Embracing change has always been the lifeblood of the retail industry; and most assuredly, the future will bring even more change as business strategies and mission statements begin incorporating words like globalization, branded environments, social media — and of course — technology. As retail continues along its evolutionary path, change is more relevant today than ever before. We’re in the business of fashion, and by definition fashion is change, and today the rate of change is on a fast-track.
Back in the day, we got our fashion and product information from one another. And then came the Internet, and everything changed. Soon, we discovered online shopping, and cyberspace sales increased dramatically; a byproduct was interpersonal exchanges growing less frequent. And when we were introduced to the smartphone, we suddenly had stores in our back pocket. Now we’re totally connected and shopping has become desktop-to-doorstep without walking out the front door. People disappeared from the main aisle, the mall anchor, and the corner store. Store visits are no longer necessary, and foot traffic in brick-and-mortar stores dropped dramatically. Now, social interaction has declined even further – the only interaction is with the delivery man.
So how do we get people back into stores? How do we differentiate our stores from the others? How will brick-and-mortar remain relevant and survive in a digital world?
For starters, retailers must provide a new reason for customers to shop in stores again, they must bring back the human touch. Retail’s biggest challenge today is not the economy. It’s also not “sameness,” although many top executives will say it is. And while it may seem to some that retail’s biggest challenge today is technology, that is not the case, either. Rather, the challenge is our response to technology. It must be understood that technology itself is not the message. Instead, technology supports and communicates the message. Retail’s focus shouldn’t be on the latest and greatest wizardry, but rather on the beauty of the store. The physical store remains our largest capital asset, and they’re still the best place to create retailer-customer relationships. Therefore, retail’s biggest challenge today is the seamless integration of technology into the physical store environment.
The future of retail is connectivity, from QR codes and social media, to beacon technology and branded environments. Before a young customer even enters a store, 72-percent of them will research their options online. Forty-two percent of the stores they visit will send coupons using beacon technology, based on where they are in the store, and 62-percent of customers would like to see digital promotions tied into their brick-and-mortar experiences. It must be noted however, that while 22-percent spend more if digital is involved in the process, a whopping 85-percent buy more when helped by a knowledgeable sales associate.
To succeed, retailers must bring the best of online into the physical environment. The future of retail is customer interactivity. Digital signage, shelf-talkers, social media and glass façades all strike a responsive chord. A trend in retail architecture today is glass façades, allowing the dialogue between retailer and customer to begin while the customer is still across the street. Virtual clothing racks continue the dialogue within a store. They will stop, they will look and they will buy.
Digital signage punctuates the dialogue, making the walls a means of engagement. Shelf-talkers do the same, as they provide product information. It's important to note that retailers must do more than just sell, they must teach.
While all of this is well and good, we must remember to design stores for human consumption. The future of retail is comfort from food and fitting rooms to community rooms and lounges. Rethink the fitting room: It finalizes the sale, because the more they try, the more they buy. There's a 67-percent conversion rate for customers using fitting rooms. Utilize smart mirrors and consider larger spaces with plush surface treatments and improved lighting. Provide lounges and community rooms, provide a sense of place. Additionally, consider the allure of food; today there is fashion in food. (The Bon Marche and Galleries Lafayette spent millions upgrading their food concepts.)
The innovation today is not technology, it's instead what technology allows the consumer to do. The right balance of physical, digital and human will create a branded environment that’s memorable and recognizable. An environment that will bring the customers back…
Eric Feigenbaum is a recognized leader in the visual merchandising and store design industries with both domestic and international design experience. He served as corporate director of visual merchandising for Stern’s Department Store, a division of Federated Department Stores, from 1986 to 1995. After Stern’s, he assumed the position of director of visual merchandising for WalkerGroup/CNI, an architectural design firm in New York City. Currently, he serves as the chair of the Visual Merchandising Department at LIM College (New York), and was also an adjunct professor of Store Design at the Fashion Institute of Technology. In addition to being the New York Editor of VMSD magazine, Eric is also a founding member of PAVE (A Partnership for Planning and Visual Education). Currently, he is also president and director of creative services for his own retail design company, Embrace Design.