Design of goods and services

new design and architectural trends shows renewed interest in the department store environment,
including a refinement of brand presentations, new layouts and store amenities, and architectural
styles that bring the outside in.

Let the light shine in

One of the most prominent design trends shaping the department store landscape is the opening up of
perimeter walls. “We’re getting smarter about maximizing floor space,” says Ignaz Gorischek, vp,
store development, Neiman Marcus (Dallas).
Without the need to use perimeter walls only for merchandise displays, retailers are uncovering or
adding windows, allowing natural light to flood their interiors and bring views of the outside in. “It
feels good to look outside,” says Gorischek. “It makes you feel like you’re part of the community
when you can look out onto the street.”

Neiman Marcus’s latest store concept on display in Walnut Creek, Calif., features a multitude of
windows on the main and second floors, as well as a corner, glass window area for men’s shoes.

Macy’s Inc. (Cincinnati) is undertaking one of the sector’s largest retail renovations at its Herald
Square flagship in New York, which is expected to be completed by 2015. Among plans for the
project are the “opening up of as many windows as possible,” says Steven Derwoed, Macy’s vp,
store design and merchandising, including views over Broadway and Herald Square from a new
women’s shoe salon, set to debut this summer.

“People like being in an environment with natural light,” he says. “It creates an enjoyable experience
that encourages customers to stay longer.”

Smarter places to shop

Along with natural illumination, department store retailers in North America are infusing their spaces
with new amenities and services that are designed to draw shoppers in and then keep them there
longer.
Some retailers are relying on technology to improve customer service, including Sears Holdings
Corp. (Hoffman Estates, Ill.) and Saks Fifth Avenue (New York), which have armed employees with
iPads to facilitate the shopping experience. Macy’s is testing Beauty Spot, a concierge-like cosmetic
service where shoppers interact with a kiosk to order beauty products from a host of brands, which
are then collected by a sales associate for an easy and efficient checkout experience.

One of the most anticipated department store transformations will begin this fall as JCPenney (Plano,
Texas) begins an overhaul of its store interiors to bring them more in line with its new, Ron Johnson-
driven branding strategy. By 2015, every store in its fleet is expected to hold 100-plus mini-shops
laid out along pathways that lead to a town square, which will host events and gatherings, such as ice
cream socials, for customers.

Jeff Henry, design director, Gensler (San Francisco), applauds JCPenney’s decision to dedicate
square footage to the in-store experience and not simply product. “Department stores need to be
perceived as leaders,” he says, “not followers.”
However, JCPenney’s plans to finance store renovations by cutting staff might be an Achilles’ heel,
he adds. “Customer service is how you build your bridges.”

Food is also making a comeback, says FRCH’s Gardner. “The customer is looking for ‘What else is
in it for me?’ when it comes to the shopping experience,” he says.

Today, consumers can expect to find a range of offerings from sit-down dining and pub-style
restaurants to coffee stations. Macy’s Herald Square will house a coffee, champagne and chocolate
bar, as well as restaurants that cater to both customers and the late crowd with sidewalk entrances for
when the store is closed.

B is for Brands
Another growing point of distinction for department stores are their brand offerings, whether housed
in hard or soft shops throughout the store environment. Gensler’s Jordan says designer partnerships
and brand collections are great for grabbing shoppers’ attention. “They generate buzz and get
customers in the store, hopefully yielding a halo effect for private labels and other assortments,” she
says.
Louis Vuitton will unveil its first shoe salon at Saks Fifth Avenue in New York as part of the luxury
department store’s renovation and expansion of its 10022-Shoe department, which boasts its own zip
code. The branded shoe salon will carry a distinct Vuitton feel, including blond wood, hand-applied
plaster and textured lacquers, with carpets and seating selected by architect Peter Marino, Women’s
Wear Daily reports.

At Macy’s, Derwoed says its 650-plus stores house fewer hard shops and more soft shops today than
in the past. The strategy, he says, is taking a more flexible approach in expressing a brand’s presence,
whether it’s a few featured fixtures at the aisle to create an icon shop or a feature wall sitting within
the Macy’s framework. “The key is that it gives us an opportunity to remerchandise easily when
strategies change or new resources are introduced,” Derwoed says.

Neiman Marcus has also ramped up its soft shop collection over the last five years, working with
vendors to create one-of-a-kind environments for its stores. “The one thing we focus on is putting a
unique spin on it,” says Gorischek. “We’re good at respecting the brand without forcing ourselves on
them.”

Barb Beeghly, FRCH’s vp, project manager, says department stores should also pay special attention
to common areas, using unique materials, furniture or decorative screens to set the scene. “That’s
where they can be very distinct,” she says.

Eye on the future

With several high-profile projects on the books, including Macy’s Herald Square and JCPenney, the
department store landscape is certain to keep evolving. Designers emphasize the need to cater to
customers through merchandise selection, customer service and a variety of entertainment options,
such as food and events.
“The shopping experience wins the day,” says FRCH’s Beeghly.

Opposite page and below

Opposite page Macy’s highlights its brand collections in a series of soft and hard shops throughout
its department stores. “Customer come to Macy’s because of the brands we offer,” says Macy’s
Steven Derwoed.

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Supply of Goods in BBSM

Being the largest departmental store, BBSM takes its goods from lots of suppliers anddealers. Currently
there are about 1200 suppliers supplying goods to BBSM. 90% of the suppliersare local suppliers and the
remaining deal outside from the country mainly UK. The payment
method is “sales and pay” method which is the supplier gets their payment on certain interval of
time as per his goods is sold in the store. The payment here is also done through the bank accounton
standard chartered bank. All those transactions are managed by the head office at bhatbhateni,Naxal