ARE YOU PAYING ATTENTION?A Crash Course on Creativity

Professor Tina Seelig, Stanford University

Gail E. WaitersOctober 30, 2012

Dollar Tree Slide 1

• The store is known for its products costing $1 or less.• Their logo incorporates the number one as the trunk of a tree. The store sign and font are no frills and appears to represent structure, however, when you go inside, there is anything but.• It is typically located in a strip mall.• The store appeals to anyone interested in not paying much for staple items such as office and party supplies, can goods and other easily disposable items. It does not however, draw you in for any other reason.• The store front does not have much of an inviting appeal.• Loitering and soliciting are regular occurrences outside of the store.

Dollar Tree Slide 2

• The store does not have a color scheme, other than off white walls.• The store is crowed with merchandise, making it hard to see individual items.• The environment definitely represents the value of their products.• This is a store that I want to get in and out of within 20 minutes or less.• Typically, staff on the floor are stocking shelves. They are there to help, but do not seek you out. The person stocking also helps out at the cash register when it’s busy.• Sales people wear a uniform and depending on the holiday they may dress up. • Since this is a minimum wage job, sales people more likely mirror the store’s image.

Dollar Tree Slide 3

• The floor is carpeted with indoor/outdoor carpet that is stained and worn, signifying that it is just a floor covering.• The ceiling is about 1 ½ stories which makes the clutter down the aisles and on the walls to appear more confining.• Lighting is good. • Because of the overhead costs, it makes sense that there is no security personnel, only cameras.• The first products seen when walking in the door represents the season or holiday. Featured products are always eye level and in the front aisle and end caps. •This store does not typically have sales, free samples or demonstrations.• Products are arranged by function. The lease accessible products are some of the toys and cleaning supplies.• There are impulse items around the cash register.

Dollar Tree Slide 4

• The average customer is a adult (21-35) female with children; and it tends to be the store of choice for people on fixed income. • Customers have a number of avenues they can take when entering the store. They typically know what they want and where it is located.• The average customer will stay about 30 to 45 minutes. They are on a mission to get what they need. I would estimate that 99% of the customers purchase products from this store.

Khol’s Slide 1

• Store draws you in by its clean façade. A traditional department store look. Signage is huge block letters again reflecting a strong image.• Doors are closed but store front is inviting. • The color scheme is gray and white, connoting a cool, but warm atmosphere. Once inside, you walk on authentic tile squares in the aisles and carpet in the clothing areas.• Ceilings are about 1 ½ story. The store is well lit and organized allowing you to find the products you are looking for.• The music is appropriate. The noise level is moderate talking and music.• Merchandise is organized and stocked well. The value of merchandise is consistent with store appearance. • A security guard is at the front door and there are cameras throughout.

Khol’s Slide 2

• First products you see are men’s clothing to the right and young girl’s clothing to the left.• There are central displays throughout the store, such as jewelry and electronics.• “For sale” items are placed throughout the store. Products are arranged by function and sometimes color within a function like with towels and bedding.• The store does not offer free samples or demonstrations.•Most products are at eye level. Typically those above are overstocks and furniture.• Luggage is at the back of the store and so is home goods.• Prices are easy to find and the most to the least expensive are intermingled. Impulse items such as candy do surround the cash register.

Khol’s Slide 3

• The average age of the customer is young to middle age adult, mostly women that are shopping with their children.• The store’s entrance has a large aisle right up the middle, that guides the customer’s path. Some holiday or seasonal products are in the sight path as you walk in the door.• Every thing in the store is for sale, therefore, all products maybe touched or tried on. • More customers are on a mission to buy rather than browse. I believe this is because the merchandise is at a value most customers can afford. At least 80% of customers purchase a product. • A customer can easily spend a couple of hours in the store.

Khol’s Slide 4

• Sales people acknowledge your presence with a smile or a greeting. The customer has to approach the sales person to ask for help. • To calculate the ratio to customers, you look at how many people and how long they wait in the cash register line. For every 5 customers, there is approximately 1 sales person. • Sales persons mirror the store image. They do not wear uniforms and you cannot outwardly know if they are using store products.

