10/16/2004 06:30:00 PM 
Best Buy has been the most aggressive, launching 68 pilot stores in California. Each designed to cater for two of the 5 defined consumer segments from busy moms through to small business. Best Buy uses specific service modules that they adapt to reach these consumers, for example, moms get play areas for their kids, small businesses get computer specialists, young adult tech fans get gaming centers and more upscale consumers get the Magnolia Hi-Fi store within a store concept.
http://www.sfexaminer.com/article/index.cfm/i/101404bu_bestbuy
Home Depot recently opened its first Manhattan store and undertook extensive qualitative and quantitative research to get it right. Polling New Yorker's tastes and needs to configure the store. For Manhattan's primary audience of renters, Home Depot has an extensive paint offering. An understanding of the small size of apartments led to a focus on closets and items to help home organization. In addition, learning that New Yorkers don't have the space to store tools, Home Depot provides an extensive rentals department. There is also a greater emphasis on service, with brochures and materials in multiple languages and a concierge service in-store.
http://www.stores.org/archives/2004/10/cover.asp
Home Depot and Best Buy are often widely praised by Wall Street for their financial performance and in both cases it's driven by a single-minded category focus and a drive for innovation, as suggested by these two examples. They illustrate that going deep and tailoring the offer could be a formula to out-smart Wal-Mart. With the increasing use of sophisticated CRM and geo-demographic technologies, combined with smart logistics management, we can expect to see other retail specialists adopt these strategies. This will allow the brands to take on a specific local relevance and meaning in their communities and involve a shift from centralized mass-marketing to more locally focused efforts.
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