Take 2

Quiz time!

Ethnic groups consume media and use mobile phones in different ways. Do you know how things trend? Test your aptitude and match the ethnic group with its distinctive digital behavior:

Which activity — a) text b) talk c) view — is dominant among African Americans? Asian Americans? Hispanics?

Not sure? Nielsen CEO David Calhoun would not be surprised. In fact, he is a little perplexed. Me, too. Here’s why:

The marketing and advertising research company is frequently asked about cultural attributes of consumers in other countries. “We hardly ever get asked what African Americans are doing in this country,” he said at a conference earlier this month. “I find that fascinating because the size and scale is significant.”

Calhoun says he is a big believer in the alignment of retail, brand and media. And yet, when he examines the last 54,000 new product introductions that Nielsen tracked or help plan and forecast, less than 1% of them were targeted to any multicultural interest. That’s opportunity lost, he told attendees at this month’s Global Retailing Conference, hosted by the Terry J. Lundgren Center for Retailing at University of Arizona.

And now, quiz answers, courtesy of Calhoun:

“Talk” is a top activity for African Americans using their mobile phones. On average, this group burns through 1,300 minutes a month. That’s 2 times the norm. Among Hispanic consumers, “Text” is the right answer; Hispanics text more than any other ethnic group — 940 times a month. For Asian-Americans, “View” is the correct answer. Asian-Americans log 80 hours on the Internet each month and view some 3,600 web pages. That’s 3.5 times more than any other group. Asian-Americans are big on streaming video, too. Check out Nielsen’s full report on the New Digital American Family.

Consumers’ digital behavior and media consumption habits are going to be hot topics at the upcoming RetailConnections Mobile Impact Summit, June 24-26, at Hotel Palomar in Dallas. Attendance is complimentary for retailers. Executives from J.C. Penney, Safeway, New Balance, Dots, AAFES, BJ’s Wholesale Club, H-E-B Grocery, Bare Necessities, Kroger, Whole Foods Market are among those who’ll join us.

You can view Mobile Impact Summit agenda, speaker and session descriptions here. And register here. See you there!

Wood The Cat illustrates (illuminates?) a key point driven home yesterday by Sandra Schwan on the topic of leadership in times of change: “People are watching.”

People (and quadrupeds) are watching

As closing speaker at RetailConnections Business Executive Summit this week in Miami, Schwan emphasized the importance of monitoring your actions, and choosing words carefully. She presented real examples of two executives who failed and excelled at this. The first, a Jekyll and Hyde character — beaming smile and glad-handing one moment, grousing and unaccessible the next. Words and actions did not align. The second executive welcomed the opportunity to clarify confusion about strategic direction. He wanted to talk about the new business model and celebrated small and big wins. The Jekyll and Hyde character lost clients, overworked his team and was moved from a leadership position to a role as individual contributor. The executive mindful of the impact of words and actions improved cross-selling; his team felt empowered and clients viewed him as a trusted adviser.

“You have to model the behavior that you are asking others to do,” said Schwan, managing partner at Chicago-based Evolving Strategies.

Other sound bytes from the RetailConnections Summit….

• “Don’t be mean” and “communicate hope” and resist devolving into a “no vendor left behind” policy — Michelle Garvey, Global CIO, Warnaco Group

• Targeting and personalization can bring value. Don’t overcomplicate it. — Mahender Nathan, VP, Direct, Godiva Chocolatier. Godiva will have more than 100 points of personalization in place by the end of this quarter.

• “Convenience is important to our customers because they are ….men. They want to get the hell outta there as fast as they can.” — Dennis Hernreich, SVP, CFO, COO, Casual Male Retail Group.

• “The customer experience simply reflects the way that companies are organized internally, and the patterns of interaction within the company…. The complexity of e-commerce is on the people side of things.” — Katherine Bahamonde, VP, E-Commerce, Juicy Couture. She went on to address organizational structure. What’s best? Centralized? Decentralized? A hybrid model?  ”A stand-alone, e-commerce business unit, which mirrors a pure-play online business, is the right model for organizing e-commerce going forward.” Shared services is not the best business model, Bahamonde said.

That stirred up lots of dialogue. Intriguing debate that carried through the rest of the Summit. Katherine knew not everybody would agree…and it sure got the room buzzing in a great way! Thanks, Katherine. Thanks everybody!

It was an otherwise typical Monday. For most of us.

For Orlando “Butch” Jagoda, one of the nicest guys you’ll ever meet, it was an exceptional day. The VP of IT at Helzberg Diamonds got a hole in one at RetailConnections Business Executive Summit in Miami on Feb. 27, 2012. The feat was witnessed by golf companions Ryan Lester of Intel, Ravi Bagal of Verizon and Jim Munoz of Kronos.