Michaels Slide 1

• The sign, while it does not represent the most recent font Michael uses, still connotes a free, but proper image.• The store is inviting with its merchandise in bins on the sidewalk in front of the store. Another way they try to bring in customers is the large banners that promote sales and specialty items.• A booth used to design customized flower arrangements is one of the areas you first see as you walk into the store.• Customers are loyal crafters and/or artists. They come alone or with their children to buy supplies for school.

Michaels Slide 2

• The color scheme is brown and white and is reflected in their linoleum tiles on the floor.• The ceiling is about 2 stories high, which is useful for storage and displaying items like wreaths. • The store is brightly lit, allowing customers to see the products they are buying, since the store specializes in products used for detailed creative works.• Music is playing while you shop, but it is not loud enough to distinguish its relevance. With constant talking and the front door opening and closing there is a fair amount of noise. • If it were not for the shelves being generously stocked, the store would seem cold. In a number of aisles of the store you can smell the candles, potpourri and other distinct fragrances that customers use for their art projects.• The store’s value is reflected in their environment.• Security cameras and monitors are placed throughout the store.

Michaels Slide 3

• Cash registers are at the front of the store as you come in the door. There is no special place for you to take return items, every sales person can accommodate you. This also accounts for long lines because some sales persons are unfamiliar with the process and the store has an antiquated cash register system.• Impulse items and specials surround the cash registers and the front door. • Sales persons wear a uniform and will offer to help you without your requesting it.• The age of the average sales person is between 20s and 30s and there are several men working along side the women. Sales people not only reflect the store’s image, but also use their products and can provide ideas and suggestions to customers.

Michaels Slide 4

• The store is inviting with its merchandise in bins on the sidewalk in front of the store. There is no security or sales people watching the merchandise, which means they trust their customers and people in general. This is the first merchandise that catches your attention before you walk into the store.• Items on sale are outside along the sidewalk and also placed throughout the store. Items are arranged by function.• Periodically, free demonstrations are provided in the store.• The things you find at the back of the store are art supplies like paint brushes, floral supplies and yarn.• The store uses the space above eye level extensively for storing extra merchandise. • Customers like to browse. About 95% purchase items either because they can only find the item here, they like the quality of the merchandise or they are drawn to the variety of merchandise they sell. A typical visit to the store is about 1 hour.

Pier 1 Imports Slide 1

• Pier 1 is a store with a good reputation for their merchandise, customer service and store environment.• Their sign reflects a store that is relaxed. It does not represent the quality the store promotes.• The doors are closed and it is difficult to see into the store from the street or sidewalk. This is mainly because of the low lighting in the store.

Pier 1 Imports Slide 2

• Once inside, the store is comfortable, cozy and warm.• Sales persons wearing a uniform apron greet you as you walk in. They genuinely appear to enjoy their job and look forward to helping you. The ratio to customers is about 1:3.• The color scheme of the store is all over the board, lighting up your sense of smell, sight and touch. • There is no security personnel and only one camera monitor noticeable as you walk in the door.• The age of sales persons range in the 20s and provide a good representation of the store’s image. It is not evident that sales people use the products, but it is likely. • The cash register is in the front of the store with impulse items surrounding it.

Pier 1 Imports Slide 3

• Many products are arranged by color and function. Like these candles, scent is also a coordinating factor.• The first products you see as you walk in the store, however, are large pieces of furniture placed around the store and double as displays for other merchandise.• There are no demonstrations in the store, but they do have free samples of items you can test.• Most products are a eye level. Furniture like chairs are hung on the walls close to the 24’ ceilings. • Prices are easy to find, with the most and least expensive products intermingled.

Pier 1 Imports Slide 4

• The store has a red linoleum tile floor, ceilings about 1 ½ story, and low track lighting that brings about the cozy and warm atmosphere of the environment.• Music is playing in the background, but you can also clearly hear customers talking and the door bell sounding when people walk in.• The shelves are stocked full, using the floor and walls in diverse ways. The store is nicely scented with candles and potpourri placed throughout. • The value of the merchandise is consistent with the environment and the store’s reputation.• Pier 1 is a store that invites browsing and touching the products. About 50% of the customers, who are middle aged women do buy. They spend upwards 30 minutes in the store.

