5 Reasons Jimmy Jazz Has Adapted Successfully to DTC Growth by Brands

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What is Fresh Selects? Fresh Selects is a new rewards program established by Jimmy Jazz. The rewards program was created for Jimmy Jazz store and online customers. With Fresh Selects, members have the

Source: Fresh Selects Rewards Program | Jimmy Jazz

Almost a year ago I visited Jimmy Jazz’s Harlem Store and I walked away floored. I had witnessed the expansion into the South happen without a hitch, although I doubted the company could stay afloat in the small towns as a city run brand. Since last year in one of the locations of the new stores its closest competitor in Hibbett Sports closed up shop. The recent news about City Gear, now a subsidiary of Hibbett Sports, laying off 51 employees in February 2020, reminded me that urban retail is at the biggest risk as Nike develops its digital strategy. As the urban consumer begins to access the digital ecosystem the moat of the cash customer for urban retail is going to be bridged. As this happens we will see more City Gear styled stores being acquired.

Nike’s CDO is Creating One Standout Brick and Mortar Store Chain | Jimmy Jazz Harlem

 

This won’t happen to Jimmy Jazz however. The question is why? What exactly has the company done to offset the entrance of its core consumer into the digital economy? Why has Jimmy Jazz thrived where stores like DTLR/Villa and City Gear have hit glitches? In the video in the post above when I walk through the flagship you can see the immediate reason for the companies ability to adapt. This same reason isn’t evident in the small town stores in Mississippi as those stores are symbolic of the Nike wall (and rightfully so) but in the stores the company didn’t acquire, but opened themselves, the same style and compartmentalization is apparent (which moves too far ahead).

5 Reasons Jimmy Jazz Has Adjusted and Adapted to the DTC Shift

1. Merchandising and Compartmentalization – As Nike continues to develop its digital strategy they are using the word undifferentiated in their discussion of who will get to carry Nike footwear. That term means that a store that simply sits Nike on a Nike wall without merchandising will not be held in high regard. The stores that create brand shops within shops giving Nike a clearly defined space in their stores will win. Watch the video and inside of Jimmy Jazz you will find dedicated branding in the Jordan section. The buildout of the store creates sections next to each brand wall. In other words when you walk through the store every brand, not just Nike is given real estate. The respect shown to each brand creates an ease in finding product. This in-store merchandising takes place online as well as is covered in number 3 below.

2. Region specific brand collaborations. Small boutiques are known for their brand collabs with different shoe companies. Chains are known for getting specific drops, but Jimmy Jazz does something that is a blend of both of these concepts. Jimmy Jazz released a Timberland x JJ Mashup:

One of the primary ways retailers who tend to rely solely on Nike can adapt to the brands competitive entrance into retail via CDO is by highlighting and selling other brands with the same fervor Nike inspires. I’ve written a number of posts recently on retail issues where the core of the problem is the sales leads don’t know how to sell shoes anymore. They take the approach that they are only there to retrieve selections. One of the ways alternative brands can capitalize on Nike’s move away from wholesale is to go all in with retailers. Jimmy Jazz is and has been doing this. Which leads me to the next reason the company has adjusted.

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3. Jimmy Jazz curates and merchandises online. The image above is a screenshot from the site, but also on the scroll down (most companies have one finger flick, which limits interaction – ask me about this), is video content from their YouTube, which is updated often making it one of my favorite moves by the company. The video offers a better look at apparel which I think is one of the most important aspects of offsetting the DTC of brands. Jimmy Jazz has the potential to launch its own capsule of apparel utilizing the data from its apparel sales (I think the company’s marketing team is savvy enough to pull this off in a small launch)… This takes me away from the list. Each brand is given a quick link in the form of a logo which limits the speed in searching. This seems easy enough, but most sites relegate this to drop down menus or static menus which can be frustrating on mobile. The only drawback on Jimmy Jazz is that on mobile the logos don’t have a scroll side to side swipe to see all of the brand logos, but the company offers a switch between mobile and desktop on handheld devices.

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Nikes CDO is Creating One Standout Brick and Mortar Store Chain | Jimmy Jazz Harlem

4. Fresh Selects Rewards Program – One of Nike’s biggest accomplishments is improving transactions within their digital ecosystem. Jimmy Jazz is working to offer fans the opportunity to maximize their purchases through this new program. Do I see the marketing team potentially creating a “Greenhouse” styled drop app with content and keeping track of individual rewards within that app? If they do the retailer rivals the brand and that’s a good thing.

5. An openness to ideas. There isn’t an ivory tower at Jimmy Jazz where sales leads are peasants and interchangeable for any reason. One of the biggest reasons there are problems at retail chains is due to the turnover of sales leads. I can visit a Jimmy Jazz in Mississippi every six months and the same people are still working. This isn’t the case at Foot Locker even. It is understandable that sales leads at Foot Locker chains leave jobs, but that constant turnover is symbolic of a deeper issue in Foot Locker that Jimmy Jazz seems to have learned from. The chain of command functions and the stockroom person can make suggestions and speak to anyone in the chain of command which means that employees aren’t afraid or frustrated creating a better work environment.

Retail is in a difficult position that has never existed. Urban retail is in a more difficult position as the companies have to deal with shifting consumer habits as well as brands becoming retailers. Jimmy Jazz has deftly navigated this landscape.

Check out the site here: https://www.jimmyjazz.com/

Fresh Selects Rewards Program | Jimmy Jazz