Has Retail Lost its Way?

Not so long ago, people knew their butcher, baker and candlestick maker, and valued personal relationships with these artisans. Today, much of retail has become an undifferentiated, one-size-fits-all delivery machine. Competition is steadily increasing – digital advances mean the barriers to entry in the retailer game have never been lower – and people are better informed of options, prices and alternative channels than ever before. More back-and-forth communication between people and brands means that consumers are leading the way, moving faster and faster, forcing brands to evolve even more quickly, just to keep up.

Big ships turn slowly, though, with lots of lead time needed just to change direction, let alone turn 180 degrees. Consider the many big retailers who redesigned or rebranded in 2013, ranging from the widely reported trials and tribulations at JCPenney, to the latest in a never-ending streak of experiments at Target.

All brick and mortar stores are being pressured by new channels with low overhead, ever-expanding offerings and innovative delivery options. IBM reported smartphones were behind 22 percent of this season’s online Black Friday purchases.

The same digital devices that have put consumers increasingly in control of the terms of retail interaction are also constantly distracting them. People complain of being overwhelmed by choice; “retail fatigue” is a thing. In fact, there are threads linking all these seemingly disparate problems. Let’s investigate a few things retailers should already be thinking about – although not all seem to be – in order to stay on top of the game tomorrow.

1. Go “Back to the Future.”

Refocusing on the craft of selling will help retail find its way again. Examples of highly specialized retailers thriving through attention to the craft of retail are out there, if you look. And they’re not all new.

Selfridges and Harrods have both managed to stay relevant to their consumers for more than a hundred years by continually leading with strong retail narratives. Re-embracing the craft of selling means getting back to storytelling by leveraging both technological and analog strengths. Storytelling needs to happen at every touchpoint – make stores places people want to go, not spaces for stuff. Put on a show. Think bigger than just sales and holiday decorations.

Giving customers an experience along with the goods helps reinforce larger narratives, like Danner has done at Portland’s new Union Way. The product might be available elsewhere, even at a lower cost, but fun and excitement aren’t as easily transferrable. Anthropologie has not lacked for plaudits, and they deserve the credit for building such rich, cohesive presentations. The lifestyle on display in-store – it’s even further developed online – makes Anthropologie feel like a real destination.

2. Get Ready to Fail.

To try to keep up with consumer evolution, retailers need to test ideas in-market, as fast and early as possible. Test across every relevant dimension: merchandising and visual marketing, store design, digital tools, products, services. Think of being agile and iterative; don’t lock ideas in a box for months (or years) of development.

Nordstrom’s Innovation Lab, for example, operates like an in-house retail SWAT team, applying technology to improve customer experience by iteratively testing concepts, apps and new service offerings in single stores before rolling out new programs more broadly.

If this sounds scary, consider recent successes with unbranded test labs, like at JCrew’s Liquor Store, or Starbucks’ 15th Ave Coffee & Tea. This is testing with limited brand risk in case of a flop. The future will take courage: To paraphrase Nordstrom’s Ryan Rosensweig, if you’re not failing from time to time, you’re not trying enough.

3. Deliver, Deliver and Deliver Some More.

Customer-facing brand representatives need to be a rare breed of experts, armed with the knowledge – and enthusiasm – to converse with customers but not talk over their heads. Get comfortable investing in empowered employees. Take time at hiring to ensure your sales force has the right background and proper motivation, then arm them with training and tools.

Ziba’s recent work on Reebok’s Fit Hub stores is one good example; Sephora University is another. Investing in the ongoing education of a large, decentralized staff, with training well beyond core offerings, helps ensure engaging delivery. The sort of specialization mentioned earlier will help here, too – a one-staff-fits-all approach doesn’t work in highly bespoke environments. How you’re staffed directly drives the service you can provide at retail, which can be thought of in two ways: what services are you offering, and how are they being delivered?

Service offerings embedded into retail open opportunities for even more impact, through highly personalized product delivery. Apple’s Genius Bars and in-store theaters turn a purchase experience into an ongoing ownership narrative; without one-on-one counseling, lectures and development workshops, Apple would just be running another electronics store, and not the one with the lowest prices.

Consider JCrew’s Very Personal Stylist service, which offers shopping and fitting advice, along with a host of other conveniences, all on the consumer’s terms: flexible store hours, door-to-door delivery and returns, and detailed recordkeeping of your preferences with no purchase minimums and no added cost.

Jon Irick is a creative director at Ziba Design.