Retail Merchandiser Volume 62, Issue 10

Page 1

clicksto bricks

Digital marketing

Retail stores

Forecasting

Using data to

Why Abercrombie
& Fitch is
creating
a future-fit supply chain
From Volume 62 - Issue 10 - 2022
solve inventory problems
The rapidly evolving landscape of retail media
Physical locations need to change with the times

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CEO Andrew Schofield

Group COO Joe Woolsgrove

Creative Director Tom Vince

Data & Insights Director Jaione Soga

Editor Libbie Hammond

Assistant Editor Mary Floate

Content Editors Daniel Baksi, Alex Caesari, Danielle Champ

Editorial Administrator Amy Gilks

Managing Art Editor Fleur Daniels

Art Editors Paul Gillings, David Howard, Charlie Protheroe, Lee Protheroe

Artwork Administrator

Rochelle Broderick-White Sales Director Alasdair Gamble

Project Director

Philip Monument, Joy Francesconi

Head of Client Services Callum Arneil

Head of Content Management Adam Blanch Head of Global Media Programs Mark Cawston

Project Managers Michelle Fontaine, Jo-Ann Jeffery, Lauren Proulx

Content Managers Victoria Burke, Mark Cowles, Valentina Forero, Melanie Joyce, Tarjinder Kaur De Silva, Wendy Russell

Media Sales Executives Mike Berger, Jessica Eglington, Will Gwyther, Reid Lingle, Sam Surrell

General Manager Florida Division Ryan Finn

Marketing Manager Matt Bone Social Media Co-ordinator Rosie Clegg

IT Support Iain Kidd

Administration Natalie Fletcher, Rory Gallacher, Ibby Mundhir

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Hello and welcome to the October issue of Retail Merchandiser. Do you like our new look? The magazine has undergone a full makeover from top to toe. The aim is to unite the title with the other magazines in our overall portfolio, refresh the RM brand and make the most of the high-quality content that we assemble each month.

Look more closely at the content of this particular magazine, and you will find an features on digital marketing; forecasting and POS. These are followed by specific insights that spotlight individual businesses. The evolution of RM will be an on-going process and I would love to hear some feedback on our first issue – I always want to ensure we deliver on readers’ expectations.

Libbie Hammond Editor

Chain at Abercrombie. Turn to page 16 to find out how the business is optimizing its supply chain operations.

Why Abercrombie & Fitch is creating a future-fit supply chain clicksto bricks From Forecasting Using data to solve inventory problems Digital marketing The rapidly evolving landscape of retail media Physical locations need to change with the times Please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, and correct at time of writing, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Finelight Media Group, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.
Our cover story is based on an interview with Larry Grischow, Executive Vice President of Supply
lh@finelightmediagroup.com
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retail-merchandiser.com 1 Welcome

Inside this issue

Abercrombie & Fitch Co. Cover Story16
Forecasting Stores Digital Marketing4 8 10 Contents 2
Superior Grocers
Jennifer
Gilmer Kitchen & Bath America’s Thrift Stores PRS Guitars Furnitureland South 58 42 26 50 34 retail merchandiser magazine retail-merchandiser.com 3

A new wave of digital marketing

It’s impossible to discuss the retail landscape without acknowledging the paradigm-shifting impact of the Covid-19 pandemic. As physical stores closed their doors in the first half of 2020, consumers were left with just one place to go: online. E-commerce sites and m-commerce apps were inundated with requests, as house-bound shoppers scrambled to kit out their home offices, upgrade electronics, and tackle long-ignored DIY tasks.

But retail hasn’t stood still. As shoppers flocked to the digital sphere, brands themselves have been hard at work to leverage the opportunities afforded by going online. Among those opportunities, is retail media. The concept typically refers to marketing practices that target customers at, or near, their point of purchase, either in-store, or online, both on-site and off-site. The planning

and deployment of retail media is now a core component in marketing campaigns, and has evolved into a distinct discipline in its own right, practiced by a sector of retail media specialists.

For Alban Villani, Regional CEO for EMEA at CitrusAd, retail media represents “a new wave” in digital marketing. Alban himself is a veteran of the media industry, having plied his trade at digital marketing companies across Asia, including managing a digital agency and a pioneering mobile gaming studio. From there, he launched, and for six years spearheaded Criteo in the SouthAsian region, before joining SaaS giant Appier in January 2020, where he served as the company’s Senior Vice President for two and a half years. He insists that the rise of retail media has been long in the making, despite its recent acceleration.

Alban Villani, Regional CEO for EMEA at CitrusAd, discusses the rapidly evolving landscape of retail media with Daniel Bakşi
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“Back in 2016, we saw breakthroughs in a few areas,” Alban reflects. “The first was the rapid growth of mobile consumption. The second was the development of video, and the ability for retailers to market in new ways. Finally, we saw the emergence of new important markets, particularly within Asia, that were leading the adoption of online retail. This led to the emergence of co-marketing, which in turn developed into what we now understand as retail media.

“Pre pandemic, retail media remained a nascent industry,” Alban develops. “It wasn’t a part of retailers’ marketing strategies, which tells you a lot about how far things have come since then. What we witnessed during Covid-19 was the acceleration of online commerce, and a shift in focus from creating ads that could only drive in-store footfall, to the idea of being connected with customers at all times via a website or application.”

To target customers effectively, retail media relies upon first-party data about a company’s customers, including digital interactions, purchase history, browsing behavior, and more, in order to create tailored advertisements, content, and experiences that cater to an individual’s interests.

5 Digital Marketing
retail-merchandiser.com

advertising insights

sponsored technology

awareness

“First-party data encompasses everything that can be contextualized from an individual’s browsing or consumption through a certain website or app,” Alban elaborates.

“Here, it’s important to clarify that firstparty data collection implies a notion of user consent.

“From the customer’s perspective, it’s about using information from their current environment to enhance their experience within that environment,” he goes on. “As access to products from around the world has increased, customers nowadays are faced with

more choice than ever before, and their tastes have evolved to become more accurate and precise. This is reflected in data: almost seven out of ten shoppers now bypass search engines completely, and instead go directly to retailers in order to find the products they want. Those products might be tied to a certain type of content, such as videos, or news, or information about product quality, or health. This accuracy is what retail media sets out to provide, going deeper than ever before to build customer loyalty through

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personalization. That, in turn, is finally allowing retailers to monetize their digital shelf space.”

In particular, Alban is a strong advocate of a unified approach to retail media, combining on-site, offsite, and in-store advertising. As he explains: “From a digital marketing perspective, it refers to what we call a ‘full-funnel’ approach, providing multiple ways for advertisers to be top-of-mind, and to raise their awareness around their brand. By adopting a unified approach, we can tie together all the first-party data at our disposal – for instance, taking contextual information, and connecting that with the browsing behavior that follows.” Where customers have provided consent, advertisers can then propose additional products depending on their interests. That in turn produces yet more data, which can be used to further refine the understanding of what the customer wants, helping to deliver even more relevant advertising in the future.

“This is easier said than done,” Alban notes. “To provide the data is one challenge, but it needs to be at a certain level of granularity to be easily understood by retailers or advertisers. It’s there that specialist retail media companies have a role to play – both providing the technology to identify digital shelf space in real time, and to propose products at a certain price, and being able to explain to an advertiser why their campaigns will be successful in that space, with the insights they need to determine whether it’s valuable or not.

