There wasn’t an Evolutionary War for a reason. In the pre-dawn of U.S. history, the new settlers wanted more than to just evolve the British rule, it had to be overthrown. A new start, a clean slate. Imagine the pressure that those founding fathers must have felt when deciding that enough was enough, let’s try something new. Today, many brands find themselves in the same place. The status quo isn’t working. It’s time to differentiate. But I wonder if the ideas of “revolution” and “evolution” aren’t being confused.

It’s easy to tell yourself that your brand needs something revolutionary, something that breaks paradigms and reveals new ways of talking to your customers. But all too often, companies follow the evolutionary path—a new coat of paint, a few new fixtures and a new sign on the storefront. A quick win here, a quick win there.

Starting your own revolution isn’t easy and that first step can be scary. One of the most important things to do once you’ve determined to change is deciding how far you can and are willing to go. Look at every facet of your brand, from the most obvious things to the very subtle.  Deep unbiased introspection will uncover opportunity for a new attitude, a new set of guiding principles, a new market space.

In retail, change is life. So overthrow the old paradigms.  Delve into your brand and find that crazy idea, the one that’s worth fighting for.

As I was finishing up payment at the pharmacy, a young male employee strolled into the area and struck up a conversation with the staff by saying, “That new Kotex packaging is sharp!”  Silence.  Then, apparently mistaking the silence as a request for clarification, he continued, “You know, the black packages?  They are really cool looking!”  More silence.  Based on a quick survey of their expressions, everyone seemed to be thinking the same thing, What is an 18 year old guy doing talking about feminine hygiene products?!  

Even as I grabbed my purchase and escaped the awkwardness, I began to contemplate what transpired.  Given that I spend my days knee-deep in shopper sciences, I found the situation quite compelling.  Good packaging should be, in part, disruptive, and the new U by Kotex packaging is definitely that.  The sub-brand is unique in the category, both in shelf presentation and in the “get real” tone of the advertising.  A+ on disruption. 

But…packaging should also be appropriate for the category, and I’m not convinced that U delivers on that part just yet—or that they are justified in bypassing that rule.  The new package grabbed the attention of the young male employee and made it seem accessible to him, but what does that mean for the brand intended exclusively for a female audience?  (For sure, some men do purchase these items for the women in their lives, but they are not stakeholders.  I highly doubt most women ask their male partners to “bring me something new” in the category when passing off the shopping list.)  I am interested to see how women shoppers will respond to this new offering.  Will women view the disruption as a welcome change in category fraught with pastels and euphemisms?  Will it become a signpost—a game-changing brand that other brands will be forced to emulate or accommodate?  Or, will women view it as a garish statement in a category where they are looking for discretion, security, and reliability?

Businesses in search of competitive advantage are much more comfortable asking design consultants for “innovation” when they should be asking for “creativity,” the birthplace of new ideas. But creativity, with its faint air of mystery and associations with renegade, non-corporate types, doesn’t seem at home in the world of commerce, where goals are achieved through “procedure” and “knowledge.”

Interbrand Design Forum has seen an increase in the number of retail brands deciding to bring creativity to the table, but a negative tendency to have their procurement officers treat it like a commodity—buying it by the pound. That’s a mistake. Few agencies know how to bring about the environment, the chemistry and the provocation that net the great, disruptive ideas that are actionable in terms of the brand experience. The kind that can move your business to a new place.

If you’re searching for creative consultants, look for those who know how to imaginatively frame questions, consider multiple perspectives and celebrate instinct and intuition. Find a team with a simple framework that allows for the unexpected, that can help your company get outside your normal tendencies so you can conceive of something really new that creates retail demand. Refuse to let anyone solve the problem at hand in a habitual way. Not all creative is equal. Truly creative people are contrary in a purposeful way.

For Release March 11, 2010

Interbrand Design Forum Contact:
Beth Ling, Director of PR
Direct: 937-312-8803
Mobile: 937-823-3480

Interbrand Design Forum Ranks the Most Valuable U.S. Retail Brands; Walmart Remains the Top Retailer, Target Leaps to Second Report shows that the strong brands got stronger, while the bottom 25 fell.

DAYTON, OHIO – Retail brand consultants Interbrand Design Forum, today released the Most Valuable U.S. Retail Brands report, the second ranking of the top 50 retail brands. Walmart claimed top honors as the most valuable retail brand, followed by Target (No. 2), Best Buy (No. 3), The Home Depot (No. 4) and Walgreens (No. 5).

The most striking shift in this year’s ranking is that despite the weakened economy, the Top 25 companies grew their brands’ value over last year. They not only survived, they prospered. However, the next 25 as a group lost value.

Broadly speaking, falling companies slashed prices, lost focus and chose not to renew their brand through investment or innovation. Rising companies had their brand proposition fully in place to take advantage of the downturn, invested in brand and convinced the customer of their relevance and worth.

