Monthly Newsletter | July & August 2018
S-CUBE Fixtures What's In Store this month

Table of Contents

What Do Retail Winners Do?
Fixture Simplification
Tax Law Glitch Crimps Renovation Plans


Here’s what Retail Winners Do


Retail ‘winners’, defined as those reporting year-over-year sales growth of greater then 5%, and retail ‘losers’ (those that do not), follow different merchandising practices. Results of the Winners behavior are exhibited in five key findings:

  1. Retail Winners are more likely to recognize the link between merchandising execution and sales improvements.
    1. When following detailed placement plans customers have an easier time finding what they came for and engage with adjacent products.
  2. Retail Winners recognize the value of big data, not only in assortment planning, but in space planning as well.
    1. Using vast amounts of data to confirm sales success with placement plans and SKU density metrics will determine assortment counts for each store in space planning and product delivery.
  3. Retail Winners encourage two-way store communication as a critical part of the merchandising process.
    1. Two say communication between headquarters and the store enables associates to provide immediate feedback on campaigns and ideas for improvement.
  4. Retail Winners think differently about how they train and encourage store associations to merchandise properly.
    1. Tracking and incenting merchandising completion and compliance as KPI’s in-store ensure better program execution to drive sales.
  5. Retail Winners are more likely to adopt digital tools in all facets of creating superior in-store experiences.
    1. They use digital tools to streamline manual operations. Store reset planning utilizing purpose-built apps to communicate updates, promotions, and product launches. Use store data to customize activities and monitor compliance.

Seven of the top ten drivers of skillful merchandising are linked directly to the implementation of digital tools. This list includes:

- Merchandising directives delivered using seamless, two-way digital communication

- All merchandiseable space for each unique store is maintained using a digital store model

- Store associates are provided step-by-step guidance for in-store execution

- Stores log compliance with directives

- Retailers track conversion rates by store

- Stores are aware of weekly volume of each fixture

- Big data is used to inform and guide merchandising decisions

With the right digital tools for merchandising planning and execution, Retail Winners automate cumbersome, repetitive planning tasks and provide a clear, guided playbook for stores. Ultimately, the goal is to localize without adding more work for visual merchandisers and store associates.

The in-store experience is still the most immersive, influential experience customers can have. Retail Losers are trying to improve their merchandising execution, but market conditions are changing faster than they can adapt. These retailers must accelerate their investment in merchandising execution to improve basic operations and merchandising processes—fast—or fall further behind Retail Winners.



Retail Winners

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Fixture Simplification


Retail is evolving, and changing faster than ever before. We’ve entered an era of new demands on merchants. While shoppers continue to expect ease and convenience in the retail setting, they also demand that retail experiences be both memorable and impactful. Additionally, online retail has created endless aisles, accelerated the lifecycle of consumer trends, and produced an expectation among buyers that retailers will tailor and curate products just for them!

But even as the retail environment evolves there are some things that remain constant in the world of brick-and-mortar retail - a need to display products.

Most retailers want a custom display that will differentiate their product in a crowded marketplace and help to reinforce their brand. But retailers are increasingly finding it difficult to justify custom fixtures with budgetary and lead-time constraints.

This newest S-CUBE white paper explores fixture options for retailers that are not fully and expensively customized, and yet not ‘off-the-shelf’ basic. We introduce the idea of semi-customized solutions that blend the best standard systems with customized add-ons and finishes for a uniquely branded look, while maximizing budget dollars. Download your FREE copy here.


Fixture Simplification


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Call Us to discuss your program needs 847.954.5200



Tax Law Glitch Crimps Store Renovation Plans


A drafting error in the new tax law is causing some retailers and restaurant owners to delay their renovation and improvement plans.

As written, the law allows companies to write off renovation costs (made to non-residential real estate) over 39 years. The authors of the tax law had intended for the businesses to be able to write off the full costs of the improvements in one year.

A group of more than 100 retailers, restaurants and trade groups, including the National Retail Federation and Retail Industry Leaders Association, have urged Congress to take “quick action” to make two technical corrections to law.

“The delay in correcting these provisions has caused economic hardship for some retailers and restaurants and is also delaying investments across the economy that impact the communities in which these companies are doing business,” the businesses and groups said in a letter sent in June to the top Republicans and Democrats on the congressional tax-writing committees.

One of the technical corrections sought by the group has to do with the renovation write- off.

“This very large difference in the after-tax cost of making improvements is causing a delay in some store and restaurant remodeling projects, as well as causing some retailers to decline opportunities to purchase or lease new store locations that would require substantial improvements,” the retailers and restaurants stated in the letter.

The second correction is related to the effective date of a provision that generally bans businesses from carrying back net operating losses to prior years. Lawmakers had intended for the ban to take effect for taxable years starting after Dec. 31, 2017. But the law instead says it applies for taxable years ending after Dec. 31, 2017.

Republican leaders have acknowledged the mistakes, but there is no quick fix in sight at this point, as the corrections would require consensus across the aisles.



Tax Law Glitch

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S3 Gondola System is constructed of heavy-gauge steel slotted uprights. The components that snap together, making installation simple. Our offering includes 36” or 48” width, heights of 54”, 60’, 72” or 84” and are available as single-sided or double-sided configurations.

Begins with a Starter Unit and choose from a number of back panel options, add-ons,, accessories and endcaps. All are available in standard finishes but can be customized in unique finishes with a minimum order.

We also develop fully customized gondola programs for clients such as Books-A-Million and Ollie’s.

Download our FREE Gondola Brochure today at
Explore if an S-CUBE solution is right for you.




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