy, but is 3G tearing the heart out of Timmy’s?.....3G is regarded as ultra-disciplined owners who are sticking to the same playbook they have followed at companies including Burger King, Anheuser-Busch, Kraft Foods and Heinz: massive layoffs, replacing legacy managers with hungry youngsters and, above all, a fanatical devotion to financial benchmarks and cost-cutting. (It remains to be seen whether this will also be the approach for RBI’s latest acquisition, Popeyes Louisiana Kitchen.)....Will 3G's analytics-driven overhaul of Tim Hortons—using the same template the private equity firm’s founders have deployed at railroads, brewers and food makers—succeed in the long run, or is it in danger of cutting the heart out of a Canadian icon? ......Suppliers are also feeling the squeeze. From the get-go, RBI made it clear it would be reviewing vendor relationships. And the company pushed for better terms, including extensions on bill payments to as much as 120 days from 30 days or less. Maple Leaf Foods, a major partner that supplied meat to Tim Hortons, declined to accept the new terms, and walked away....
Former employees also say RBI has cut back on product research and development spending at Tim Hortons, offloading some of that work to suppliers. That’s not uncommon in the fast-food world, but it can be risky. “Suppliers can do a great job with innovating and R&D, but you’re limited to what the supplier is trying to develop,” ......3G has never encountered a brand quite like Tim Hortons. It isn’t just another coffee company. It is a Canadian destination, an integral part of many Canadians’ day and a brand that defines us, to some degree, around the world.......“The risk, in looking at Tim Hortons through the lens of efficiency alone, is to miss the greatest value of the asset, and that is the Tim’s brand and its deep connection to the fabric of the country,” says Joe Jackman, founder of strategic retail consultant Jackman Reinvents, whose clients have included Old Navy, Hertz, Rexall and FreshCo. “You can’t cost-cut your way to retail nirvana.”
3G_Capital  Tim_Hortons  Marina_Strauss  cost-cutting  head_offices  iconic  brands  organizational_culture  private_equity  layoffs  data_driven  franchising  transformational  fast-food  supply_chains  R&D  Canadiana  goodwill  JWT  community_support  downsizing  efficiencies  coffee  staying_hungry  cultural_touchpoints  restructurings  supply_chain_squeeze  RBI  playbooks 
february 2017 by jerryking
Sears Canada races to close more stores amid cost-cutting efforts - The Globe and Mail
Jan. 24, 2016 | G&M | MARINA STRAUSS - RETAILING REPORTER

Sears Canada Inc. is stepping up its efforts to close another round of stores, raising more questions about its fate and putting pressure on landlords who already have a lot of empty retail space.

The struggling Sears has instructed real estate firm CBRE to look for alternative uses for Sears’s weakest stores, such as its clearance outlets... As well, Sears officials are working internally to shrink its store network, he said....Sears’s most recent store-closing plans differ from previous shutdowns, which involved landlords often approaching Sears with offers to buy back the retailer’s store leases to replace Sears with alluring foreign retailers, such as United States-based Nordstrom Inc., which could draw more customers.

But amid the rash of retailers such as Target that have closed stores, landlords no longer have compelling new retailers to fill so much space. ...Sears is determined to turn around its core business and remain in many locations, although some may be downsized or closed when the lease expires. He hired Carrie Kirkman, a seasoned merchant, late last year as Sears’s new president, aiming to lure younger consumers with new styles and store layouts. He’s looking to improve the state of some of Sears’s stores.
Marina_Strauss  retailers  cost-cutting  commercial_real_estate  CBRE  consolidation  store_footprints  under-performing  downsizing  small_spaces  Sears_Canada  RioCan 
january 2016 by jerryking
Nine retailers closing the most stores
Douglas A. McIntyre and Alexander E.M. Hess, 24/7 Wall St. 8:30 p.m. EDT March 12, 2014

A number of factors can lead companies to close stores. One is mergers and acquisitions activity. As organizations join forces under a single umbrella, locations that once competed for sales can become redundant, leading to store closings. The most recent example of this is the marriage of Office Depot and OfficeMax, completed late last year. Management has made it plain that the merger would produce cost savings by consolidating jobs and closing stores.