“The ability of a retailer to develop a clearer understanding of what the user journey is, matters most of all,” he

emphasizes. “A unified approach can offer an effective way to look more closely into their data, and to help them really begin to define audiences and segments more efficiently.”

The adoption of retail media continues apace. The market is expected to grow at a 25 percent annual rate over the next five years, and it is on track to become a $100 billion industry by 2026. As the sector grows, so too will the opportunities for retailers. But there are also threats, as smaller companies find themselves in competition with a number of already well-established retail media networks, most notably Amazon.

“Especially within Europe and the Middle East, we’re seeing more and more retailers beginning to capitalize on the extra strategies that retail media provides,” Alban concludes. “In France alone, retail media spend has already grown by 42 percent between 2020 and 2021. Likewise, for customers grappling with a cost-ofliving increase, there’s an ever-greater incentive to take control of their purchases. It’s a global trend, and this is just the beginning.” ■

Founded in 2017, CitrusAd created the first world-leading, self-serve retail media platform, enabling retailers to monetize their on-site and off-site digital assets. By partnering with leading retailers across 30 countries, CitrusAd enables brands to launch, measure, and and refine advertising campaigns across the full customer journey in one single platform.

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Digital Marketing retail-merchandiser.com

Use the data

Why your forecast problem is actually a supply chain problem.

As a retailer, how many conversations do you have in a month about forecasts? Demand, supply side, SKU, region, category, fulfillment… The stark truth is that an ever-elusive, exceptionally accurate forecast isn’t going to happen.

So why do organizations still spend hundreds of thousands of hours tweaking, iterating and obsessing over their forecasts?

A forecast is only as good as the process it supports. If it’s part of an effective planning function that successfully optimizes inventory,

determines reorder points and reduces movements, then a forecast with 85 percent accuracy could deliver higher service levels than one with 90 percent accuracy.

In other words, even the most accurate forecast on its own is not enough – it’s what you do with it that counts.

If we take it right back to basics, demand fulfillment is about having the right stock in the right place at the right time. The temptation has always been to get a demand forecast as accurate as possible but, in today’s climate, maximizing

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availability, margin and meeting On Time In Full (OTIF) targets is actually more about how well you can manage volatility across the entire supply chain. Squeezing an extra two percent accuracy out of a forecast doesn’t offer a meaningful competitive advantage.

If your end goal is to maximize on-shelf availability of stock (and keep costs down while doing so) then the focus should be on your end-to-end supply chain – the forecasting process is just one part of this.

Supply chains typically run on aggregated data, which gives a ‘big picture’ overview. By contrast, customer operations – where demand is generated – are more granular. The focus is on understanding the consumer through demographic and other types of segmentation and conducting category planning.

Consumer data and the intricacies of working with consumers aren’t often considered in the supply chain. But there is real power in using this data to drive supply chain operations and vice versa, using supply chain data to fuel customer operations.

Linking fulfillment and demand data represents a huge opportunity for demand planners. For example, location data can help to plan where to place inventory and optimize transportation and warehouse locations; fulfillment times and time horizon to restocking can be used to manage customer expectations and allocate orders; trends in customer behavior can help a consumer packaged goods business anticipate promotions, or disparities in final order quantities.

One would think an accurate forecast would ensure you have enough stock to keep service levels

high without holding too much. But, in reality, a broader overview of what is happening at every stage of supply, including demand generation, is needed to face today’s volatility. A broad range of data from both customer and supply operations can and should be used to optimize for volatility and determine inventory levels.

Leveraging data from the full breadth of the supply chain provides insight that is increasingly valuable, particularly in an environment of unpredictable demand, supply shortages and transportation challenges.

“ “

It’s not about how accurate your forecast is, it’s what you do with it that counts. If CPGs have an inventory problem, bringing together data from across the supply chain is how they solve it. ■

Ira Dubinsky www.peak.ai

Ira Dubinsky is the Go-to-Market Strategy Director at Peak, a Decision Intelligence platform on a mission to change the way the world works. Connecting data sets from across an organization to provide predictive insight, its platform includes a suite of features that enable customers to build and integrate AI-powered applications that optimize decision making across multiple business functions. It is used by leading brands including Nike, ASOS, PepsiCo, KFC and Sika.

“ “

retail-merchandiser.com 9 Forecasting
It’s not about how accurate your forecast is, it’s what you do with it that counts

The store is dead, long live the store

There are few in retail circles who would argue that the role of the store is the same as it was at the start of 2020, with the retail industry (like every other on the planet) undeniably changed as a result of the global pandemic.

Where once upon a time retail business models had the luxury of evolving over years and sometimes decades, retailers over the last two years have been forced to rapidly pivot their operations, change business models and switch (in many cases) to unfamiliar, new ways of working.

These changes have included the diversification of the physical store to support the increase in ecommerce; delivering entirely new

offerings such as curbside pickup; and the realignment of workflows and processes to support profitability across an entire network, not just one location.

While it’s almost inevitable that ecommerce growth will outpace growth through physical stores at some point in the future, it would be a huge mistake to lose sight of the critical role stores have to play beyond purely profitability, but also in terms of softer measures of brand health, not least loyalty and the overall customer experience journey.

The key to this lies in not being distracted by the minutiae of how an order is necessarily placed, but rather, concentrating on where it ultimately gets fulfilled.

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For example, Target recently reported that as much as 75 percent of its online orders involved their stores in some capacity: be that buy online, pickup in store (BOPIS), curbside pickup, ship from store, local home delivery from store stock, or even buy online, return in store (BORIS).

As a result of (rather than in spite of), the rapid growth of digital channels in 2020 and 2021, 21st century retailers need to understand that the store will remain a significant channel for generating revenue, customer engagement and fulfilment opportunities.

This rapid evolution has led to an increased awareness and reliance on dynamic and resilient in-store systems, critical to modern retail

ecosystems – systems like modern Point Of Sale (POS).

POS has certainly come a long way since the rather perfunctory function of previous generations: no longer is POS simply a tool to complete a transaction (sales or returns) and the associated reporting; modern POS today represents the key to unified commerce, enabling activities such as endless aisle, click and collect, store fulfilment of online orders, clienteling and loyalty.

retail-merchandiser.com 11 Stores
“ “
“ “
...modern POS today represents the key to unified commerce
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While the store may no longer be the sun around which all retail offerings orbit, a compelling bricks and mortar presence that works in harmony with a unified, smarter digital offering, could well be the answer to the question on the lips of so many retail leaders right now: ‘how do we create a compelling competitive advantage against such a significantly changed industry landscape?’

“ “

The role of the store has changed and so too has the instore technology that supports it. This however, should not come as a great surprise as the history of the retail industry has always been one of change, evolution and progress –today’s environment, accelerated by the pandemic, is no different.

With greater emphasis on the need to fulfil, execute and optimize against ecommerce and e-fulfilment, it’s clear that the physical store, supported by modern POS systems still has a significant (if not changed), role to play when it comes to being able to commerce confidently.

While the store of yesteryear is well and truly dead, the store of today is undergoing somewhat of a renaissance. The challenge now falls to retailers to realize the true potential of their marquis bricks and mortar assets by pairing them with the right futureready, in-store systems like modern Point Of Sale. ■

For a list of the sources used in this article, please contact the editor.