The whole team at RetailConnections sends congratulations to you, Butch. And thanks to Epson for hosting a wonderful day on the Soffer Course at Turnberry Isle Hotel & Resort. Hope to see you all here again next year, Feb. 24-26, 2013.

Soon after this shot was taken, Orlando "Butch" Jagoda, far right, would get his Ace. Witnessing the feat, from left, was Ryan Lester of Intel, Ravi Bagal of Verizon and Jim Munoz of Kronos.

“We need more chairs!”

Those four words are inevitably bellowed whenever Bernie Brennan and Lori Schafer convene senior retail executives for a group discussion on retail strategy. The room is packed to capacity.

A standing-room-only crowd is expected again next month, when these social media/mobility seers team up Feb. 26, for “Mobile-ize! Mobile Priorities for 2012,” a workshop offered at the Fifth Annual RetailConnections Business Executive Summit in Miami.

Bernie Brennan

Brennan and Schafer, co-authors of “Branded! How Retailers Engage Consumers with Social Media and Mobility,” are astute observers of social and mobile strategies deployed by the industry’s most successful retail companies. Their encyclopedic knowledge of what’s working today (and what’s not) will serve as the launchpad for an unscripted, lively group discussion among senior retail executives from across all verticals.

“Based on anticipated turnout for this workshop, we are trying something a little different this year,” said Marc Millstein, president and founder of RetailConnections. The Brennan/Schafer workshop will be featured twice during the Summit, to accommodate all attendees who want to participate. “We don’t want to shut anybody out of this popular session due to space limitations,” he added.

Lori Schafer

The RetailConnections Summit workshops are offered on the opening day of the Summit, Feb. 26-28, 2012, and serve as an effective jumpstart to a series of keynotes, panel discussions and networking activities.

For more information about the Summit workshops and full agenda, and to register, visit our site.

The Summit gets under way at the Turnberry Isle Hotel & Resort in Aventura, Fla. (Miami). Rooms are nearly sold out, so call me if you haven’t booked your room yet.

See you there!

Denise

If you are headed to the glass palace that is NYC’s Jacob Javits Convention Center next month for NRF’s Big Show, be ready. That’s 150,000 square feet of Expo space. That’s lots of ideas from more than 500 solution providers.

Top of mind for everyone is “opportunity” — where to find it, how to exploit it. Sorting though which opportunities are a good fit for your organization and which ones are wise to leave for others to explore is no easy task. There are two areas that bubble up to the surface for most everyone: Mobile and Global.

Growth opportunities in Brazil, China and other countries are attractive as retailers acknowledge limitations on their home soil. Retailers such as the Children’s Place have created new executive positions devoted to global expansion. And Gap expects to triple its stores in China next year, even as it reduces its footprint in the United States.

NRF President and CEO Matthew Shay says retailers have a tremendous opportunity to open new stores in the global marketplace.

Global growth goes well beyond the complex machinations of opening physical stores overseas, however. Meeting ever-increasing consumer demand obliges companies to be more responsive than ever with a nimble supply chain. That means follow-the-sun product development and sourcing. Product lifecycle management (PLM) technology has proven to be a key tool in this area and Dassault Systèmes’ PLM expert Debby Welker can shed light on this fascinating area of opportunity at the show (booth #1337).

NRF’s Shay notes that mobile is another huge opportunity as most of us cannot imagine life before our portable devices. Consumers are using smartphones and tablets for comparison shopping more than ever. Sears even encourages it with free Wi-Fi. And mobile purchases are no longer just for small-ticket items. Three to Four Ferraris are sold via eBay’s mobile application each month. The shopper psyche is changing and retailers that can be agile and respond swiftly stand to gain the most from this opportunity for growth.

A word to the wise trolling the NRF show floor: It’s always been a challenge to navigate aisles between booths because people seldom watch where they’re walking — and with so many more of us gazing down at our smartphone, texting, it gets a little more treacherous. Be safe out there!

Applause at religious services is usually reserved for milestones: introduction of a just-married couple, recognition of a 50^th anniversary, veterans returning from active duty.

Here’s what John Cusick said Sunday that drew resounding applause from the 800-strong SRO crowd shoehorned into Old St. Pat’s Church in Chicago: “I will change the face of Retail America.”

How is this priest going to accomplish that? And more importantly, why did the assembly erupt with such powerful approval of this one-man mission?

John Cusick won't leave the checkstand without 2 grins.

Cusick is a self-described “salesman” and his strategy is simple: He will not collect his purchases and step away from a checkstand until he has achieved direct eye contact with the cashier and elicited a smile. This is not always easy to do. It can take many tactics and silly faces before he charms a sullen, hourly wage-earner into cracking a smile. But Cusick does it; he pulled a grin out of reluctant Jose at Dunkin Donuts this weekend and he’ll get one out of you, if you are behind the checkout counter. He’s as persistent as a pitbull with a Cheshire cat grin.

