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Innovation has been 3M's passion for 100 years - 100 Years of Innovation - Retail Merchandising Innovation Award

From our 1920s introduction of waterproof sandpaper to the development of masking tape, Scotch [R] cellophane tape, Thinsulate [TM] insulation, Scotchgard [TM] fabric protector and Post-it [R] Notes, 3M has celebrated and encouraged product innovation within our company and with our manufacturing and retail partners. We will continue to do so.

On the consumer side, few products are better known than Scotch [R] Tape and Post-it [R] Notes, introduced in 1930 and 1980, respectively. These innovative milestones reflect the enterprising corporate culture at 3M and the entrepreneurial spirit of American industry.

Over the past 100 years, that need for adventure and exploration has resulted in such revolutionary consumer products and retail systems as disposable diapers in the 1960s and UPC bar code scanning in 1974. In 1914, Western Union issued its first consumer charge card, the escalator debuted in 1916, the shopping cart arrived in 1937 and a space exploration program that landed a man on the moon in 1969 offered the world numerous innovative products, including freeze-dried foods and new synthetic materials. In fact, astronaut Neil Armstrong's boots were made from Fluorel [TM] synthetic rubber from 3M.

In addition, in 2000, Olympian Michael Johnson won the gold medal in the 400-meter sprint wearing shoes made from 24-karat gold Scotchlite [TM] fabric developed by 3M.

3M brings innovation to the world. We work diligently to create products to make everyday lives easier, safer and more enjoyable. In fact, we have 7,100 R&D employees in 71 laboratories around the world dedicated to research and discovery. Much of our technological accomplishments in other areas of our business have or will eventually have consumer application or usefulness. Since 1994, 3M has been issued more than 500 patents a year (525 in 2000 and 501 in 2001).

The 3M Consumer Products Division was established in 1977 to accelerate the delivery of consumer goods to market. Now with sales of over $3 billion, about 20% of our business is attributed to consumer products.

Formed at the dawn of the 20th century, 3M opened shop op in 1902 when the consumer products revolution was well underway. Department stores, drugstores, groceries and other retail ventures were proliferating. The Sears catalog was already six years old, Harley-Davidson was readying a motorized bicycle for debut in 1903, followed two years later by the invention of the Popsicle by an 11-year-old boy.

While our introduction of cellophane tape revolutionized consumer behavior, it followed by five years our introduction of Scotch[R] Masking Tape, which set fastening on its ear. But the product was actually created to help make sharp edges in auto painting.

Other revolutionary products from the labs of 3M include Scotchgard[TM] Fabric and Upholstery in 1956, ScotchBrite[TM] Cleaning Pads in 1958 and refastenable diaper tapes in 1985.

We're also proud to have introduced Command[TM] Adhesive products, as well as Filtrete[TM] filters in 1995. Reusable and repositionable, Command[TM] Adhesive hooks stick to most flat surfaces, including those that are painted or stained. When properly removed they leave no holes, sticky adhesive or damage behind and they can be reused again and again.

Filtrete[TM] furnace filters protect a home's furnace and air conditioning system, as well as improve indoor air quality by attracting and capturing allergy-aggravating microparticles. Filtrete[TM] filters helped clean up the inside air so families can breathe easier.

At 3M, we don't just react to needs, we anticipate them. With only 3% of all American companies able to celebrate their 100th year, we at 3M take this celebration of our centennial very seriously. We understand that innovation is our lifeline and innovative product is our legacy.

RELATED ARTICLE:

1902 Minnesota Mining and Manufacturing is formed

1912 Escalators debut in department stores

1914 Western Union issues first consumer charge card

1925 3M introduces Scotch [R] Masking Tape

1930 Scotch [R] Cellophane Tape is introduced

1935 3M features Sandy Smooth character on packages of household sandpaper

1937 The shopping cart is introduced

1947 Scotch [R] Magnetic Tape for audio recording is introduced

1950 Thorn McAn develops standardized store design, beginning with standard-size shoe boxes

1954 The first regional shopping center opens in Southfield, Mich.

1956 Scotchgard Fabric[TM] and Upholstery Product introduced; Southdale Shopping Center, the first enclosed shopping center, opens in Edina, Minn.

1958 ScotchBrite[TM] Cleaning Pads introduced

1962 First Kmart, Wal-Mart and Target stores open

1973 UPC adopted as an omnidirectional linear bar code

1974 Barcode scanning begins

1979 Ihinsulate[TM] Thermal Insulation introduced; Home Depot opens first two stores in Atlanta

1980 Post-it[R] Notes hit retail

1985 First refastenable diaper tapes introduced by 3M

1995 Filtrete[TM] Furnace Filters and Command[TM] Adhesives introduced

2002 3M celebrates centennial anniversary

3M Salutes the 2002 SPARC/3M Retail Merchandising Innovation Award Nominees

The impact of innovation cannot be minimized.

