August 25, 2005

Good points, Melissa. Apparently, Forth & Towne will have three clothing "lines" that can be mixed and matched (an expression I do not like...why, I wonder). One line will be evocative of the traditional Gap clothes and be called Gap Edition. A second line, called Allegory, will have more structured clothes...good for business, I'm told. And a third line, Vocabulary, will be more like Chico's, with oversized knit sweaters etc. I imagine that they're hoping the three lines will carry them well across the wide threshhold of consumers over 35. Time will tell. And this first store (in Nyack, outside of New York City) will be very closely watched for sure.

Now, here's a stat I just happened upon. A study by Credit Suisse First Boston found that in the U.S. there are 7,700 clothing chains selling to the teen market, but only 1,800 targeting baby boomers. And yesterday we noted that baby boomers spend more than twice as much on apparel as do teens. That's exactly the trend dynamic that Gap is betting on.

Other Retail Trends

Some of the other retail trends I've been reading about lately include self service, cost polarization, blurring of segments, and high speed retail.

Self Service. Go to the airport, and who checks you in? You do! FedEx gives us a computer, so that WE can do THEIR work.

There are self-scanners in supermarkets, and - when RFID (Radio Frequency Identification Devices) really take off, we'll be going through the supermarket check out with automatic debit of our bank accounts.

All of this self service is designed to give customers more of that they value most: time.

Think about how YOUR business can do the same.

Cost Polarization. Cost polarization fascinates me. You can buy a men's dress shirt off the rack for $29 or $400. You can buy jeans for $30. And, there's a place in New York that provides custom jeans for $300. This is really a very refreshing trend. It means that people are not closed-minded when it comes to what they're willing to pay for a particular product or service. There are $6 haircuts...and $600 haircuts (Fekkai charges $750...yes, just for a haircut). It's a wide open world!

Blurring of Segments. When I was growing up, it absolutely never occured to me that one day they'd be selling coffee in book stores. Odd combination? Not at all, as it turns out.

Now, that's a trend: blurring of segments...Juxtaposing combinations of products and services. Think how that applies to your business. What are some combinations that haven't been tried that make lots of sense. I remember thinking years ago that airports needed healthclubs and spas. Now some have them. What else??

High Speed Retail. And high speed retail is simply a nod to the time starved world in which we live. I notice at the holidays that stores often have certain small gift items already gift wrapped and ready to go. Why don't they do that (even in a limited way) all year long? Every business needs to find new ways to save customers time. I had surgery in a New York hospital. Not only was the surgeon terrific, but on each of the four occasions when I've gone to see him, I've never waited long enough to get from the sign-in desk to the chairs in the waiting area. Top that!

Today, a Houstonian told me about the service at MD Anderson Cancer Center. As large and impressive as that remarkable place is, one person is assigned to every patient to stay with that patient through their entire visit, simply to comfort them, explain what's going on, and "be there" for them. That's just so wonderfully incredible.

Is it just about saving time? No, no. Much more important. It's about saving lives. Because study after study has shown that our mental disposition is a critical factor in our response to illness or disease.