Stage Stores Inc. - Management Today Magazine

COVER STORY
Stage Stores plans to open 40 new stores and relocate 10
stores in 2014. At the same time, the company is focused
on upgrading existing locations.
STAGE STORES INC.
Primed
for Growth
Stage Stores and its five department store banners have invested in new technology, store
improvements and personnel to set themselves up for growth in 2014 and beyond.
S
tage Stores and its family of fashion retailers, including Bealls, Goody’s, Palais
Royal and Peebles, got their start in the
industry guided by the idea that no
market is too small to warrant their attention. In
recent years, the company has found that there is
also no market too big.
“In our history, we have typically targeted stores
that have a population of less than 50,000 within
a 10-mile radius,” Executive Vice President of
Stores Russ Lundy explains. “These are smaller
towns that are underserved by retailers or have
maybe one or two other competitors in the market. We’re one of the few retailers able to bring a
department store with national brands to towns
with our smaller footprints. Our average store size
is around 18,000 square feet.”
Though the less-than-50,000 crowd has been
its industry niche for quite some time, the company has entered a few larger markets and with
great success, Lundy says. Of the 40 new stores
and 10 relocated stores planned to open next year,
Lundy says five or 10 will be located in larger
metro areas. It is also expanding Steele’s, the company’s off-priced division which launched in
2011. The retailer offers brand-name merchandise
for up to 70 percent off department store prices.
Metro Markets
“In our quest to continue to grow, we are starting
to look at other stores in metro areas with 50,000
to 150,000 people, and in a few cases, 150,000 or
greater,” Lundy affirms. “As we’ve strengthened
our brands with a greater depth of product, our
larger markets are performing as well as if not
better than the smaller markets. So we see growth
potential in the larger markets as well as potential
in our niche with smaller markets.”
Stage Stores currently operates 849 department
stores spread across its six major banners. In 2013
alone, the company opened 28 more stores with a
concentration on filling in existing markets. Stage
Stores is found in 40 states and certain regions are
well blanketed, such as the states of Louisiana and
Russ Lundy, Executive
Vice President of Stores
www.stagestores.com
Houston
COVER STORY
Oklahoma, as well as Texas, where
the company is headquartered.
“Right now, we’re really looking to
fill in the eastern half of the United
States and in areas of the greater
Northwest,” Lundy says. “We’re
looking at larger markets such as
cities like Albuquerque, N.M., and
other places where we are not at now
but we would consider opening two
or three stores in that metro area to
give ourselves a significant presence.
We’re also starting to look at the
fringes of other large markets.”
Investing in the Now
As Stage Stores and its affiliate
brands pop up in new markets, the
company makes sure to keep house
in current markets, as well. In 2013,
Stage Stores remodeled seven stores,
including its two largest locations. It
also relocated and/or expanded six
other locations. One of its major
capital investments this year includes
the rollout of a new fixture and signing package at 10 percent of its
stores – approximately 80 locations.
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HeadCount
HeadCount is the leader in turning store
traffic and conversion data into actionable insights. When Stage Stores was
looking to get deeper, more actionable
insights from their traffic data they
turned to HeadCount. With HeadCount’s
analytics and reporting service, Stage
Stores is delivering even better customer
service and business results.
COVER STORY
The company will continue the rollout with 50
more stores in 2014.
The design includes a new sales floor planning
process featuring table planograms and a man-
nequin runway direction. The updated design also
includes new promotional and clearance signing
templates across all stores. Aisle fixtures and back
wall treatments have also been upgraded.
“One of the neat things we did in these stores
was switch to six-way chrome racks and white
laminate tables,” Lundy explains. “The new white
background helps us show off the color and features of the merchandise ,and the six-way rack allows us to have three floor-facing fronts versus the
old four-way racks. It’s a much cleaner look, and
the rollout with those roughly 80 stores has
worked out extremely well. Those stores are outpacing the company, and we plan to continue the
rollout into 2014.”