At 3M, we challenge ourselves daily to develop new products and technologies that will have a positive impact on the lives of others, making everyday activities easier, faster, safer and more enjoyable to complete.

We are proud to sponsor the 2002 SPARC/3M Retail Merchandising Innovation Award, which recognizes the highest ideals in retail innovation.

Award nominees are selected by the editors of DSN Retailing Today and the winners are voted on by a panel of previous SPARC winners.

Setting New Standards Through Innovation

Blockbuster Inc.

Times have changed and so has Blockbuster. No longer confined exclusively to video rentals, Blockbuster now sells the gaming systems so important to its key customers. In February, the retailer added the Sony Playstation 2 game console to 3,000 of its U.S. stores. Coming soon are the Nintendo and Microsoft game consoles as Blockbuster looks to double its video game revenue in the next two years and tap the explosive nature of the gaming business, now at $9.4 billion. Blockbuster decided to tweak its retail game plan after a nearly yearlong store-within-a-store test with RadioShack. While the 5,000-store RadioShack test wasn't successful for Blockbuster, the retailer learned a lot from the experiment: Shoppers are willing to buy gaming hardware from the software rental giant.

Home Depot (Designplace)

Designplace, an in-store concept with a neighborhood-friendly posture now in all new stores and select existing locations, offers a home decor merchandise presentation created to appeal to women. While the departments vary by location and are customized to serve each market, they all are intended to make women feel comfortable in a Home Depot store and present products and displays (increasingly at eye level) suitable for completing special projects. Designplace offers a dedicated staff and features a carpeted area furnished with tables and chairs that permit shoppers to comfortably examine and plan out their home decor project. In many stores, the department is strategically located to permit shoppers to view the kitchen and bath showroom.

Office Depot

Office Depot kicked off an 11-store test last August intended to make the office supply store a more compelling shopping destination. Outfitted with a racetrack format that company executives feel is a customer-centric design, the stores were designed to enhance a customer's shopping behavior while permitting store associates to better monitor in-store activity. Convenience is key. The new design features a Technology Center located in the middle of the racetrack that is staffed with dedicated personnel. There's also a "Business Solutions Center," where customers can learn about computers and high-speed Internet access. In addition, the store has an Education Center, which serves as a classroom for training on products and services, and an enhanced Copy and Print Center offering specialized business services. Company executives will study the prototypes for a year, making any necessary adjustments before deciding on future openings.

Super Target

Target is carving its own path through the maze of supercenter retailing. Already loudly applauded for the strides it has made on the general merchandise side of the store with innovative product displays, product exclusives and marketing savvy, SuperTarget keeps turning heads with innovations on the food side of the store. SuperTarget, now with 62 units in 14 states, offers the full complement of traditional groceries with extras that enhance the shopping environment. The stores also feature a Starbucks coffee shop, Fannie May chocolates, La Brea artisan breads, gourmet desserts, sushi, fine wines, extensive organic and natural foods and gourmet-flavored olive oils. Along the food aisles, Target has been aggressively expanding its private-label food brands, last year having added an opening price point label called Market Pantry to its premium Archer Farms Market brand.

Toys "R" Us

Attempting to reclaim the top berth in American toy retailing, Toys "R" Us reinvented itself via its 110,000-square-foot flagship store in the heart of New York's Time Square. Dubbed "the center of the toy universe," this store is a shopping and entertainment mecca, with a 60-foot Ferris Wheel, a 20-foot tall and 34-foot long animatronic T-Rex, a two-story, 4,000-square-foot Barbie dollhouse, plus other entertainment and merchandising features. The jewel in the retailer's "Mission Possible" store refurbishment program, 433 units have been retrofitted so far and include low-rise fixtures that make sight lines clearer, product easier to find and aisles less congested. There also are numerous merchandising upgrades. The point of the MP stores, said Chairman and CEO John Eyler, is to "burnish the brands of our partners and ourselves and present a retail concept that is a fun and an immersive play environment."

Zellers' "mum's store"

Focused on its core customer, Zellers unveiled a new prototype store last year that has been affectionately dubbed the "mum's store." Formatted as a one-stop shop for today's "busy mums," the store features new fixtures, a fresh sign package, reorganized commodity and consumables departments under the Marketplace nameplate, and a new everyday low pricing program that reflects a "fair price" strategy. Promotionally priced items are now positioned in the front of the store with clear, bold signs. There are deep, high-capacity fixtures to accommodate heavier and bulkier items; a gravity-feed fixture with slanted shelves for easier handling of goods; and increased cold capacity in food that has added more consumables, including ready-to-make meals, milk, eggs, butter, packaged lunch meat and other high-impulse buys.

COPYRIGHT 2002 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2002 Gale Group





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