Manhattan Associates www.manh.com

“ “

is Director of Solution Consulting and Account Management, at Manhattan Associates, a technology leader in supply chain and omnichannel commerce. It unites information across the enterprise, converging front-end sales with back-end supply chain execution. Its software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for customers. Manhattan Associates designs, builds and delivers leading-edge cloud solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace.

retail-merchandiser.com 13
Alex MacPherson
The key to this lies in not being distracted by the minutiae of how an order is necessarily placed, but rather, concentrating on where it ultimately gets fulfilled
Stores

From bricks to clicks

Home to a number of iconic brands, fashion retailer Abercrombie & Fitch Co. is optimizing its supply chain operations in order to deliver a future-fit shopping experience

Abercrombie & Fitch Co. (Abercrombie) has gone through many chapters during its 130-year history. The iconic high-street fashion retailer was founded in 1892 as an outdoor specialty retailer, carrying high-quality camping, fishing, and hunting gear, and is proud to have outfitted famous names, including Theodore Roosevelt, John F. Kennedy, and Amelia Earhart. Fastforward to the present day, and it’s evolved into a global omnichannel retailer, operating a total of five brands: its namesake Abercrombie & Fitch, along with Hollister, Gilly Hicks, Social Tourist, and abercrombie kids.

But not everything changes. Then, as now, Abercrombie prides itself on two commitments: to quality, and to its customers. “We honor our lineage,” says Larry Grischow,

Executive Vice President of Supply Chain at Abercrombie. “One of the things that sets our family of brands apart is that we’re rooted in purpose. We’re there for our customers, on their journeys to being and becoming who they are throughout their various life stages.”

It’s a mindset that will ring true for those familiar with Abercrombie’s brands. Hollister, for instance, targeted towards teenagers across the globe, promotes the concept of an ‘endless summer’.

“ “

“Another key is that we know our customers, and know them deeply,” Larry adds. “At every touchpoint throughout their shopping journey, we make it about them. We meet them where they are, know how they want to shop, how they want their products delivered, returned, and more.”

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One of the things that sets our family of brands apart is that we’re rooted in purpose.
“ “
cover story
retail-merchandiser.com 17 Abercrombie & Fitch Co.

This insight is key, at a time when there are more question marks around supply chains than ever before. “With Covid-19, we’ve certainly had our share of challenges,” Larry admits. “To navigate those, it requires a robust network of partners, through which we can leverage our complementary strengths to ultimately deliver to our

customers. For instance, we worked with the supply chain experts from North Highland to help us reimagine our distribution network, with the aim of positioning inventory closer to customers and to meet their needs, accounting for the massive e-commerce acceleration since the pandemic began.”

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cover story

For Abercrombie and its family of brands, the aim is to provide customers with a future-fit supply chain – as Larry puts it, one that is “digitally enabled, automated, and self-healing.” He continues: “We’re always focused on driving efficiency and reducing cycle times. Over this past year, we’ve implemented a

highly automated fulfilment center in Phoenix, Arizona, designed to increase e-commerce capacity in a way that places less dependency on labor, something that has become a significant challenge throughout the pandemic.”

The company is also investing across its other facilities, installing the latest material handling equipment within the largest of its e-commerce fulfilment centers, to drive efficiency throughout the packing process. “Automation doesn’t stop with the physical facilities, either,” Larry points out. “One initiative we’re really excited about, and one that we’ve seen good traction around, is robotic process automation. We’re leveraging that technology, taking some of the necessary but repetitive and

retail-merchandiser.com 19 Abercrombie & Fitch Co.

mundane tasks, and creating robots to complete them. That in turn frees up our workforce, who can focus solely on delivering for our customers.”

At the moment, one of the biggest areas of exploration for Abercrombie is digitization. “We live in a digital world, and our target customers have grown up in that world,” Larry reflects. “So, we need to lean into that. From a supply chain perspective, we’re always trying to improve visibility, upstream and downstream, using that information to make faster, better decisions. That means trying to create a digital twin for every physical movement in the supply chain and capturing external signals – such as public health data –

that can shape our decision-making.

“Likewise, we need to consider how to utilize data in a more meaningful way to improve the customer experience and drive efficiency,” Larry explains. “Again, that’s about leveraging our partnerships with those who are great at what they do. In this instance, we partnered with Green Mountain Technologies (GMT) to craft our final mile delivery strategy, and then optimize it from a service and cost standpoint.

“To apply that to our current climate, we saw during the pandemic how everybody shifted from bricks to clicks, which then placed extreme pressure on final-mile capacity,” Larry

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cover story

goes on. “Parcel carriers were capping volume, while there were also pockets of capacity that we could go after. GMT helped us optimize our carrier allocations in order to hit our delivery objectives. Consequently, we were able to pivot to regional carriers earlier than many other retailers, and secure capacity ahead of time. That allowed us to diversify at a greater pace than the rest of the market.”

With the closure of physical stores for a period of time in early 2020, the shift of consumers spending online is an industrywide phenomenon. As Larry notes, e-commerce sat at approximately a third of Abercrombie’s revenue pre-pandemic. Now, it accounts for around half – with the potential to rise yet further.

“I don’t think anybody really knows how e-commerce penetration will change over

North Highland Management Consulting

North Highland Management Consulting (North Highland) makes change happen, helping global retailers transform by placing people at the heart of every decision. With our blend of workforce, customer, and operational expertise, we’re the world’s leading transformation consultancy. We have more than 3,000 consultants worldwide in 65-plus offices around the globe. With our deep knowledge of supply chain engineering, facility design, and labor management, we offer holistic, end-to-end distribution performance improvement solutions to increase the efficiency and effectiveness of distribution networks. We specialize in boosting performance and driving efficiency through people and talent management, functional and operational excellence, and workforce planning programs.

retail-merchandiser.com 21
Abercrombie & Fitch Co.

Landmark Global

At Landmark Global, we’ve been busy pioneering modern trade solutions, enabling thousands of iconic brands, like Abercrombie & Fitch, to expand seamlessly into new territories and reach new customers.

By connecting with our custombuilt technology, our expansive worldwide network and our team of dedicated customs experts, we offer a seamless e-commerce delivery experience for you and your customers.

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the next few years,” Larry states. “Currently, we’re seeing a significant shift back to stores, with the balance between in-store and online beginning to stabilize. However, those figures are different by brand: e-commerce penetration is higher in our adult brands than it is in Hollister, which reflects how those target customers shop.

“Depending on how the next generation of teenagers shop, we need to be prepared to flex,” he insists. “As a team, we’ve completely changed our people, processes and tools across the organization to lean into this, organizing ourselves in an agile fashion around the customer journey. For instance, we have a team that’s solely focused on the checkout experience, whether you’re in stores or online, and how we optimize that experience. Our supply chain team then works with our agile squads to make sure we’re delivering fulfillment capabilities that ‘wow’ our customers.”

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cover story

This dialogue between customer experience and fulfillment has been essential in the rollout of Abercrombie’s latest offering: same-day shipping from stores. “We have a test and learn methodology, and it’s an initiative that

Green Mountain Technology

Do you have the right carrier RFP partner for your business? You should, there’s a lot at stake. Devising a clear, efficient, and less-costly path forward for your network is an enormous task. For nearly 25 years, we’ve leveraged relevant, unbiased market intelligence and a proven process for helping shippers like you navigate RFP events with unmatched confidence and success. How?