The overall store growth has been matched by
growth in individual product categories, as well.
Its key national brands continue to be sales leaders, and 83 percent of its merchandise falls within
that category. Major gifting holidays such as
Valentine’s Day, Mother’s Day and Father’s Day
also continue to drive sales, and the company is
seeing and reacting to strong growth in athletic
“
We’re really looking to
fill in the Eastern half
of the United States.
COVER STORY
“
Technology is great, but our
associates get tremendous
recognition from the customers.
apparel and shoes, with Nike being
its No. 1 brand. Home décor, gifts
and small electronics are also on the
rise this year. In addition, fragrances
and cosmetics – the category that
tends to withstand recessions – has
continued to deliver strong comps
year over year.
The strong growth in fragrances
and cosmetics echoes the lipstick
theory of many cosmetic players, including Leonard Lauder, chairman
of Estee Lauder Companies. As the
theory goes, during a recession, consumers – especially women – may
not have hundreds for a new
wardrobe or thousands for an expensive getaway.
However, some can spare a few
bucks spent at the makeup counter
or in a nail salon to earn a feel-good
moment at an affordable price. Over
the past year, Stage Stores has
”
opened 35 new Estee Lauder counters, 37 new Clinique counters, 10
Smashbox counters and 13 Origins
counters across its locations.
Making the Sale
The investment in fragrance and
cosmetics is a direct result of improved monitoring of consumer
habits. Stage Stores recently expanded headcount traffic counters in
106 stores and rolled out Forsee customer feedback surveys. Also, a new
live dashboard reporting system al-
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COVER STORY
Family History
Stage Stores is the corporate name for
a much larger family. The company’s
five banners include names that have
been around since the 1920s, speaking
to its brand recognition and success
throughout the years. The stores, including Stage Stores, Bealls, Goody’s,
Palais Royal and Peebles, carry much
of the same merchandise with variations based on seasonal and local
needs. Here is a quick history of how
the company came to be.
1920sPalais Royal and Bealls were
founded as family owned businesses.
1988 Three Bealls Brothers merged
with Palais Royal to form Specialty Retailers Inc.(SRI), a private company based in
Houston.
1992 SRI acquired 76 store retail
chains from Fashion Bar of Denver, whose stores included a
juniors’ chain called Stage.
1994 Forty-five Beall-Ladymon stores
were acquired and the names
were changed to Stage.
1996 SRI acquired 34 Uhlman’s stores
in Indiana, Ohio and Michigan.
1996 The company went public under
the name of Stage Stores Inc.
1997 Stage Stores purchased 246 C.R.
Anthony Co. stores located in
the South-central United States
and reopened under the Bealls
and Stage logos.
2001 Stage Stores reorganized.
2003 Stage Stores acquired Peebles
Inc., which operated 136 stores
in 17 states, maintaining the
Peebles name and administrative office in South Hill, Va.
2004 Stage Stores exceeded $1 billion
in sales volume.
2006 Stage Stores acquired the BC
Moore chain of 78 locations in
four states. Sixty-nine of these
stores were reopened under the
Peebles name and the remaining nine stores were closed.
2009 Stage Stores purchased the
Goody’s name through the
Goody's bankruptcy auction.
The company began using the
Goody's name in select markets
in which there was strong customer awareness and recognition of the name.
technology should result in reduced
customer wait times.
The capital investments in sales
and merchandising play a significant
part in store growth, but Lundy
maintains that face-to-face time between customers and associates is a
main driver in customer sales and
satisfaction. Stage Stores continues
to invest in recruitment and human
resources, such as piloting a Kronos
e-hiring process in 93 of its stores.
It’s also installing a Reflexis Labor
Scheduling System, which is planned
for a 2014 rollout.
When it finds valued associates,
the company focuses on retention
and career growth. Lundy himself
is a testament to those efforts.
