A brand makeover takes more than just a new logo, or in the case of one major department store, slashing prices. That chain plans to eliminate the trait it was known for — deep merchandise discounts — for a revamped shopping experience: individual areas that highlight brand-name merchandise and predictable pricing.
According to a recent article on Reuters, that same retailer is spending $80 million a month to explain the new changes their makeover will bring. That same store will eliminate its weekly circulars and instead publish a monthly catalog to highlight that month’s deals.
A retailer’s success will come down to branding. Consumers want to know what the brand stands for. Companies need to come up with a strategy, execute that strategy and then be consistent in their messaging.
Customers at the test-market stores are responding well to the brand overhaul. One customer spotted a pair of leggings and purchased it for full price — $10 dollars — because she thought it was a fair price and didn’t need to wait for it to go on sale.
Source: Reuters, January 2012