AUSTRALIA’S remarkable resilience to the global economic slowdown has allowed many retailers to flourish. However, some parts of the retail sector are not responding as well as they might like.
The problem is the declining middle market. In response to the buoyant housing market, the past few years have seen a dramatic increase in the number of decentralised ‘value’ stores selling furniture, white, brown, electrical and household goods. In other words, a significant proportion of the Myer/Grace Bros product range can now be bought cheaper and more conveniently elsewhere. But the problem doesn’t end there. This commoditisation of household goods has enabled consumers to save money and indulge themselves on expensive and more desirable items that are usually sold in environments far more personal than your average department store. So the department store loses customers from both ends.
David Jones has managed to pull away from the middle market by repositioning as a ‘House of Brands’, hosting a deliberately selected mix of established concessions with enough brand show space of their own to pass credibility onto David Jones as an authority in leading brands.
The Suspect
Myer/Grace Bros—Where to from here?
The Promise
Aside from still struggling with its name change issues (doing it no favours from a consumer perspective), the brand doesn’t seem to be articulating a clear proposition. “Oh yes it is,” we hear you say, “It’s My Store, Grace Bros…” or “My Store Grace Bros” or “My Store Myer”.
The wonderfully empowering campaign from Singleton Ogilvy & Mather, allows us to once again own Myer/Grace Bros in our hearts and minds. But what does “My Store...” mean to the average punter and how is this promise being delivered in store?
What you think
Again we surveyed more than 100 consumers from a variety of demographic backgrounds to find out how they were interpreting the brand promise “My Store...”. The responses we received indicate that the campaign has succeeded in making people sit up and take notice, but the ensuing store experience has left them feeling empty.
Some said “My Store...” means that we should feel comfortable when in the store. Others said “My Store...” mean that this shop has everything anyone could need. Some even figured that Myer/Grace Bros is professing to have the skills to cater for individual preferences and needs. Sadly, a large number (around one third) didn’t really know what it meant.
The Expectation
The perceived ownership that comes with the phrase “My Store...” gives the impression that things will be more relevant than they have been in the past.
The fact that it is ‘our’ voice in the ad making a statement about how much we love that brand, and not that of the brand telling us something, cleverly makes us think that Myer/Grace Bros is now more desirable to us as individuals.
The Delivery—Environmental
To get this right, we visited Chadstone in Melbourne to see the latest incarnation of Myer/Grace Bros’ store environment. This store has it all; brighter lighting, better circulation, focal points at the end of the aisles, dramatic perimeter and centre floor merchandising—in fact, everything you’d find in any other contemporary department store. And herein lies the problem.
Apart from the very dynamic floor-to-ceiling photography at every turn depicting My Bath, My Summer, My Kitchen, My Bed, (My God have we finished yet?) this could be any other department store. Unfortunately the flexibility and cost savings that inform the similar aesthetic in every department do not give Myer/Grace Bros credibility or category authority. There is a range of different finishes throughout the store but that’s where the variety ends. How can girl’s street apparel require the same physical language as men’s formal wear? It’s not convincing.
Retail branding is more than just the physical environment you pass through and it’s more than just reminding customers about what they saw on TV.
It’s about communicating what is different and special about your brand with a uniquely recognisable personality and style. This should come across in the signage, the way in which the staff interact with you, the tone of voice of all the promotional material, even the store bag. It’s also about understanding your customers’ behavioural mind set within your store and delivering to their needs and expectations at every key touch point with a considered brand message.
Almost every opportunity to initiate dialogue with Myer/Grace Bros’ audience has been passed up for another generic solution, serving only the practical function it was originally designed for all those years ago. Take the fragrance floor for example. The most impressive thing about it? Estée Lauder’s new concession design (also available at David Jones and the airport).
What a golden opportunity for Myer Grace Bros to interact with its customers in a meaningful way by creating a fragrance bar (exclusive to Myer/Grace Bros by the way) where you can sit and test any new fragrance and be taught about the various scents and aromas by a Myer/Grace Bros in-store expert.
The Delivery—Human
From a customer service perspective, the opportunity to communicate in a manner that is special, unique and specific to the brand message appears to have been overlooked also. If we are to truly feel that Myer/Grace Bros is interested in me the individual and my needs (“My Store”), then those needs must first be identified. To identify individual needs, we would have to have answered questions by customer service staff. Questions like “What sorts of things can I help you with today?”. Questions that were never asked.
The Verdict
We believe our suspect has missed a golden opportunity to deliver its brand promise in store by empowering its staff and by clearly articulating its brand idea. The re-appearance of the promise throughout the store with no further explanation or tangible delivery seems to add to the confusion and frustration that some customers are feeling.
Karl Treacher is managing partner of ADCom Worldgroup and founder of Brand Behaviour. Send questions or suggestions to E: karl.treacher@adcomm.com.au
