Monthly Newsletter | JULY 2016 | Seventh Issue
S-CUBE Fixtures What's In Store this month

Table of Contents

NTY Franchise Company
Brand Intimacy
Circular Commerce
Preventable Loss


NTY Franchise Company
A pioneering force in the rapidly growing $13 billion resale/retail industry, continues to grow aggressively.


NTY, “New To You,” based in Minnetonka, Minn. is the umbrella company overseeing five resale/retail brands that include:
-Children’s Orchard: offering kids apparel, shoes, books & toys in 40 locations.
-NTY Clothing Exchange: featuring higher-end designer apparel & accessories in 5 locations and growing rapidly.

-Clothes Mentor: selling higher-end and mainstream brands in 140 locations with annual growth.
-Device Pit Stop: an electronics store with 8 locations and rapidly growing.
-New Uses: featuring home goods in 20 store locations.

In the recent years of economic instability, resale shopping has attracted more consumers than ever... and continues to do so. This new breed of cautious shopper has discovered and embraced resale, they are taking advantage of the values in both purchasing and selling gently used items. Although we’ve seen economic bounce-back shoppers who discovered resale when it was a necessity continue to make it part of their regular shopping journey. Resale spending increased by 19.5% between 2007 and 2013!

To support their aggressive expansion and brand-acquisition plans, NTY required a fixture & supply partner. Their requirements called for a vender that could deliver solutions across multiple product categories from apparel racks to book shelves to electronics displays to home goods fixtures and more. This of course necessitated the ability to fabricate in metal, wood, acrylic, wire and mixed materials. Maintaining and managing inventory and supplemental supply products was added criteria.

S-CUBE was brought on board as primary vendor earlier in the year and has been providing solutions in fixtures, display and supply categories across all NTY brands since. Customizing packages by store format, S-CUBE provides the complete metal package that includes apparel racks, h-racks, handbag racks, perimeter walls & hardware accessories for NTY apparel stores. Gondola, dump bins and grid wall are some of the hardlines fixtures. LED lit showcases support jewelry and small electronics merchandising. Display items include mannequins and forms. And supply items include hangers, price tags, size dividers & bags and are customized as desired.

S-CUBE produces and imports the apparel racks and hardware items to lessen cost, holds inventory in the Des Plaines warehouse and ships to support store opening timelines.

In addition S-CUBE built a client-based website portal to facilitate ordering and order tracking for NTY staff. Expansion is planned for all of these formats and S-CUBE is proud to be NTY’s partner.



Chad Olsen: Cheif Opperations Officer & Ron Olsen: President of NTY Franchise Company

NTY Franchise Company Logos:  Clothes Mentor, NTY Clothing Exchange, Children's Orchard, Device Pitstop and New Uses


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S-CUBE & NTY Franchise Company


Brand Intimacy
It’s called “Brand Intimacy” and if you’re scratching your head wondering what fresh moniker is this, you’re not alone.


Brand Intimacy was coined to describe which brands consumers feel closest in a personal relationship sense. Right. So how does that translate into dollars? It “helps marketers better promote their products and services and form deep brand attachments.” Brand agency MBLM defines brand intimacy as “transcending usage, purchasing and loyalty”.

There are many twists and turns on the road to brand intimacy. For instance, gender, age and income are determining factors for connecting to a brand intimately. Women tend to lean toward brands that impact their daily lives and feel most connected to Apple then Disney, Amazon, Whole Foods and Toyota. Conversely, men identify with Harley-Davidson, Apple, Toyota, Nintendo and Lexus. Now throw in age and income and the results are winnowed down further. Women in the income bracket of $34,000-$49,000 are most connected “with health and beauty brands, with L’Oréal, Revlon and Dove in their top five”. Yet, when the incomes rose from “$50,000 to $75,000, the list leaders include Apple, Starbucks, Olay, Coca-Cola and Netflix. For those earning $75,000 to $150,000, Apple, Sephora, Amazon, Target and Clinique top the list”.

Some interesting and useful facts that came out of “Brand Intimacy Rankings” was that Americans were more intimate with their brands than any other country and frequency of use of product was a leading factor in deciding which companies scored the highest. Goes to show that familiarity breeds intimacy and business.


Brand Intimacy - holding hands



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Circular Commerce
Understanding the path of your customer’s purchasing habits, read more below.


Omni from the Latin omnis translates as “all”. You know, Omnimax, the screen being all around you and omnipresent-like your teacher used to be when you were passing notes. One of the buzzwords in the industry is now “omnichannel”. It’s the new black of retail but, like all good fashion choices, it has to be used well in order to be effective.