This is Walmart’s second year as the top U.S. retail brand, however the big news is how much the brand value has increased. The economic downturn made it relevant to an even greater number of shoppers and its store remodel program “Project Impact”—less inventory, wider aisles, lack of in-aisle displays—paid off in high same-store sales. Walmart grew their brand value by 19%, or $25 billion, to $154 billion. It continues to be the most valuable retail brand in the world.

Target is another company that built brand value this year. With a 49% increase, Target leapfrogged Best Buy and The Home Depot to take the #2 spot on the list. As a brand-led company, Target focused on improving its operations to boost performance in the face of reduced growth without compromising brand. The company streamlined its assets, according to what matters most to the Target customer.
Five brands are new to the list in 2010:
Dollar General (No.18) – new to the list after going public in 2009
Buckle (No. 45)
Family Dollar (No.46)
Advance Auto Parts (No. 47)
Macy’s (No. 50)

A highlight among those new to the list is Macy’s, whose debut is attributable to its three-year focus on becoming a “master brand.” By holding steady to its strategic direction, it has succeeded in capitalizing on brand to improve its financials, and the results are showing up in organic sales growth in its 850 stores. Macy’s now has the clarity and power of a national brand.

The five brands that fell out of the top 50 are:
Hollister (last year No. 40)
Barnes & Noble (last year No. 44)
Men’s Wearhouse (last year No. 45)
Gymboree (last year No. 48)
Anthropologie (last year No. 50)

In turbulent times, brands that lack a solid brand strategy are likely to lose value along with the ability to drive demand. While many companies engage in tactical brand efforts, there are relatively few that filter their business strategy through their brand strategy to guide decisions. The tough market demands differentiation, innovation and value-add like never before, so brands need to be clear and compelling to stand out from price-based competition.

Interbrand Design Forum’s Most Valuable U.S. Retail Brands report will be available online at www.interbranddesignforum.com on March 11, 2010. The results will be unveiled at the GlobalShop Conference in Las Vegas on that same day.

-End-

Note to the editor:
Most Valuable U.S. Retail Brands 2010
1. Walmart
2. Target
3. Best Buy
4. The Home Depot
5. Walgreens
6. CVS
7. Sam’s Club
8. Dell
9. Coach
10. Amazon.com
11. eBay
12. Lowe’s
13. Nordstrom
14. Staples
15. Costco Wholesale
16. Avon
17. GameStop
18. Dollar General
19. Kohl’s
20. AutoZone
21. Tiffany & Co.
22. Victoria’s Secret
23. Gap
24. Polo Ralph Lauren
25. Bed Bath & Beyond
26. Netflix
27. Old Navy
28. Sherwin-Williams
29. Banana Republic
30. RadioShack
31. PetSmart
32. J. Crew
33. Marshalls
34. T.J. Maxx
35. Aéropostale
36. American Eagle Outfitters
37. Urban Outfitters
38. Whole Foods Market
39. JCPenney
40. Rent-A-Center
41. Dick’s Sporting Goods
42. Bath & Body Works
43. Big Lots
44. Tractor Supply Co.
45. Buckle
46. Family Dollar
47. Advance Auto Parts
48. American Girl
49. Abercrombie & Fitch
50. Macy’s

Most Valuable U.S. Retail Brands 2010 Methodology and Results
To qualify for inclusion in the Interbrand Design Forum Most Valuable U.S. Retail Brands, each company must be a market-facing brand, operate significant distribution channels in the United States, with publicly available financial data and positive Economic Value Added. Interbrand examines brands through the lens of financial strength, importance in driving consumer selection and the likelihood of ongoing branded revenue. This methodology evaluates brand value in the same way any other corporate asset is valued—on the basis of how much it is likely to earn for the company in the future.

About Interbrand Design Forum
Since 1978, we have been creating retail brand experiences for companies around the globe. Interbrand Design Forum’s talent for game-changing innovation led us to create a business model that integrates analytics-based strategy—the first and only company with such a comprehensive offering.

This unique ability to address retail’s growing complexity led many of the world’s top companies to our doorstep and propelled Interbrand Design Forum to the forefront of the industry.

We have been part of Interbrand since 2002, and two years ago we added Interbrand to our Design Forum name to reflect our place in the world’s largest branding consultancy.

Today, we have 1,200 associates in almost 40 offices around the globe and a practice that brings together a diverse team of insightful right- and left-brain thinkers. This deep talent pool makes our business both rigorously analytic and highly creative.

As a result, we have changed the dialogue, defined the meaning of brand management, and continue to lead the debate around brand as a valuable business asset. By making brand central to our clients’ strategic business goals, we help them create, manage and grow the value of their brands.

