Inspiration as Table Stakes: Revisiting 7 Keys to Retail Store Experience Success 3 Years On

I was reminded of an article I wrote just after the COVID-19 nightmare began to subside regarding what themes retailers needed to embrace to thrive in this new era. Three years on, it was time to revisit them.

1) Wherever/Whenever/However - There is no doubt that COVID accelerated the pace of ensuring retailers reduced the friction associated with transactions and logistics. "Unified Commerce" is now used to describe what the customers have come to expect instead of "Omnichannel" (much like most technology - that term had a short half-life). The shopping experience must be truly seamless and easy regardless of where a customer interacts with your brand. Not only that, the data must also be integrated and seamless for the organization to be able to analyze consumer trends, and behaviors and maximize the ability to forecast the right levels of inventory and also increase efficiencies in targeted marketing efforts.

2) Experiential - I am still disappointed in the progress being made in this area. Every time I see a new concept announced, I rush to view photos or videos or even visit the store to feel the rush. I am usually bitterly uninspired. Maybe it's because native online brands don't understand how to create that rush of adrenaline or unique experience. Maybe the boards or senior executives are too afraid to step out on the creative limb for their brand. I would say one of the best examples of setting the right environment and creating a real unique and inspiring in-store experience that suits their clientele is Aritzia. They have always embraced the store experience as their priority and have eschewed emphasizing online (unlike most merchants) and invested in their customer store experience. Whether it is sophisticated lighting, gorgeous propping, comfortable and sumptuous fitting room areas, a boss sound system, or the recent introduction of cafes, Brian Hill has shown what happens when you start your career on the shop floor (something we share in common) and learn to appreciate the details and the buzz required to draw traffic and keep customers engaged. Another example of an evolved and intelligent in-store experience is the two new stores Adidas opened in Los Angeles recently. Read about it HERE. The in-store experience matters more today than at any time in the long history of this industry and with the technology available and the knowledge and experience at any e-commerce or traditional retailer's disposal, there is no excuse to fall short. To my mind, these are table stakes for any successful bricks-and-mortar strategy today.

3) Connectivity - Social media and AI have helped create a closer connection with customers within the marketing discipline. Efficiencies in expanding the funnel and then closing and retaining customers have improved. Where I have not seen as much progress is in the vendor-retailer partnerships. The China tariffs and economic upheaval that has befallen the largest supplier base is certainly a factor as new relationships have been developed with suppliers in other parts of the world (Vietnam, India, Mexico, etc.). It is understood that not everyone can create a Made in USA (or Canada) vendor base, but for those who have, it seems that they have been forced to create a real partnership that has benefitted each party. Take American Giant for example. They have taken the approach that there is a way to make high-quality USA-made garments domestically that will benefit communities and create a drama-free consistent, just-in-time inventory pipeline. That is a model for brand/supplier partnerships globally. Their most recent partnership with WalMart sets an inspiring example.

4) Personalization - In all my years in retail, the most important lesson I learned over and over again was that no singular interaction can make or break the in-store customer experience, or a brand for that matter, like that of a sales associate and a customer. Unfortunately, since the COVID re-awakening, that understanding, emphasis, and investment have been lost. We can create schedules using algorithms and AI and other incredibly efficient software and that will certainly give us an ROI - on paper. But I still ascribe to the theory, that if you hire the right salesperson (understanding they are harder to come by and harder to convince to come work on the floor these days), they pay for themselves over and over again - so much so it should obviate the need for any kind of scheduling software. Assuming you have the traffic and assuming you have the right assortment at fair prices (meaning what people will pay for them) then the right salesperson should be able to sell a multiple of what you pay them every hour. That was always my attitude - give me someone who can generate $200+/hr. in sales and the payroll budgets take care of themselves. That is the ultimate personalization of the retail experience. Take it a step further and you have relationships that develop, clienteling, and personalized shopping - all adding to a fulfilling bricks-and-mortar experience.

5) Sustainability - I would give the retail industry a C- for the improvements made on this front overall in the past three years. There does not seem to be the sense of urgency that I believe is necessary. Yes, it is going to take investment; yes it is going to cut into short-term profits; yes, it is going to take consistent focus and prioritization even in fallow months and seasons. But ladies and gentlemen, we have no choice. I am involved with a furniture manufacturer in Europe that we hope to launch in North America shortly. It is a comfortable, high-design, beautifully crafted product that is made entirely from recycled materials and plastic waste dredged up from the ocean. There is a major opportunity to create a new category of merchandise that is fully circular so that companies and households can create a "Furniture as a Service" (FaaS) model whereby it is less expensive up-front and in totality. Yet, over the long term the furniture gets completely renovated to look brand new, using the same materials and saving time, money, resources, and the planet all at once. That's the type of thinking we need - not another Shein.

6) Collaboration - Beyond the partnerships I elaborated on above, certain brands are leaning into brand collaborations that help them define a new direction for the consumer. As a Gap alumnus, there is no doubt they had to keep trying new things and not sit still as their market share had eroded over the past 10 years. I applaud their bravery at the outset as it has come back to bite them (Yeezy is the obvious example of a collaboration that imploded) but their more recent collaborations with Doen, and my friends at MadHappy have helped frame for the customer whom they want to be associated with and how they want their brand to be viewed moving forward. For those smaller partners, it is a coming-out party that elevates these more niche and regional-oriented brands to a national and international stage. I always believe in "Leading with AND" and these types of collaborations are well-defined in terms of desired outcomes for each party. Gap and their partners produced win-wins. We need more of these - let's be creative and think differently. Retail has always been about taking calculated risks - let's get back to that mentality.

7) Humility - In the previous article I detailed how COVID introduced a new level of humility (more like shock) to the system and reminded everyone how fragile life is and how fragile our businesses are. That led to many stories of heroic actions throughout the pandemic and in the aftermath. I also emphasized transparency in both leadership and communications as being a key ingredient of showing genuine humility. I believe humility has evolved into understanding what our limitations are as humans and as businesses and being able to reach out and ask for help. It neatly sums up what it takes to win today - seamless unified commerce (tight collaboration and operations between online and offline sales), collaborating with vendors and other brands (to lift everyone to a higher level of engagement and performance), systems and functions that work together (so that no information or talent are siloed), creating a shared sense of urgency regarding climate change and our planet, and giving each other the benefit of the doubt more often than not.

Starbucks created and invented the "third place" which created the ultimate coffee store experience and environment. Brian Nicchol, who was just hired as its new CEO (coming from Chipotle), sent a letter to employees on Tuesday, September 10th stating that "We're committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells, and sounds that define Starbucks." In our hyperdrive world of instant gratification, within-an-hour delivery of everything, instantaneous response, and immediate feedback through social media channels, retail stores still need to be bastions of inspiration, entertainment, engagement, and exploration.

Take the time, take a chance, make the investment, and inspire someone today. You may be surprised at what you can achieve when you do so.

Lloyd A. Perlmutter is the Founder/President of Veritas Advisory, LLC, and has been leading and advising organizations for over 35 years. Call 248-794-9673 to have a meaningful and powerful conversation about transforming any native online brand into a physical manifestation of that brand to elevate the entire business to new heights