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In the final part of our yearlong pet store make-over, Mark and Caroline Janczak of Critters Pet Shop tell us how they feel about their newly renovated pet store.
By Karen Long MacLeod
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Weeks spent discussing project plans. Countless hours talking on the phone and comparing myriad job estimates. Long days and sleepless nights. Frayed nerves and petty arguments.
Considering all the aggravation associated with a renovation project, do the ends justify the means?
Absolutely, say Mark and Caroline Janczak, the husband-and-wife team that owns Critters Pet Shop in St. Charles, Ill.
Just over a year ago, sales were declining in their reputable but dowdy-looking pet store. Today, total sales are increasing in their newly redesigned store. They have fulfilled their dreams of creating a store that is more customer-friendly, more modern and--they hope--more competitive in a changing retail marketplace.
As part of the PET AGE Pet Store Make-over project, Mark and Caroline have spent the past several months upgrading their full-line independent store. They had help from two well-known industry consultants, one prominent distributor/wholesaler, 20 leading pet supply manufacturers and the staff of PET AGE magazine. They also had a budget of $60,500, including their own minimum $10,000 contribution, and received more than $25,000 worth of products from sponsors.
In this, the last segment of our yearlong series about Critters' redesign, we'll show what aspects of the store redesign worked, what aspects were less successful, and how much money Mark and Caroline spent to upgrade their store.
Starting Out
Although Critters was clean, it did not look contemporary. Its floor plan was based on long, dull aisles that directed traffic straight to the back of the store. Its fish department, complete with wood paneling, was a throwback to the 1970s. Its beige-and-sky blue color scheme was out of fashion. It was dim and lacked distinctive sign-age. Even with petting cages in the aisles, its scattered livestock displays didn't motivate enough sales.
Furthermore, Critters' inventory was out of control, with too many items that just didn't sell.
Our well-known consultants--Mike McCahill of Retail Store Planning (Roseville, Calif.) and Simon Handelsman of Out of Hand Inc. (Newburyport, Mass.)--helped Mark and Caroline develop basic strategies to emphasize the store's existing strengths and make customers excited about shopping there:
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Redesign the floor plan to improve traffic flow, highlight exciting animal displays, reinforce the strongest departments and provide more flexible display space.
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Update the interior décor to appeal to Critters' upscale, family-oriented customers.
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Re-do the fish department by installing more attractive, low-maintenance display tanks and remerchandising the aquatic supply section.
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Expand the pet food department by bringing in better-known lines and adding racks.
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Give the small-animal department more display space in a prime location.
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Improve the puppy department by making the "love room," where customers interact with puppies and kittens, more appealing.
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Remerchandise the dog supply department and deepen inventories of better-selling products.
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Based on these goals, plus feedback from Simon and the
Janczaks, Mike created an efficient floor plan with distinctive departments, modern fixtures and a bright, contemporary decorating scheme.
A Few Snags
Since renovation jobs never proceed strictly according to plan, it's not surprising that the Janczaks hit a few snags: Their project cost a lot more than they anticipated, and it took a lot longer than they expected.
Even though they saved money by eliminating some design features and doing some of the work themselves, the Janczaks spent a total of $91,409 to renovate their store--almost $31,000 more than originally budgeted. Most of this difference can be attributed to the aquarium and small-animal display units, which the Janczaks leased. (See
"Redesign Costs for Critters Pet Shop,", for a complete breakdown of expenses.)
Due to methodical decision-making by the husband-and-wife team, delays by contractors and other vendors, and various other reasons, Critters' redesign project spanned slightly more than a year. (Planning, from initial discussions to blueprints, took 14 weeks; researching options for the fish room, lining up contractors and getting permits, 10 weeks; construction, plumbing, installing livestock displays and new fixtures, nine weeks, completed just before Thanksgiving 1999; a moratorium for the holidays, six weeks; implementing the new merchandising plan, two weeks; installing finishing touches such as logos
and signs, and planning promotions, 14 weeks, off and on.)
"The decision-making process under normal circumstances is much quicker because the client is investing his own dollars and needs to see a return on that investment within 90 to 120 days," Mike said. "We had the luxury of extra time because it was a subsidized project."
Great Results
"I really like the store now," Caroline said. "It's so much more people-friendly, and so much brighter."
"I think the store is great," Mark agreed. "I'm really happy with the new shelves and the new layout, plus the fish room."
Based on practical and esthetic considerations, the Janczaks agree that the most important improvement was the addition of new display fixtures.