NEWS RELEASE
For Immediate Release
November 17, 2009

Media Contact:
Beth Ling
Director of Public Relations
Interbrand Design Forum
(937) 312-8803
bling@designforum.com

Homemakers Renovation sets new benchmarkin furniture industry
Interbrand Design Forum redesigns all 400,000 square feet of the space to create a state-of-the art destination store

dayton, ohio— Retail brand consultancy, Interbrand Design Forum worked with Homemakers Furniture to transform its existing store into a best-in-class retail and service experience.

The newly redesigned 400,000-square-foot location in Des Moines, Iowa opened July 31, 2009. The project resulted in every square foot of the building being either remodeled or redesigned and includes a 215,000 square-foot showroom and an expanded warehouse.

The company selected Interbrand Design Forum to design its new store, which included a complicated series of existing buildings with varied ceiling heights and column spacing. While it presented challenges, Homemakers was committed to staying in the same location and worked with the design team to optimize the use of its awkward pie-shaped land by reorienting entrances, parking and circulation.

“With a space of this size, it was essential to make it easy for the customer to understand and use the store,” said Scott Smith, senior vice president, executive consultant, Interbrand Design Forum. “The new design focuses on ease of access, visibility, vertical circulation, traffic flow, merchandise displays and check out.”

To improve navigation, the team punctuated the store with feature areas that bring to life each destination category, while weaving in small accessories and showing total room solutions. Sightlines were a critical aspect of this and the team had to find the right balance of open space and backdrops, making it manageable to shop while showcasing the impressive selection and clearly identifying high-end options as well as value room packages.
The new design provides flexibility for varying levels of stock capacity, seasonal requirements and floor sets and maximizes the space while creating a disciplined merchandising approach.

To avoid over-merchandising with too many room settings, the team helped Homemakers optimize the presentation, and provide more open space. The design minimized the investment in theme rooms, instead using oversized graphics to convey a style. This approach allows Homemakers to easily freshen the vignettes and stay on trend.

In an effort to attract interest in the previously under-performing mezzanine level, the team moved two destination categories, bedroom and mattresses, upstairs and opened the architecture to add escalators, which enhanced circulation. A satellite bedroom at the bottom of the escalators also increased interest and added to the dramatic improvement.

Driving choice through a clearly articulated brand proposition
“As a family-run business, Homemakers had a clear idea of who they were, but their story wasn’t being brought to life in way that differentiated them, said Smith. “Homemakers needed to be positioned as an authority on the home, so we focused on that idea as we created a strategic brand positioning and translated it into an image and personality that provides consistency throughout all the visual elements of the shopping experience, including the new logo.”

The idea of home is central to the brand that has a tradition of serving customers freshly baked cookies, and is reinforced with the signature fireplace tower. The 16-foot square hearth provides a warm welcome inside the 50-foot tall grand entrance, while serving the practical purpose of disguising an immovable mechanical room.

This area also provides the backdrop for the new accessories marketplace, which presents all of the merchandise in one central area. Since accessories offer an opportunity to drive traffic, additional displays were incorporated throughout the store, in addition to being featured in room vignettes.

Building on customer service
Customers can pay for purchases in the front checkout area or at any of the 79 point-of-sale stations, which are located throughout the store. These strategic towers play dual roles, carrying the brand message and serving as work stations where customers can find assistance, obtain information or place an order.

Service is at the heart of the Homemakers brand, so back-end improvements were a key element of the project. The distribution center and pick-up department were significantly expanded which improved efficiency and reduced wait time for the 50% of customers who pick up their merchandise.

The new space is also energy efficient. By using a number of energy conservation strategies, Homemakers is projected to save $95,996 in energy cost per year. These measures qualified Homemakers to take advantage of incentive programs which offset 50% of the incremental costs associated with the energy conservation investments, and expert payback analysis shows the effort will pay for itself after one year.

“Homemakers has set a new standard with this store. This is the new benchmark for furniture retailing,” said Ron Blumkin, President of Nebraska Furniture Mart, a Berkshire Hathaway company who owns Homemakers.

About Interbrand Design Forum
Since 1978, we have been creating retail brand experiences for companies around the world. Interbrand Design Forum’s talent for game-changing innovation led us to create a business model that integrates analytics-based strategy—the first and only company with such a comprehensive offering.
In 2008, we added Interbrand to our Design Forum name to reflect our place in the world’s largest branding consultancy. We have been part of Interbrand since 2002, which makes us part of a network of 1,200 associates in almost 40 offices around the globe. For more information, please contact Beth Ling (937) 312-8803 or visit www.interbranddesignforum.com.

About Homemakers
Homemakers Furniture was started in 1974 by Carl & Ina Merschman and their family. With the recent renovation and expansion, Homemakers has become one of the top ten largest furniture showrooms in the country with nearly 300 employees. Recently celebrating 35 years of business, Homemakers has cultivated a strong tradition and is one of the premier Home Furnishings Stores in America. To find more information about Homemakers, go to the newly redesigned website www.shopHomemakers.com or contact Kimberly at kimberly.r@shophomemakers.com or call (515)309-4635.