Following a year of solid store expansion, Glue Store is honing in on its product offer to ensure a point of difference from key competitors in the youth apparel market. Melinda Oliver finds out its strategy.
Keeping ahead of the tastes of 20-something consumers is a mission that keeps John Continenza's pulse racing. In the past 12 months, the job of the Glue Store head of menswear buying has dramatically stepped up in pace, with the retail chain adding eight stores to its network to reach 23 across NSW and Victoria. As a result, Continenza has had to work even more closely with apparel suppliers to ensure the product offer suits differing styles from the city to the beach.
"Our brand and product mix is pretty generic across the board," he said. "But when we open somewhere a bit more coastal like in Warringah or Newcastle in NSW, we will sell a lot of shorts and singlets, which is a lot different to what a store in Melbourne will sell."
To support the recent store growth, the buying team has become more structured with new merchandise planners in place. Their job is to ensure that the buying across brands such as Nobody, Mavi, Mooks, Le Coq Sportif, Diesel, Industrie, G-Star, Wrangler and Zanerobe fits in with the company's message. Bonds underwear and apparel is set to join the ranks in 2011.
Other recent additions are Obey from the US and Australian label Kroam. To date, jeans and t-shirts have been the bread and butter of the business, but Continenza said a shift was now occurring.
"We are finding, particularly in menswear, that men are starting to layer and put outfits together,” he said. “Shirts and chinos are becoming more important. They are really mixing it up at the moment – even with cardigans and knitwear and outerwear.”
A more refined look is also proving popular, with tailored pieces from international brands such as Fred Perry now given more room on the shop floor.
"For women, the trends are always changing – and the silhouettes are plenty – they are selling everything from maxi dresses to denim shorts," he said.
Accessories and footwear sales currently make up a small percentage of profit, but the appointment of a new accessories buyer is designed to change this. Also set to grow is Glue Store's e-commerce operations, with an enhanced site due to go live in December.
Continenza said careful editing of the store's vast product offer will be key to its success.
He expects a stable of high-volume stock supported by a selection of trend-forward items will prove the right mix.
Glue Store managing director Ant Elliott said in addition to ramping up online operations, the company will continue to open more bricks and mortar stores in 2011.
"We have got three stores planned for the back end of next year – in Sydney or Melbourne at this stage," he said. "We really want to get those markets 'down' as we think there is more opportunity that way."
He said expansion into more states is possible, but no firm plans are locked in.
"We believe if we went interstate there are probably at least another 15 to 20 stores for sure," he said.
Elliott said the recent new openings, including Warringah and Charlestown in NSW, demonstrate a "cleaner" interior look, with the emphasis on brands throughout the space.
"We have used a lot more imagery in the stores, taking the latest catalogue shoots and the use of brand images too,” he said. “You walk into the stores and understand that we are all about brands."
Heading into Christmas trade, Elliott is relying on a surge of sunshine to help shift the new season's stock.
"It has been a tough summer so far, but we put it down to the fact that summer hasn't really hit yet. When it does, it will be a great season."
In preparation, the business will hire a large pool of additional casual staff to meet demand. This will increase the employee count to around 600 for the season, with the majority of the team under 30 years of age.
"We get Christmas casuals – great kids coming out of school – and we usually hang onto them throughout university,” he said. “There are a lot who have started there and worked their way into head office.”
Elliott is reluctant to share his views on competitors in the 16 to 24-year-old apparel market and said he does not look to other companies to compare strategy.
"To be honest we just concentrate on what we are doing – a lot of people always bring up General Pants. At the end of the day we just have to do what we do better. I think the mix of brands compared to what they have at General Pants is totally different. I think our customer base is a different customer – ours is a brand-focused customer.”
To ensure Glue Store is front of mind leading up to Christmas, Elliott said a major ramp up of mobile phone marketing and social networking is underway. This will be in addition to traditional bus-back campaigns and magazine advertisements.
"If we can get everyone out there to understand that Glue Store equals great brands, we have done our job,” he said.