PART

II: OPPORTUNITIES & THREATS

All Saints
FASH 420: Major Retail Project, Part II
Andrea Della Mattia, Janeil Gordon, Elizabeth Kyi, Leanna
Silvestri & Jacqueline Trunks

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PART II: OPPORTUNITIES & THREATS

Table of Contents
OPPORTUNITIES & THREATS

3-9

SWOT ANALYSIS
OPPORTUNITIES AND RECOMMENDATIONS
THREATS

3
3-7
8-9

CAREER OPPORTUNITIES

10-11

STORE LEVEL
CORPORATE

10
10-11

WORKS CITED

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SWOT ANALYSIS

STRENGTHS

Customer service strategy &

relationship retailing
Human Resources
Location of retailer
Retail image/visual merchandising
management

Retail location expansion

Expand customer base
Product expansion
Service expansion
Digital diversification
Smartphone e-commerce
Increasing consumer spending and
disposable income
Bridge price point growth
Increased marketing and advertising

WEAKNESSES

OPPORTUNITIES

Merchandise management and

pricing
Current marketing strategies

THREATS

Economy
High competition
Changing fashion trends
Foreign exchange rates
Integration of foreign business
concept

OPPORTUNITIES









Retail Location Expansion








All Saints currently has one retail store in Canada, located in the newly expanded
wing of Yorkdale shopping centre in Toronto. The doors opened in April 2013, and
the store has been performing well within its new market. The new wing has since
welcomed other retailers of a similar price point and target market, such as Stuart
Weitzman and John Varvatos, which suggests that the area produces results for
brands of this nature. Judging from the success incurred so far for All Saints in
Canada, the retailer can confidently move forward in penetrating the market further
and opening more Canadian locations.

Recommendation: Within the GTA, All Saints could expand their retail locations to
occupy space in other areas of the city that have proven success for other retailers at
a bridge price point or higher. Shopping districts such as Sherway Gardens, Bloor
Street in Yorkville, and Square One Shopping Centre hold promise for All Saints
expansion within the GTA. Opening All Saints locations in other Canadian cities such
as Montreal, Calgary, Edmonton, Vancouver, Ottawa, Winnipeg, and Quebec City
would also increase business for the company, as these cities have large populations
with individuals present in All Saintss target market. All Saints plans on expanding
its locations throughout other Canadian provinces to include: Rue Sherbrooke in
downtown Montreal; the Core Shopping Centre in downtown Calgary; Manulife
Place in Edmonton; Robson Street shopping district in downtown Vancouver;

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Sparks Street in downtown Ottawa; Portage Place in downtown Winnipeg; and Place
Ste-Foy shopping centre in Quebec City. Expansion locations are based on shopping
districts and malls that have target markets and demographics that match that of All
Saints and currently house high-end retailers, such as Holt Renfrew.

Expand Customer Base








All Saints clothing, footwear, and accessories are sold at a bridge price point, which
lies between a contemporary price point, which describes trendy fashion items at a
higher than average price, and designer price point, which caters to the prestige and
luxury markets (We Connect Fashion). All Saints could reach a larger target market
by offering some lower priced items, within the contemporary price point, alongside
their higher priced items in order to maintain an exclusive appeal.

Recommendation: In order to reach a larger target market and increase product
sales, All Saints will introduce a lower-priced, contemporary product line called
Saint Monica by All Saints. The new merchandise line will include similar items to
the original All Saints line with the same aesthetic and quality of construction, but
using lower-priced fabrics, details and trimmings in order to control cost. The line
will include knits, blouses, t-shirts, jeans, faux-leather pants and shorts, skirts, and
faux-leather jackets. The aim of the secondary line would be to attract a slightly
younger demographic who may not be able to afford the luxury products typically
offered at All Saints. Ideally, the Saint Monica line would appeal to young innovators
and trend setters in Canada in order to increase brand awareness within the local
market. By introducing a lower price point, we would also decrease the risk
involved for first-time purchasers, which would increase adoption rates and ease
the transition into purchasing more expensive items and becoming loyal customers.

Product Expansion









All Saints currently sells mens and womens clothing, accessories and footwear. By
expanding their product offering to include a fragrance for men and women, All
Saints will not only increase sales, but also further increase their exclusivity by
providing private label products that can only be purchased at All Saints retail
locations and online.