The pressures businesses face from the growth of online retail is another factor that can contribute to store closings....Outside of those retailers undergoing mergers, or shrinking to limit costs and preserve their bottom lines, a number of retailers have had to shrink their store count in order to shift into new markets. ...Companies close stores for different reasons. In the case of Sears Holdings, is likely to shutter a number of locations as part of a larger strategic overhaul to fund its transformation and make operations more efficient. Closing stores "frees up capital, reduces losses and de-risks our model," the company said in an earnings presentation.

In contrast, J.C. Penney is only closing stores that noticeably underperformed.
bricks-and-mortar  consolidation  de-risking  downsizing  e-commerce  LBMA  mergers_&_acquisitions  retailers  store_closings  store_footprints  under-performing 
march 2015 by jerryking
The incredible shrinking retail sector - The Globe and Mail
BARRIE McKENNA
The incredible shrinking retail sector
SUBSCRIBERS ONLY
OTTAWA — The Globe and Mail
Published Thursday, Feb. 12 2015

Entire categories of products are moving online, making many bricks-and-mortar stores redundant. Video and book stores are all but gone. Office supply, electronics and department stores are in retreat. A future without auto showrooms and movie theatres may be coming.

The era of the big-box store has peaked as city dwellers move back downtown, where space is at a premium.
Barrie_McKenna  retailers  size  mergers_&_acquisitions  downsizing  small_spaces  grocery  supermarkets  pharmacies  proximity  convenience_stores  store_footprints  post-deal_integration  bricks-and-mortar  consolidation  distribution_channels  Target  Wal-Mart  Loblaws  competitive_landscape  e-commerce  fresh_produce  perishables  big-box  supply_chains 
february 2015 by jerryking
Loblaw’s big bet on thinking small - The Globe and Mail
Jul. 16 2013 | G&M | SUSAN KRASHINSKY AND JOSH KERR.
(Charles Waud & WaudWare)
The push into the small-format direction is driven by changing consumer habits, as demands on time force consumers to look for more one-stop shopping solutions in their neighbourhoods, without having to drive to bigger retailers. The convenience store industry has already responded by attempting to alter its down-market image and offering more fresh foods. Loblaw has integrated pharmacies, as well as health and beauty products, into its locations. And along with Shoppers, drugstores have increasingly been selling everything from digital cameras and iPods to milk and dry goods, household items, and expanded beauty products.

This not only helps those retailers to market themselves to busy, younger urban shoppers, but it also addresses Canada’s aging population. Seniors are the fastest-growing demographic group in the country, and prefer to stick closer to home when running errands, Mr. Tyghe observed. “It’s very much about proximity and convenience.”

While the new general store model has worked for Shoppers – the price per share of Loblaw’s offer represents a 27-per-cent premium to Shoppers’ closing price a day before the announcement – there is room for Shoppers to improve in its food offerings, said Doug Stephens, author of The Retail Revival. The challenge, he said, will be to augment that section with some of Loblaw’s products without disrupting the overall shopping experience.

“They have to be very careful with the Shoppers Drug Mart model – a lot of allegiance there,” Mr. Stephens said.

Ultimately, the advantages for Shoppers stem from the buying power the chain inherits, which will allow it to provide whatever product mix works for changing consumer habits at a lower cost.

The “buying clout and synergies” Shoppers would gain post-acquisition will prompt competitors to find ways to match these benefits, said Kevin Grier, a senior market analyst at the George Morris Centre
big_bets  buying_power  convenience_stores  digital_cameras  downsizing  grocery  Loblaws  mergers_&_acquisitions  one-stop_shop  pharmacies  post-deal_integration  proximity  retailers  Shoppers  size  small_spaces  store_footprints  supermarkets  supply_chains  Susan_Krashinsky  synergies  time-strapped 
august 2013 by jerryking
Staples looks to downsize 39 stores - The Globe and Mail
Staples looks to downsize 39 stores Add to ...

Marina Strauss

The Globe and Mail

Published Wednesday, Apr. 10 2013
Staples  downsizing  big-box  commercial_real_estate  Marina_Strauss 
april 2013 by jerryking
Debt-stressed Zimbabweans auction off prized possessions
CRIS CHINAKA

CHINHOYI, Zimbabwe — Reuters

Published Thursday, Aug. 16 2012
Zimbabwe  Robert_Mugabe  economic_downturn  debt  downsizing 
march 2013 by jerryking

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