STORES - October 2010 - (Page 56)

NUTS AND BOLTS / LOCALIZATION The Urban Challenge Scheduling deliveries to inner-city locations requires careful planning BY LEN LEWIS ith their population density and high-spending consumers, inner-city areas have once again become magnets for everything from convenience stores to warehouse clubs. But the transition from suburban sprawl to urban small can be beset by even relatively simple processes like accepting delivery and unloading a truck on city streets. W Solutions to such logistics inefficiencessful are those that made a commitcies are imperative as the retail gold rush ment to adapting formats to specific sites continues. As research from the Bostonand product selection that can be dramatbased Initiative for a Competitive Inner ically different than suburban stores.” City (ICIC) points out, a grocery store in Among the most successful is Urban the suburbs of New York needs to bring Outfitters, which is constantly evaluatcustomers in from a 20-mile radius to ing supply chain procedures to inner-city match what it can get from a 10-block stores in places like New York, Los Anradius in the city. geles and London. “We’re always trying “Some of the retailers ways to get merchandise “Some of the retailers we’ve talked to view the to the stores — not necwe’ve talked to view inner-city as an entirely essarily faster, but in a the inner-city as an new market because of more timely way that entirely new market the challenges they have will, for example, enable because of the to face,” says Mark all stores to present new challenges they have Bickenbach, a principal floor sets at roughly the to face.” with Boston Consulting same time,” says Mike Group, Chicago. “The Sparks, director of sup– Mark Bickenbach, Boston Consulting Group ones that have been sucply chain systems. 56 STORES / OCTOBER 2010 Security and scheduling issues Dave Marcotte, a senior consultant with Kantar Retail, has experience running urban stores. “The first challenge is straightforward security,” he says. “Things are closer together, there are more places for people to hide and the loading docks are in parts of the city where security problems are likely to occur. “I ran stores in Philadelphia, Baltimore and [Washington] D.C. in the 1980s and when you went to the loading dock it was always with two people because it was dangerous,” he says. “It’s not as dangerous now but you can’t leave a trailer sitting around too long — and certainly not overnight as you might do elsewhere.” This leads to another logistics issue — scheduling. “No one runs an inner-city DC of any size, so you have to get the trucks in and out,” Marcotte says. “The size of the truck is less of an issue than getting it to the store through traffic and everything else. You have to contend with residential issues you wouldn’t normally think about. “Some retailers think they can get their trucks in at 3 a.m.” he says. “But in many areas you’re not allowed to run trucks that time of the morning.” Everything depends on store formats. “Smaller retailers like drug stores that have a regular delivery schedule can use WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES - October 2010

STORES - October 2010
Editor’s Page
President’s Page
Retail People
Customer Experience
Game Changer
Power Players
NRFtech Recap
Concept 2 Watch
Customized Shopping
Consumer Behavior
Software & Analytics
Crowd Control
Payment Fraud
ARTS Update
Point of View
NRF News
Retail Industry Calendar
End Cap

STORES - October 2010