Saks Fifth Avenue’s 2013 holiday boxes
Feeling pressure from major ecommerce players such as Amazon, retailers are putting more focus on their shipping services, rolling out expedited options to compete.
However, for a luxury retailer, it is not always easy to prepare deliveries to a high standard in a timely manner, due to their in-store team being pulled in multiple directions with day-to-day operations. Looking to solve this problem is Wrap & Send, a dedicated packaging service which works with clients including Bloomingdale’s and Saks Fifth Avenue to prepare items to ship, upholding the in-store image that retailers work hard to build.
“We are a niche business,” said Mike Jamali, president of Wrap & Send, Cincinnati, OH. “We pack to our client’s brand standard with high or low volume in whatever space the retailer gives us.
“This is also a very manual process,” he said. “For the retailer, they get consistency in standard throughout their brand.
“When a client uses Wrap & Send, ships that are in by 2 p.m. are out the same day no matter what. No other company can deliver that service in a store ranging from 100 sends or 3,000 sends.
“We are single focused — we eat, breathe and sleep what we do in every location.”
Mike Jamali
In this Q&A, Mr. Jamali shares some retail trends to look for, insights on packaging and shipping and advice on planning for the holidays.
Here is the dialogue:
Could you talk a bit about your background in luxury retail?
I spent 11 years working at Saks Fifth Avenue managing in-store and corporate operations, human resources and special projects. After that, I purchased Wrap & Send and continue to work closely to enhance our client’s operations and customer service in the luxury retail space.
What lead you to decide to purchase Wrap & Send and transition to running the business? What opportunity did you see in the company?
It was my opportunity to control my own destiny and manage my own brand. I felt with my background it was a perfect fit.
Wrap & Send has the opportunity to continue to serve high end retailers, although we can live in any retail environment. In luxury retail, you have to place significant value on the experience — the last touch.
We are also a very niche business, because we do what we do in a very small environment. You can’t automate what we do, it’s roll up your sleeves and get it done — the way our retail partner wants.
What makes Wrap & Send’s service unique?
We are a niche business. We pack to our client’s brand standard with high or low volume in whatever space the retailer gives us.
This is also a very manual process. For the retailer, they get consistency in standard throughout their brand. When a client uses Wrap & Send, ships that are in by 2 p.m. are out the same day no matter what. No other company can deliver that service in a store ranging from 100 sends or 3,000 sends.
We are single focused — we eat, breathe and sleep what we do in every location.
Wrap & Send package
Why should a retailer hire Wrap & Send, rather than establishing an in-house delivery department?
The store personnel is our direct competition. In a store, associates are pulled in 100 different directions and the send is not always the top priority. This results in packages getting thrown together — which causes wrinkles and items to break — and items sitting in the warehouse for long periods of time, which cases delayed delivery.
Stores never put management against the process, and we do. We have supervisors in all stores, we have field managers that touch the stores daily via phone and often via travel. I manage the relationship at all levels.
In essence we are a completely separate operation that manages just the sends. That is our priority. We charge one rate and they step away from the process including payroll, supplies and anything related to the pack and ship function.
Once a retailer has hired Wrap & Send, what can they expect? How does the service work?
We focus on consistency in brand in all locations. Luxury retailers should expect reduced service complaints and faster delivery because nothing sits in the store before shipping. They can expect reduced cost, because we manage the volume.
All retailers hire for the function and, whether they have 10 sends or 500, the staff works to the work-load, not to a standard. Therefore, their process financially does not expand and or contract with revenues.
With Wrap & Send, the retailers pay us by the box, so their expense flows with revenues. This should be a retailers dream.
Wrap & Send package
What impact do shipping and delivery services have on consumers’ perceptions of a retailer?
The luxury customer expects the same level of high end service from the carrier. You can’t hand Chanel merchandise to USPS, because the perception is negative. Likewise, they see expedited service as a brand enhancement versus ground. Just like clothing, the luxury client likes known brands that are proven winners.
Same-day service is a hot topic, and the consumer will expect the level of service in major markets. Retailers can no longer look at carriers and the process as a revenue center, they have to view it as a enhancement to service. We actually did a survey on this topic earlier this year. (You can view the results here.)
Packaging is important, particularly for luxury brands. How can a retailer best establish a brand through its packaging choices?
We all know the Tiffany color, brand and box, Ralph Lauren, the Saks back and white, Bloomingdale’s brown bag. It’s an identifier and a status symbol.
I often walk down the streets in New York and Chicago, you know the bag, the box based on color and look. Also, retailers are looking more at better constructed boxes. The days of cheaper material is coming to an end.
We just wrote a blog about the importance of packaging as well.
Tiffany blue box
How is Amazon changing both bricks-and-mortar and online retail? How should retailers adapt?
For the retailer, it’s the speed of service, same-day delivery, free shipping, free returns and the freedom to buy and return without worrying about it.
For luxury retailers, the client still wants to touch and feel. Omnichannel and transparency for the client is critical. The store is the showroom, that will never go away for luxury retailers — call me old fashioned.
The client wants the option to buy online and pick up from store. Macy’s has taken it to another level with buy online and delver same day in large markets. Speed, speed, speed.
Selfridges’ click & collect drive thru from holiday 2013
What is the biggest challenge you face as a packaging service?
We manage the daily relationship with the carriers. Our biggest concern is getting the package to the client in the same manner that we packed it. Our biggest challenge is to get all our employees in all stores packing to the same standard.
Now that we are entering November, in what ways should retailers be preparing for the holiday shopping season?
I have three tips: developing a strong partnership with the carriers, extra carrier pick-ups, weekend carrier pick-ups. Retailers need to develop partnerships with carriers to reserve air capacity for expedited shipping. With the retailer, will they upgrade to match market trend? When do we upgrade? If we do expanded shipping hours, retailers need to ensure that they have adequate supplies on hand, gift-wrap, gift cards and gift boxes all stocked up.
During the holiday season, what trends are you expecting to see within luxury retail?
I think the auto upgrade will continue to happen — this is a must not an option. Purchase by a certain date and deliver by X date.
I also see branding being extra special this year. More time has been spent developing the branding and packaging. Service will continue to be very important.
What is next for Wrap & Send–where do you see the company in five years?
We plan to have more retailers on board, along with regionalized warehouses for larger customers. I’m not looking for pick and pack operations, I’m looking for clusters of stores with the same client in specific markets.
Florida is next for us. We have several in New York, one in Denver and look to be in Florida, Chicago and Los Angeles next.
Final Take
Sarah Jones, editorial assistant on Luxury Daily, New York