First, guide your RFP strategy, and set clear expectations with our unique market intelligence. Founded on decades of partnering with the world’s largest and most complex brands, our market view is second to

performed really well with our test markets,” Larry says. “Clearly, we have a subset of customers who have a need for this service, and now it’s available from virtually all our stores in North America, as well as stores in the UK.”

none. Second, we help you identify the most impactful contract opportunities based on your business and network strategies. Third, have confidence like never before and gain leadership buy-in with our down-to-the-penny contract modelling, so you’re not relying on assumptions.

Lastly, we partner with you as an extension of your team, working alongside you to ensure your carrier contracts and network are in sync, and helping you to identify and drive meaningful strategic objectives. Do you feel informed enough to go it alone? Gain confidence with Green Mountain Technology.

retail-merchandiser.com 23
Abercrombie & Fitch Co.

As an industry leader when it comes to rolling out omnichannel offerings, Abercrombie was no stranger to the challenges of such an initiative, and was able to draw on its experience to identify the optimum service for its customers.

“It’s a fairly noisy market in terms of same-day delivery service providers,” he continues. “We wanted to make sure that we had the flexibility to plug-in-andplay based on what’s best for our customers in a certain market.

To achieve that, we engaged a middleware software provider that gave us that flexibility. Then, we were able to update our operating protocols throughout our stores and select the right same-day courier for each market.”

Turning to the future of the fashion industry, one idea above all is set to shape the years ahead: sustainability. More than just a buzzword, however – it’s a concept that Abercrombie has embedded throughout its operations for more than two decades, with the view to reducing its environmental impact. In 2019, the company entered into the United Nations Global Compact, the world’s largest corporate citizenship and sustainability initiative, and with that, announced a series of sustainability targets for 2025. These include the responsible sourcing of materials, a water consumption reduction of 30 percent in the production of its denim by 2022, and a pledge to collaborate with vendor partners on training programs, including human trafficking prevention and health and wellbeing.

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One such partner is ThredUp. A selfdescribed ‘online consignment & thrift store’, the platform provides consumers with an opportunity to resell their unwanted clothes.

“As part of our commitment to quality, we try to ensure that our products can enjoy a long life,” Larry explains. “Whether it’s our garments or others’, ThredUp allows you to clean out your closet, introduce your clothes to the recommerce market, and be rewarded. We’re encouraging our customers to participate in that circular economy.”

It’s an exciting time for Abercrombie. As part of its recently announced three-year ‘Always Forward’ plan, the company has ambitions to achieve revenues in excess of $4 billion, driven in part by the acceleration of its digital revolution. Within that, supply chain is key.

“On the resiliency front, we were already on a path of diversifying our supply chain prior to the pandemic,” Larry notes. “With the help of

partners including Century, Expeditors, EFL, and RCS, we’ve segmented our inbound supply chain by product, all the way from source to a customer’s front door or store. Accordingly, when we have products in high demand from our customers, we’re able to leverage services that have a higher probability of delivery certainty within a shorter timeframe, in order to move those products through the chain. That’s a massive data exercise, and it requires considerable communication and market orchestration to pull it off.

“Long term, our goal is to grow to a $5 billion top line across our family of brands,” Larry concludes. “To do that, we need to continue to listen to our customers, to know them better than the competition, and to give them the best experience.

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■ Abercrombie & Fitch Co. www.abercrombie.com www.corporate.abercrombie.com

THRIFT STORES

in a digital age

The story of America’s Thrift Stores, and why secondhand retail is becoming customers’ first port-of-call

It’s been a busy year at America’s Thrift Stores (America’s Thrift). Having closed for much of the first half of 2020, the popular chain finished reopening its doors towards the end of June of that year, and immediately set to work making up for lost time. As part of a pioneering set of so-called ‘phoenix projects’ (as in, rising from the ashes) the company launched its ‘Bright and Fresh’ program of store renovations, intended to revamp the look and feel of its 17 original stores, and replicate its seven new stores.

“We began systematically painting the storefronts, the walls, hanging new signage, stripping and waxing the floors,” recalls Ken Sobaski, President and CEO of America’s Thrift. At the time of our interview, the company had successfully renovated all but one of those original stores, with the outstanding location to be completed in the coming months. As Ken adds: “It’s all about making the shopping experience better.”

When it comes to experience, there are few companies that can match the retail veteran when it comes to knowing and understanding their customers. “What America’s Thrift customers look for is a combination of value and variety,” Ken explains. “With that in mind, we’ve made it our mission to deliver a ‘New Store Every Day’, which is our brand tagline. We do this by growing our donations, and getting those into stores on a consistent basis. As a result, shoppers know that if a product isn’t here today, it may well be here tomorrow, or the day after. More than half of our customers shop at Thrift at least once per week, and a quarter of our customers shop between two and four times per week. It’s that rhythm which has allowed us to be so successful.”

It’s difficult to argue with the numbers. According to Ken, the end of June 2022 saw America’s Thrift achieve existing store sales growth for the 20th quarter out of the last 22, with the only

America’s Thrift Stores retail-merchandiser.com 27

anomalies falling within the Covid-19 lockdown. It’s the equivalent of almost five years of quarter-after-quarter existing store sales growth. In 2021 alone, 16 of the company’s original 17 stores achieved record sales levels, with similar results expected for 2022. Now, the focus is on taking America’s Thrift into a new era.

“We’re on a nice run, enjoying a strong tailwind,” Ken comments. “By the end of 2022, we expect to have expanded to 25 stores. That’ll be our eighth new store opening going back to September 2019. Prior to that, we hadn’t opened a store since January 2013, so it definitely signals a step change in the business, and follows our decision in 2015 to bring in a 20plus year thrift store expert, Sean Minnick, our COO, who was tasked with modernizing our processes to be more efficient and scalable.

Secure Retail POS Systems Leaders in Thrift Store POS

Secure Retail POS Systems is an industry leader in Thrift Store POS software design and application. Some of the largest thrift store chains in the United States and Canada utilize our thrift POS solution, S-TAG. Its versatility makes it a perfect solution for single store operators as well. With a decade of serving the thrift store POS marketplace, many key software features were requests from our end users. We handle the entire system installation, with complete help desk support after install. Plus, we provide customers a complete offering of tierone hardware and supplies such as receipt paper, printer ribbons, product labels, and barcode ribbons.

Congratulations to America’s Thrift Stores on your success, and thank you for your continued loyalty.

America’s Thrift Stores 28

...we know that we need to attract more Gen-Z customers. Developing our online presence is key to that

“We’re now in the midst of investigating new technology,” he adds. “We expect to install selfcheckouts at four of our stores by the end of the year, we’re exploring ways to automate the processing of books and digital media, and we’re looking at the possibility of expanding into a centralized processing site for the pre-sorting and possible pricing of items prior to their distribution into individual stores.

Beyond that, one goal is to become more productive with how we collect donations, utilizing new technologies to measure how full our donation bins are prior to collection, routing our trucks to the bins that are full, and giving our drivers the ability to monitor and respond to that information in real time.”