Recommendation: All Saints will expand their product lineup to include an
exclusive fragrance, named All Saints, for both men and women. In creating a
signature scent, All Saints will increase customer loyalty and solidify their brand
image and associations. Loyal customers will feel more connected to the brand if
they adopt All Saints as their signature scent. Similarly, the scent will draw
associations with the brand for consumers. The scent would embody the All Saints
brand: The womens scent will have musky body with nutty undertones and subtle
notes of magnolia, and the mens scent will have a cedar base with hints of bergamot
and tobacco.


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Service Expansion









While All Saintss customer service strategy and relationship retailing has been
assessed as a strength, the company could benefit from including such services as
personal styling and clienteling. The retailers grungy, edgy, and urban aesthetic is
what many customers find appealing and what keeps them loyal; however, adding
styling services will build lasting relationships with clients to ensure repeat
purchases and encourage customers to develop positive brand associations with All
Saints. The personal styling services would take customer service to the next level to
make a lasting impression on the Canadian consumer.

Recommendation: All Saints will introduce complimentary styling and personal
shopping services that will provide customers with access to the latest styles,
trends, and styling inspiration. The ideal stylist-consumer relationship would
involve reciprocal communications. Stylists could reach out to loyal customers to
offer personalized recommendations and exclusive offers. Conversely, consumers
could reach out to their personal stylist to request styling appointments. These
services will aid in integrating All Saints merchandise into customers existing
wardrobes, as well as building wardrobes around All Saints merchandise, hopefully
encouraging customers to think of All Saints first when seeking out fashion
merchandise.

Digital Diversification









In 2013, All Saints launched their fully operational film company, which focuses on
documentaries about music, style, and street influences. The in-house film company
offers ample marketing opportunity by allowing the company to create promotional
films for new products, company events, and news.

Recommendation: In All Saints newest basement sessions, the Canadian indie rock
band Arcade Fire will be featured, with the band and any extras wearing All Saints
merchandise. Heavy circulation of these videos on social media will tie together the
All Saints brand with its music and film influences. To tie in product expansion with
digital diversification, All Saints could produce a promotional film to endorse its
new fragrance and market it heavily via social media. As a long-term goal, this film
company could expand further to delve into short and full-length feature films,
attempting to involve them in local events and film festivals such as TIFF, as a
pinnacle.

Smartphone E-Commerce








All Saints Canada currently uses multichannel retailing, comprised of one brick and
mortar retail location and an online retailer that ships to Canada. In 2010, All Saints
launched an iPhone application that was only available in the U.S. market. Currently,
the All Saints app is not available for purchase in the American App Store.
Reintroducing this app for iPhones and creating an app for BlackBerry and Android

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smartphones has the potential to increase sales for the business by allowing
customers to browse merchandise and make purchases easily on their smartphones.

Recommendation: All Saints will reintroduce its iPhone app, as well as create one
for BlackBerry and Android smartphones. The app will allow customers to browse
and shop right on their phones, as well as download music from Canadian indie
bands affiliated with All Saints right to their phones. To coincide with the launch of
the All Saints app, special events will be held in All Saints retail locations across
Canada. As well, customers purchasing items from the app will be privilege to a
special introductory discount in order to encourage purchases.

Increasing Consumer Spending and Disposable Income




According to Statistics Canada, Canadian disposable personal income has been on
the rise over the last several years and is predicted to steadily increase over the next
few years (Trading Economics, 2014). As well, consumer spending is at an all time
high and is expected to continue to rise over the coming years (Trading Economics,
2014). These statistics combined with rising consumer confidence and increasing
Canadian retail sales shows that Canada is the perfect market for All Saints to enter
with full-force.

Recommendation: All Saints will factor in increasing consumer spending and
disposable income trends into their sales plans, and enjoy to staff the floor
accordingly. It is crucial that the store be ready for the anticipated sales volume with
well trained sales associates who have a high degree of product knowledge and
proven sales abilities. Furthermore, the business will have to allot an adequate
payroll budget to ensure the customer to associate ratio never exceeds 5:1, in order
to ensure every customer is serviced fully. All Saints will prioritize making a good
first impression on consumers by putting their best face forward in their Canadian
debut, setting the customer service bar high for future Canadian All Saints locations.

