Retail Paradox Weekly - 10/30/2007

Retail Paradox Weekly

Retail News Analysis by RSR Research

October 30, 2007

Red Sox, Patriots, and Party Supplies: The Case for Supporting Localized Demand

By Paula Rosenblum, Managing Partner
10/30/2007

The last stop on my career train as a retail IT practitioner was at iParty, a party supply super-store headquartered in Dedham, MA. It's true. When asked where I worked, I would answer "iParty," to which the inquirer would reply, "Yes, I know that, but where do you work?"

All joking aside, nowhere is the need to understand local demand more clear than the party supply industry, and it makes for a great lesson for all retailers. More...

The New World of New Business

By Nikki Baird, Managing Partner
10/30/2007

I read an article last week about a small retailer in the northwest that is bucking all the trends - it's called Romy. In three years, the chain is up to 10 stores with $3.5M in revenue, which is up 13% over last year. The company has plans to open as many as 8 new stores next year. Romy is boldly striking at one of the toughest places to be - stuck in the middle. It's going after the tough to find (and serve) 25-40 year old female segment - stuck between baby boomers and teens. It's also going after "above bargain" but "below boutique" prices as it struggles to gain purchase as another entry into mall-based retailing - a format getting squeezed between mass merchants and life style centers.

But they don't look like any "new" retailer that I know, and technology is a large reason behind the difference. More...

RSR Checks Out the Home Depot Design Center

By Brian Kilcourse, Managing Partner
10/30/2007

The Home Deport opened two new concept stores in October, to debut a "female friendly" format. According to Bob Vila's website, (the famous how-to guy), the woman of the family makes the home improvement decisions 85% of the time. It undoubtedly is this reality that caused H-D to try out the new concept. So our intrepid husband and wife team went to the West Coast test store in Concord, CA (the East Coast store is in Charlotte , GA) on Saturday October 27 in the noon hour - presumably one of the store's busiest times.

The first thing we noticed was in the parking lot - there were no beat up Ford F150's or Dodge Rams filled with equally well-used contractor's tools. More...

Technical Gear gets some Technical Help

By Steve Rowen, Partner
10/30/2007

As I mentioned in an article last week, unseasonably warm weather across the US has made for some serious inventory challenges for retailers - particularly apparel retailers. In fact, on all Hallows Eve here in Boston , it's currently 60 degrees, and trick-or-treaters in the Northeast will be treated tomorrow afternoon with temps nearing 70.

Despite this meteorological anomaly, this is the time of year when those of us who are called riders get antsy. Skiers, snowboarders, and telemarkers are positively abuzz with anticipation for the coming season. And regardless of the past year's purchases, we absolutely, one and all, need new gear. It is something of an addiction, and it costs a pretty penny to feed. More...

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