VMSD - December 2017 - 24

Crossing
All the Teas
In July, Starbucks Coffee Co. (Seattle) announced it was closing all 379 of its
Teavana stores, explaining that it expected the
mall-based chain's "underperformance to continue."
Another victim of falling foot traffic in malls.
Bear in mind that the 379 Teavana locations represented only 1.5 percent of Starbucks' total worldwide
presence. And overall, Starbucks has had a good year
with record quarterly earnings. But Forbes noted that
Starbucks' sales increases were due more to its 5 percent higher ticket prices than to increased customer
counts: "Starbucks is now relying completely on new
stores to create incremental growth, since bringing
in new customers to existing stores is not happening."
And to make matters worse, Simon Property
Group (Indianapolis), the largest mall operator in the
U.S., has sued Starbucks, alleging that by removing
its Teavana stores, it's breaking its lease agreement
with the company. Seventy-eight of the Teavana stores
were in Simon malls.

Who's Hipper than Walmart?
Remember how these year-end reviews used to be all
about Walmart? Well, the game-changing retail giant
of its day hasn't been snoozing.
In March, the decidedly unhip mass-merchandiser
bought ModCloth (San Francisco), one of the hippest
of the online apparel retailers. Walmart customers
were confused ("What's Modcloth?"). ModCloth customers were angry ("Really? Walmart?").
In June, Walmart bought another innovative online
apparel company, Bonobos (New York), a menswear
retailer with about a dozen physical showrooms,
as well.
Forbes called the Bonobos acquisition
"even bigger than Amazon buying Whole
Foods ... a step totally outside Walmart's big
box."
Bonobos loyalists weren't happy, either.
"Hugely disappointing," some said (on social
media, of course). "Sad day."
But, Bonobos reassured its customers that its
goods won't be sold in Walmart stores, but rather,

24

DeceMBeR 2017

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vMsD.coM

through Jet.com (Hoboken, N.J.), which was also
acquired by Walmart last year.
Maybe assigning the acquisitions to a forwardthinking e-tailer like Jet softens the blow for their
hardcore brand loyalists, but regardless, Walmart definitely remains in the game.

The FordHub with no Fords
Even auto companies are getting into the brand experience game. Last year, Cadillac (New York) opened
its dazzling, multipurpose space Cadillac House at its
new SoHo headquarters. But Dearborn, Mich.-based
Ford's approach, which opened this year in the Oculus
building in New York's World Trade Center, is quieter,
more thoughtful and less about the cars themselves.
As Fitch (Columbus, Ohio) designer Laura Krpata
says, "It's a completely non-transactional space.
Instead, it's a place that connects brands to consumers." The 2800-square-foot mall space is loaded with
the future. It demonstrates, with a series of interactive
exhibits, how people will get around in the cities of
tomorrow - traffic patterns, mass transit, new technologies, self-healing roads, and new options like carsharing and car-borrowing.
Want to buy a Ford? They'll help, but they carry no
showroom inventory. It may still be your father's Ford,
but he wouldn't recognize the Hub. 


http://www.Jet.com http://www.vMsD.coM

Table of Contents for the Digital Edition of VMSD - December 2017

Vmsd - December 2017
Contents
From the Editor
Vmsd Editorial Advisory Board
The Goods
Next Store
Top Stories of 2017
Brooklyn Bound
Reality Begins at Home
Special Report: Retail Design & Construction
Showroom
Ad Index
Checking Out
VMSD - December 2017 - Intro
VMSD - December 2017 - BB1
VMSD - December 2017 - BB2
VMSD - December 2017 - Vmsd - December 2017
VMSD - December 2017 - Cover2
VMSD - December 2017 - 1
VMSD - December 2017 - Contents
VMSD - December 2017 - 3
VMSD - December 2017 - From the Editor
VMSD - December 2017 - 5
VMSD - December 2017 - Vmsd Editorial Advisory Board
VMSD - December 2017 - 7
VMSD - December 2017 - The Goods
VMSD - December 2017 - 9
VMSD - December 2017 - 10
VMSD - December 2017 - 11
VMSD - December 2017 - 12
VMSD - December 2017 - 13
VMSD - December 2017 - 14
VMSD - December 2017 - 15
VMSD - December 2017 - Next Store
VMSD - December 2017 - 17
VMSD - December 2017 - Top Stories of 2017
VMSD - December 2017 - 19
VMSD - December 2017 - 20
VMSD - December 2017 - 21
VMSD - December 2017 - 22
VMSD - December 2017 - 23
VMSD - December 2017 - 24
VMSD - December 2017 - 25
VMSD - December 2017 - Brooklyn Bound
VMSD - December 2017 - 27
VMSD - December 2017 - 28
VMSD - December 2017 - 29
VMSD - December 2017 - 30
VMSD - December 2017 - Reality Begins at Home
VMSD - December 2017 - 32
VMSD - December 2017 - Special Report: Retail Design & Construction
VMSD - December 2017 - 34
VMSD - December 2017 - 35
VMSD - December 2017 - 36
VMSD - December 2017 - 37
VMSD - December 2017 - 38
VMSD - December 2017 - 39
VMSD - December 2017 - 40
VMSD - December 2017 - 41
VMSD - December 2017 - 42
VMSD - December 2017 - Showroom
VMSD - December 2017 - 44
VMSD - December 2017 - 45
VMSD - December 2017 - 46
VMSD - December 2017 - 47
VMSD - December 2017 - 48
VMSD - December 2017 - 49
VMSD - December 2017 - 50
VMSD - December 2017 - 51
VMSD - December 2017 - 52
VMSD - December 2017 - 53
VMSD - December 2017 - Ad Index
VMSD - December 2017 - 55
VMSD - December 2017 - Checking Out
VMSD - December 2017 - Cover3
VMSD - December 2017 - Cover4
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