THE ARROGANCE OF IGNORANCE PART 2.

Macy’s closes another 68 stores, is your brick and mortar store and retail strategy irrelevant?

By now everyone has read that Macy’s is closing

up to 100 stores, 15% of their store network and

laying off over 10,000 employees. Their stock is

down 15% as of this writing, but they are not

alone. Kohl’s Department stores stock is down

19%, and other retailers are all down 5%-10%+.

Eddie Lacy, principal of Sears has loaned that

retail disaster another and so on and so on… I’ll

explain my thoughts on this in a minute

In July I wrote a blog; The Arrogance of Ignorance

(http://www.social4retail.com/the-arrogance-of-

ignorance) Lessons learned from Don Draper. The

subject revolves around the definition of

insanity…you know doing the same thing over and

over and expecting a different result and

remaining irrelevant through the process.

Well, what do you know. The retailers mentioned above and countless other retailers and many in our

industry are damned and determined to prove that theory false ... at all costs.

I talked with an old friend the other day who is a Rep in the furniture business and asked him how his

business was. He said it was pretty good, but qualified a lot of the uptick was due to online retailers ….

SHOCKER!

His Brick & Mortar Retailer’s Business, not so good. The old tried and true retailers he was so successful

with just 5-10 years ago are struggling and many are going out of business. Think about it…10 years ago

was 2007 … and now those once successful customers of his are a dying breed. He said they just don’t

understand the internet and all that social stuff and when they try to engage with it, they do it half-

assed. OMG, that statement is so familiar. Why you ask? The answer is all about the usual suspects;

1. No website or bad website

2. No content on the website

3. No videos showing product information, features and benefits. (On point here, my friend said

they were selling motion headrests and he had to create the video to show consumers that

feature because his manufacturer brand gave him … Nada….Crickets….Go figure)

4. No shopping cart

5. No social engagement

Do I need to say more? If you think I do, read my retail rants blog, I’ve already said it…over and over and

over and over…. http://www.social4retail.com/my-retail-rants-blog.html

Back to Macy’s

I grew up in St. Paul Minnesota where Dayton’s ruled the local and regional scene with their department

stores. As a kid, they were magical during the Christmas Holidays; the displays, the 12th floor Christmas

Land and more. As an adult, that’s where I shopped and most locals did for quality merchandise that

was merchandised to us.

(Macy’s St Paul Store) (Macy’s Minneapolis Store)

Now, their once iconic store, previously Dayton’s, in Downtown Minneapolis that had 1MM Sq Ft at one

time is closed, as is their iconic store in Downtown St. Paul that I grew up with.

Looking back 10 years ago when Macy’s bought out May’s, Federated, Dayton-Hudson and more. The

thought was “centralization and economies of scale”. When I hear that phrase, I automatically think …

“Pigs get fat, Hogs get slaughtered” and that’s what is happening with Macy’s, Kohl’s and shopping

malls everywhere. I call it “The commoditization of everything”.

Macy’s decided that what is cool in NYC, Chicago or LA, that it would play in Peoria. It doesn’t and it

won’t and it never has and it never will. I wrote about this in my blog, “what the election can teach

marketers”; http://www.social4retail.com/what-the-election-

can-teach-ad-agencies-and-marketers

HELLO INTERNET

Macy’s was horribly late to the game as were other large B &

M retailers especially furniture retailers…And Sears…who

knows, do they even have a website? They just sold the

Craftsman Brand to Black & Decker…what’s next…KitchenAid to G.E? The Limited Stores have

abandoned the Twin Cities and many once iconic retailers are closing like those adjustable mortgages a

few years ago that did such wonderful things for the economy.

Originally, Macy’s, Target and others had Amazon host their websites. To me, that’s letting the wolves

into the hen house. Amazon could see all the analytics and now what are they doing? They’re creating

their own private label brands. Lessons learned, I think not.

Shopping malls, I wouldn’t buy stock in them. They are loaded with national retailers that are also

fighting the definition of insanity … buying/merchandising from their crystal palaces and trying to force

them on Peoria and every other mall in the universe. This coupled with the insane violence, fights and

brawls at malls, why shop there when you can just point & click?

