Venture Lab Observation TaskSubmitted By Daniel Michalak

Observations/Opportunities Summary

• Fragrances are an area that many retail environments leave to chance. Pleasant odors could be used to positively enhance retail experiences.

• Adding large format video presentations can expand customer understanding and appreciation of products and services offered.

• Floor and ceiling spaces are areas that may have some potential for creative multi use. Why are the ceilings so high in many of these spaces? It seems there is more than enough space for mechanical needs.

• Perceived value and actual value are subjective.• Bathroom offer a captive audience, leverage it!

Lowes Opportunities

• Use larger format flat screens in greater numbers to sell products and services through out the store.

• Polished concrete floor could provide ad space or color coded arrows for directions to the different areas.

• The floor and ceiling total square footage is immense. How can they leverage this unused space?

• I shop in this store every week.

REI Opportunities• Add odors and smells of the outdoors like pine trees,

ocean spray, or the forest after a rain. • Men’s bathroom needs something. Maybe they keep it

that way to move people along. But they do sometimes have a captive audience, sell them something or entertain them!

• Large format flat TV screens showing REI trips and equipment in use. They offer great trips, who knew?

• REI retail members can return any product for any reason at any time for a full refund! How can they do that and why isn’t it done more in other stores?

• I am a REI retail member and buy their outdoor equipment.

Whole Foods Observations/Opportunities

• Opportunity for local producers to sell products in stores. In fact, I am pursuing this right now because of this class assignment.

• Fragrances in this store are wonderful and encompass: flowers, baked bread, cooking foods, scented soaps, and other pleasantly odoriferous products. Smells can enhance all retail environments including bathrooms.

• Products appear to be arranged, organized and color coordinated on the shelf or are opposites on the color wheel. Looks like retail art!

Apple Observations/Questions• Mies van der Rohe’s “Less is More” is embodied in the Apple’s

design of this store and Apple products hardware design in general.• They do not have a public restroom because its located in a mall.

Too bad, I wonder what the design would be like? Less is more?• Incorporate smell into the environment. What fragrance would they

use for the Apple brand? Apple?• They seem to only hire predominantly 20 something's in this store.

Is it the same elsewhere? How can they do this and not discriminate by age?

• I observed at least a 1 to1 ratio of customers to apple drones. • The manager would not allow any interior photos or answer any

questions. I told her about collecting data and photos for this Stanford class, but I think she thought I was a corporate spy.

• My first computers were Apple products. My son has a Mac Pro and an iPhone.

• I do not currently own any Apple products.

Ace Observations/Opportunities

• Ace just purchased this former Do it Best Hardware store and just completed the brand transition.

• They need better smells, lighting, and store design.

• Bathroom needs paint and some decoration.• Store is a little run down but has a great staff.

One of them is a retired financial guy who is my Dow Theory mentor. He has an unbelievable head for numbers all the way back to the 70’s.

• I am in this store every week.

Sunset Foods Observations

• Service is number one priority in this store.• High percentage of support staff to

customers compared to other food stores.• I realized that the sound the scanners

make when they scan items is the sound of money flowing from the customer to the store.

• Need more fragrances up front.• I shop in this store once a week.

Area Demographic Observations

• General InformationTownship – NorthfieldSize – 13 square miles

• Population Characteristics• Population – 33,170

• Age% under 20 – 27%% 65 & Older – 18.7%

• Population Who Are College Graduates - 62.2 (Highest of North Shore Area)% Below Poverty - 1.2%

• Household DemographicsTotal Units - 13,434Mean Household Size - 2.68% Owner Occupied - 92.4Median Home Price - $476,500

• IncomeMedian Household - $115,756Per Capita - $58,804

• 2009 Equalized Assessed Value of Property in Northbrook  (Incorporated)Residential - $1,993,265,844Commercial - $709,300,528Other – 428,560,023Total Value - $3,131,130,125