A presentation titled The Store Environment: Elevating the Consumer Experience delivered at the 2008 Food Marketing Institute Retail Store Development conference held in San Diego, CA.

2. 1 2 3
EXPRESS FORMATS HEALTHY PLACES FEMALE RETAIL

3. 1 2 3
EXPRESS FORMATS

4. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Express formats are not just mini stores.
Fresh & Easy Neighborhood Markets
The Market by Vons
Marketside by Walmart

5. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

6. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Format
C Store Traditional Grocery Hyper Markets
4,000 sf
35,000 - 50,000 sf 50,000 - 120,000 sf

7. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Format
C Store ?? Traditional Grocery Hyper Markets
4,000 sf
10,000 sf
35,000 - 50,000 sf 50,000 - 120,000 sf
Drug and
Specialty

8. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Site Diagram
loading dock
truck access
store entry/exit
parking field
corner marker
entry/exit N

9. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Site Diagram
view to
building corner
iconic corner
high visibility N

10. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Plan Diagram
loading dock holding area
fresh meals
frozen
easy fresh
checkout
entry

11. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

12. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

13. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

14. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

15. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

16. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

17. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

18. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

19. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

20. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

21. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

22. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

23. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

24. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

25. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

26. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

27. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

28. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

29. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

30. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

31. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

32. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

33. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

34. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

35. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

36. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

37. 1 2 3
HEALTHY PLACES

38. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Disinterested
Interested
Involved
Informed
Active

39. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Shared
Retailer Enthusiasm Customer

40. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
ecologic matrix
Planet Place People Profit
Low Energy Connection to Harmless Net Zero
Green Low Carbon Community Environments Cost
Resource Locally Life Cycle
Greener Preservation Cultivated
Outside In
Costing
Close the Long Life Healthy Eco-System
Greenest Loop Loose Fit Environments Costing

41. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Carbon Dioxide Emissions
source: 2005 US Energy Information Administration
industry transportation buildings
800
700
Metric Tons of Carbon (millions)
600
500
400
300 25%
200
100
0
50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02

42. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Carbon Dioxide Emissions
source: 2005 US Energy Information Administration
industry transportation buildings
800
700
Metric Tons of Carbon (millions)
600
27%
500
400
300 25%
200
100
0
50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02

43. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Carbon Dioxide Emissions
source: 2005 US Energy Information Administration
industry transportation buildings
800
48%
700
Metric Tons of Carbon (millions)
600
27%
500
400
300 25%
200
100
0
50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02

44. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
US Energy Production
source: 2005 US Energy Information Administration
54% of American adults think electricity is produced
by a combination of solar, nuclear and hydropower.
(2006 Roper Report)

45. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
US Energy Production
source: 2005 US Energy Information Administration
54% of American adults think electricity is produced
by a combination of solar, nuclear and hydropower.
(2006 Roper Report)
oil - 2%
hydro - 4% solar/wind - 1%
gas - 18%
coal - 55%
nuclear - 20%

46. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
US Energy Production
source: 2005 US Energy Information Administration
54% of American adults think electricity is produced
by a combination of solar, nuclear and hydropower.
(2006 Roper Report)
oil - 2%
hydro - 4% solar/wind - 1%
gas - 18% 75%
Fossil Fuels
coal - 55%
nuclear - 20%

47. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Energy Consumption per SF
source: 1995 US Energy Information Administration
60
50 53
40
36
30
27
20
19 Average for all commercial
15 buildings - 13.4 kWh/sf
10 12
8 7
5 4
0
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48. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Energy Consumption per SF
source: 1995 US Energy Information Administration
60
40 kWh/sf greater
53 than the average
50
40
400% 36
30
27
20
19 Average for all commercial
15 buildings - 13.4 kWh/sf
10 12
8 7
5 4
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49. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
US Largest Retailers
Retailer Stores Total SF Area in Chain
Wal-Mart 4,091 923,136,390
Home Depot 2,215 287,950,000
The Kroger Company 3,645 144,483,350
Costco Wholesale 513 68,229,000
Target Corporation 1,537 295,202,368
Sears Holdings 3,800 342,000,000
Walgreens Company 5,858 82,012,000
Lowe’s Companies 1,425 165,300,000
CVS Corporation 6,200 71,300,000
Safeway Incorporated 1,755 80,730,000
31,039 2,460,343,108

50. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
2,460,343,108 sf x 13.4 kWh/sf = insanity

51. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
32,968,597 mWh
Nevada
32,500,630 mWh

52. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Alaska
Delaware
Hawaii
Idaho
Maine
Montana
Nebraska
Nevada
New Hampshire
New Mexico
North Dakota
Rhode Island
South Dakota
Utah
Vermont
West Virginia
Wyoming

53. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Industrial Age Business Model
Virtually endless supply of cheap raw materials.
Abundant cheap energy.
Plentiful cheap labor that’s easy to replace.
The ability to externalize costs.

54. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

55. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
source: Ray Anderson, CEO of Interface Carpet
1 31
Carpet

56. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
TRASH

57. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
TRASH

58. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
37% of all landfill refuse
is generated by building related construction
source: EPA

59. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Typical Time Line
Sourcing
Store
Design Fabrication Installation Opening
End of Life
Landfill
Landfill Landfill

60. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Locally
ReSource Time Line
Cultivated
Recycle
Reuse
Renew
Reduce
Rethink
Store
Sourcing Design Fabrication Installation Opening
ReSource End of Life
ReSource

61. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Resource Pyramid
Rethink
Reduce
Renew
Reuse
Recycle

62. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

63. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Recycle : Post-Consumer
3Form IceStone Stardust Glass
Bedrock Industries Shetkaworks Interstyle Eleek

64. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Recycle : Pre-Consumer
Junckers Ekobe Kerei Habitus
Alkemi Biofiber Wheat COR Products Constantine Carpet

65. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Reuse
Appalachian Hardwoods Terra Mai Trestlewood
Colonial Barn Mountain Lumber West Lincoln Barnboard

66. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Renew
Plyboo End Grain Dura Palm
Nova Cork Nova Cork Constantine Carpet Maya Romanoff

67. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Reduce
Ancient Woods Kauri Lumber Kauri Veneer
Halm Lumber LA Treasures

68. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Panelite
Rethink
01/29/2007 12:19 AM
Interstyle Fusion Plexwood Panelite
Modular Arts Interlam Caba

69. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

70. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

71. 1 2 3
FEMALE RETAIL

72. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Purchasing Decisions
source: Barletta - Marketing to Women
100%
83%
94% 92%
80% 91% 89% 90%
80%
60%
60%
55%
40%
20%
Furniture Vacation Homes Banking Health Cars Electronics

73. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
More Educated Than Ever Before
source: Barletta - Marketing to Women
57%
100%
80%
60%
58%
52%
40% 47% 46%
20%
Master’s Doctoral Law Medical

74. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Wage Gap
source: 2006 US Bureau of Labor Statistics
Men Women
Men’s earnings
Women’s earnings as
percentage of men’s 81%
79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

75. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Women are not a market segment.
They are the market!

76. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Chromosomal Differences
source: Barletta - Marketing to Women
Men Women
Have XY chromosomes. Have XX chromosomes.
The gender of every embryo is Every embryo starts off as female, and
determined by the father’s genetic then changes at 6 weeks.
contribution. All 8 genes that determine intelligence are
Men get all their intelligence genes from found in the X chromosome.
their mother - they get none from their
father.

77. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Chromosomal Differences
source: Natalie Angier - For Motherly X Chromosome, Gender Is Only The Beginning - New York Times, May 1 2007
Y
50 genes X
1,100 genes

78. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Hormonal Differences
source: Barletta - Marketing to Women
Men Women
Testosterone - the big T Testosterone
The dominant hormone. Also present in small amounts.
There is a direct connection between it Estrogen
and competitive activity. Suppresses testosterone.
Is highest in the morning. Linked to nesting and nurturing.
Is highest in Autumn. Progesterone
Promotes care-taking urges.
Oxytocin
Promotes a sense of partnership and an
urge to take care of a child.
Released when stressed.
Serotonin
Dampens thrill seeking and exhibitionist
behavior.

79. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Releaser Shape - any object with short stubby arms and
legs, a round plump torso, an oversized head, and large eyes.

80. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Brain Differences
source: Barletta - Marketing to Women
Men Women
Localization/Specialization Localization/Specialization
Emotional centers are concentrated on Have emotional centers throughout
the right side. several parts of the brain.
Connectivity Connectivity
Less than women - leads to more More connectivity than men - leads to
specialized thinking. more holistic thinking.
One Lobe or Two One Lobe or Two
Tend to favor only the right side. Use both sides together.

81. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Hot Buttons

82. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Contextual Thinking
source: Barletta - Marketing to Women
Women
Women tend to place elements they see
in relation to each other.
Tend to integrate elements into a bigger
picture.
Have difficulty discerning objects separate
from context.
They are synthesizers.

83. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
A Sense of Adventure
Mission: Go to Gap, buy a pair of Pants
Male
Macy’s Sears
Gap
JC Penny
Male
Time: 6 minutes
Cost: $33.00

84. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
A Sense of Adventure
Mission: Go to Gap, buy a pair of Pants
Female Male
Macy’s Sears
Gap
JC Penny
Male Female
Time: 6 minutes Time: 3 hours, 26 minutes
Cost: $33.00 Cost: $876.00

85. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Shopping as Hunting

86. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Fundamental Attributes
Physical Factors
Companion parking.
Unique spacial needs.
Emotional Factors
Compelling human interest story.
Venue consistency.
Engages all the senses.
Vehicle for self expression.
Buying environment.
Lifestyle Factors
Allows for a shared experience.
Connection to target lifestyle.

87. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Criteria/Difference Matrix
Fundamental Attributes Gender Differences
Companion Parking Chromosomal
Physical Chemical
Unique Spacial Needs Hormonal
Compelling Story Emotional Access
Venue Consistency Attention & Focus
Emotional Engage the Senses Contextual Thinking Brain
Vehicle of Self Expression Verbally Inclined
Buying Environment Extra Sensory
Shared Experience Retail As Third Place
Lifestyle Cultural
Lifestyle Connection Retail Training

88. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Abercrombie & Fitch

89. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Abercrombie & Fitch

90. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Abercrombie & Fitch

91. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Abercrombie & Fitch

92. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Abercrombie & Fitch

93. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Abercrombie & Fitch
Pamela Graphic Tee Emma Destroyed Boot Chelsea Graphic Tee
Brown Light Wash Light Blue

94. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Abercrombie & Fitch

95. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Abercrombie & Fitch

96. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

97. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
How fresh Is this a
is this? value?

98. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

99. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment
Value
Home Freshness
Special
Health

100. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

101. 2008 FMI RSD Express Formats Healthy Places Female Retail The Store Environment

102. Closing Thoughts

103. Express Formats
Are not a mini version of larger stores.
To work, they need to be totally new retail
experiences.
They are a unique opportunity to control
your brand and craft a totally compelling
and consistent brand experience.

104. Healthy Environments
Your store environments are the best place
to get credit for you environmental efforts.
Money is a finite resource that needs to be
carefully managed.
We need to move away from the industrial
age thinking and toward a sustainable age
business model.

105. Female Retail
Women are not a market segment, they are
the market.
Human behavior is easier to work with
rather than manipulate.
Designing for women can create retail
environments that make meaningful
connections.

106. thank
you