Time for something new

Having just returned from the United States, it was interesting to contrast the differing views prevalent amongst retailers there. The official figures don’t help much in giving an accurate take on what is happening. On the one hand, the economy is moving out of recession but at a huge cost - not just to jobs but to the national debt which stands at a truly colossal number. It doesn’t matter much that all economic experts believe that the massive injection of public funds averted a complete collapse of the banking and financial system - the next few years will be all about paying down the debt.

But for US retailers, there are pockets of good news. Not at the luxury department store end admittedly, but food and younger fashion is improving as the last set of retail sales figures showed. Its certainly not enough though to lighten the retail mood and everyone is waiting with baited breath for what happens when the late summer fades, the colder weather kicks-in and the holiday season begins.

However, there were some other indicators worth noting. And those are coming from the few retailers who seem to be investing in their brands once more. Down in SoHo in New York, an area that has undergone a big makeover in recent years, the buzz is very much about the new store openings. Topshop, which opened in March, is one of those flagships. The latest though was Abercrombie & Fitch’s Hollister flagship. This amazing store takes the familiar format which has been opening to great acclaim in the UK and developed it to a new level - several levels in fact as the store trades off many floors. From the bag count, the store is clearly one of the hits amongst shoppers.

Further afield, there is also a buzz about Banana Republic’s new format which recently opened in Las Vegas. Reports from those that have seen it say that it has transformed the look of the merchandise and created a must-visit destination. News that would have certainly pleased the business’s founder, Don Fisher who sadly died yesterday.

Both examples are enough to prove the point that even though today’s consumers are more chastened and cautious, then can still be inspired to shop.

As one retailer put it succinctly, when times get tough, its time to increase the emotional input into their brand. Not bad advice at all - and from what I could see, an approach that is clearly working.