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[13 comments]

L.L.Bean Takes First Steps Out of Northeast

February 27, 2008

By George Anderson

L.L.Bean already has a national franchise with consumers placing orders every day from the retailer's catalogs and website. Now the chain is looking to build on the third piece of its multi-channel strategy by opening its first new stores outside the Northeast. Ultimately, the company is looking to open 32 new locations by 2012. It currently operates 12 stores in nine states as well as a number of outlet locations.

The retailer chose the Chicago area as a base for its move to expand it physical presence. The L.L.Bean name is widely known throughout Chicagoland. The market is already among the retailer's top three in the U.S.

Mary Lou Kelley, L.L.Bean's vice president of retail real estate and marketing, told the Chicago Sun-Times, "We'd like to have four stores in the Chicago area within the next two to three years."

The first 30,000 square-foot store is planned to go into the new open-air Arboretum lifestyle center in South Barrington. Other locations being considered for future stores include other Chicago suburbs and Lincoln Park and the South Loop.

Discussion Questions: What role do you see physical stores playing for L.L.Bean, a company that has established itself in catalog and online sales? Should there be concerns that a rapid expansion of its store base will somehow detract from the reputation L.L.Bean has built with consumers? What must it do to keep the brand experience consistent across all channels?

Discussion Questions



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Comments:

Bean's moves out of their store base in the Northeast are necessitated by Cabela's expansion into the Northeast--East Hartford and (soon) Scarborough, ME....

Leon Nicholas, Senior Vice President, Kantar Retail

They should really strive to create stores of experience, not just brick and mortar for the sake of brick and mortar. Shopping their catalogs and online site is so convenient--they need to make sure shoppers have a reason to emotionally connect to the idea of an in-store experience--otherwise the traffic in the suburban stores might die down pretty quickly after the stores open.

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Anne Howe, Founder, Anne Howe Associates

L.L.Bean has been very cautious over the years to expand its brick-and-mortar presence slowly. It has been equally cautious about maintaining a consistent brand positioning, unlike a major rival--Eddie Bauer--who probably expanded its store base too fast.

Capitalizing on its heritage and brand equity through physical stores seems like a major opportunity, but clearly the company isn't going to be rushed. L.L.Bean isn't going to duplicate the big-box feeling of Cabela's, nor should it try--it has a different lifestyle-based target consumer--but it also needs to avoid becoming just another mall-based apparel store as it expands geographically.

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Richard Seesel, Principal, Retailing In Focus LLC

45 to 80 year olds love L.L.Bean because of their history, their service, Freeport Maine ,and the merchandise which was unique and interesting (twenty years ago).

After the initial rush that almost all new stores get (people line up for Kohl's openings), adding new stores will ultimately backfire on L.L.Bean. Why? because it is about the goods...and it is about the experience...and head to head with Bass Pro, Cabela's and REI, L.L.Bean's stores (other than the original in Freeport) come in a distant fourth.

Michael Tesler, Founding Partner, Retail Concepts

I agree with Anne--the right answer is probably like the original Nike store for hikers. If that's the case maybe the right answer is one in Chicago and the next one in the Pacific Northwest.

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Ryan Mathews, Founder, ceo, Black Monk Consulting

Upon entering an L.L.Bean store in Freeport, you are struck by the wealth of experience of the staff. They must have loads of old-timers. I doubt they will be able to convince many to move to Peoria.

So the danger of opening up across the nation is that the shopping experience will be downgraded. To speak of them (at the moment) in the same breath as Eddie Bauer--or any of the other retailers who have moved away from whatever hard-core roots they might once have had--is an injustice to L.L.Bean. However, the risk of opening too many stores is that they'll end up in the same boat.

Paul Smiddy, analyst, HSBC

Sounds like a good weekend trip for the summer. If their stores are anything like their experience in the catalog or on the internet, they will be great. They are a first choice for me and I have yet to be disappointed by them.

My family has come to expect that gifts from Scanner tend to come in green boxes with red ribbons. No one, and I mean no one does it better than L.L.Bean. Well, maybe Nordstrom but they are in a class by themselves.

L.L.Bean is a store for everyone. They have levels of product for even the most price conscious. They have earned my loyalty and continue to get it.

I would love to visit their store and look forward to it. My guess is that it will be great. Good luck to L.L.Bean.

'Scanner'

L.L.Bean has a wide following thanks to their ubiquitous catalog. Their store in Maine is every bit as delightful as any Bass Pro or Cabella's I have visited.

There isn't any question in my mind that building stores outside of their historical beginnings can be successful. Also no question that they can compete head to head with the other big box sporting goods stores. The only caveat would be how many and how fast, the plan that was announced seems a little too aggressive in my opinion. There is a great deal to learn in running operations and merchandising for one store versus 35.

I do wish them good luck and will be one of the first to visit them should they open near me.

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Charles P. Walsh, President, OmniQuest Resources, Inc

The move to the retail store expansion is probably necessary, but definitely fraught with danger. The "L.L.Bean experience" must now be provided by mere human beings who have not been steamed, bent, molded and allowed to season in the Bean tradition like a good ash snow shoe frame or canoe rib. It will be second class to the Freeport store and the online experience, almost by definition. The question is, will it be sufficient to be seen as a higher quality experience than competing brick and mortar?

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Ben Ball, Senior Vice President, Dechert-Hampe

What is the store experience? What draws the customers in and keeps them coming back? What kind of incremental sales will L.L.Bean get with a physical store? It will be interesting to watch the stores as they begin to operate to see what kind of unique shopping experience they can create.

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Camille P. Schuster, Ph.D., President, Global Collaborations, Inc.

L.L.Bean's 32 store plan will seriously challenge their consistent service quality. It's always better to grow slowly, maintaining consistent quality. Customer loyalty to L.L.Bean is legendary. And anyone who's ever rented their mailing list loves the response. Let's see if quick growth can be well-managed.

Mark Lilien, Consultant, Retail Technology Group

L.L.Bean's terrific reputation and customer loyalty will be put to the test as they expand out of the Northeast. The key will be how they train the far-flung managers and staff on the "L.L.Bean way." I would love to see them take a page from The Container Store's playbook and provide that level of training and compensation to ensure truly indoctrinated and well-paid employees. One more nationwide “experience” outdoor store is likely to struggle without fanatic employees.

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Mike Osorio, Global VP Learning & Development, Chief Learning Officer, DFS Group

I would say based on their choice of South Barrington and Lincoln Park for new stores, L.L.Bean has done their homework in that regard. Those two areas are near perfect for Bean with respect to the right demographics--fit--outdoorsy--sporty--and wealthy. Many residents already have the L.L.Bean "look" and could be in the catalogs, themselves.

I am sure L.L.Bean already has a tremendous mail client base in these two areas which will only grow with an actual store nearby.

'Liatt'

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