SERVICE MERCHANDISE ON TARGET TO ROLL OUT NEW 'SELF-SERVE' SHOPPING FORMAT, NEW MERCHANDISE MIX BY LABOR DAY
NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 6, 1998--
No More Waiting in Two Lines for Most Purchases
Through a major format change designed to dramatically improve the customers' shopping experience and the Company's gross margin performance, Service Merchandise is on plan in its effort to transform itself into fresh new competitor in the home retail sector by Labor Day.
"In a few short weeks, our customers will discover a whole new Service Merchandise," said President and CEO Gary M. Witkin. "An easier new way to shop and an exciting array of new fashion-forward home merchandise and fine jewelry will greet our customers this September."
In the newly-formatted stores customers will find quantities of most items displayed on the sales floor, where before they would have encountered only a display sample. Previously, customers either wrote the item number down, or took a product ticket to the register with them. After the order was processed, the customer waited in a second line for the item to be brought out from a backroom warehouse. In the new Service Merchandise, customers will take most selections directly to registers, avoiding the second wait in line.
As a competitive advantage, the Company will continue to use its customer-friendly product ticket system for large, bulky items like furniture, televisions and fitness equipment. Instead of customers struggling to carry these items to the checkouts, these products will be expedited from the warehouse or loaded into the customer's vehicle at the back dock.
To date, more than 200 of the Company's 353 locations have completed their conversion or are in progress.
By Labor Day, not only will customers encounter an easier shopping environment, they will also find a new assortment of fashion-forward, trend-right merchandise. Complementing the Company's core strength in fine jewelry will be greatly expanded offerings in the home product categories of furniture and decorative accessories, including pillows, wall decor, throws, candles and picture frames. New categories will include upholstered sofas and love seats, bedroom furniture and window treatments.
"We are committed to becoming trend leaders by anticipating our customers' tastes. They will encounter products they have never seen before at Service Merchandise," said Witkin, "each with designer touches that help develop distinctive styles and personalities in the comfortable, casual homes of today."
Witkin noted that the Company-wide operational effort required to make the change has been enormous, including the merchandise analysis and reduction of SKUs to fill available store space; physical conversion of the sales floor to accommodate self-service shopping; the elimination of the fall catalog and development of a new marketing strategy; substantial improvements to the supply chain process; and information systems changes to facilitate the new format.
Floor space has been re-allocated to promote the higher margin, growth businesses that match the Company's strategic direction of becoming a leading retailer of fine jewelry and home products.
"We are actually rewriting retail history as we transform ourselves from our catalog showroom past to America's top-of-mind choice for fine jewelry and home products. I know of no other retailer that has effected as much change to every element of their business as quickly as we are doing this year."
Service Merchandise fine jewelry and home stores offer dominant selections of name brand products and value pricing in fine jewelry, kitchen and dining, home accents and furniture, fitness, seasonal, travel, electronics, and kids. The Brentwood, Tenn.-based company employs approximately 24,000 associates and operates 353 stores in 34 states. Service Merchandise stock trades on the New York Stock Exchange under the symbol SME. More information is available on the company's web site at servicemerchandise.com. |
