Trending Stores: Tesco Extra, Swansea, Wales
British supermarket giant Tesco puts a friendlier and more contemporary spin on its hypermarket format at its revamped store in Swansea, Wales.
The new format, developed by Swedish design firm Blink in collaboration with Tesco’s in-house team and corporate identity group Wolff Olins, offers innovative digital services, a more personal approach and simplified shopping for different needs. The remodeled store, which opened in June, is delivering a significantly higher profit, according to Blink.
Tesco’s stores are large — and that isn’t changing anytime soon.
But the new format is designed to take the interior from “big, bold and cold” to “big, bold and homely” (or simple and comfortable).
The 89,000-sq.-ft. store is still big and bold on the outside. Inside, it is still big, but the interior is marked by a more human scale, both in its architecture and tone of voice. There is a fresh market at the store center, designed to offer a “feast for the senses.” Signage, with many messages in English and Welsh, enhances the more personal feel. The design offers intuitive customer journeys that make different shopping trips more convenient. There is also a community center space is adjacent to the cafe.
The revamped store integrates such omnichannel solutions as click-and-collect, mobile self-scan, in-store interactive screens, and a more convenient shopping experience for customers buying takeout food.
Gap CEO draws ‘line in the sand’
Gap Inc. CEO Art Peck is refocusing the 3,000-store company on the areas with the biggest potential for driving growth — and they do not include its oldest divisions.
“We’re certainly not giving up on Gap or Banana [Republic], but we’re acknowledging the world continues to change,” Peck said in an interview with Bloomberg. “And those are the two most mature brands in the portfolio.”
Going forward, Peck is emphasizing Gap's newer brands, Old Navy and Athleta. He is not giving up on the company's namesake division as much as he is pruning it.
“I want fewer, better Gap stores,” he said in the report.
Old Navy contributes about three-quarters of the company’s profit, compared with Gap’s 7%, according to Jefferies LLC analyst Randal Konik.
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Summer sales slump
Consumers were cautious in their spending during the summer months.
Retail sales in August decreased by 0.2% from July on a seasonally adjusted basis, according to the National Retail Federation. (The NRF numbers exclude automobiles, gasoline stations and restaurants. Also, the Commerce Department said data for July was revised to show sales increasing 0.3% instead of the previously reported 0.6% jump.
Among the biggest surprises of the data for August was that the biggest decrease was in online and non-store sales, which fell 1.1%. Sales at apparel stores fell 1%.
“Retail sales for August were truly a mixed bag, with monthly gains in July reversed in August,” NRF chief economist Jack Kleinhenz said. “The bottom line is that consumer spending is uneven but remains resilient and the key contributor to U.S. economic growth. While it is too early to assess the impact Hurricanes Harvey and Irma have had on the economy and retail sales, there’s no doubt that they will impact consumer spending – particularly in certain sectors – as Florida and Texas work to rebuild.”
Year-over-year growth was up 3.4% on a three-month moving average. Specifics from August sales include:
• Online and other non-store sales decreased 1.1% seasonally adjusted from July but increased 8% unadjusted year-over-year.
• Clothing and accessories stores decreased 1% seasonally adjusted from July but increased 1.5% unadjusted year-over-year.
• General merchandise stores increased 0.2% seasonally adjusted over July and increased 3.1% unadjusted year-over-year.
• Electronics and appliances stores decreased 0.7% seasonally adjusted from July and decreased 3.3% unadjusted year-over-year.
• Furniture and home furnishings stores increased 0.4% seasonally adjusted over July and increased 5.9% unadjusted year-over-year.
• Building materials and supplies stores decreased 0.5% from July but increased 8.2% unadjusted year-over-year.
• Sporting goods stores decreased 0.1% seasonally adjusted from July and decreased 1.7% unadjusted year-over-year.
• Health and personal care stores increased 0.1% over July and increased 0.3% unadjusted year-over-year.