Lundy started off in the stockroom
in 1976 and by college had worked
his way up to sales associate. After
that, he managed a few stores and
worked in the Peebles’ corporate office as vice president of human resources for 12 years. That was
followed by the director of stores title for the eastern territory for another dozen years. He adopted his
current role last July.
“People often ask me how I could
spend such a long time with one
company and my answer is that it’s a
great place to work,” Lundy says. “It’s
a company filled with great people
really focused on taking care of the
customer and serving our small
towns. There’s also plenty of opportunity in the company for people to
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STAGE STORES INC.
move up through the ranks and assume more responsibility.”
No matter how large the company
grows or how much individual success leaders within the company
achieve, Stage Stores and its employees still hold on to the small-town
values that have given it success.
Giving back to its community is one
of those values.
Jim’s Formal Wear
Jim’s Formal Wear has proudly partnered
with Stage Stores to provide the latest in
formal wear fashions to small and mid-size
communities nationwide. Together, Jim’s
Formal Wear and Stage Stores have formally dressed over 300,000 gentlemen for
the most important events in their lives.
Customers have access to brands including Calvin Klein, Tony Bowls and Ralph Lauren in a variety of styles, fits and sizes.
As part of a corporate-wide program called Community Counts,
Stage Stores and its sister brands
partner with hundreds of communities across the United States to give
back through service and active involvement in charitable causes, sponsorships and individual associate
volunteerism efforts.
For example, the Palais Royal
team in Houston partnered with
SKECHERS and Moms Helping
Moms Texas to help distribute new
shoes to students of Epps Island Elementary School in Houston.
Nearly 1,000 children received a
new pair of BOBS from SKECHERS to kick off the school year. In
addition to SKECHERS shoes,
Palais Royal donated goody bags
COVER STORY
By the Numbers
Stage Stores operates 849 department
stores across five banners, and the
company has plans for more growth
with the opening of 40 new stores and
10 relocations in 2014. With a presence
in 40 states, Stage Stores is focused on
filling in existing markets in both small
towns and larger metro areas. Here is a
current breakdown of its portfolio.
BY MARKET
555
locations in markets with populations
of 50,000 or less
169
locations in markets with populations
ranging from 50,000 to 150,000
125
locations in markets with populations
exceeding 150,000
BY REGION
347
192
153
82
30
16
locations in the South-central market
locations in the Southeast market
locations in the Mid-Atlantic market
locations in the Midwest market
locations in the Northeast market
locations in the Northwest market
BY STORE
273
224
215
189
121
Goody’s
Palais Royales
Bealls
Peebles
Stage Stores
filled with school supplies and tshirts for the children who attended
the event.
In Shepherdsville, Ky., Goody’s
store associates supported the American Cancer Society by participating
in the Relay for Life Event of Perry
County Central. The team of associates raised more than $1,000 for the
cause, and the event overall raised
$42,607 with the help of 16 teams
and 190 participants.
Also, associates from a Peebles
store in Cadillac, Mich., pulled their
funds together to purchase backpacks and school supplies for students who attend the community’s
Cadillac Area Public Schools. Their
efforts raised $225 and ensured that
those less fortunate would begin a
successful school year with new
backpacks loaded with supplies integral to their learning.
“We’re very proud of our associates,” Lundy continues. “Anytime we
do a customer survey or receive feedback, the highlight is always our associates. Technology is great, but our
associates get tremendous recognition from the customers on how
friendly they are. They feel like family. Many customers come by the
stores to see and speak with our associates, and they really are the basis
of our success. They are the heart
and soul of the organization.” O
– Jamie Morgan
Mainstreet Inc.
Mainstreet Inc. is a trusted technology
advisor to Stage Stores helping the leading retailer implement a pragmatic approach to store transformation and
customer engagement that leverages
technology, protects investment in current systems, improves bottom line and
achieves Stage Store’s business objectives. The company designs retail POS,
kiosk, digital signage and mobility solutions effectively tailored to each client’s
unique store environment.