Tag: bopuis

Interviews with Circuit City CEO Philip Schoonover

circuitcity.jpgCircuit City’s CEO Philip Schoonover has done a couple interviews this week, one with the WSJ and the other with the Times-Dispatch of Richmond, VA (Circuit City’s Headquarters).  Here are some of the more interesting questions and answers from the two interviews. 

WSJ: Why do you think the new, smaller-sized store will improve Circuit City’s profitability and sales growth?

Mr. Schoonover: It offers a different experience. Customers can touch and compare, and learn how to use the most complex products and services that we sell.
It is a more efficient use of space. Typically, our stores are 35,000 square feet, and less than 18,000 of that is selling space. The new prototype is 20,000 and has 17,000 of selling space. This fundamentally changes the economics. We can get higher revenue per square foot, higher-margin dollars per square foot, and we can find additional sites that weren’t necessarily available for our old box.

I’m a big believer in high interactivity shopping experiences, so it will be interesting to see what they do with the new store format.  The main concern I have is the smaller stores.  Will this mean a smaller product selection?  Will they turn into the Radio Shacks in the malls?  It’s almost as if they are positioning themselves between Best Buy and Apple, and I’m not sure they can build an identity between these two and flourish.   Apple has set the bar high for shopping experience and Best Buy’s product selection is better than all except for Fry’s and a couple regional players.  (continue reading…)

Implementing Buy Online, Pick up in Store

Nikki Baird of Retail Systems Research has written a great article about implementing buy online & pick up in store in their weekly column Retail Paradox.  She talks about the ROI potential and if it is necessary for retailers to implement these capabilities. 

Is buy online/pick-up in the store (BOL/PUIS from here on out) the cross-channel activity with the highest ROI? The panel’s consensus: the ever-popular answer, “It depends.” It certainly can provide a solid ROI – despite fears of channel cannibalization, whether coming from stores or from online, BOL/PUIS actually offers growth opportunities. It captures online sales that would have been lost because the consumer needed it “right now.” It also is additive to in-store sales, as consumers coming into stores tend to purchase more than just the item they came in to pick up.”

I agree with these statements and they are all very valid.  I also think that it’s beyond the ROI you are able to measure directly in same store sales year over year.  It comes down to customer experience and the loyalty that the positive experience generates.  We know that 17% of store sales, about $400 billion, is currently influenced by online research.  Forrester predicts this to be over $1 trillion in the next 5 years.  As the reliance on information on the web continues to increase, customers will demand to be able to do business in whichever channel suites them at that particular time.  If a consumer is not able to achieve the experience they are looking for, their loyalty will go elsewhere.  (continue reading…)

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