The Two Forces of Retail

The Apple of the Customer's Eye

The first Apple stores were opened in 2001 in 2 locations in Virginia and California. They made the stores a destination that were beautifully and cleanly decorated. Apple was not the first company to allow all electronics to be sampled in a showroom environment but they were the first to do it in an open, bright and unassuming setting with "geniuses" who could walk anyone through how to setup any Apple product in a way that made owning Apple technology feel accessible to anyone.

For the next 18 years since the launch of the Apple store concept, Retail store success would be measured against the Apple standard. Very few retailers ever lived up to the new consumer expectation set by Apple. Yes, it has been 18 years already and it is still not uncommon to hear the Apple store be referred to as a "concept store" as though it is still an experiment. Not to split hairs here, but 18 years of raising the standard on an industry deserves more than being regarded as a grand conceptual experiment.

I watched over the years as retailers would cherry pick concepts from Apple and try them in their own stores. These "Innovations" often not making it past the pilot stage and being abandoned, deemed as "not applicable" because "Apple is different". I heard how mobile devices in the hands of associates only worked for Apple because shoppers tended to buy fewer items. I heard how the art and architecture in an Apple store wasn't affordable, how customers prefer to help themselves vs having a skilled associate to work with them and how generally technology buying is different than {fill in the blank retail category} buying. 

 Apple understood their customer better than nearly every other retailer in the industry. They understood that buying technology products was a stressful event for their customers. That when buying technology, a customer is buying an investment into a technological future. Shoppers do not want to buy into the future while sitting in store that provides a dingy representation of the past. They understood that to captivate the customer, Apple stores must make the shopper feel at ease, supported and inspired.  Retailers who tried to cherry pick pieces of the Apple experience without first understanding their own customer base, missed the point completely.

 Convenience Stores Get More Convenient

The first Amazon Go store opened to the public in Seattle on January 22, 2018. I saw many posts on LinkedIn poking fun at the lines around the corner to get into the store and heard more discussions than I can count about how Amazon Go would be a sure failure. At the same time, I was getting calls from a variety of companies asking about setting up their own Autonomous Store in a variety of Innovation labs. My advice to everyone on this topic: Before you start thinking about how to incorporate autonomous store concepts into your stores, first talk to your shoppers and ask them what they want. Does a shopper in an upscale shoe store want "Grab n Go" capabilities or do they want impeccable service? I suppose it depends on the store. 

I know of no one who expects immersive experiential shopping or even an Apple store level of shopping at the corner convenience store. This is a concept that Amazon knows well about its shopper. Amazon has tripled down on the topic of convenience and has put no effort on experiential. Every decision is grounded in measuring and removing shopper friction. Anyone who shops at Amazon understands to not expect curation or inspiration from them. Amazon Go stores also manifested this point. It is tough to beat the convenience of walking into a store, grabbing an item from the shelf and walking out. If there Is a way to do it though, I am certain Amazon will be the company leading the charge. If you are a retailer touting convenience, you already know that Amazon is setting the standard for you. How do you get more convenient than Amazon as a C-store? It is challenging, but you can start with having higher quality, locally sourced products and move them as close to your customer as possible. Think locally sourced fruits and meal boxes vs bad nacho cheese sauce and terrible hotdogs. Convenience stores will need to be better at being part of the community and curating local products as part of the assortment.

 Whether or not, you believe in what either Apple or Amazon are doing is not as important as understanding how your customer will grow to expect Apple levels of experience and service and Amazon levels of convenience. I can't answer for all shoppers everywhere but, If I am shopping for something that requires immediacy, I want extreme convenience. If I am going to take the time to drive to a location to shop for something frivolous or fashion oriented, I want it to be rich in experience, curation and service.

The good news for experience based retailers is that Amazon is not in your lane (and may never be). However, in addition to companies like Apple, Adidas and Nike, there are new retailers entering the landscape that will start setting the standard with your shoppers around how great immersive shopping experiences can be.

 A few Retailers to get inspired by in this space:

1. Camp - https://camp.com/
2. Gentle Monster (a colleague's favorite) - https://www.gentlemonster.com
3. Meow Wolf and Area15 - https://lasvegas.meowwolf.com/
4. Bodega - https://bdgastore.com

I see the forces of Experiential and Convenience pulling on consumers and setting new standards of expectation in many different industries from Restaurants, QSR, Hospitality, Grocery, Banking and even education. In my next post, I will be doing a deeper dive into the world of the experiential economy. Stay tuned.