New Concept Has BIG Plans

A new retailer aims to blend physical retailing with e-commerce — and to do it with Latin flair. The concept, Star World, is the brainchild of veteran retailer Jerry Azarkman, formerly with (and co-founder of) Curacao, a Los Angeles-based department store targeting Hispanics.



Star World made its debut in October, opening a two-level 30,000-sq.-ft. store in Huntington Park, California.



“We’ve established a new model that reduces the cost of doing business,” Azarkman explained. “It utilizes technology to meet the price levels of e-commerce. In some ways, our model mirrors e-commerce, but it also keeps the excitement and fun of window shopping and visiting a retail store.”



Designed to offer the convenience and selection of online retail in a brick-and-mortar environment, Star World caters to the Latino market. It combines a contemporary interior with a high-tech business model that digitally extends its aisles into the warehouses of its suppliers via 16 interactive in-store kiosks. It’s a model that translates into low overhead and also low price points, the founder said.



“We are lowest in the market because we keep our overhead low by integrating lots of technology into our inventory, sales and delivery process,” Azarkman said. “Shoppers can make purchases via the kiosks that connect directly to vendors. We save because we do not have warehousing costs, and the consumer can get his merchandise faster.”



The merchandise mix is heavy on consumer electronics, furniture and appliances, and includes packages that combine such items as a sofa and television. The store also carries cosmetics, fragrances, jewelry, watches, sunglasses and seasonal items.



Star World is set to open a second store, in Oxnard, California, this year, and is looking for additional locations in cities throughout the state.



“In the future, we plan to target markets outside of California,” Azarkman said. “However, currently we have identified the potential for 160 locations in California.”



Approximately 10,000 SKUs are physically on display in the store. But the kiosks offer a dramatically expanded selection of some 500,000 SKUs. The total is expected to expand to more than 2 million SKUs. How do the kiosks work?



“Customers can browse any department on the kiosks and have the option of using their own email to create an account,” Azarkman said. “Once they have added items to their shopping cart, a sales associate with a portable device will enter the customer’s email into the device and all the info pops up to either complete the sale or make a credit application.”



Star World plans to offer international purchases within a couple of months, allowing shoppers to use the kiosks to send merchandise to other countries, including Mexico and Central America.



“Star World will be able to arrange direct delivery in those countries,” Azarkman said. “We are also partnering with UPS for shipping of smaller items.”



The retailer has also developed its own credit scoring system in order to charge the lowest rates.



“Our experience in this market permits us to be more tolerant and offer flexible options,” Azarkman said.