STORES Magazine - August 2008 - (Page 12)

CONSIDER THIS / PRESIDENT’S PAGE Lemonade Recipes BY TRACY MULLIN The Voice of Retail Worldwide STORES is published by NRF Enterprises Inc., a subsidiary of National Retail Federation Inc., 325 7th St. NW, Washington, D.C. 20004. (202) 783-7971 FAX (202) 737-2849 uring a candid interview with The Wall Street Journal in June, Home Depot CEO Frank Blake recounted a conversation he had with a vendor, who noted that “a downturn is a terrible thing to waste.” While some retailers have understandably pulled back during this economic environment, others are moving full-steam ahead. That is nowhere more prominent than during this back-to-school season. While back-to-school and back-to-college spending is only expected to rise 2.5 percent this year, it will still rake in more than $51 billion. A handful of retailers are getting creative to drive traffic to stores and websites with inventive promotions, new labels and celebrity endorsements. Some retailers are embarking on marketing campaigns that focus on price, with OfficeMax, Office Depot, and Staples all offering select school supplies for a penny. To target the price-conscious college crowd, Sam’s Club is giving college students a $15 gift card with the purchase of an annual membership and a free additional card for a roommate or friend. Other companies have created online content to appeal to teens. Sears, for example, launched its “arrive lounge,” an interactive website where kids can vote for their favorite dancers, enter sweepstakes and view a trailer for MTV’s new movie, “The American Mall.” Students can use the site to download wallpaper or unlock clues to win the grand prize: a performance at their school by “High School Musical” star Vanessa Hudgens. Retailers are also counting on celebrities to propel back-toschool sales this year. Walmart is appealing to pre-teens with a clothing line featuring fictional pop icon Hannah Montana and is taking a page from Target’s handbook by offering wake-up calls. With the campaign, parents can preselect messages for their kids to receive from Hannah Montana, reminding them about daily events or offering a simple message that it’s time to get up. JCPenney’s new TV and cinema advertisements play off the 1985 movie “The Breakfast Club” and are expected to resonate with adults, while a remixed version of a song from the movie should appeal to the younger crowd. Kohl’s has created its own crossgenerational approach with the launch of an “Inspired by the Artists worn by you” campaign using celebrities like Lenny Kravitz to interest parents and younger artists like Avril Lavigne and Hayden Panettiere to attract students. Even retailers that don’t usually have a dog in the back-to-school fight are entering the fray this year, with Victoria’s Secret offering special “University PINK” merchandise featuring hoodies, tote bags and logo T-shirts from more than 30 universities. While retailers wade through the current economic challenges, it’s important to remember the wise words from Home Depot’s vendor. Companies that are taking this opportunity to try new things and take risks will be better prepared when the economy bounces back. Because the beauty of a downturn, of course, is that there is often nowhere to go but up. D CHAIRMAN OF THE BOARD Myron E. Ullman, III, Chairman, President and CEO, J.C. Penney Co. VICE CHAIRMEN Philip L. Francis, Chairman and CEO, PetSmart, Inc. Stephen I. Sadove, Chairman of the Board and CEO, Saks Inc. PRESIDENT & CEO Tracy Mullin SENIOR VICE PRESIDENTS Denise Brasse, Industry Relations Mallory B. Duncan, General Counsel Michael G. Gatti, Communications David Hogan, CIO Carleen C. Kohut, Finance & CFO Steven J. Pfister, Government Relations NRF Divisions Association for Retail Technology Standards EXECUTIVE DIRECTOR Richard E. Mader (202) 626-8140 National Council of Chain Restaurants PRESIDENT John R. (Jack) Whipple (202) 626-8183 FAX: (202) 626-8185 Retail Advertising & Marketing Association EXECUTIVE DIRECTOR Michael G. Gatti (202) 626-8117 FAX: (202) 737-2849 EXECUTIVE DIRECTOR Scott Silverman (202) 626-8192 FAX: (202) 626-8191 325 7th Street, NW Suite 1100 Washington, D.C. 20004 All articles published in this magazine represent solely the individual opinions of the writers, and not necessarily those of the National Retail Federation. 12 STORES / AUGUST 2008 WWW.STORES.ORG http://shop.org http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - August 2008

STORES Magazine - August 2008 Contents Executive Editor's Page President's Page The Lure of Free Shipping Walmart’s New Look What Shoppers Think Will Widgets Work for Wheat Bread and Wasabi? 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Store Design Industry Economics Hot 100 Retailers Concept2Watch Mobile Technology Small Store Technology Website Optimization Site Selection Mobile Payments Recycling Merchandising: Cool Sells Merchandising: Merchandising in Mexico Store Construction & Development Human Resources Loyalty Programs Mobile Marketing Loeb Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - August 2008

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