Love that comment "You don’t need anything they sell, but if you belong to the right segment of customers, you want everything they sell." Lark is another retailer in the same sector who are doing something similar. They have also realised that expensive shopfitouts are unlikely to generate a return. Despite this, the shops look good. Functional but stylish
* One was to try and think of other retail businesses that had a model designed around a customer, rather than a category - and I struggled. I'd reckon that 'Next' went from clothing to a lifestyle brand for the young urban professional (does anyone say yuppie any more?) but I'm not sure if you'd say that today. There are others that are 'clothing plus a few other things'.
* The other is that you have just solved my Christmas shopping problems ...
Thanks Robin - on 1) I agree it's hard to find too many comparables, isn't it. Arguably exactly what a department store should be, though, which is why I think the comparison with JLP is interesting. And on 2), you are welcome!
Oliver Bonas have been particularly adept at scaling an 'independent' style of buying, retailing and merchandising. They are fishing in the same ponds for product, and appealing to some of the same staffing and customer profiles.
They also select locations and premises that ensure that their stores don't look the same, which allows them to curate ranges and shopfittings at store level and avoid the 'chain store' effect.
At the scale they are now, the business offers a really coherent in house design and own label offer, that helps with margins and range management. I think they are a very impressive business, well regarded, and very well placed to soak up a chunk of the (overlapping) Paperchase customer profile. Their challenge, as they grow, is to avoid the same fate as that business - placing margin and profit ahead of quality and a coherent customer offer.
The curse of growing too much too fast is a point well made, Michael, and one the business will need to watch out for. I loved the Paperchase model and was very sad to see it go from the High Street.
Love that comment "You don’t need anything they sell, but if you belong to the right segment of customers, you want everything they sell." Lark is another retailer in the same sector who are doing something similar. They have also realised that expensive shopfitouts are unlikely to generate a return. Despite this, the shops look good. Functional but stylish
Interesting - as a non-Londoner I hadn't come across Lark but will keep my eyes peeled.
I had two thoughts on reading this.
* One was to try and think of other retail businesses that had a model designed around a customer, rather than a category - and I struggled. I'd reckon that 'Next' went from clothing to a lifestyle brand for the young urban professional (does anyone say yuppie any more?) but I'm not sure if you'd say that today. There are others that are 'clothing plus a few other things'.
* The other is that you have just solved my Christmas shopping problems ...
Thanks Robin - on 1) I agree it's hard to find too many comparables, isn't it. Arguably exactly what a department store should be, though, which is why I think the comparison with JLP is interesting. And on 2), you are welcome!
Oliver Bonas have been particularly adept at scaling an 'independent' style of buying, retailing and merchandising. They are fishing in the same ponds for product, and appealing to some of the same staffing and customer profiles.
They also select locations and premises that ensure that their stores don't look the same, which allows them to curate ranges and shopfittings at store level and avoid the 'chain store' effect.
At the scale they are now, the business offers a really coherent in house design and own label offer, that helps with margins and range management. I think they are a very impressive business, well regarded, and very well placed to soak up a chunk of the (overlapping) Paperchase customer profile. Their challenge, as they grow, is to avoid the same fate as that business - placing margin and profit ahead of quality and a coherent customer offer.
The curse of growing too much too fast is a point well made, Michael, and one the business will need to watch out for. I loved the Paperchase model and was very sad to see it go from the High Street.