STORES Magazine - December 2008 - (Page 12)

trEnDS COMPILED BY STORES EDITORS Wrap Rage Unraveled Park, N.Y. New store openings are a dime a dozen, but not this one. Part of the reason shoppers love Amazon.com is its knack for solving problems. When consumers select a book, CD or DVD, they can count on Amazon to recommend something similarly appealing. When they wanted to read multiple newspapers and books without having to tote them all around, Kindle was born. Now, Amazon execs have announced their intention to clamp down on Wrap Rage – that feeling shoppers experience when they attempt to open the virtually impenetrable packaging that encases many products. Wrap Rage typically results in lacerations, puncture wounds, bruises and, in extreme instances, tears. Last month, the Seattle-based retailer announced a global packaging initiative intended to eliminate the causes of Wrap Rage while also minimizing the impact of packaging on the environment. Called “Frustration-Free Packaging,” the program focuses on products encased in hard plastic “clamshells” and/or secured with plastic coated wire ties. Nineteen products from manufacturers like Fisher-Price, Mattel and Microsoft are included in the initiative. Jeff Bezos, founder and CEO of Amazon.com, hopes one day to be able “to offer our entire catalog of products in Frustration-Free Packaging.” The initiative will expand to the company’s international sites in 2009. The store showcases a new prototype for the outlet concept that marries the look and feel of a modern luxury loft with product priced at a value to shoppers. “The store certainly has the flavor of luxury, but it’s not overdone,” says president Robert Wallstrom. “We’ve reengineered everything with an eye toward taking costs out and passing value on to our shoppers.” The first version of the new prototype rolled out earlier this year in Orlando, and that store quickly became one of the chain’s top five revenue generators. Tweaks based on what executives learned in Orlando are reflected in the Long Island store, which Wallstrom believes has the potential to quickly crack the top five. Saks Style, Outlet Prices 12 STORES / DECEMBER 2008 A 30,000-sq.-ft. Saks Fifth Avenue OFF 5th store opened in late October at the Tanger Outlets at the Arches in Deer “You can’t necessarily tell from looking at the store, but we’ve only used a dozen different fixtures here and the hardware on all the fixtures is interchangeable. Moves like that yield considerable cost savings and allow us to deliver better value to shoppers.” The new design also maximizes efficiency and flexibility, enabling easy changes in the general layout as business needs dictate. Four of the 51 OFF 5th units reflect the new prototype; new stores in Reno-Sparks, Nev., Monroe, Ohio, and Grand Prairie, Texas, are planned for 2009. WWW.STORES.ORG http://www.Amazon.com http://www.Amazon.com http://www.Amazon.com http://WWW.STORES.ORG

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

STORES Magazine - December 2008 Contents Executive Editor's Page President's Page Wrap Rage Unraveled What Shoppers Think Courting a Comeback 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Navigating the Road Ahead Website Strategy Concept2Watch Online Customer Service International Marketing Green Retailing Online Merchandising Signage Operations Online Strategies Pricing Strategy Kiosks RFID Human Resources Loeb Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - December 2008

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