Ann Summers: A rampant rebrand

There’s a real buzz around the building, if you excuse the pun,” says chief executive of sex toy retailer Ann Summers Jacqueline Gold.

The excitement she is talking about is generated by a rebrand, which will be revealed to shoppers this autumn,  and she is keen to show off some of the changes that have been two years in development.

“We’re helping Ann Summers rediscover its mojo,” she says, admitting that the business had lost a little of its focus. “When you are a business that grows fast, there can often be a loss of direction. People have their own ideas [about the direction of the business]. A couple of years ago, we felt that Ann Summers had lost its way.”

With the help of brand consultancy 20/20, Gold has overseen a complete overhaul of product, packaging and marketing as well as a new store-format and possible international expansion.

Gold is not undertaking the mammoth task alone. Her younger sister Vanessa, newly appointed Ann Summers managing director, will be sharing the responsibility as the Gold sisters do it for themselves.

Vanessa knows the business well. She has been at the family-owned retailer since she was 16 and started off as a lowly tea-maker and post girl before finding her niche in buying. She moved up to director of buying and was promoted to managing director last month.

The pair assure Retail Week that there will be no sisterly squabbles in the boardroom as they lead the company forward.

Vanessa says: “It’s great to be working so closely with Jacqueline. It’s a great opportunity and everyone in the company has been so welcoming since my role was announced. There’s a real love for a family business. The staff trust that  we’re going to do the best for the business.”

Family affair

Ann Summers, owned by the sisters’ father David Gold, who also owns West Ham United, was the first to bring sex toys to the high street and Jacqueline has played an integral part.

When she joined the retailer, everything was focused on men. “The product, the store, even the sales staff were men. Only 10% of our customers were women. They felt uncomfortable shopping there,” she says.

But all that changed when Jacqueline had her light bulb moment after a visit to a tupperware party. The women there told her they wanted sexy underwear and sex toys but did not want to go into a seedy shop to buy it. And so the famous – some might say infamous – Ann Summers party was born.

Jacqueline says the success both of the parties and now the retail stores lies in the fact that the business is built around women consumers. However, in recent times the retailer had lost sight of its unique selling point.

“Customer research showed they felt the old catalogue was aimed at men,” says Vanessa. “The latest one focuses on what she wants and how she wants to look and feel.”

Jacqueline believes the biggest change for the retailer as part of the latest overhaul has been in lingerie and the imagery used promote it.

It has been revised to cater better for the female customer and her own idea of sexiness.

Vanessa says: “People’s sexuality has moved on. You only have to look at music videos on the TV.”

Jacqueline agrees: “Pop culture is driving sexuality and driving fashion. Rihanna, Christina Aguilera and Lady Gaga are what people find sexy. It’s much more aspirational.”

This change is clear from Ann Summers’ autumn 2011 collection which is much more inspired by pop culture and the latest fashion trends, although it still retains what Vanessa refers to as “heritage product”: its traditional saucy outfit.

Classic sauciness

This season’s top-seller is such a heritage product, the black lace and pink ribboned Cocquette bra, followed by one of its more fashion-led bronze satin Gabrielle bras, showing that Ann Summers’ customers still mix modern fashion pieces with the traditional sexy pieces.

Its pop culture inspiration is clear to see across its other products too. In hosiery, bandage-style tights are a homage to Cheryl Cole, and in the clubwear category, which is due to debut in store next month, hooded bodies and one-shoulder dresses could have come straight from a music video. Vanessa admits that internally, the team refer to some items as the Cheryl, Rihanna and Alexandra after the pop stars who have inspired the look.

Imagery is just as important as the changing product as Ann Summers tries to communicate its freshness. “The imagery which is out in store now is attracting a new audience. We’re using images that women find sexy,” says Vanessa.

Rampant sales

As well as lingerie, Ann Summers is also revamping the sex toy element of the business. The retailer is still synonymous with the Rampant Rabbit, the sex toy that became famous following its airing on Sex and the City.

Sales were boosted as the product seemed to capture the zeitgeist of a time when women started becoming more confident in their sexuality.

However, the range had become a bit stale according to Vanessa. “It’s always done well so it’s easy not to pay it any attention. It was in need of some fairy dust to bring it back to life,” she says.

That fairy dust has come in the form of new packaging for the entire Rabbit family. The new black, cardboard box looks more luxurious and high quality.

Vanessa says the move makes the customer feel like they are getting value for money. She says that there is a perception that the retailer is more expensive than it is “but not in a good way” as she puts it. In light of this, the retailer decided to absorb the impact of the VAT rise earlier this year.

The retailer has instead worked to bring in a clear price architecture. Vanessa says: “Customers need to believe what they’re getting is value for money. It can be a £14 or a £30 a bra price point but they need to see why each one is at that price.”

The younger Gold admits that the next year will be tough for the retailer. She says: “It’s not a great economy to be trading in. We’ve got to focus on getting through this year, but also have an eye on future growth.”

The next part of the rebrand will come to the shop floor next month when Ann Summers opens its Westfield Stratford store. Like many retailers, Ann Summers is launching its new concept store there.

The shop will be “a complete experience” according to Jacqueline and will provide a theatre for its customers. She promises better showcasing of products, quirky changing rooms, and the tongue-in-cheek humour that Ann Summers is known for.

“We’re fortunate as we can have real fun in our stores,” says Jacqueline. The centre-piece of the store is a huge, black rabbit. “We’re especially excited about the iconic Rabbit,” she says. “We’ve spent so much time looking at rabbit models, their ears, their tails. Asking the question: does it look more like a hare? We’re all rabbited out.”

Size and location

Following the Stratford opening, the retailer will focus on cost-engineering the model down before piloting it at an existing store. That will be open before Christmas and, if successful, will be rolled out.

And it is stores like Stratford which Ann Summers will target in future. Size really does matter according to Vanessa – size and location. The retailer worked with CACI on an estate review last year and is targeting precise locations. “If it doesn’t come up, we won’t open,” she says. “We know exactly where we want to be, it’s just a case of waiting to see if those deals come to the table.”

Despite the changes, Ann Summers is adamant that it will keep the tongue-in-cheek humour in its marketing. The retailer, which found itself in trouble earlier this year when it launched its Your S&M Squeal Deal – a parody of  Marks & Spencer’s famous Meal Deal that it was forced to pull after M&S threatened legal action – says its customer loves its witty campaigns.

The retailer has always been marketing savvy and Jacqueline Gold is a staple in women’s lifestyle magazines and newspapers. However, it was Vanessa who took centre stage in the retailer’s latest push for publicity when she worked in an Ann Summers store incognito for the Channel 4 documentary Undercover Boss.

TV audiences were wowed and sales shot up after the show. New customer acquisition online was up 351% compared to the previous day as the show was screened and the retailer was taking £180 per minute by the time it ended at 10pm. Visitors to its careers site soared by 506%. It made wearing the brown wig, which Vanessa says made her look hideous, worth it.

“The response was phenomenal – far greater than I could ever have imagined. It demonstrates how important it is to find a way to communicate with our customers,” she says.

And it’s not just new customers the show attracted. Jacqueline reveals that the retailer has been approached by several “potential partners” following the programme.

Although Jacqueline refused to go into detail she let slip that Ann Summers is in talks with eight “brand leaders” who want to work with the retailer. She expects two of the partnerships will come to fruition before the end of the year. She says: “There’s quite a different range of opportunities on the table. Some which are very surprising. New business is my passion and very much our focus at the moment. It’s going to be a very exciting few years.”