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Barbara Farfan
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By Barbara Farfan, About.com Guide to Retail Industry

L.L. Bean Makes Its Own News: What Retail Industry Crisis?

Sunday November 23, 2008
Somebody forgot to tell L.L. Bean about the retail industry crisis. With a new store opening, impressive e-retailing results, television advertising, and the launch of their annual Northern Lights celebration, L.L. Bean is employing a business-as-usual strategy that is as oblivious as it is surprisingly successful. While November, 2008 has been a challenge for most U.S. retailers, it’s been a good month for L.L. Bean.

It had to be encouraging to L.L. Bean management to see hundreds of customers standing in line waiting for its newest store to open. Of course, the free gift card bribe offered to the first 500 customers who walked through the doors of the new L.L. Bean store in Pittsburgh was probably the major motivation behind the crowd. But any strategy that successfully gets customers through the front door of a retail store these days is a good strategy. I also have to believe that making those customers stand outside in frigid temperatures before entering a store that sells cold weather gear must have been a brilliantly planned part of the whole strategy.

It was also business as usual at the L.L. Bean annual Christmas Tree Lighting Ceremony this weekend at their flagship store in Freeport, Maine. As is the tradition, one of the largest Christmas trees in Maine is now glowing nightly with thousands of lights without regard to operational expense cutbacks.

There is also no perceptible restraint in the retailer’s annual multi-week holiday celebration schedule. Each weekend from now until New Year's Day customers will be treated to live music, instructional clinics, food tastings, book signings, children’s storybook readings, and holiday demonstrations as part of the L.L. Bean “Northern Lights” celebration. If the combination of customer goodwill, free valet parking, free gift wrapping, and merchandise specials don’t result in sales at this regionally famous retail location, then probably nothing would have.

Outside of the special event hubbub, the e-commerce side of L.L. Bean performed impressively in the first half of November. According to website tracking company Compete Inc., L.L. Bean had the second highest sales conversion rate of all the major e-tailing sites on the internet. A notable 14% of those who ventured onto the L.L. Bean website made a purchase before they left. That’s an enviable conversion percentage for any retailer. If 14% of the people who wander into retail mall stores in the next few weeks make a purchase before they leave, then the holiday season will not be as dismal as everyone anticipates.

What created this web success for L.L. Bean? According to Consumer Reports, it’s the high level of customer satisfaction with quality, descriptions, ordering ease and customer-friendly return policies that make L.L. Bean a web standout. It’s really just basic retailing best practices with impressive virtual execution.

If L.L. Bean continues its strong finish all the way to the end of 2008, it will be a testament to having the bravery to stay the course, despite external conditions that strongly encourage you to do otherwise. In an economy that is anything but ordinary, any retailer that can survive with a business-as-usual strategy is an extraordinary retail business indeed.

Comments
November 24, 2008 at 7:54 am
(1) Dan says:

Thanks for your kind thoughts on L.L.Bean. Just fyi, the holiday tree uses LED lights, the most energy efficient ones available!

November 25, 2008 at 10:19 am
(2) Mercedes says:

LL Bean is a great example of being true to yourself. Stay on course….when people are sad and depressed they go SHOPPING! (they eat and drink too) But you have to give them something NEW!

November 26, 2008 at 6:52 pm
(3) Judy says:

Thanks for pointing out some of the great things that LLBean does for its customers. I work for LLBean, and feel that they strive to do the right thing for both customers and employees. It’s really a great company to work for.

November 30, 2008 at 5:35 pm
(4) JJ says:

I love LLBean. I wish my mind is as at ease ordering from other on-line retailer as I am with LL Bean: there are never tricks or pitfalls, and the quality is consistently outstanding in the past 10 years that I’ve shopped with them.

December 1, 2008 at 5:26 am
(5) Anna says:

I love Ll Bean so much that when I got downsized from my old job I applied there. I have to say that not only is LL Bean one amazing company to buy from (everything I’ve gotten from them has lasted for a long long time) but a really good one to work for. They treat us employees well and with respect. I work at the pittsburgh store and all of us (manager’s included) have been surprised at the good will we have been shown since the store opened. Customers are coming in and doing well and as one of the few stores besides the flagship that gives classes we have seeing a lot of people who want to go on our adventure trips as well. I hope Ll Bean continues to do well; this company has survived and thrived since 1912, may it continue to last for many more years!!

December 5, 2008 at 1:06 pm
(6) Larry says:

Perhaps you haven’t been shopping since the article was written. Even the great LL Bean is considerable down in business to the point where seasonal employees are down to one day per week at the new Skokie Store. The store is a ghost town after 6. From the standpoint of fairness to employees, some are given 5 days, and some are down to hours per week. There is no review process to speak of, and management is incredibly weak, with the only attempt at morale building yelling SkoBean as the store opens. One othere interesting procedure is having to remove your jacket when leaving the store-in front of customers. Aside from being demeaning, it shows just how much trust they have in their people. The Big Bean is not what it seems.

January 13, 2009 at 3:20 am
(7) AdamJ says:

LL Bean has in the last two years developed the very ugly habit of going into a new community with a strong, loyal internet/mailorder business following of theirs, and announcing with great fanfare their strong determination to bulid and open a new LL Bean store the very next year, only to then just disappear , without comment, leaving their customers confused, unwanted and feeling jilted for the likes of Beijing, Chicao, and Pittsburgh, eek. Thank God for Patagonia, R.E.I, Eastern Mountain Sports and so many other fine retailers whose public words matches their deeds and their high standards aren’t just some airy-fairy P.R. – B.S. drummed up by some faux pious catholic school exec twerps.

January 13, 2009 at 8:20 am
(8) Eadie says:

Well, that story is old news now. Indeed, L.l. Bean is laying off people.

May 21, 2009 at 2:04 pm
(9) m says:

hi used to work for ll bean.
Did nt like it there …reason many and many
1.Pushing to sell the LL bean visa card is one of the top most reason by Supervisor.
2.The higher people get paid more and did nt listen sh– of people.
3.End of season they lay u off making them selves benefited and others loss.
4.As nt many places to find work here in Maine,they (LL bean) is getting benefitted.
5.Good thing of LL bean is that they are very nice to their higher ups and customers but for employee working hand to mouth is no good no benefits nothing just temp job…any ways

May 21, 2009 at 2:43 pm
(10) isabella says:

LL bean may be ok to customers but not ok to their call center Employees …
So if are very social and friendly pls dont ever thing to work for them The Supervisors r nt nice they critize so much that you jut wanna quit ..Quality ladies(crew)who listen calls r very annoying too …Pls try T mobile very very good place to work nt like LL Bean

December 12, 2009 at 1:06 pm
(11) Former "Beaner" says:

Two Words: intensely political

Painfully PC- only when it profits Co.
Ex. “holiday Tree” Flip/Flop “Christmas tree”

Cliquish- better hope you are a good “fit”; H.R.(self appointed TotalQualityHR)

Successful retailer/Maine Icon,Sacred cow

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