For many brands, department store representation is the pinnacle of success. Myer director of fashion and accessories Judy Coomber reveals the secrets to dealing with a major retailer, while footwear brand Urge reveals what it takes to service a partment store.
How many buyers work in the fashion, footwear and accessories departments?
We have a total of about 60 buyers in Myer covering all aspects from hard goods and entertainment to cosmetics and fashion. In addition there are support teams who cover planning, allocations and trainees etc.
What are some of the key fashion categories Myer is looking to expand its product offer in?
We are always assessing our offer and looking at gaps where our customer tells us they are needing an expanded offer. Our most recent major launch, Levi’s Curve ID, is a great example of where our jeans offer didn't adequately offer what our customers needed.Levi’s saw this opportunity and worked with us to have a major launch in Myer.
Are there any gaps in certain categories and/or price points?
Often suppliers come into the market only interested in the 'sexy' part of the market. We have a great opportunity in our specialty businesses, such as our Plus Size department and also Petites. Both of these customer segments are under-catered for. We are also continuing to review our Classic offer to ensure it meets the expectations of the customer, balancing style with the right cut and fit.
What boxes does a brand have to tick before securing an account?
Working with a department store can be challenging. We won't take on a new supplier lightly as we need to be sure they are well enough established to cope with the challenges of consistency in product offer, good quality, a clear brand architecture and an understanding of the pricing strategy required. In addition, we need to be sure they deliver on time, are able to meet our process requirements such as being EDI compliant, and finally understand the trading term requirements. They need to work through the marketing plan and provide support. Finally, they are in partnership with us. The delivery of the goods is just the beginning, not the end. We need them to work with us to ensure sell-throughs are acceptable. It is demanding to work with a department store.
And who should brands approach first?
No new brands come to Myer without the final approval of the director in charge of the business. Initial contact can come through any number of leads – a buyer, business manager or director. Final sign-off is done with the business director.
Why is it more expensive to do business with a department store?
It is the professional reputation of the supplier that is on the line, so it is important that they are able to meet the guidelines above.
How many new brands approach Myer for distribution each season?
I personally would look at one or two a week – either local or international brands. The team probably deals with a similar number.
How many are added to the Myer portfolio each season on average?
We don't add that many. Space in store and our ability to execute properly is an important factor.
How many stores can a new brand expect to be trialled in?
It depends on the target customer, pricing and fashionability. Anywhere between four to five stores. If it looks like a volume business we could start in up to 30 stores.
What makes for a good supplier?
Be prepared to listen and take feedback. Work hard with the store's team to help us execute in store. Be proactive and use initiative. Don't be frightened to give feedback on expectations for Myer.
What about the most common mistakes suppliers make when it comes to supplying a department store?
Assuming that delivering the stock is the last step in the process! Not understanding that the merchandise has to look right in a department store. Hanger appeal is much more important than in specialty stores.
Are you able to advise on payment terms?
We work with each new supplier to come to terms which meet our expectations and support the supplier. As we negotiate with them, we are very clear on the terms required.
How important are trade shows for brands looking to get their foot in the door of department stores?
We usually have representatives at trade shows. It is not the only means of acquiring new suppliers, however it is a good opportunity for us to look at new, up and coming designers.
Urge Footwear sales director James Tesoriero offers an insight into what it’s like to supply to David Jones’ national network.
How did you land an account with David Jones?
I’m lucky because before Urge I worked for Converse, so I already had an established relationship with many key people in the industry. I think the appeal of the label for David Jones was that it was a young street brand, an Australian brand, with a unisex offering, and they’re really focused on driving their youth brands.
What Urge product does David Jones stock?
They stock our men’s and women’s ranges and they are the exclusive Australian stockist of our kids range called ‘For Little Dudes’.
How many stores David Jones stores did you start out in and how many stores are you in now?
We started out in 10 to 15 stores three years ago and over time have grown to be stocked in all of their stores nationally.
What are the key differences between servicing a department store account and servicing independents?
Servicing a department stores involves a lot of back end, from a logistics side. We are incredibly lucky with our team that we have a wealth of experience in this area. Procedures and attention to detail are always so important.
What are the differences in delivery requirements between a department store and independents?
Delivery requirements are of course extremely important to David Jones. Delivering product late can result in slow sell-through, which results in fewer sales. With careful planning, these issues can be avoided, although we have air-freighted some stock in to reach delivery windows and this can result in a major loss of profit! However, in saying this, brand equity is very important to us and we always do what we can to get the product in store.
What are the challenges of being stocked in a department store?
Deliveries are sometimes a nightmare. Another challenge which can sometimes come about is off-price product. Sale times can cause a few complications with our other major accounts and independents. Most of the time David Jones are very good with this. Communication and honesty is always the best policy.
What are the benefits?
The two main benefits that stand out are exposure of your brand and of course increased volume. We are incredibly lucky David Jones are very youth and brand focused. They really understand the direction of our brand and we work closely with them to achieve this. They also make suggestions to help guide us. They suggested to us recently that we roll out hangsell modules in their stores and we’re introducing those from August. The product will be hanging vertically from a stand-alone rack. It’s more attention grabbing than product that is sitting flat on a bench among other shoes. We’re going to trial them in international markets, for sure.
What advice would you give to labels chasing a department store account?
Be persistent! And make sure you have a point of difference. They want something fresh and different to everything that’s already out there. Also, department stores are always going to be after big margins, they will be persistent in pursuing them. That’s something to remember.