And he doesn’t blame the store employees, who shoulder demanding work schedules for minimal compensation. He blames corporate America for not properly training and treating its customer-facing employees. It is possible to focus on one person at a time, he said, and American Retail could do it with a little effort.

The crowd seemed to agree with Cusick that the face of retail needs a makeover because we’ve all been subjected to poor service, inattentive service, ill-informed service and downright hostile treatment. And retail workers have been on the receiving end of bad behavior, too. It doesn’t have to be that way. While praising retailers is risky business (because it invites vitriol from customers who feel they were “wronged” at some point) I’m going out on a ledge to suggest two companies making a real effort. They may not hit it out of the park every time, but at least they are trying:

• Dominick’s. It’s the same at all four of the Chicago grocery stores I patronize: employees on the store floor — whether updating shelf pricing or arranging oranges in the produce section — don’t let you pass without direct eye contact and a friendly greeting. From behind the pharmacy counter Saturday, a pharmacist noticed me searching for an item and offered to help. One cashier likes to show photos of his beloved Labrador pup. They interrupt their tasks in order to recognize you, without cutting into productivity. That’s not discretionary. That comes from the top.

• Abt Electronics in Glenview, Ill. In-store, employees appear genuinely happy and work collaboratively with each other to assist shoppers across different departments. Home delivery people are employed by Abt (not contracted) and my dishwasher delivery guy, Kevin, noticed my sink faucet was outta whack and fixed it without batting an eye. He was polite, knowledgeable and eager to share that his employer treats him well and that keeps him happy on the job.

It can be done: retail can be more civil if we all do our part. A smile costs nothing, goes both ways and it can dramatically change the outlook for someone with a cloud overhead.

Dominick’s and Abt aren’t the only retailers looking to improve the customer experience. We’ve got a boatload of retail execs who will share their strategies to make shopping more pleasant in-store and online. Come hear them at RetailConnections Business Executive Summit, Feb. 26-28, 2012, in Miami.

Soaring military aircraft above. Breathtaking West Coast shoreline hither. High-level networking among retail’s brightest minds. It’s a powerful formula and we’re doing it all again Sept. 23-25, 2012, at Hotel Del Coronado near San Diego.

If you are in for next year’s RetailConections Fall Business Executive Summit, then mark those dates on your calendar. In pen. We’re putting together another powerhouse educational program and networking activities you won’t want to miss. As always, we get our guidance from retailers.

We ask: “What topics do we need to tackle? What do you care about right now?” The age-old “What Keeps You Up at Night” question never fails to yield the most pressing business topics that merit exploration.

If you’ve attended our Summits, you already know we convene a highly diverse group of retail executives in all verticals from department store to food, drug to specialty, big box to pure play. And, these retail leaders hail from all corners of the executive suite: VPs and CXOs from marketing, merchandising, bus dev, e-commerce, mobile, CRM, supply chain, IT, finance, store operations and more.

If you’ve not joined us before, you should know we cultivate a very intimate and trusted atmosphere. Retail executives share their lessons in keynote presentations and small group settings. Lots of one-on-one time.

We’re developing the agenda right now so if you have ideas on must-cover content, let us know. If you are a retail VP or CXO and want to reserve your seat Sept. 23-25, 2012, just let me know. Registration is not yet open but I’ll make sure you are the first to know when it opens up.

A view from Hotel Del Coronado

I have a favorite quote (several, actually) but am having trouble tracing the source of this one: “Virtue untested is no virtue at all.”

I thought it was Elvis Costello…but now I am hearing it may be Milton. And I don’t even think they knew each other. Point is … it’s a powerful statement. If you never have had a disappointing interaction with a retailer or restaurant or service provider, they’ve never had the opportunity to show they’ve got what it takes to make things right.

Enter Candlelite – the best purveyor of thin crust pizza in Chicago. I gave them a try at the encouragement of Billy Lowman at Lighthouse Tavern and was not disappointed. The pizza was scrumptious and thin crust pizza is a delicate piece of art. It can lose a lot in transit. Gruppo Di Amici has wonderful thin crust but they won’t deliver because they know the magic will get lost from oven to delivery car to your front door. Candlelite pizza held up from Western Avenue through all the pot holes to my place on Touhy. Thankfully, there was no gunplay that night. Perfect balance of toppings and crunchy crust. There was a slight hiccup with the order, however. I emailed the pizza place with my complaint fully expecting…nothing. Or, at least nothing for weeks. Surprise. The manager responded personally to right the wrong with a gift certificate. I am sure Patrick Fowler had many crises demanding his time upon arriving at work, but he responded to me immediately. Professionally, warmly, graciously and — specifically. I offered documentation of the misdeed. Not necessary. He would make it right based on faith.