Bridge Price Point Growth








In recent years, bridge price point fashion brands have been experiencing significant
sales growth. These brands have even been outperforming designer and luxury
priced brands in terms of sales growth (Wall Street Journal, 2013). With a strong
economy, Canadas retail market is the right fit for bridge price point brands and
retailers, such as All Saints. This rapid growth of this former niche market in Canada
indicates that Canada is a prime location to invest in serious expansion. Here,
brands such as All Saints can cater to a growing demand for better quality, selection,
and customer service. This growth trend could perhaps be the result of shifting
consumer behaviours, rejecting the fast-fashion retailers that have become so
pervasive in the fashion industry, in favour of the idea of slow fashion.

Recommendation: In order to maximize profit during this period of increasing
consumer interest in bridge price point retailers, All Saints needs to maximize brand
exposure among Canadian consumers. By reaching out to and interacting with
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Canadian consumers through social media efforts, local events, and collaborations
with other Canadian brands, All Saints would ideally place itself at the forefront of
its customers minds when shopping for bridge price point items.

Increased Marketing and Advertising






Within the UK and US, All Saints marketing strategies are extensive and successfully
create a strong and cohesive brand image. Their marketing strategies primarily take
the form of social media, with active Twitter, Facebook, Instagram, Pinterest, and
YouTube accounts. Their social media content primarily centralizes around the
product and their involvement in music and film, with heavy use of short films.
However, within Canada, All Saints marketing efforts lack penetration. All Saints
target market is not as aware of the brand within Canada as elsewhere. Thus, an
opportunity exists to expand their marketing efforts with a specific emphasis on
Canada in order to create stronger brand awareness within the Canadian retail
market.

Recommendation: All Saintss marketing strategies rarely take the form of paid
advertisements. However, by introducing advertisements in Canadian magazines,
television commercials, or special events to create buzz and hype around the brand,
All Saints could take advantage of the marketing opportunities that exist in order to
raise brand awareness and ultimately increase business within the Canadian
market. In order to increase local brand awareness, All Saints will market itself in
two ways. First, it will develop strong partnerships with Canadian fashion
publications such as Flare, Fashion, and Elle Canada in order to expose Canadian
readers to the brand. In conjunction, All Saints will sell its private label clothing in
A level Hudsons Bay department stores in order to increase points of contact for
existing and potential customers.

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THREATS











Economy











Despite Canadas currently strong economy, retailers such as All Saints that sell
products at a bridge price point are still vulnerable to recessions and the business
cycle. During a recession and poor economic times, designer and higher priced
fashion items are among the first things to be deemed unnecessary. The economy
and business cycle is something that is out of All Saints control, however, if All Saints
were to introduce some products at a slightly lower price point it may allow for
stable sales during a recession.

High Competition









With steady growth in the bridge price point market, many retailers and brands are
moving in. Therefore, there are many substitute products and high competition for
All Saints. Within Yorkdale alone, Club Monaco, John Varvatos, and Wilfred all
compete for the same consumer dollar as All Saints and occupy retail space within
the same hallway of the shopping centre. As well, other lower priced stores such as
Aritzia and Danier sell similar items at a lower price, which offers consumers a
cheaper alternatives to many staple items in All Saintss product assortment. Holt
Renfrew is a designer and luxury goods retailer that also sells items at a similar and
higher price point, but carries many well-known brands such as Acne, Rag and Bone,
and Alexander Wang. Since these brands already pervade the market that All Saints
is targeting, All Saints may become second string. It is therefore imperative that All
Saints create a strong brand presence within the Canadian market in order to
remain competitive and be a first choice retailer and brand.

Changing Fashion Trends








Fashion trends are constantly changing from season to season, sometimes even
faster with microtrends. The All Saints core aesthetic of dark muted colours, head-
to-toe leather, and androgynous silhouettes is currently on trend; however, in
coming seasons it may no longer be fashion-forward. All Saints will either have to
reinvent their look, which may mean losing loyal customers, or stay true to their
aesthetic, which may mean losing the ability to attract new customers, ultimately
resulting in lower sales growth.