"I've come to realize that the biggest problem, hands down, with our old store was the shelves," Caroline said. "Some [of the shelving units] were even taller than I am, which created a canyon effect and made the whole store darker. The new shelves make an amazing difference."
Even something as simple as new peg hooks made a noticeable difference. "Ninety-nine percent of our peg hooks are the same length. This makes it easier to keep them filled and make the store look uniform," Mark said.
"Displays actually look the way they should, so you get a greater sense of satisfaction when you finish," Caroline said. "Before, no matter what you did, end caps never looked quite right and you never felt really good about setting them."
"The wider aisles make it easier to see bottom shelves," Mark added. "And since the shelves are all the same brand, we can add, subtract or move them easily to reset a gondola."
Employees find it easier to work in the store, too.
"Since the fixtures are shorter, [you can] see customers throughout the store," said Susan Roy, the store manager. "That's one of the best things about the new design: You can see when someone needs help."
Another hit, as far as Mark and Caroline are concerned, is the store's new graphics package ("Signs of Progress," May 2000). Incorporating colors, animal characters and type styles from the new logo, in-store signs help unify the store and convey a much-needed sense of fun.
"Even our 7-year-old son noticed how everything, from the signs in the front window to the department signs to the business cards to the shirts and aprons, matched just like in 'a big store,' " Caroline said. "It looks 'put together.' "
"The customer reaction has been almost all positive," Mark said. "A couple of people, noticing all the changes, asked if the store had new owners."
"Some people think we have more livestock," Caroline said. "We don't, but the presentation calls attention to the livestock better. The animals are more visible, [especially since] most are in individually lighted habitats."
Few Regrets
Even though Mark and Caroline didn't accomplish everything on their original wish list ("High Hopes," August 1999), they have few regrets. They can live without new floor tile in the main part of the store, a separate employee break area, an aquatic plant display and a glass-front freezer for frozen foods.
They are more concerned with finding ways to merchandise a broad selection of large items without making their store look cluttered. As a last resort, they shelved bird cages, travel crates and other bulky items above the decorative valances and on top of the pet food racks--even though Mike McCahill strongly discouraged this practice.
They wish they hadn't run out of money before adding some of the finishing touches mentioned in Mike's original design plan, such as a valance or canopy over the collars/leads boutique, decorative trim above the bird and small-animal display units, and neon trim. They still hope to add these things, and to install risers or platforms for bird cages and fish tanks, when they can afford it.
Without a doubt, they said, the worst part of the entire project was staying on top of all the details, managing contractors and coping with delays while handling their day-to-day duties.
"We're definitely glad we hired a contractor rather than doing it ourselves," Caroline said. "We could have done the work, and we could have done it cheaper. But how long would it have taken? And how would it have affected our business and our income?"
"If I had it to do over again, I'd probably contract out more of the work," Mark said.
Valuable Lessons
The Janczaks say they learned some valuable lessons as a result of their involvement in the PET AGE Pet Store Make-over project.
"From Simon, I learned that you shouldn't be afraid to ask for what you want, whether it's from contractors or vendors," Caroline said. "I also learned that you have to go with your instincts and go with what you like. After all, you have to live with your choices. Your first instinct is usually right. Second-guessing leads to delays and mistakes."
For example, she feels that she and Mark wasted a lot of time analyzing their options for equipping the fish room when, from the beginning, they knew they wanted commercial aquarium units in black plastic.
Even more important, Mark said, "the project has helped me run the store more effectively."
Being forced to delegate more responsibilities to key employees yielded multiple benefits. "It gives the staff a chance to excel and to be praised," Mark said. "And it gives me more time to concentrate on management issues and on improving our merchandising."
He continued, "I've really been able to concentrate on fine-tuning the inventory. We're reordering sooner, before we run out, and the shelving and layout seem to make it easier to change the merchandising. Instead of ordering three or six of something because that number sounds about right, we look at what each peg hook actually holds and reorder according to that. We're reordering more often, and we've reduced the amount of stock in the back room. Since the store is more organized, I can see what's selling and what's missing."
The Janczaks have adopted a much more pragmatic attitude toward slow-selling products. "I find myself going through the store, looking at a product, questioning how fast it's moving, then going to the computer right away to check its sales history, and making a decision right then whether to keep it or get it off the shelf," Mark said. "And we are taking the dogs off the shelves."
Getting Their Money's Worth
What if they had fronted the entire cost of the redesign?