Here’s how the shopping journey starts: a shopper starts investigating a product on her Smartphone. After a few swipes and some consideration, she heads to her tablet to look at customer reviews and continue her research. Ultimately, she heads to the store to make her purchase. The retailer is collecting data on this shopper but where the downfall occurs is the data remains in silos. Retailers are not taking advantage of sharing the data with itself across these multiple platforms. “Sahal Laher, executive vice president and CIO of Brooks Brothers [observed], ‘It is becoming increasingly clear that if you are just rebranding an e-commerce strategy into a ‘digital’ one, that is not enough.’”

What really needs to occur is that the shopping experience begins as an “omni” one and should be refined into a “uni” one. Utilizing all the data mined from our shopper above, retailers “can personalize that entire experience – in a frictionless way” according to Laher.

Andrea Weiss, founder of O Alliance, wrote the report “Retail Transformation Underway: Achieving Customer-Centric Commerce” which reveals that personalizing this experience by employing a “’seamless circular commerce’ a process where one stream of data flows throughout every facet of an organization”. This is the missing link: retailers are failing to chart the customer journey and create a comprehensive profile to better reach that consumer in a more personalized way.

Retailers have done a stellar job of cross-channeling promotions but have failed to do anything with all the fragmented data they’ve gathered. Mark Friedman of Steve Madden Ltd. found that “breaking down the silos” helped increase the information thus creating a more personalized, and therefore more successful, shopping experience. He has found it truly is a “journey”. It begins with the desktop, continues to mobile device to store visits and perhaps the steps are retraced. Mapping these steps will enable retailers to have a global understanding of each customer and, ultimately, enhance the shopping experience for both parties.


Circular Commerce - Showing icons in a circular flow



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Information Compliments of:
Image Source: The O Alliance



Preventable Loss
Find out how to effictively reduce theft and preserve more of your profits.


Profit Preservation is the aim of every retailer. Yet shoplifting and employee theft accounts for an estimated $60 billion a year according to Forbes. The good news is that inventory shrinkage–having less merchandise than what your records indicate you should have–is a preventable loss.

The overwhelming majority of thefts are opportunistic. What this means for retailers is that these crimes can be easily prevented with the right prevention loss practices in place. Learning what these techniques are and how to apply them can help you dramatically reduce “inventory shrink” and preserve your profits.

There is no one-size-fits-all approach. What’s right for you may not be as effective for another business, depending on the size and layout of your retail space. Additionally, state laws differ regarding a merchant’s detention of a suspected shoplifter.

Accordingly, having access to strategies that fit your business and budget requires knowing some basic facts about external and internal theft. It also means understanding which approaches have been shown to be the most successful in discouraging shrink.

Effective Strategies
Traditional loss prevention strategies generally fall into two categories: technological and human surveillance. The most successful results have been achieved with the following practices:

Attentive Customer Service. Remaining vigilant to providing shoppers with superior customer service has proven to appreciably decrease retail theft. Train your employees to be alert without being intrusive.. Teach them where the store’s most vulnerable spots for theft are located. Friendly, well-trained employees who respectfully engage with customers are a proven restraint on shoplifting.

Video Surveillance. These systems can range from moderately-priced options to expensive state-of-the-art equipment.

Electronic Article Surveillance (EAS). This includes Radio-Frequency Identification (RFID) Tags–those large, plastic pins attached typically to clothing items–and stickers embedded with similar technology. Pin-tags and stickers types are a deterrent.

Store Design and Layout. Minimize blind spots by creating as much open space in your store as practical. Display smaller or more easily stolen items in hightraffic areas, ideally in the height range between waist and eye-level.

Inventory Management Systems. Employee theft accounts for roughly $15 billion each year in inventory shrinkage. Inventory management software is a powerful tool in combatting employee theft. Retailers who use the software have been shown to cut employee theft as much as 50%.

Just the Facts
According to the National Association for Shoplifting Prevention (NASP), customer theft is not a premeditated crime. In their most recent survey, NASP found that 73% of adults and 72% of juveniles who shoplifted did not plan to do so in advance. Implementing just a few simple, cost-effective steps, such as engaging customer service and inventory tracking/POS systems, can help you shrink losses.


How Inventory Shrink Can Happen - Graph shown



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Information Compliments of:
Geoff Hineman: Information, Store Security and Loss Prevention
Image Source: Transformance Advisors


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