Talking shop: wonder what makes shoppers tick? 5 retail superstars reveal how to please customers and, more important, how to keep them coming back for more

Entrepreneur, Sept, 2003 by Elizabeth Goodgold

To foster originality in each of its 50 stores, Anthropologie hires two artists for every location to create art unique to that store. This helps bolster the image of Anthropologie as an independent, free-spirited retailer, not a cookie-cutter franchise.

Anthropologie's buyers are on a mission to scour the globe for interesting, relevant and unusual items for its core customer. They see her as a professional woman aged 30 to 45, well-read, well-traveled and well-educated, with a household income approaching $200,000.

And she is a devout fan. Customers spend an average of $80 per visit, leading to average sales per square foot of approximately $600--not bad for a store that is all about creating a mood.

BUILD-A-BEAR WORKSHOP CREATING A RELATIONSHIP WITH CUSTOMERS

Who would have thought creating teddy bears could generate revenues in excess of $160 million in 2002 alone? Founder Maxine Clark of Build-A-Bear Workshop sure did. Her strategy was to target girls up to age 12 and let them select, stuff, stitch and dress a teddy bear (or one of the other stuffed animals they offer). What's the goal? "To create memories," Clark explains.

Although bears start at just $10, souped-up versions with sound, clothes and shoes can ring the register at $50. By acting as a fashion retailer with seven changes of merchandise per year, the Workshop lures its customers back an average of five times per year, resulting in sales per square foot of twice the industry average.

One of its unique marketing strategies is the Build-A-Party concept: Host a birthday party, and introduce new guests to the franchise. The tactic creates contagious awareness.

As part of its tireless research, Build-A-Bear discovered its customers wanted to dress their bears just like themselves. And the No. 1 retailer the girls selected was Limited Too. The two retailers share similar demographics and are often retail tenant neighbors. In February of this year, Clark inked Limited Too's first brand extension, affording each retailer the opportunity to promote and sell the other's merchandise both in-store and online, providing innovative cross-pollination of customers.

The company also fervently embraces causes relevant to kids and animals. It is part of a partnership with the World Wildlife Federation and The Humane Society, donating a portion of its proceeds on selected merchandise. Retail strategist Whalin concurs with its philosophy: "The company that understands cause marketing today will do very well."

LESSONS TO BE LEARNED

What did each of these five retailers do exceptionally well? They transformed their brand into an experience. Translating the ESPN brand to ESPN Zone has provided an outlet for like-minded sports fans to share the excitement of a game. Tempting angst-ridden teens with macabre and sarcastic apparel has allowed Hot Topic to shatter retail records nationwide. Grabbing a cup of java at Starbucks has less to do with what's in your cup than with the relaxing environment. Stepping into the world of Anthropologie is like stepping into an international oasis, replete with faraway sounds, smells and merchandise. And creating a birthday bear at Build-A-Bear Workshop becomes a treasured memory.