But it’s not all about in-store. As of 2022, a large portion of the retail sector has moved online, as part of a trend that was accelerated by the

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America’s Thrift’s expanded online business encompasses two sites: shopATS.com, a business-to-consumer site embedded within eBay for the selling of secondhand goods; and America’s Thrift Supply, through which the company supplies mystery boxes and microbales to resellers, who then in turn sell them

at a premium,” Ken explains. “Those items include jewelry, video games, collectibles, unique branded goods, collectors’ t-shirts, and more. This also benefits us from a recycling standpoint because it means fewer leftover items end up in landfill. The same goes for America’s Thrift Supply – it’s all about making

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For Ken, the alignment of thrift store activities with sustainability goals is a fact that often goes overlooked.

“It’s our mission

‘To Give Back’,” he insists. “Not only do we achieve that by enabling shoppers to outfit their families at better values, but we make nearly $3 million in charitable contributions per year, and continue to create around 300 jobs a year with the opening of new stores. Perhaps most significantly, however, is that we do all that by keeping around 40 million lbs of clothes out of landfill each year, which is precisely what would happen if donations weren’t sold in America’s Thrift stores or passed onto our reselling partners.

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“In January 2022, our business entered into new ownership for the first time in almost ten years, following our purchase by private equity firm TZP Group,” he goes on. “It’s a purchase that was made

partially because they recognized the sustainability credentials of our business, and believed it was a good investment to make. As an evergrowing number of customers begin to place emphasis on such credentials, we’re confident that it’s set to be a major driving force for the business in the years to come.”

It’s been a big few years for the secondhand goods market, and Ken expects the good times to continue. “Today, the sheer number of people who are selling secondhand goods online is overwhelming,” he admits.

“Added to that, one of the impacts of inflation, rising interest rates, and general economic uncertainty, is that there’s a supply of donations headwind: people move less, people shop less, and those are the conditions that trigger a higher volume of

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donations. To continue to supply our stores and online businesses we have to expand our donation geographic presence even further into more new markets if we’re to capitalize on that, and keep driving our market share. That’s the thinking behind the majority of our investments.

“Before the end of 2022, we’ll definitely have opened another new store, with a second and third to be opened in Q1 of 2023,” he concludes. “Longer term, we hope to expand our donation presence into states where we don’t yet have a full presence, including Tennessee, central Georgia, and others. These are locations where we’ve got one foot in the water, but don’t yet have the network in place needed to fulfil our vision of having around 50 stores within the next five years, and growing our online sales to above $10 million in revenue. That’s our goal, and we remain focused on achieving it.” ■

www.americasthrift.com America’s Thrift Stores retail-merchandiser.com 33
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Improving the customer journey

Owned by the Harris family for over 50 years and dubbed the world’s largest store of its kind, Furnitureland South is keen to prove that when the going gets tough, the tough get furnished

When the pandemic first hit, no one knew what it was going to mean for us personally or professionally,” begins Jeff Harris, President and CEO at Furnitureland South, a 1.3 million-square-foot one-stop shop located in Jamestown, North Carolina that caters to every possible furniture need with more than 1000 partnered manufacturers.

“The dialogue at the time was prescriptive and focused on what was or was not essential,” he reflects. “Try telling someone what they do is not essential; it is tough. In all, however, we had to furlough staff for about two weeks –before we knew it, business rushed back to an all-time high in 2021. Since the beginning of the pandemic, we have grown by more than 50 percent; in the last year, that translates to $70 million. Though we are now seeing a bit of pull back due to inflation and skyrocketing living costs, the real estate market in the southeast is still in high demand. Therefore, as

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a leader in the furniture industry, we can expect to buoy ourselves on that continuous wave of business.”

“One interesting thing that happened during the pandemic was that we adopted the role of a stockbuying retailer,” adds Becky Greene, Executive Director of Merchandising at Furnitureland South. “Previously, we had largely been a special-

order retailer; however, we had to dramatically adapt our operations to prepare for consumer demand amid the supply chain issues that were crippling the industry. We bought stock in an aggressive fashion and maintained on-time delivery for customers. Reflecting on the past two years, that is certainly one of the high points; we handled the pressure

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incredibly well and were able to supply products and fulfil orders when a lot of retailers were stuck on pause.

“It is probably fair to say that, throughout the Covid-19 crisis, we were the number one customer for our top 100 suppliers,” she continues. “Interestingly, most of those suppliers are local to us in North Carolina. With our buying power and 500-strong workforce, we really

supported multiple factories in our state and rallied together as one massive team. It almost felt patriotic! Naturally, because of this, we had a priority position with our suppliers. They could rely on us for financial stability; we could rely on them for the on-time manufacturing and supply of furniture.”

Indeed, depending upon the perspective taken, the pandemic period – and the brief moments of reflection that it quietly offered – were not all doom and gloom. For some, those moments could be transformed by the mind’s eye; metamorphosed into a corporate springboard, companies could recalibrate and improve – that is, they could imagine and then action a plan for a better post-pandemic future.

Furnitureland South is no different. “We are driven to create a world-class shopping experience for clients and customers,” says Jeff. “In the retail environment, you must have the heart to serve people, and so that is a motivating factor behind our ethos of continuous improvement. We care about the journey our customers are on; if we can improve it by making some changes, then we must make them. To that end, we have our World-Class Council, which is a committee of nine individuals from various departments that are tasked with investigating every pinch point along that journey and finding solutions to resolve them.

“It could be better communication; it could be better customer service,” he goes on. “But, in the end, it is all about the continuous state of betterment. For instance, we have just launched

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...we have grown by more than 50 percent; in the last year, that translates to $70 million
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retail-merchandiser.com 37 Furnitureland South

a new website and are in the process of refining our in-store experience. By improving that customer journey, we stand to benefit in terms of profit; however, the incredible people who make Furnitureland South what it is will also reap the rewards. The whole company feels more like a community as a result, and this has been recognized across North Carolina, where we are consistently rated as one of the best places to work in the state.”

“One aspect that we are currently improving is our digital presence,” explains Blair Ingle, Executive Director of Sales & Marketing at Furnitureland South. “As a leading furniture retailer, we must strive to showcase an abundance of fresh and inspiring products, whether that is through our online chat, through our website, or through video

conferencing services like Microsoft Teams. We want to give people the chance to explore the best the industry has to offer and what we have on display online and in-store – and being able to do that remotely is key. Though online shopping can be convenient, seeing products in person will always offer an additional wow factor to an already inspiring piece of furniture and create a more dynamic purchasing experience.”

As our interview has made clear, the wheels are in motion at Furnitureland South – and the destination at the end of that driving force is a moving target. After all, continuous improvement is a perpetual mission. It does not end. But then neither does the journey of customers.

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▲ Design consultants
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Christmas sales meeting
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“In the short-term, we will continue to focus on getting better despite the challenges we are experiencing, particularly with the economic downturn and supply chain disruptions,” concludes Jeff. “We must find ways to overcome them. It is a puzzle. All the pieces are there – we just have to figure out a way to put all of them together. That will inevitably involve different strategies; however, these will all point to one thing: a world-class customer journey. Looking further ahead, we will endeavor to grow profitably. If it means opening another distribution center in another state, then we will do that; if it means

developing our physical presence with more showrooms and design centers, then we will do that as well. Whatever it takes, we have the resources, personnel, and leadership to make it happen.”

www.furniturelandsouth.com

Palliser

Palliser is a proud partner of Furnitureland South. Our alignment around creating a great experience for our mutual customers has led to explosive mutual growth. We look forward to continuing our partnership for many more years to come.

retail-merchandiser.com 41 Furnitureland South

Holistic design

This year will mark 25 years of Jennifer Gilmer Kitchen & Bath (Gilmer Kitchens). Launched in 1997, things started off with a boom for Jennifer and the company, as an unrivalled portfolio of work saw her sweep a host of awards at ceremonies across the industry, culminating in the receipt of the

National Kitchen & Bath Association’s 2009

Pinnacle of Design Award. Since then, the company has cemented its reputation for innovative, high-end, luxurious kitchen and bath designs, delivering the highest quality and exceptional service, opening a total of three showrooms since 2017 across Maryland and Virginia.