"Honestly, if it had been our money, we wouldn't have done nearly as much," Caroline said. "We probably would have installed new fish tanks and new shelves. We probably wouldn't have gone as far--partly out of ignorance, partly out of cheapness."
"It's too early to tell if we would've gotten our money's worth," Mark said.
According to Simon, a project like this should boost sales at least 10 percent. A truly successful renovation would increase sales by 20 percent.
"You would hope [Mark and Caroline would] see the best results where they spent the most money--in other words, in the fish room," he said.
Although it is too early to say how the redesign will affect Critters' sales, it's easy to see some emerging trends.
Total sales for the first five months of 2000 are up over a year ago: $248,840 for the first five months of 2000 compared with $223,100 for the same period in 1999. This is reassuring news for the
Janczaks, who embarked on this project after watching sales decline over two years.
The biggest gains have been in puppy and small-animal sales. Although they think customers are responding mostly to improved selections of popular breeds of
puppies, and a broader variety of exotic small animals, the Janczaks believe the redesign probably helped.
"Maybe customers have more confidence in the store since it looks brighter and more professional," Mark said.
Although dog food sales are down compared with 1999, the Janczaks are less dependent on dog food sales than they thought. "Fortunately, due to this project, we brought in some new dog food lines at about the same time The Iams Co. (Dayton, Ohio) changed its distribution strategy," Caroline said. "We're doing OK with these other lines."
Luck on Their Side
The Janczaks contend that luck has been on their side since they bought their business in 1988, but particularly since they started the make-over project.
"This whole project proves how important it is to have a good working relationship with your distributor," Mark said. Otherwise, the Janczaks might not have sought help from Wilson Pet Supply (Hanover Park, Ill.), the sponsoring distributor for the PET AGE Pet Store Make-over--and Wilson representatives might not have recommended their store as a candidate for the project.
They remain grateful to the companies that sponsored the project, who provided advice, sweat equity (especially during the merchandising resets) and saleable merchandise.
"We got some stuff that wasn't necessarily our taste, or that we wouldn't necessarily have ordered," Caroline said. "And some of these [were items that our] customers have absolutely loved."
They even received (unsolicited) support from a few companies that weren't official sponsors of the project.
"It's easy to get complacent," Mark said. "Having someone push you and give you moral support--as we did with the magazine, the vendors and Wilson--really helped."
In a few months, we will revisit the Janczaks to see what impact, if any, the renovation has had on Critters' business.
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Karen Long MacLeod is editor in chief of PET AGE.
Who Did What
The PET AGE Pet Store Make-over was a unique collaborative project supported by a variety of organi-zations and individuals representing all segments of the pet industry:
* Twenty leading manufacturers provided working capital, products and displays for resale or in-store use, and merchandising support.
They are: All-Glass Aquarium Co. Inc. (Franklin, Wis.); Aquarium Pharmaceuticals Inc. (Chalfont, Pa.); Coastal Pet Products Inc. (Alliance, Ohio); Companion Habitats Inc. (Colorado Springs, Colo.); Flexi U.S.A. Inc. (Cincinnati); Rolf C. Hagen (USA) Corp. (Mansfield, Mass.); The Iams Co. (Dayton, Ohio); Jungle Laboratories Corp. (Cibolo, Texas); The Lafeber Co. (Cornell, Ill.); Lambert Kay (Cranbury, N.J.); Lee's Aquarium & Pet Products (San Marcos, Calif.); Multipet International Inc. (Carlstadt, N.J.); Nutro Products Inc. (City of Industry, Calif.); Pets International Ltd. (Arlington Heights, Ill.); Prevue Pet Products Inc. (Chicago); Pro-Visions Pet Specialty Enterprises (St. Louis); Sun Seed Co. Inc. (Bowling Green, Ohio); Wahl Clipper Corp. (Sterling, Ill.); Ware Manufacturing Inc. (Phoenix); and Wellmark International (Schaumburg, Ill.).
* Wilson Pet Supply (Hanover Park, Ill.) provided extensive support, including product delivery and merchandising assistance.
* Simon Handelsman of Out of Hand Inc. (Newburyport, Mass.) analyzed Critters' financial records and helped set objectives for the make-over.
* Mike McCahill of Retail Store Planning (Roseville, Calif.) prepared a complete design scheme, including a floor plan and recommendations for fixtures and décor. *
Critters Pet Shop Inc. (St. Charles, Ill.) implemented the consultants' suggestions, hired and paid contractors, and arranged for delivery of products, supplies and services not provided by sponsors.
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