Beauty 360

CVS executives have developed a concept store called Beauty 360 which they believe will rival stores like Sephora and Ulta. The store has already launched adjacent to CVS locations so far. The store will be a seller of high end beauty products with brands like Laura Geller and Paula Dorf. CVS execs believe this provides the one-stop shop that many of its customers have desired as all the locations will be placed adjacent to CVS pharmacies. The questions many doubters have is how does CVS plan to succeed in a failing economy. Many women are cutting back their expenses and downsizing their purchases to mass brands like Maybelline and Revlon. CVS believes that the beauty business is recession proof.

I believe this may be a little far fetched for CVS. Though many women are not going to stop wearing makeup though there is a recession and the beauty business will continue to thrive I don't think this is the appropriate time for this concept store. Buying beauty products is personal to many women. The girl who goes to a drug store to get makeup and the one who gets it a specialty store expect different service. Many times at the specialty store they see the same skin care specialist who knows their skin, may suggest new products, and already knows the products she has come to buy. CVS has not given a convincing reason for these woman to leave their comfort zone. The only value they are offering is that they are located adjacent to CVS. I think CVS should think of promotions to boost their mass branded beauty products and leave the high end products to the current specialty stores.

Pottery Barn For Less

Pottery Barn, a retailer known for their high quality high priced furnishings, has introduced a new "Comfort Collection" for 999.00. This bargain is to reflect the tough economic time most consumers are having.

Some analysts believe this is a good move for the retailer and shows that they are able to adapt with changing times. Others wonder if it will negatively effect their brand image in the long run. To boost their sales they are also offering many customizations options for the collection and financing with 12 months no interest.

I believe this is a great idea. With the current housing crisis many young people are considering buying homes because they believe they will get a good deal. They will also be in the market for new furniture. They may go to Pottery Barn, finance their couch, pay it in full before the ninety days with no interest. I think the collection will be very enticing to some consumers.

This post is based on a Wall Street Journal article by Mary Ellen Lloyd.

Do YoU Tweet?

Well me either, but twitter is the newest phenomenon in internet social networking. A recent article in the New York Times Discussed the effects Twitter has had for traveling. Simple tweets like “Need a jury duty lunch recommendation for downtown Brooklyn, are getting massive replies and gaining lots of business for many small business owners. Individuals are getting advise for restaurants, bars, hotels, and small boutiques when on vacation.

Knowing this is happening businesses need to be focused on providing superior service and quality products to consumers. Bad news has always traveled fast but is now traveling faster than ever as strangers advise each other on their choices. One bad complaint can now reach hundreds of followers of one individual. It would also be wise for business owners to have twitter accounts so they may check others tweet to see how they feel about their establishment. Twitter is much cheaper than a study group, in fact its free.