As brands and distributors create increasingly imaginative consumer experiences, they also have an opportunity to help retailers reimagine their physical retail spaces as they grapple with stocking issues, slower inventory turnover, and security concerns.
During a recent trip to California, one of BRANDKIND’s UK team members engaged in some insightful mystery shopping, sparking a lively discussion on a team call about the state of in-store experiences. She observed a noticeable decline in the once-vibrant displays at her favorite mass retailer, with large, underutilized spaces and empty shelves—a disappointing sight for any shopper.
“Selfridges in London is an interesting example of how strategic partnerships and good event planning/execution have transformed them from ‘just another high-end department store’ to a serious destination for discovery, lifestyle, and enjoyment. It’s not just shopping anymore, but dining, pop-up events, in-store luxury cinema, spa, gift curation services, etc.—all operated by strategic partners, but integrated well into the overall Selfridges experience,” observed Deb Saunders, Strategy and Innovation Partner, BRANDKIND.
Reflecting on our experiences from our P&G days, where product, packaging, and point-of-sale design revolved around the crucial "First Moment of Truth," it's clear that retail dynamics have evolved significantly. Retailers recognize the need to adapt to new consumer expectations shaped by online shopping experiences. Instead of mere price-driven displays, there's an opportunity to reimagine stores as hubs for engaging consumer interactions tailored to diverse preferences and lifestyles.
Why Aren’t More Retailers Innovating In-Store Experiences?
One significant barrier might be a reluctance to invest in the creative and logistical aspects of in-store transformations. While some retailers feature popular dining franchises like Starbucks in Target, or other services at Costco, this isn’t always enough to stand out. To entice shoppers into the store, retailers need to think beyond the conventional. IRL experiences that match the energy on digital experiences.
UK Innovations: Selfridges and John Lewis
Selfridges Reselfridges Ecosystem: Selfridges is a high-end department store in London known for its luxurious shopping experience. It has reinvented itself by becoming a hub for more than just shopping. Through strategic partnerships, they offer a range of experiences such as pop-up events, in-store luxury cinema, spas, and curated gift services. Its Reselfridges Ecosystem tackles sustainable fashion head-on, with resale, rental, repair, refill and recycling programs to support its goal of 45% of its transactions to come from circular products and services.
John Lewis and Timpson Collaboration: John Lewis is a beloved department store in the UK known for its excellent customer service. It faced economic pressures and leadership challenges but partnered with Timpson, a chain of kiosks offering key replacement and shoe repairs. This collaboration brought essential services directly into the department store, making it a convenient stop for customers and enhancing foot traffic. This example underscores how integrating complementary services can enrich the customer experience and drive more store visits.
US Innovations: Target, Nordstrom, and Apple
Target: Target has been a pioneer in integrating popular dining options like Starbucks within its stores. They have also innovated by partnering with brands to create "shop-in-shop" experiences. Their collaboration with Ulta Beauty to create mini beauty stores within Target locations has been a significant draw, offering customers a specialized shopping experience within the larger store. The BRANDKIND team talked about the food and beverages categories unleashing creative educational and experiential spaces like those in the cosmetics and home goods aisles.
Nordstrom: Nordstrom has embraced the concept of experiential retail by introducing Nordstrom Local, a small-format store that focuses on services rather than inventory. These stores offer personal styling, alterations, online order pickups, and even refreshments. By providing high-touch services, Nordstrom Local enhances the overall shopping experience and drives customer loyalty.
Apple: Apple stores have long been known for their unique design and interactive elements. Their "Today at Apple" sessions offer free educational workshops on various topics, from photography to coding, transforming the store into a community hub. This approach not only drives foot traffic but also fosters a deeper connection between the brand and its customers.
Brands and Retailers: A Collaborative Approach
To truly transform the in-store experience, retailers and suppliers – and their consumer influencers - need to closely collaborate. Brands can play a critical role in this by coming forward with groundbreaking insights and working with retailers to reshape it. This includes right-sizing assortments to match space and demand and developing unique propositions that benefit both the brand and the retailer.
Brands could partner with retailers to create imaginative aisle and display experiences that are both educational and entertaining, driving repeat traffic. This approach not only helps in managing inventory turnover but also addresses security concerns by ensuring the store remains vibrant and well-visited.
Conclusion
In today's retail landscape, it's not enough to simply stock shelves and hope for the best. Retailers must embrace innovative strategies and global insights to create engaging, multifunctional spaces that attract and retain customers. Perhaps tweak standard metrics for their category teams to encourage customer engagement. By learning from successful examples like Selfridges and John Lewis in the UK, and fostering strong partnerships between brands and retailers, we can reimagine the in-store experience and ensure a thriving future for retail.
For brands looking to make a mark in the US market, this represents a golden opportunity. By bringing fresh, imaginative ideas and proven global strategies, brands can help retailers overcome current challenges and drive sustained success.
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About BRANDKIND:
BRANDKIND is a boutique consulting firm that advises middle-market companies and enterprises on growth and transformation. The BRANDKIND Impact Strategy™ process accelerates growth, value, and impact by aligning leaders on strategy and positioning. We offer expertise across sectors including Consumer Goods, Manufacturing, Architecture, Engineering, and Construction (AEC), Technology, Healthcare, Biotech, Financial Services, and Professional Services. For more information, visit www.brandkindconsulting.com
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