Award-winning designer Jennifer Gilmer reveals her most memorable projects
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Reflecting on her journey, Jennifer notes some of the challenges in her 25 years in business. “It’s hard to find the right mix of people, with the ability and talent,” she insists. “It took us around 15 years to arrive at a solid core of staff, all of whom are dedicated to the business and share a single mindset about the importance of maintaining customer service.

Over the years, we’ve also gradually improved our operations, which helped to increase revenue, that has then been reinvested back into the company effectively.”

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Stylish solutions

Today, Gilmer Kitchens offers a range of interior products, including cabinets, countertops, backsplash tiling, plumbing fixtures, and more. “We offer our clients a complimentary initial consultation to discuss the design, from which we’ll provide a rough estimate of the project’s cost,” Jennifer explains. “It’s an opportunity for us to show them what we are capable of, and how we’ll listen to their needs, and they can decide whether we’ll be the

AJ Madison

AJ Madison makes the process of spec’ing, buying, delivering, and installing appliances easy. With 150 brands for those hard to find, unique finishes, and small spaces, we have the perfect appliances for every project.

We are with you from blueprint to installation, and beyond. For more than 20 years, we are the pros that the pros trust with every type of residential project; multi-unit apartment buildings, custom home, kitchen reno, and super easy replacement appliances. We’ve also recently launched our Community Fridge Initiative to keep damaged refrigerators that can’t be sold out of landfills, and placed in communities struggling with food insecurity.

AJ Madison is the only appliance retailer to deliver to every zip code in the continental US. Every residential home presents a different set of challenges. Most customers have spent several years with free daily ‘brown box’ deliveries, and that has significantly influenced their expectations of deliveries of every type. It’s not easy to get a 500-pound refrigerator into a second-floor walk-up, or across a covered bridge, or onto a ferry, but we do it every day.

We are a digital-first company, launching the very first appliance website. We use technology to make shopping for appliances, managing your account, and the delivery process easier. According to Newsweek

magazine, our website is the number one online destination for appliance shopping, and has more than 3,000,000 customers nationwide with more than 1,000,000 appliance product reviews. AjMadison.com has the most extensive spec database in the industry, and more than 50,000 appliance options.

The pandemic significantly impacted the home industry at large with supply chain delays, staff, and product shortages. The appliance segment is still impacted today by inventory shortages and delays. Investing in large capacity storage like our new 200,000-square-foot facility in Cranbury NJ makes it easy to hold more inventory. More importantly, across brands, AJ Madison is the only appliance retailer to offer an InStock Promise™ - super critical when you’re working on a time-sensitive project.

We eat, sleep, and breathe appliances, and that’s all we do. Our appliance experts, who have an average tenure of more than ten years with us, are trained continuously, and are available in person at one of our state-of-theart showrooms or on your job site, by phone, or online.

Visit our DC area showroom, 8500 Leesburg Pike, Tysons Corner, VA 22182. Online at AjMadison.com, by email at dcshowroom@ ajmadison.com, or by phone 202-892-5000.

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We offer our clients a complimentary initial consultation to discuss the design
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ones to help bring their ideas to life. We’ll then move through the design process, pricing everything up, recommending a contractor, and then we’ll get to work. As part of our service, we make sure to be involved in the whole process from start to finish.”

By investing in new showrooms, Gilmer Kitchens is defying a trend among many within the industry to digitize operations, as technological improvements have encouraged the use of virtual showrooms. But for Jennifer, the lure of a bricks-and-mortar store is far from dead. “People want to actually touch and feel and get a sense of what we can do for them,” she insists. “They need to feel good energy from us, and the showroom is the way to convey that.

“When we design a showroom, we start from the front and work our way back,” she continues. “We want to give our customers a holistic view, so all our displays are complete

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with their own flooring, and the relevant appliances. In the example of our Chevvy Chase showroom, we’ve divided it into two: a north showroom dedicated to modern and contemporary design, and a south showroom with a more traditional décor. Although it goes without saying, keeping all our showrooms updated is critical, as is being friendly to everyone who walks through the door!”

Asked to reflect on some of her standout projects over the years, two spring to mind for Jennifer. “I once had a woman come to me who had been to two other companies, and who had hired a design and build firm on retainer, but wasn’t satisfied with the work they’d produced,” she reveals. “She had a very unusual kitchen, split into a back kitchen and a front kitchen. It was an awkward space, with a strange shape. Previous companies had switched out the cabinets, but they’d failed to address those fundamental issues. When she came to me, I pointed out that by removing a single load bearing wall, it would transform the space. Although the expense would be somewhat significant, the benefit would well outweigh the cost, and it would help realize her dream kitchen. Once we found that the wall could in fact be removed, I worked on the design. The result was incomparable, and it really suited the client, who entertains a lot, and now has a lovely kitchen in which to do so.

“I also carried out a really unique project for a client who wanted to merge a set of two condos,” she states. “The client was a collector of Japanese artifacts and other museum and gallery pieces, and they wanted their kitchen to tap into this passion. A door was removed

When we design a showroom, we start from the front and work our way back
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from the back wall which also had a bump out which presented a challenge. The solution was to place their refrigerator, freezer, ovens and pantry on this wall, cladding them with door panels, so that they weren’t obvious if you weren’t familiar with the kitchen. Accordingly, the appliances and pantry doors all opened to touch, which eliminated any visible handles. On top of that, we added a number of Japanese touches to the design to mirror the artifacts they had throughout their home. In all, the project turned out really well.”

Business is booming

The arrival of the Covid-19 pandemic in early 2020 brought about a worrying time for many throughout the homebuilding industry, including Gilmer Kitchens. While office work moved online, the bulk of new business temporarily ground to a halt, hampered by concerns around the need for social distancing and other unprecedented health and safety measures. Soon, however, operations picked back up. “We got really comfortable working via Zoom, and suddenly found ourselves in a ton

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of online meetings with clients,” Jennifer tells us. “To this day, people are still working at home. Each designer has a floor day, where they’ll come in along with their design assistant.

“Because people were spending more time at home, they became more and more invested in wanting to improve their kitchen or bathroom, and finally had the time to start the process” she continues. “As a result, we were really busy, to the point where 2021 ended up being our best ever year, despite the challenges we began to experience with mounting delays in acquiring appliances and cabinetry. At one point, we had a line of cabinetry that wasn’t available for a year. We also took the decision to begin referring customers to external appliance dealers, because they became too much of a distraction for little financial reward.”

