Question
Anthropologie moves out of London Fashion and homewares retailer Anthropologie has opened its first English store outside London. But will its aspirational and arty ambience
Anthropologie moves out of London Fashion and homewares retailer Anthropologie has opened its first English store outside London. But will its aspirational and arty ambience work away from the capital? When the first Anthropologie store opened in the UK back in 2009, the arrival of the more grown-up format from parent group URBN Inc., which also operates Urban Outfitters, was a big deal. At the time, the distinguishing point of the Regent Street store was a massive living wall of plants, which continues to 'live' in the staircase atrium. That and vintage tables acting as fixtures which could also be purchased attracted much interest. Four years on and Anthropologie has bedded down as far as London is concerned and, with a second store on the King's Road and one in Edinburgh, it has made progress - albeit perhaps not quite at the speed that was originally talked about. In April 2013, however, the retailer opened its fourth UK store in Guildford, Surrey. Pay for the display Located on cobbled Guildford High Street, the shop, which has a selling area of about 10,500 sq ft, is on the site of a former Habitat and trades from two floors. There is nothing to indicate the property's former occupant and in the 16 weeks that URBN chief operating officer Andrew McLean says the store has taken to create, the interior has been completely stripped out and remodelled. McLean says Habitat had actually managed to 'close down quite a lot of the selling area' and that the Anthropologie store design team, which created the template for this shop at the US headquarters, has done everything from relocating the staircase to installing new floors. It has also divided the space into rooms on the ground floor thanks to the creation of two large square arches that allow views through the space, and which also mean the shop is not a big white box. The ground floor is predominantly about homewares, some apparel and accessories, while upstairs its clothing and a cast-iron four-poster bed in its own see-into room. All of which will be familiar to those who have visited the London stores, as will the merchandising techniques. Country manager Gisela Garcia Escuela says that the product mix in Anthropologie is 'around 60% apparel, 30% homewares and the rest is accessories'. The majority of the display fixtures are pieces of reclaimed vintage furniture that have been stripped and left untreated. They are for sale as well as the merchandise that is piled onto them. 'It's actually a very good business', says McLean, standing in front of a long, snaking Art Nouveau display cabinet in dark wood priced at 16,000. It, in fact, is the most expensive piece of furniture in the store and would require a very large house to accommodate it. It provides a focal point on the ground floor opposite the cash desk and Garcia Escuela says that she hopes it doesn't get sold because it helps to define the mid-shop area. Elsewhere on the ground floor the furniture-cum-display vehicles help to break up the space and all of them are heavily merchandised. Art and installations There is also the usual Anthropologie feature at the front of the shop, designed to provide a visual introduction to what lies beyond. This takes the form of a cone, created by threads that reach from a circular plate on the floor to a single point on the Jan - Apr. 2021 Final Assignment BM301 Retail Marketing Page 2 of 3 ceiling. It is an expensive and somewhat extravagant use of space in a store as it occupies a fair amount of the mid-shop in the prime selling area - just inside the entrance. However, given that Anthropologie is about adding value to merchandise by creating an appropriate environment with a mix of installations, artwork and a washed-out colour palette on the walls, it makes sense. The floors are worth noting too. In this store, the ground floor's zones are demarcated by a grey tiled surface, a herringbone wooden floor and then an area that is formed of reclaimed wood. Shoppers may not consciously notice the change from one area to the next, but they will probably be aware that this is a store formed of distinct zones. The right demographic The upper floor, where there is a lot of natural daylight, is reached via a long, darkwood staircase. The wall to the side of the staircase has an abstract painting on it and the sense on reaching the top is of an art gallery rather than a store. The question is will the format work outside London? Garcia Escuela is clear: 'It's Surrey. It's a London customer and we know who this is'. McLean adds: 'The demographic is bang on and is exactly what we want'. He says that in the long term the view at Anthropologie is that there is room for 'around 40 stores in the UK'. The roll-out is considerably slower than was originally talked about when the retailer arrived in 2009, but McLean is quick to point out that stores will only be opened in appropriate locations as sites become available. 'If the right space presents itself, then we'll go with it', he says. Demand for more In spite of the distinctly aspirational nature of the product pricing in these stores, McLean says that the anticipated payback on any shop is two years. 'We've never been hurt by putting the capital into any store', he says. 'You have to invest and it has to look good. When you under-do it, she notices'. The Guildford store is almost like a London satellite, at least as far as Garcia Escuela and McLean are concerned, and it seems probable it will succeed. McLean says that one of the unintended advantages of a gradual opening programme has been pent-up desire. 'The demand for the brand across Europe is unabated', he maintains. There will be another Anthropologie store opening before Christmas - a pop-up in Westfield London. It is to be assumed that both Westfield and Anthropologie will be aiming for it to be sufficiently robust to become a permanent part of the centre's offer - alongside the Urban Outfitters store in this location, which is also on the site of a former Habitat shop. Anthropologie is, both in terms of price and appeal, a niche offer. But to judge by the number of shoppers who had beaten a path to its door on a wet Tuesday in Guildford, it has plenty of fans.
Question 1
Analyse with clear evidence, the FOUR (4) elements of retail atmosphere been applied
to the store described in the case.
Question 2
In reference to the case facts and with retail store designing approach, justify FIVE (5) critical issues retailers need to consider when designing a store.
Question 3
Illustrate with evidence FIVE (5) key points of Anthropologie's store layout that make it different to competitors such as furniture stores and department stores.
Question 4
Assume that Anthropologie's main objective in location is to build an effective strategy for market leadership. Determine THREE (3) main consideration which Anthropologie need to take for its strategy position.
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