Ross Dress for Less Slide 1

• The store’s name “dress for less” would draw you in. Once in, however, the environment is not one that you would want to stay in for too long.• The exterior is pretty sterile and as you walk through the front door, there is a feeling that all eyes are on you, not only because the check out line is right in front of you, but also because you have to pass by the security guard at the front door. The security guard usually greets you with a hello.• Customers regularly walk the same way in the store because there are many obstacles that have to be dodged to get to the central area of the store.

Ross Dress for Less Slide 2

• Customers have to line up like cattle within a corded area to check out at the next available cashier.• While the line gives you a feeling of “hurry up,” the store in general feels hurried because of merchandise strewn all over the floor and hanging haphazardly over clothes racks.• The ceiling is between 1 ½ and 2 stories. Signs directing you to the merchandise hang overhead. Lighting is traditional ballast and very bright.• There is no music playing and the talking, crying or whining of children can disrupt your thoughts.• The store does not feel warm and is not comfortable. You have to step over merchandise and the aisle are quite tight.

Ross Dress for Less Slide 3

• You will not be greeted by a sales person, nor will you find one on the floor to ask a question. The ages of sales people range from young adult to seniors. They do not wear uniforms and you cannot tell whether they use the store’s products. Sales people do mirror the store’s image.• The approximate ratio of sales people to customers is about 1:20. The age and gender of sales people is mid 30s to 50s. • Most customers are with their families, whether husband and wife or mother and children. • Customers typically appear on a mission, with above 80% purchasing something.

Ross Dress for Less Slide 4

• Jewelry are the first products you see as you walk in the door. Most customers are not shopping at Ross for jewelry. The next major item you see are purses. Since the majority of Ross’ customers are women, there is always activity in the purse area.• Sale items are intermingled with other items and identified by sale stickers on the price tag. Products are arranged by function.• The store does not offer free samples or demonstrations.• All products are at eye level except for the pictures and other home goods at the back of the store.

Walgreens Slide 1

• The store draws you in with its open, front façade that has a covered entry before you enter the store. The colors are muted and feel comfortable.• The door is closed, but it is automatic and opens as you approach the eye. • Customers must walk the same path to the middle of the store, unless they turn right and maneuver the cash register line to get to the photo shop area. Customers probably spend upwards 30 minutes in the store and purchase about 80% of the time.

Walgreens Slide 2

• The color scheme is basic white walls with gray speckled linoleum tiles. The ceiling is about 1 ½ stories tall and the lighting is very bright. • The store looks to promote an image of clean and healthy, especially after renovating the Pharmacy area to be more open and comfortable for people waiting to fill prescriptions (photo not available).• All products are at eye level and it does not matter whether they are most or least expensive. The prices are on the shelving and not the product, so it is oftentimes inconvenient for the customer in trying to remember the price of the item.• Impulse items are located around the cash registers which are at the front of the store.

Walgreens Slide 3

• The first products you see when walking in the door is a display of toilet tissue and paper towels that are on sale.• Other sale items are listed where the products are shelved. There are no free samples or demonstrations. However, the store does offer a blood pressure booth where you can check your pressure for free.• Most customers are women and middle-aged and seniors shopping alone. The Pharmacy caters to all age groups. A typical shopping event is probably 30 minutes and customers are more on a mission than browsing. Approximately 80% of customers purchase.

WRAP UP• The six stores observed were: Dollar Tree, Khol’s, Michaels, Pier 1, Ross

and Walgreens. Ross would not give permission to photograph its store, so I did not ask at the other stores, except for Pier 1. The manager in that store was very accommodating and not intimidated or concerned by my taking pictures. This experience affirmed my opinion about the reputation of Pier 1.

• While I have shopped in all these stores at one time or another, I tend not to tarry in the ones that I feel have an uncomfortable atmosphere.

• I believe all stores could benefit from a Mystery Shopper program, where someone comes in unknowing to staff to record a customer’s experience and report back its observations.

• I suspect all stores worked hard to establish their brands and perhaps have something in place to continue to support their brands in a positive way. New opportunities may not be relevant to these stores, but opportunities for their competition.