Talent spotting

Among a number of ideas to manage the influx of new business, Jennifer toyed with the possibility of expanding her design team. She opted against it, however, realizing that the flow of business would most likely soon slow down to a more normal pace. Looking back, she believes it was a decision that she got right. “Our customers were getting impatient,

and our design team became worried as the volume of work continued to pile up,” she reflects. “But if people were willing to wait up to a year for their appliances, I knew they’d wait for us to have time to focus on their projects. At our first consultation, we would begin by ‘wow-ing’ them, knowing that this would make them okay with having to wait to start their project. We’d then explain that we were inundated with work so they’d need to wait until we could focus on their project – and wait they did!

“The other risk that I very much wanted to avoid was hiring a new designer who, when our business eventually slowed, would be surplus to requirements,” she continues. “In all, I think it’s worked out well. As we go on, the issues around delays are beginning to fade, and products are becoming increasingly available. We were waiting 12 months for our cabinets, now we’re waiting four to six months, which is a welcome improvement!”

After a successful 25 years at the helm, Jennifer is now turning her mind to the next chapter, and the future of the business in the decades ahead. She believes the key to this is a continued focus on talent recruitment. “It takes a good five years for people to progress from junior to fully-fledged designers,” she points out. “Accordingly, you have to get them trained early. Over the next three-to-five years, I need to make sure we have enough staff to continue operating our three showrooms.

“We’re now focusing on remodeling the whole north showroom, investing some of the money we’ve made during a really successful year,” Jennifer goes on. “The design process is expected to take a good three-to-six months, with a similar time frame for the project installation. We’ll also continue to work on our social media marketing, trying to bring a fresh approach to a new generation of customers.”

■ www.gilmerkitchens.com Jennifer Gilmer Kitchen & Bath retail-merchandiser.com 49

Fine tuning excellence

PRS Guitars has been publicly endorsed by a wealth of talent – from Carlos Santana to Beyoncé

Established in 1985 by Paul Reed Smith, PRS Guitars is a name that carries with it a certain weight. A weight made of wood, tradition, nickel-plated steel strings, rhythm, electronic components, and a small slice of the historycake that we call rock and roll. Based in Maryland, the company manufactures worldrenowned guitars, amplifiers, and other music industry-related items, including aftermarket components and upgrades.

PRS Guitars is devoted to an ongoing mission: (re)discovering the rich heritage of the guitar while committing itself to innovation and the development of cuttingedge musical technologies that allow musicians – adroit and amateur alike – to continuously refine their craft.

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52 Find out more at apintl.com

Who would have thought it? One-off sales turned into a backlog of orders, and Paul quickly got to work on two prototype models for scaled production.

In 1985, PRS Guitars opened its first factory. Just over ten years later, the

which offers a repair and upgrade service with a full warranty for customers. The Stevensville facility, which has been expanded and improved over the years, now boasts more than 90,000 square feet of manufacturing space.

retail-merchandiser.com 53 PRS Guitars

Stellar Industrial Supply

Stellar Industrial Supply is a privately held, ISO/ AS9120-certified premier industrial supplier. Our specialists, sales force and customer experience managers serve small, medium, and large manufacturers; federal, State and local municipalities, and commercial construction companies across the US. We are dedicated. We have invested in our business to maintain our profitability and stability. We partner with our customers and suppliers to provide individual products and individualized solutions that help you save costs and boost profit efficiently and without frustration. We go on-site to handle purchasing, receiving and delivery, obtain competitive pricing, and manage tools and inventory.

We are a diligent yet creative, hardworking but easy-to-work-with partner. Innovating our solutions, caring about our people, performing as one with our suppliers and customers. That is how we thrive; acting with authenticity and excellence that improves the customer experience, stakeholder trust, market leadership and value to benefit all involved.

What truly differentiates Stellar from other industrial supply companies is our divisional approach to supporting customers. We operate through five divisions, each with its own product and market specialists. These specialists utilize specific industry and product knowledge to help customers receive the best value for the greatest profitability.

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Paul would often hang out at local concert arenas for hours before a show, introducing himself to the roadies and bandmembers with a handmade guitar in hand that he was hoping to peddle

One of those 450 employees is Meghan Efland, Director of Supply Chain, who sat down with us to talk about the ways in which the industry leader is taking on new challenges and streamlining its end-toend processes.

“Every component in our guitars is designed internally by our own engineering team,” she begins. “Even the screws that hold parts in place. All our materials are selectively sourced with companies that can make them to the tolerances we are looking for. People often ask about Paul. He cares deeply about the product and is here every day; he wants every customer to get the best – whether that is a guitar, amplifier, bridge, tuner, or pickup. He is always trying to find ways to improve these components and make them more functional, stay in-tune longer, and sound the best they can.”

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To reach the incredibly high standards that PRS Guitars has set itself – the very standards that have carved out a global reputation for the Maryland-based company – a robust supply chain must be maintained even amid economic and industrial disturbances.

“Our processes are comprehensive,” asserts Meghan. “We have purchasing and sourcing; however, significantly, wood is not part of our supply chain.

That team directly reports to Paul. Our people are travelling all over the world, inspecting the wood before it gets put on a container and transported to us.

They are picking from the top lot of wood vendors and pulling out only the

with customers or via our global dealer network. To better fulfill these processes, we have our own European distributor and an office in England as well one in Japan for that market. Currently, we are trying to figure out ways we can use our volume in the US and get these other centers consolidated under our accounts, thereby creating a more holistic shipping process.”

Another way that PRS Guitars is enacting its multiform philosophy of continuous improvement, whether that concerns an individual guitar or the supply chain that expedites its manufacturing and shipping, is by streamlining its enterprise resource planning (ERP) systems.

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“We were using an older DOS system and had maxed out its capacity,” Meghan reveals. “Anyone who has transitioned to a new ERP system will know how much goes into it! Six years after that change, we are trying to assess its capability and get the most out of it. Naturally, part of that is utilizing its out-of-the-box capability and understanding its core functionalities; however, we are also working with consultants on how different modules, including reporting and connections, can be better applied to our business.

“Moreover, our warehouse consultants have been investigating ways of incorporating better equipment in our facilities and how changes to our layout might improve manufacturing efficiency,” she adds. “More recently, we have been working with our shipping partners and our ERP system to create a custom shipping method that consolidates orders and appropriately targets our wideranging customer base. So, in short, a lot of fine tuning!”

Though Meghan admits there have been numerous roadblocks along this path of improvement, particularly around robotics, an area that is still lagging due to the relatively small scale of the industry that PRS Guitars operates in, she is confident about the future of the company.

“We are moving forward with a smart and sustainable growth plan,” she concludes. “We create a timeless, handcrafted product, so we are flowing at a relatively slow pace – but always in the right direction. Part of that steady flow will mean becoming more involved with our European and Japanese offices and deep level logistics to improve cross-company efficiencies. Going forward, we are looking forward to getting back out into the world and meeting companies that are using the latest and greatest tooling, thereby enabling us to keep making some of the finest guitars in the world.”

■ www.prsguitars.com retail-merchandiser.com 57 PRS Guitars
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AT HEART

From humble beginnings to a California community - how Superior Grocers has become a cut above

Superior Grocers (Superior) opened its first store in Covina, California in 1981. Since then, it has grown to encompass 70 stores throughout Los Angeles, San Bernardino, Riverside, Orange County, Ventura County and the outskirts of southern California. One of the largest independently-owned chains of grocery stores in southern California, Superior’s philosophy is to offer the highest quality products at a value with exceptional customer service. Shoppers can always count on excellent quality, variety and value when shopping at Superior.

