Friday, October 10, 2008    

July, 2001

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Modernize & Revitalize

New York chain cashes in on new store design and merchandising techniques

by John Wirebach
News Editor


Back in 1995, Terry Levine, owner of the Autopartstores of America in Bedford Falls, N.Y., felt as negative as a lot of small retailers about the future. "Things were starting to turn down. I could use the same excuses every one does: better cars, leasing, all the predators building stores. Luckily, they hadn’t encroached on my territory yet," said Levine. Barring the ability to station armed tanks at the West Chester and Putnam County lines to keep predators away from his stores, then called Academy Auto Parts, the best Levine could hope for was a buyout of his chain.

Terry’s father Irving and his Uncle William founded the chain in 1933 with a store in Yonkers, N.Y. Terry took over in 1970. Although he’d closed the Yonkers store in 1979, Levine built the chain to five stores by 1995. Still, he didn’t expect to last. Then he attended an RPM Group presentation on modernizing stores by Steven Alexander of Automotive In-Store Marketing, Sanibel Island, Fla. Levine was a founding member of the group.

"Everybody thought it was outrageously expensive," Levine recalls. Nonetheless he decided to try it out. "I had nice stores — for 1982," he jokes. "Thank goodness I decided to modernize. I contracted for one store in Carmel, N.Y. I chose that one because it was the closest to ADAP’s stores in Connecticut (the nearest competitor)."

Going modern

After an extensive review of the Carmel store, Alexander reached a few conclusions. "First, no back room. Everything will be on the sales floor," said Alexander. "Two, no more parts counter. Think about it. The most important place for customer interaction in the store is named after furniture. It is a Parts Center™. We positioned it as a relatively square shape in the dead center of the store with signs above it on all four sides and counters on all four sides. There was easy access for workers and a commanding position."

Moving the Parts Center™to the middle of the store also made sure all the help was available on the floor. Another innovation used the space above the gondolas on the walls. "We asked, what happens between the shelves and the ceiling?" Alexander said. "We used a graphic ‘Brand Band™’ to encircle the store. A horizontal stripe with spaced logos of the top brands and occasional store statements. That’s been copied, but what was really unique is that it was composed of six colors. The colors divided the store into six functional areas."

"Now we have departments," Alexander said. "A way to organize the shopping process and to organize the customer’s mind. We increased the shopability of the store. We answered the customer’s most important question: What’s here? Where is it? Everything we did operated around those principles. The colors were included in every graphic piece."

Along the upper walls they also added more shelves and filled the shelves with empty cartons of the major brands. "We encircled the entire perimeter. We bill-boarded the entire store with shelves. People knew the store sold (certain brands). Even if it’s only one shelf, it simply converts blank walls into selling space."

Alexander praises Levine as a pioneer of the Parts Center™, the Brand Band™, and bill-boarding the store. For his part, Levine called Alexander his mentor.

Reaping the rewards

"The results in the store were simply unbelievable. After six months sales were up 30 to 40 percent," said Levine. "The customers loved it. My workers became proud professionals again. Steve insisted on white shirts and black khakis with black shoes. No more sneakers. All of a sudden, customers looked on the workers as professionals. Customers respected their opinions. We changed their attitude and the whole store changed. Sales stabilized and dropped back a bit, but over the first year we were up 25 percent."

Levine followed through on the remaining four stores over the next four years and in 2000 had Alexander design his newest store in Brewster, N.Y., from the ground up.

Levine pointed out that while he was revamping his stores, nine competing jobbers closed because he was taking away the retail business. "Our growth rate was 10 percent annually since 1995. Totally opposite the industry." It wasn’t cheap, however. "For a complete store, total turnkey, close at six on Monday and reopen Friday, do the ceilings, floors, walls, gondolas, lighting, everything — it was $120,000. Considering the business I think it was very worthwhile. We now do about $1.4 million a store." Although he credits Alexander with maybe 75 percent of the change, Levine notes the chain did not stop with modernizing the stores. He extended his hours every day, including Sunday. He advertises heavily with direct mail and print. He runs DIY clinics and offers customers access to extensive repair guides.

Each year he takes three of his six managers and their families to Las Vegas for Automotive Aftermarket Industry Week. At the show, each manager has to find 10 new items for the store. At year-end, if all 30 new items have produced more than $200,000 in new sales, the managers split 10 percent of the sales. It’s worked every year except 1998, which Levine believes was just a bad year for new products.

The research continues

Recently, he’s been surveying customers on Saturday and Sunday. "About five to seven percent have a definite opinion," Levine said. "Primarily we find items we aren’t stocking that customers will buy." One major new idea was a combination of Alexander’s redesign and customer input.

Back in 1995, Alexander used a new checkerboard floor tile with a yellow band encircling it to mark truck accessories. "I felt nine years ago, this was a growing opportunity," Alexander said. "We must embrace this trend. Truck accessories need more attention. We configured the store to create a Truck Center™ with unique graphics and bright colors."

The truck center did well and customers snapped up the merchandise. But through his weekend surveys Levine found he was losing some truck accessory customers because he did not install hang-on accessories, such as running boards and auto vent shades. So this year Levine is opening what he calls a "damp" store in Mahopac, N.Y., equipped with five bays, two of which are dedicated to fast oil changes. "No brakes, no shocks, we’ll just install accessories and change oil." Levine said installations will be menu priced with the installations built into a slightly higher selling price of the accessory.

Once again, Levine is trying to be truly unique. The store is in a shopping center and customers can drop off their vehicle and go shopping. When they are done shopping, they can push a button on a hand-held device and a light comes up at Levine’s store. Clerks will pick up the customers and even help load the groceries. "It might become a trend," Levine said. If it does, he’s ready and is already negotiating for another "damp" store in a Carmel shopping center. In this one, he hopes to install a brushless car wash along with the installation. The mentor and the owner continue to work side by side. "He’s dynamic and he’s in every store every day," Alexander said. "He knows his customers and he knows his employees. His success is a combination of design and management style. While other people are running away from the business, he’s busy expanding."

For his part Levine concedes that in the early 1990s, he didn’t think he’d have a business to pass on to his heirs. There is daughter Geryl Kowalski, who is vice president. Kowalski’s husband Jim and Levine’s son, Larry, are both store managers, while Levine’s wife Beth does the bookkeeping. "It’s a real family business," Levine said. "I give Steve credit. In 1994 or so I was like everybody else. Ready to go. But with his help, I bucked the trend."

Fresh Ideas
Along with the store design ideas you find regularly in Aftermarket Business there are other publications that can be vital resources for you. Check out these publications as you consider a new look:
  Visual Merchandising & Store Design, 513-421-2050;
     www.stpubs.com
  Display & Design Ideas, 847-647-7987;
     www.ddimagazine.com
  Store Equipment & Design, 215-788-7054;
     www.storequip.com

COPYRIGHT NOTICE:"Reprinted with permission from Aftermarket Business, July, 2001, page 51. Copyright by Advanstar Communications, Inc. Advanstar Communications, Inc. retains all rights to this material." To subscribe to Aftermarket Business, call 1-218-723-9477 or email fulfill@superfill.com.



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