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July 14, 2004
Office Depot - Retail Redesign Brings Marketing Opportunities

Office Depot, already a darling of the e-commerce world with their consistent growth in online sales, is now focusing on re-designing their retail presence with a number of sweeping changes, as reported by the In-Store Marketing Institute.

While retail is by no stretch a level playing field - Jo Bob sporting goods simply cannot compete with a major chain for location, signage, advertising and the like - there are many learnings that retailers of all sizes can glean from the big boys and apply to their own operations. Some of which are aesthetic, but many are operational and include forging better partnerships with vendors, partners, and even competitors and complimentors.

Some ideas based on the recent Office Depot redesign. None are terribly complex, or even new, but combined, they are powerful.

  • Use a consistent color scheme throughout your store to identify areas, categories, and points of interest. Customers are becoming acustomed to homogeneity of signage and language across channels. Make sure the colors and language are synchronized with your online presence.
  • Watch the height of fixtures to provide clear sight lines. Merchandise high-margin/high-exposure items in the center store.
  • Create merchandising "pods" for key product categories.
  • Increase the use of pallet displays in order to reduce labor costs and reinforce a value statement in the minds of consumers.
  • Work with your vendors to obtain more display-ready trays to minimize restocking. Similarly, increase shelf depth to minimize restocking and reduce the perception of out-of-stocks.
  • Utilize more gravity-fed and spring-loaded shelving will be used selectively to keep products organized.
  • Partner with vendors on vendor-supported signage program with co-marketing opportunities. Buyers should contact each of their vendors for more specifics on any programs they offer.
  • By all means, use overhead signage utilizing product images and text rather than lifestyle graphics in order to ease navigation.
  • If you are a store with limited inventory, or want to more closely link you online & offline presence, use Web-based, wireless kiosks that enable customers to order products from your site, view a catalog of products from your vendors, signup for your loyalty program, or join your marketing email list.

Another fine example of linking online & offline presence is Nike's implementation of its Nike ID online program into its Niketown stores. They are using a new product that allows shoppers to customize shoes, bags, and watches using the touch screen system. The Planar DS15 retail display system that Nike is using is fully integrated and ready to customize out of the box.

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