Sure it’s easy to buy online and yes it will grow. BUT 85% of people still WANT TO BUY LOCAL, and they

aren’t coming to your store because your marketing, advertising, merchandising, social engagement,

purchase options and your website probably don’t even meet the definition of “Pedestrian”.

What’s PEDESTRIAN you ask? Here are a few words that define Pedestrian;

dull, boring, tedious, monotonous, uneventful, unremarkable, tiresome, wearisome, uninspired, unimagi

native, unexciting, uninteresting, uninvolving ordinary, everyday, run-of-the-mill, mundane, humdrum;

If you missed any of the above 5 reasons why people aren’t engaging with your store ... you are

irrelevant and you will disappear …probably sooner rather than later.

AND I’m not just talking to retailers here, I’m especially speaking to the Manufacturer Brands too.

When I mentioned “The Commoditization of Everything” it is so prevalent in my industry, home

furnishings. In my industry when a furniture brand comes out with a winner, everyone knocks it off and

the end result…..SAMENESS, commoditization, with all the manufacturers trying to sell the same look for

less. I don’t see that in shoes for women, good lord how many shoes can one woman own…get my drift?

They make so many unique styles for women, and what do women want? Uniqueness, a statement

accessory that is unique…TO THEM!

So, as we continue to practice the Arrogance of Ignorance, let’s quote Wikipedia that ignorance

“is an adjective describing a person in the state of being unaware and is often (incorrectly) used to

describe individuals who deliberately ignore or disregard important information or facts.

BUT maybe Wikipedia’s definition below is more suited

Ignoramus is commonly used in the UK, Ireland, and the US as a term for someone who

is willfully ignorant. Ignorance is distinguished from stupidity, although both can lead to "unwise"

acts.

As I finish this RANT, may I suggest you go back and watch the Don Draper video at the end of my first

part blog and you’ll get my drift. (http://www.social4retail.com/the-arrogance-of-ignorance)

If you are a retailer, you must have an awesome website loaded with “EVERYTHING” you have open to

buy from your suppliers, even if it means you have 100,000+ items on your platform. Why? Think about

how many SKU’s Amazon, Wayfair, Overstock and other purely online retailers have? MILLIONS and

MILLIONS of SKU’s, where consumers can find that Item, or shade of Lipstick that MARKS their style and

speaks to them! Don’t do this and you will not only be irrelevant in local search, but in selling those

“unique styles” that your consumers wants. Don’t show it and you won’t sell it, it’s that easy and

Amazon, Wayfair and others will take your sale.

So whatever you do, don’t listen, don’t read and understand what’s happening and whatever you do

don’t change and let the definition of irrelevant prevail;

ir·rel·e·vant əˈreləvənt/ adjective

not connected with or relevant to something.

immaterial, not pertinent, not germane, off the subject, unconnected, unrelated, peripheral, extraneous, inapposite, inapplicable;

unimportant, inconsequential, insignificant, trivial; off-topic;

I rest my case

ABOUT BILL NAPIER

Bill Napier has been in the Marketing Industry for over 35 years and is currently the Managing Partner at Napier Marketing Group, Inc.

Furniture Today Magazine has labeled Bill Napier as being a “disruptor” in the home furnishing industry and he loves that moniker! In the 90’s, Bill’s marketing agency PMA Network (Promotional Marketing Associates, Inc.), with offices in Minneapolis and Chicago, launched many consumer brands, as well as being a strategic consultant for The Times Square Millennium Celebration. He was hired by Ashley Furniture in 2000 as their Chief Marketing Officer (CMO) and was blessed to be part of their astronomic growth from $800MM – $2.7BN over his 5-year tenure. He has also worked with two other furniture brands as CMO. He has been an industry consultant since 2007 and with his company Napier Marketing Group has developed and managed some of the largest promotions ever done in the industry. Bill has developed and maintains the largest aggregated marketing informational website for retailers and brands: www.social4retail.com Need help bringing a product/brand to market in the Home Furnishing's category? See what people have said about Napier Marketing Group's results from existing & former clients HERE billnapier@napiermkt.com 612-217-1297