Venture battles back in Chicago; execs focus on expansion, refurbishment, service - Venture Stores, Chicago, Illinois

Discount Store News, Nov 21, 1994 by Don Longo

GENEVA, ILL. -- Ask a Venture Stores executive about the difficulties of defending its strongest market from attack by 29 new Wal-Mart discount stores, 18 spanking new Target Greatland stores and four giant Super Kmart Centers, and you are likely to get an exasperated look followed by a comment like this:

"Sure, our business has been affected here in Chicago by all the new competition, but we're hardly throwing up a white flag."

Indeed, based upon a visit to Venture's new 105,000-sq.-ft. store here last month, the Midwestern regional discounter is sharpening its bayonet with a strategy of measured expansion, speedy refurbishing and a strong merchandising niche aimed at serving the needs of families.

"We've remodeled 22 out of 38 Chicagoland stores to our new prototype, and we're still the discount store of choice for more Chicago shoppers than anyone else," said Mike Hamilton, senior vice president of stores.

"What's more, by the end of 1996, all our Chicago stores will be modernized and we will add two or three new stores to the market."

Moreover, the increased competition has challenged Venture to "communicate to the customer who we are and what we are about," said Hamilton.

What Venture is about, according to interviews with Hamilton, senior vice president of marketing Cliff Campeau, senior regional merchandise manager Mike Dickson and other executives, is "family."

"We are trying to be a store that appeals to the family," said Campeau. "We are very strong in children's apparel, toys and children's books."

The new store here in Geneva, managed by Steve Gedutis, is one of five new Venture stores that opened in late summer. Last month, the chain opened three more stores in Houston and early this month opened its first store in Corpus Christi, its 19th store in Texas and Venture's first store outside of Dallas and Houston.

By solidifying its Chicago market, its largest and most important, expanding further in Texas and updating its home market stores in St. Louis (four have been remodeled so far), Venture hopes to reverse disappointing financial results. Operating profits in the third quarter ended Oct. 29 plummeted 59.6%; comparable store sales fell by 1.3%. Total sales were up only 3.8%.

However, chairman Julian Seerherman noted that the one-year-old Texas stores performed above plan for the entire quarter, and the five new stores had strong opening sales.

The Geneva store is located about 35 miles west of O'Hare Airport in an underdeveloped area marked by large tracks of land and numerous construction projects.

At 105,000 sq. ft., the store is about 9,000 sq. ft. larger than Venture's previous prototype, and the size of future stores is trending up to 109,000 sq. ft., said Hamilton. Venture's forte has always been apparel and home fashions--its soft lines business is close to 40% of sales, an enviable figure for most discount chains. However, the larger store format allows Venture to considerably beef up its hard lines departments.

Gondola runs in hard lines, which circumscribe the central apparel departments, have been lengthened to 32 ft., from 28 ft., with all departments benefitting from the extra space. "The store is easier for customers to shop in, workers to work in and managers to manage in," said Hamilton.

In hard lines, Venture's franchise category, befitting its family focus, is toys. The department takes up several runs along the back wall and is placed adjacent to children's apparel. The strategy is to be competitively priced on identifiable items. A freestanding display of children's home video with a television monitor helps build incremental sales here.

Three 36-ft. runs of lifestyle furniture illustrate Venture's attempt to be dominant in all home areas. Juvenile furniture, located next to infants' and toddlers' apparel, was expanded in the prototype and given a similar treatment at this new store.

The star of the department, however, is carbon monoxide detectors, said Hamilton, especially as demand soars after the accidental death of tennis star Vitas Gerulaitis from carbon monoxide poisioning.

The electronics corral, containing music and video, was opened up, providing more aisle space for shoppers. Sounds of Nature, a cassette and CD series of music and sounds emulating ocean waves, rain forests, and such phenomena, is being expanded to all stores due to strong initial sales.

Cosmetics was moved from the front of the store toward the center with good customer reaction, said Hamilton, who also noted that there is still room for improvement in the chain's cosmetics business. Fixturing has been improved and sales of imposter fragrances are very strong, he said.

Jewelry was expanded in the new prototype, making room for more fine jewelry, precious stones and diamonds. "Jewelry has been a pleasant [surprise] business for us," said Hamilton.

Apparel maintains the drop ceiling unveiled at the first of the new prototypes. It's a very open look, containing shops without walls for easy customer flow through. Venture has always been a savvy apparel merchant, and this store is no exception. Logo 7 baseball caps feature all the latest embellishments looked for by the teenage set and clever private label programs, like No Fair (sounds and looks like No Fear), are sprinkled throughout the department without denigrating the name brand message of the store.