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2011 was a year of some retail blunders starting with design and ending on the sales floor — or on the web page
, as it were. From management decisions in questionable taste to mystifying merchandising, Style, Inc. singled out some of the bigger stumbles and bumbles.Target’s E-Commerce Crash
Despite Target’s coup scoring a collaboration with the venerable Italian design house of Missoni, the nation’s second largest retailer (and veteran of covetable capsule collections) took a tumble when the resulting sales frenzy crashed its e-commerce site on the day the zig zag-embellished merchandise debuted.
While sell through was swift, many shoppers were only purchasing armloads of sweaters and scarves to sell at higher prices on eBay. Adding insult to injury, customers who did manage to squeeze in an order for themselves before the site went down were still not guaranteed the goods. Worse yet, Target barely apologized.
Home Shopping Network’s Questionable QR Code Promotion
The 34-year old multichannel retailer that popularized shopping via television is trying to keep its stronghold in transactional innovation. However, HSN apparently ignored some basic demographic information in its quest to entice customers. Adding Quick Response codes to specially priced items on a weekend of promotional deals failed to take into account that its customer base is mostly women (who are largely unaware of what those little black and white squares are for) and that sitting in front of the television made the distance to scan too much for a phone to read.
Lowe’s Levels a Low Blow to the Muslim Community
The juggernaut of all things home improvement recently pulled its television ads airing during “All-American Muslim” is an eight-part series that follows five Muslim families living in Dearborn, Michigan. The company cited pressure from “Individuals and groups have strong political and societal views on this topic, and this program became a lightning rod for many of those views,” in a statement to explain their decision. They might have consulted with Whole Foods’ management first. A special halal promotion during Ramadan sent sales soaring 300%.
Urban Outfitters’ Numbskull Product Names
It’s almost as bad as saying all (insert name of ethnic group here) look alike. Urban Outfitters leaped on the tribal inspired prints trend coating everything from flasks to panties with bold geometric designs reminiscent of Southwestern native American motifs. The problem arose when they dubbed the items Navajo – which in the U.S., under the terms of the Federal Indian Arts and Crafts act of 1990 and the Federal Trade Commission Act, it is prohibited to falsely claim, or even imply, that a product is Native American-made when it is not. No surprise that Urban Outfitters got slapped with a cease and desist order from the Navajo Nation.
JCPenney’s Big Name Management Team
Going against prevailing wisdom that money can’t buy style, JCP wooed some of retail’s heaviest hitters to move to Plano, Texas to boost the discount department store chain’s bottom line along with its chic quotient. Most notably, JCP installed Ron Johnson as CEO who decamped from the top job at Apple Retail and new president Michael Francis came from Target where he occupied the chief marketing officer’s chair. It will be interesting to see how long these experienced merchants will give for a turnaround. A turnaround won’t be easy, or quick. Especially wen one of the teams first moves was to take a 17% stake in Martha Stewart, a brand that’s lost a lot of its luster. And the retailer reported a net loss for the third quarter ended Oct. 29 of $143 million.
source: forbes.com
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