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Most Admired Retailer
By Katie Yaeger
Marketing 4250H
Nov. 11, 2014
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About LOFT
Established in 1996 by ANN Inc. as
Ann Taylor LOFT, an extension of the
Ann Taylor brand. ANN Inc. brands
offer “a feminine, polished approach
to updated classic style.”
More value-conscious and casual
than Ann Taylor.
Had 544 store locations in the U.S.,
Canada and Puerto Rico as of August
2014.
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Retail Strategy
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Target market: 28- to 40year-old fashion-forward,
value-conscious female
professionals.
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Location: Enclosed malls,
lifestyle centers
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Assortment: A moderate
amount of items in apparel;
private labels
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Pricing strategy: Upper
moderate with sales
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Retail Strategy
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Communication mix:
TV/magazine, online, mobile
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Store design/display: Neutral
walls, free-form layout,
displays, designated petite
and sale areas
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Customer service: Modest
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Long-term sustainable
competitive advantage:
Quality, casual and fashionable
professional wear at an
affordable price
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Private, house brands
Merchandise consists only of private brands.
Most merchandise is the LOFT brand.
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Lower-priced and more casual than the Ann Taylor brand.
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Had larger growth (8%) than Ann Taylor (1%) as of Q4 2013.
Launched activewear line Lou & Grey in 2014, sold in LOFT stores, online
and at a few freestanding stores.
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Supply Chain Advantages
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“The quality of our products begins with the treatment of the
people who manufacture them.”
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Provides public with outline of policies and programs
concerning workers’ rights and environmental protection.
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Emphasizes engaging with suppliers and supporting women
throughout supply chain process (factories to suppliers to
stores).
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Has one distribution center (in Louisville, Kentucky); is a
zero-waste facility.
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Pricing Strategy
Price range: Upper-moderate
Implements a high/low pricing strategy
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Almost always sale emails or instore/online specials.
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Multichannel Marketing
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LOFT uses multichannel
marketing fairly effectively.
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Brick-and-mortar: Combined
inventory across stores and
digital channel, sales
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Catalog: Shipped to homes
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Online: Easy-to-navigate
website, emails with sales and
trends
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Mobile: Love LOFT loyalty
program, ANN INC. BFF,
mobile-optimized website
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Retail Locations and Site Selection
Urban and suburban areas where younger, upper-middle-class
professionals live
Enclosed malls and lifestyle centers
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Store Layout
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Free-form layout
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Clothing segmented into
areas:
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New arrivals
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Casual wear
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Business casual wear
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Petites (sign)
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Lou & Grey
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Sale (sign)
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Store Design
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Promotional and point-of-sale
signage
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Window and freestanding
displays
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Entrance with “decompression
zone”
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Utilized wall space
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Clean, well-lit, spacious,
attended dressing rooms
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Cash wraps with jewelry and
other accessories
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Visual Merchandising
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Straight-rack, four-way and
gondola fixtures
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Item and size presentation
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Secret Shop
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Customer service: 3
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Ease of finding items: 4
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Sale section not well organized.
Advertisement of price: 4
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Cashier sounded very bored; saleswoman asked if I was “still”
finding everything OK; saleswoman was helpful in dressing room.
Sale specials well marked; dress had further, unmarked discount.
Atmosphere: 5
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Good lighting, relaxing, not cluttered
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LOFT’s
Competition
Banana Republic
J.Crew
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Financial Results
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ANN Inc. (NYSE: ANN)
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Return on assets: 10.17
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Stock price (as of Nov. 10, 2014): $36.05
The Gap, Inc. (NYSE: GPS)
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Return on assets: 16.71
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Stock price (as of Nov. 10, 2014): $38.60
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J. Crew Group, Inc. is a private company.
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ANN Inc. has a lower return on assets and stock price than
The Gap, Inc.
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SWOT Analysis
Strengths
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Company brand recognition,
association with quality
Weaknesses
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Customer service
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Lack of formalwear
Customer loyalty
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On top of trends
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Multichannel retailing
Opportunities
Threats
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International expansion
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Imbalanced product mix (2013)
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Beauty products
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Poor PR
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Personal stylist
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Reduced mall traffic
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Marketing Tactic
Problem: LOFT has gotten bad PR in
recent months for manipulating
photos to make models look skinnier.
Solution: Eliminate digital
manipulation and feature diverse
women of all body types.
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“Real Professionals” Campaign
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Highlight female professionals
with different demographics
and sizes — emphasize
authenticity.
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Partner with the Love Your
Body campaign.