In Vancouver, The Bay (HBC) has laid the blueprint for future retail installations at the Olympics and other events, as it smashes revenue records for Olympic merchandise.
For the first few days of the games, lines began at 5:30am for 9am openings, simply for the right to purchase licensed merchandise. With word on the street proclaiming minimum 2-hour waits, The Bay began opening its doors 24 hours, yet maintained a continual lineup outside. See the exclusive photos below.
While much of the credit goes to the 3.4 million pairs of $10 red Olympic mittens (including 300 of which were given away on Oprah), credit should also be given to the overall merchandising strategy at the Bay's store in the heart of downtown Vancouver. It should be noted that the adult-sized version of the red mittens sold out of the downtown store during the first days of the games, and yet the lineups persisted--so the mittens aren't the only driving force.
The Bay's secret sauce?
- It aggregated rights as an official licensee for Vancouver 2010 games PLUS the official/exclusive outfitter for Team Canada. First, HBC is a Vancouver 2010 clothing licensee, and made most or all of its own licensed goods exclusive--including the red mittens. This created an air of exclusivity around all of its Van2010 merchandise, even as much of it is available elsewhere. The Bay coupled those rights with those of the host country's team, making it a store that could not be ignored. For example, a shopper might find Vancouver 2010 gear as an acceptable substitute for Team Canada gear or vice versa. But with exclusivity--real or perceived--on both sides of the coin, the Bay became a worthy destination unto itself.
It cordoned off about half of the 1st floor of its store, creating a separate entrance for the "Olympic Superstore", but left the inside barriers low. This true store-within-a store ensured that the Olympic merchandise area felt contained and special--you could not enter the Superstore from inside the main part of The Bay. The Superstore was also open later, signifying a separation between itself and the rest of store. The inside barriers could have been made higher, but that would have been a mistake--the low barriers allowed Olympic buyers to see other merchandise in the store, and allowed regular patrons to see, and desire access to the Olympic goods.
It worked with other major Olympic sponsors to enhance the retail experience. Within the confines of the Olympic Superstore, the Bay invited fellow Olympic sponsors including Panasonic, Swatch, Coke, and Visa to participate. Panasonic and Swatch both had stores-within-a-store-within-a-store, which added to the atmosphere, even if they did not appear particularly successful on a relative basis. Coke created its own play area and mini eatery. Visa signage was everywhere--and of course, it was the only card payment accepted.
- It had great merchandise design for Team Canada. Team Canada gear sports the word "Canada" in a distinctive font that was decidedly different than other Canada gear of old. Instead of taking the heritage route (think "Roots"), the Bay went modern--an undoubtedly difficult decision for a company which was quite literally one of the reasons Canada came into being. The distinctive Canada logo helped separate this gear from Canadian gear of Olympics past, giving consumers more reason to enter the store. It also helped that the 2010 merchandise and mascots were well designed.
It allowed a line to form. It's not that crowded inside the superstore, which does allow people to browse more freely and pay more quickly, but it also helps to artificially inflate the line outside. This only added to the perceived exclusivity of the store, and most certainly increased revenue per sale--you need to buy what you (might) want now, because you're not going to line up again. Compare this to other nearby retailers: the Bay did not have an exclusive to sell licensed toys or souvenirs, but while London Drugs slashed prices on all licensed Olympic souvenirs by 50%--only 6 days into the games--the Bay was just getting ramped up. The Bay had 2,3, and 4 hour lineups, with customers buying up exactly the same Mascot plushes/keychains/pins/magnets/wallets/slippers/playing cards/water bottles that they could get literally 2 blocks away, with zero lineup and at half the price.
Some photos of the Olympic Superstore:
Coke Happiness Cafe (within the Olympic Superstore)
Panasonic Store (within a store within a store)
Swatch Store (within a store within a store)
Visa Branding throughout the Superstore, particularly and spectacularly at checkout. Coupled with extensive Visa advertising during telecasts, this actually made the store feel more Olympic and more exclusive.
Line up to get in (~10 days into the games) is up to 4 hours at mid-day, spanning multiple city blocks. Lines are many times longer than Best Buy on Black Friday or Future Shop on Boxing day--and in this case, everything was being sold at full retail price!
Originally opened with extended hours, but later opened 24/7 to meet demand
Red Mittens were plentiful, if you had child-sized hands
Official Team Russia (and some Sochi) gear and Polo Ralph Lauren Team USA gear were both available, but outside of the Olympic Superstore. They were merchandised in such a way to be like store window displays for people who were already inside the superstore