The 17" pizza I ordered measured just 13" in diameter (but it was still yummy)

I intend to reward that gallant move with jubilant recommendations far and wide to all friends who love their thin crust.

Chipotle deserves accolades, too. When a patron tweeted his dismay upon learning that pinto beans served contain bacon — but this fact was not stated on the menu — the response from Chipotle CEO Steve Ellis was swift and the action immediate: menus changed to reflect the presence of bacon —across the country. That’s huge.

It’s not easy, this social media stuff. But. Sometimes. Just sometimes, companies step up and do….the right thing. Hats off to all those paying attention and giving their people the resources to…do right.

Anyone on this planet the past three years gets it: things are more fragile than appear at passing glance; change is perpetual; misperceptions multiply thanks to the two previous conditions. And everyone is on edge, second-guessing even closest allies.

Chicago got belted by 75 mph winds suddenly on Monday. Power outages darkened (and overheated) the homes and businesses of more than 700,000 ComEd customers. Many are still without power today. At right is a tree I pass every day, a casualty of this storm. It always looked sturdy to me. I think it’s a Maple. Good bark. Plentiful leaves, unblemished. The exterior layers of its trunk are pale. New young wood. Seemingly. Upon closer examination, however, (photo below) you can see its interior was consumed by insects or grubs. This tree was just one storm away from being taken out. It was going to happen. If not this week. Then next.

How many of us in retail feel this same way: Keeping up appearances but fragile, hoping no one will take notice. One crisis away from “the big one” that takes you out. If you are in top management, you have the unfortunate bird’s eye view of the real vulnerabilities, the scary “what ifs” you pray won’t come to pass. No one knows what will transpire between now and Aug. 3, when this nation faces default and may be unable to pay its bills.

Several of your peers have come through some storms and are ready to share their war stories. Want to hear them? And share your own tales? Join us at the RetailConnections Business Executive Summit, Oct. 11-13, 2011, Hotel del Coronado, near San Diego and you will hear…

• a prominent luxe retail COO detail the ordeal, and subsequent FBI investigation, stemming from a DDoS (distributed denial of service) attack to their web site. Denial of service equates denial of business.

• a national menswear retail EVP outline how his company was transformed by the crash of 2008 and how they’re responding today to remain competitive. Downsize? Staff up…staff down?

• a national department store chain enlighten you with new ideas to captivate shoppers with a unique in-store experience

• a pair of retail CIOs spar about the best ways to optimize the multichannel experience.

• experts in mobile/social reveal what’s coming next.

There’s a bunch more. The Summit convenes retail VPs and CXOs from a wide range of verticals. Why? Many business challenges and opportunities are universal. Sometimes — when business issues are viewed through the lens of a retail vertical different than your own — Pow! Epiphanies happen. Hope you can join us! Go to our web site for more information. www.retailconnections.com Or call me. I’m generally not doing much, anyway. Just checking the trees.

~Denise 773.573.3939

After months of tension, doubt and awkward moments, The Hub and I finally let go of the denial, turned to each other timidly and uttered the sad truth: “This just isn’t working.”

True. The microwave popcorn we loved so much burned time after time. What could we be doing wrong, we ventured. Did we not orient the bag properly? Is the microwave not calibrated correctly? Could otherworldly life forms be at fault? Left without answers, we did what any couple would do: we forsake the microwave, bought popcorn kernels in the bag, a bottle o’ oil and popped pop corn the old fashioned way — on the stovetop. Pioneers, we are.

Madness, you say? Perhaps. But shoppers are doing the same thing every day. Disappoint them in the store and they’ll revert to what they know, what is comfy, the nostalgic experience they had the last time they “felt good” about a purchase. It may have been a 1970 Chevy, a bedroom set or even a fine hunk of Stilton cheese. Fact is, they remember the good stuff. And if you’re not giving it to them, someone else will.

What’s your store culture like? Would you be enticed to buy from your own shop based on the welcoming atmosphere and service you get once inside? Or, do you rely too much on the brand to sell itself and grab the shopper — hook, line and sinker?

Savvy retailers are enhancing the physical store environment today because they know that in a world that is increasingly reliant on digital, it’s that much more important to enhance the tactile — the real world.

Ignaz Gorischek gets this. As VP of store development at Neiman Marcus, he is the driving force behind the store experience. He gets that it extends beyond the store’s four walls and out into the community; he gets that the experience is captured by the wild imagination of children; he gets that sometimes the most inspirational ideas for an upscale retailer might just come from a refrigerated food display case of a grocery store.

It’s this sort of open-minded thinking that tickles the imagination. If you Google Ignaz and agree this is one guy who is having fun at his job —and you want to hear his ideas — then please join us at the RetailConnections Fall Business Executive Summit, Oct. 11-13, 2011, near San Diego. Ignaz will be there along with a gaggle of fresh-thinking retail leaders who are unafraid to say: Let’s try something new.