Last year I summarized a lengthy Wall Street Journal article on the challenges facing the woman’s wear retailer Ann Taylor. At that time, Ann Taylor was in a rebuilding process trying to shore up sales at its higher-priced Ann Taylor stores all the while continuing to drive the success of Ann Taylor Loft, its lower-priced, more causal off-shoot brand.
Part of the rebuilding process included developing specific customer profiles of which customers fits the “Ann” persona and which ones the “Loft” persona. Every marketing and merchandising decision for these two similar, yet different, brands was based upon the two personas.
Hopes were high back in July 2005 that this branding work would result in better sales for Ann Taylor.
Well, Ann Taylor’s 2nd Quarter financials tell us sales are definitely stronger in 2006 than 2005. Year-over-year sales at Ann Taylor are up 6.4%. And at Ann Taylor Loft, year-over-year sales have risen by 14.2%. Overall sales and gross margins at these two retailers have also increased significantly.
The Wall Street Journal recently followed-up on this story by running an interview with Ann Taylor CEO, Kay Krill. In this piece, Krill discusses the evolution of the “Ann” and “Loft” persona work. She also gives five tips on reviving a fashion brand:
# 1: Know your client—not only what she wears, but how she lives.
# 2: Have an action plan, and have total agreement from the senior leaders who need to execute the plan.
# 3: Evolve. Retail is not a static business; there’s great danger in staying still.
# 4: Constantly communicate with employees at all levels.
# 5: Stay positive and optimistic.
SOURCE | Wall Street Journal article | Sept. 15, 2006
Can't go wrong following these:
# 1: Know your client—not only what she wears, but how she lives.
# 2: Have an action plan, and have total agreement from the senior leaders who need to execute the plan.
# 3: Evolve. Retail is not a static business; there’s great danger in staying still.
# 4: Constantly communicate with employees at all levels.
# 5: Stay positive and optimistic.
Posted by: Lewis Green | September 20, 2006 at 01:40 PM
hi john,
great post.
i think another women's retailer that understands their customer and isnt afraid to right after them is Chico's. They get it and their results year after year proves it.
paul
Posted by: Paul Marobella | September 21, 2006 at 09:39 AM
That model on the front page of Ann Taylor's website is disgusting, she looks anorexic. Branding is also about social responsibility - GET SOME!
Posted by: Adam | September 21, 2006 at 12:58 PM