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Learn how to equip your retail environment to weather a chillier economy.
By Katie Sprague, Lori Mukoyama
Call it a recession, a correction or a seventh-inning stretch, the results are the same: Costs are up, consumer confidence is down and many retailers are struggling to make ends meet. According to the International Council of Shopping Centers, almost 5800 U.S. stores will close in 2008.
But while some are closing, others are adapting. They’re realizing customers aren’t saving every penny, just changing how and why they spend it. In tough times, retailers who understand what’s important for consumers – and build their brand around those key ideas – not only will survive but will soar.
Conditions are giving rise to a new type of retail environment, one more attuned to the ebb and flow of today’s consumer lifestyle. Many of these retail environments fall into categories RTKL Associates has identified as the Five E’s.
EXPERIENCE Try now, buy now.
Shoppers want to know more than what the product does and how much it costs; they can learn that much on the Internet. They want to know how the product makes them feel.
In response, more stores are letting shoppers “kick the tires” to build desire and spark an emotional connection with the product, which is coming out of the box, off the shelf and into interactive displays that encourage pre-purchase use and testing.
At the same time, retailers are transforming store employees into brand emissaries. But for these changes to have their full impact, the design environment must reflect the brand, as well. At the Apple store, where well-trained employees are Mac evangelists, store design reflects the clean lines and understated sophistication of the latest products.
ESCAPE Go to the happy place.
With media coverage constantly reminding us of the weak economy, it’s no wonder people are looking for an escape. Economists may be ringing the alarm bells, but the malls are alive with the sound of Muzak.
After the September 11 attacks, tourism dropped but Las Vegas thrived. People wanted a getaway.
Today, escapism centers on personal transformation. Consumers are looking for ways to improve their lives by either educating themselves or smartening up their environments. Home renovation shows are flooding the airwaves and a new wave of retailers is capitalizing on consumer demand for life-changing – or kitchen-renovating – experiences. With dollars tight and mortgages even tighter, home makeovers are the new escapist delight.
EDUCATE Get smart.
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