In addition to celebrating its 40th anniversary last year, in 2021, Superior’s charismatic CEO and Founder, Mimi Song, was inducted into the Food Industry Hall of Fame. Executives and industry insiders said it is a well-deserved honor for Mimi, who as a young woman, in 1977, immigrated to Los Angeles from South Korea. From her first job as a cashier at a Korean grocery store in Los Angeles, Mimi founded Superior with a single former Smith’s Food King store in a less than

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prime location. She came to the US with no experience of the industry but through hard work, dedication and determination, she and her team have grown the business to where it is today. Universally admired for her attitude, energy, work ethic and emphasis on teamwork, Mimi’s attributes are reflected in the company’s core values of integrity, service, passion and excellence, which have undoubtedly, helped to secure Superior’s success.

Today’s Superior team, headed by President, Rich Wardwell, alongside CFO, Blake Larson, VP of Marketing, Dale Nakata, VP of Grocery, Sally Hernandez, VP of Produce, Jon Holder, VP of Meat, Mari Mani, VP of Bakery & Hot Foods, Agustin Cabrera, VPs of Operations, Miguel Alarcon and Micheal Hilton, VP of

VP of Distribution, Mark Harding, VP of Facilities & Construction, Leon Lopez, VP of Asset Protection, Darian Griffin and VP of IT, Bob Ing, continue to champion those values. As Rich says: “We are dedicated to building a community of loyal customers, vendors and staff where food shopping is fun and the spirit and love of family guide our actions.”

Acquisition strategy

Superior is proud to have prospered in neighborhoods where others have tried and failed, and this success seems due to an inherent commitment to, and investment in, the communities it serves. Almost all of Superior’s stores are in markets that serve the Hispanic community. As an immigrant, Mimi’s special allegiance and responsibility to other

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Superior is proud to have prospered in neighborhoods where others have tried and failed
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With five new location sites currently under construction, Superior opened a new store in September and will open another one in November. As Rich expounds: “We will also be looking to advance our brand offering into neighboring states. Our goal is to be at 100 or more stores by 2025 and with the recent acquisition of Numero Uno, we are well on our way.”

Mission Foods & Guerrero Tortillas Zero Net Carbs Tortillas

To meet the needs of health-conscious consumers, tortilla and wrap brand Mission Foods has introduced Zero Net Carbs Tortillas that also contain zero sugar, as well as being keto-certified, high in fiber and low in calories. Made with high-quality ingredients, the product line comes in two varieties: original and sundried tomato basil, the latter featuring zesty sundried tomatoes and fresh basil flavors. The launch is particularly timely, as consumer research reveals that more than half of shoppers are seeking foods with less

Superior takes great pride in the abundant variety of freshly prepared products found in its bakery, meat and seafood concessions. “We sell a wide assortment of products but mostly cater to the Hispanic communities in which we operate,” explains Rich. “While we offer select products, such as grass-fed, choice beef and a variety of over 40 organic

sugar, and more than a third are looking for fewer carbohydrates on nutrition labels. Guerrero Tortillas, the brand known for inspiring traditional Mexican home cooking with its tasty tortillas, tostadas and snacks, is bringing you a new line of better-for-you products that don’t sacrifice the authentic flavors you love and enjoy: new Zero Net Carbs Tortillas. Keto-certified, zero sugar and high in fiber, the Zero Net Carbs Tortillas are currently rolling out nationwide. These tortillas are available in two, mouthwatering flavors: the original customers know and love, and tangy, smoky chipotle.

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produce items, our power actually lies in our basics. With over 400 produce offerings, including a wide variety of service meat, seafood products and our popular in-house tortillas and chips along with a full-scratch bakery producing fresh pan dulce and cakes, our emphasis is always on delivering quality, variety and value.

“We are also continuing to add ‘better for you’ products to our offering as part of our commitment to improving the health of our communities.” Indeed, Superior makes

it easy to eat healthily by offering fresh produce, lean proteins and wholesome grains; all at affordable prices. A broad range of healthy food choices and education surrounding how to create and maintain a tasty, healthy diet are all part of how Superior contributes to the health and wellness of its customers. Community health fairs take place at all stores throughout the year. These events provide free health screenings and offer awareness and disease prevention education to empower customers to make the best nutritional choices and to keep communities thriving.

In addition to beautiful, spacious stores, filled with fresh foods, Superior also offers services to support the local community. One of Superior’s core values is placing a high priority on exceptional customer service. That is why the business offers a range of

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services to satisfy its customers’ additional needs. From utility bill payment processing and money transfer services to check cashing and ATMs, Superior takes the time to invest in its community and ensures that all people are served equally with care and respect.

Community support

Like many other businesses, Superior was heavily impacted by the Covid-19 pandemic.

“We had to change the way we did business overnight,” says Rich. “We had to meter people at the door, operate every other check stand, deploy six-feet social distancing at all service counters and we had to stop and sanitize surfaces every half an hour. In order to make sure our employees were safe, we put

up barriers at service counters, rearranged break rooms, set up outside areas and hired companies to come in and regularly sanitize the stores. All self-service areas had to be manned in order to meet the customers’ needs and we changed operating hours to service the elderly in our communities.”

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As Rich goes on to discuss: “We have always been focused on service and the delivery of a frictionless shopping experience. While our stores boast self-checkouts, in-stock conditions and full-service specialty departments, we obviously had to pivot drastically to be able to meet the needs of our communities during that incredibly difficult time.”

Shared values

Furthermore, as Rich continues: “We feel we will continue to grow as the go to place in the communities we serve. There is nothing more important to us than the people that serve at our stores and the customers that allow us and trust us to serve them. We treat each other as we would like to be treated ourselves.”

Superior knows that a community is strongest when it builds from within and the organization wholeheartedly believes that children are the future. That is why Superior’s non-profit organization, Community Re-Engineering Inc. was established in 1995. The Superior foundation helps fund local youth programs that make communities thrive. Proceeds totalling over $3.5 million dollars from the annual golf tournament under the non-profit organization have been distributed to local youth programs and schools. The organization’s vendor partners have been instrumental in helping Superior to achieve this goal through their generous support and participation. From the California Grocers Association Educational

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Foundation to City of Hope, numerous partner organizations have received Superior’s support and share in its values of providing exceptional education and health programs.

True partnerships

Rich goes on to explain that Superior gives back to the local community through its education and arts foundation. “Most recently, we provided a local school with backpacks for all the children. We also offer scholarships through the Western Association of Food Chains and the California Grocers Association.

“Additionally, we are proud to support our employees by providing educational support; an example being the opportunity to earn a retail management certificate from Cerritos College. We also just completed our Inaugural English at Work program. This program aims to help our employees in their everyday lives by providing them

with a laptop and the educational provision of English classes. We understand that a job is about more than just a pay check; it’s about respect, recognition, professional growth, and the ability to provide for loved ones. We’re committed to providing career development opportunities in addition to competitive wages and a comprehensive benefits package.”

At Retail Merchandiser, we get the sense that working at Superior is about joining a family of people, committed to excellence. We begin to understand that people are Superior’s foundation. Mimi’s visionary leadership enables Superior’s management, employees, customers and vendor partners to work together and create true partnerships in their southern California communities. ■

www.superiorgrocers.com

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