Foreign Exchange Rates








All Saints is a UK based retailer whose business operations are primarily centered
across the sea. In trying to permeate the Canadian retail market, All Saints may face
some struggles related to exchange rates. Currently, one Canadian dollar is equal to
approximately 0.54 British Pounds and 0.65 Euros. Depending on the Canadian and
international economy, retail prices could rise for All Saints merchandise as its
business dealings are not focused in Canada. Conversely, Canadian-based retailers
such Aldo and Joe Fresh do not face such issues. All Saints cannot control foreign
exchange rates, however they may greatly impact their success in the Canadian
market.
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Integration of Foreign Business Concept






All Saints may incur challenges when attempting to integrate their business concept
into the Canadian retail sector. It is relatively easy for U.S. retailers to translate their
business into a Canadian context. However, with roots in the U.K., All Saints runs the
risk of facing cultural barriers that may hinder customer acceptance and adoption of
the brand. The fact that no other Canadian business has approached fashion
retailing from the same angle as All Saints, with its integration of music and film
culture into the brand, could act as an opportunity or a threat based on how
customers receive the newcomer. Consumers may be wary of the unfamiliar, or may
develop a strong sense of loyalty to the brand for being the first and only of its kind
in Canada. In order to ensure the latter, All Saints must focus efforts and resources
on interacting with and appealing to its Canadian market.

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COMPANY STRUCTURE









STORE LEVEL











Being a UK retailer, All Saints manages their stores very differently from many
Canadian retailers. An entry-level position at All saints would be that of a part-time
Stylist, followed by the position of Senior Stylist, which is a full-time position. After
this level, All Saints employs both full-time and part-time Stock Associates who are
responsible for replenishing stock both in the stock room as well as on the floor.
Next level positions include the Stock Manager, who oversees orders, shipping and
receiving, and maximizing profit on the floor, and Junior Floor Manager, who
oversees the stylists and handles anything pertaining to customer needs. There are
two Floor Managers for each retail store, one for the womens department and one
for mens. The Floor Manager ensures that sales goals are being met and that they
are not exceeding their budget. Floor managers also supervise stylists and the Junior
Floor Manager. The Assistant Manager is the next superior to the floor manager.
This role includes two positions: Commercial Assistant Manager and Operational
Assistant Manager. The Commercial Manager is responsible for all visual aspects of
the retail front, the product displayed on the floor, tracking drivers and items that
arent performing well, and ensuring proper size allocations. The Operational
Manager is a behind-the-scenes role and is responsible for payroll, hiring and
administrative work. The Store Manager oversees everything including sales goals,
floor product, employee tasks and customer relations. Above that, the General
Manager is responsible for the stores business in its entirety. Currently, within
Canada, All Saints is on a hiring freeze. As a way to stay on budget, one person will
be responsible for the roles of two positions. In the near future, All Saints hopes to
hire a Commercial Assistant Manager once the hiring freeze is over.

CORPORATE











The All Saints global corporate head office is located in London, England, and the
closest regional head office is based in New York City. Recently, All Saints has made
a vast amount of cutbacks in terms of staffing. However, employees that have
survived the cutbacks are now faced with taking on a number of roles. One
employee may be responsible for the workload of three separate positions. Wil
Beedle is the Creative Director of All Saints, and is primarily responsible for
designing the aesthetic of the merchandise. His most recent collection for Spring
2014 was inspired by floral motifs with a graphic twist and was featured in the
Mercedes Benz New York Fashion Week. Beedle, along with the marketing team,
oversee the basement sessions, which are used as a marketing piece. Basement
sessions feature various music artists performing popular songs while wearing All
Saints clothing. These sessions are shot in the basement of an All Saints store where
the videos are then uploaded and put on the website in real time. Two of the
basement sessions featured Canadian-based music from both Kings of Leon and City
and Colour. The videos are created based on where the newest locations will be
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opening and thus feature music and talent from that city. All Saints next store
opening will take place in Tokyo, Japan. The brands new CEO, William Kim, has
influenced All Saints involvement with music and digital media, which has led to the
development of a fully operational film company, introduced in 2013. Kim is also
responsible for the future direction and look of the stores. There are currently no
corporate opportunities within All Saints in Canada.

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WORKS CITED










The Wall Street Journal. Dow Jones & Company, 6 Feb. 2013. Web. 22 Mar. 2014.
<http://online.wsj.com/news/articles/SB100014241278873244423045782
33553617293628>.

Trading Economics. Trading Economics, n.d. Web. 22 Mar. 2014.
<http://www.tradingeconomics.com/canada/disposable-personal-income>.

"Price Point Definitions." WeConnectFashion. N.p., n.d. Web. 19 Mar. 2014.
http://weconnectfashion.com/fido/getarticle.fcn?&type=guides&SearchString=pric
e+point&i>

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