Retail design

A Pulse on the Customer: Accenture Consumer Study 2006-2008
http://www.accenture.com/Microsites/Accenture_Customer_Innovation_Network/acin_newsletter_study.htm
In recent consumer research which spanned North America, Asia and Europe, Accenture found that consumers face similar issues when it comes to customer service.

Across the geographies, 65 to 75 percent of the consumers that Accenture surveyed said customer service had a big influence on whether or not they buy something. Yet less than half of the time they got help when they needed it. Consumers switch for price, but stay for service. And that definition of service is likely unique to each and every one of them. Given those results, companies have the opportunity to reinvent, innovate and do something very different for customers.

In the U.S. consumer research, customer service was cited as a missing element more than half of the time.

Foldable hotel rooms pop-up as needed
http://www.springwise.com/tourism_travel/foldable_hotel_rooms_pop_up_as/
Extract: A new French company has come up with a foldable hotel room designed for use at large, temporary events.

Founded in late 2007, Abilmo offers temporary hotel rooms 12 square meters in size with wood flooring, wood furniture and private bathrooms including toilet, shower and hot water. Featuring cloth-hung ceilings and low-voltage lighting, the units also offer thermal and acoustic insulation along with individual heating and air-conditioning.

The French-made rooms are instantly available to create a pop-up hotel for use inside or outside at such events as festivals, seminars and sports events lasting anywhere from a few days to a few weeks. Just 4.40m x 2.38m x 4.68m in size when folded, they require no crane to erect—Abilmo's staff can set up as many as 25 per day. Both interiors and exteriors can be customized to reflect any corporate image, and extra services such as catering, network video and extra security are also available.

Using technology to improve in-store marketing - Consumer goods manufacturers are using simulation technology to test in-store marketing ideas more quickly
http://www.mckinseyquarterly.com/Retail_Consumer_Goods/Using_technology_to_improve_in-store_marketing_1976
Extract: The manufacturer developed an online interactive-shopping simulation to analyze the individual and collective impact of various in-store marketing tactics. Real-life participants browsed through a virtual store aisle, examined products, and “spent” a set amount of money. Of the 20 initiatives with the highest potential impact, the simulations helped to isolate 7 win-win opportunities (exhibit) that, as enacted, would collectively contribute more than $70 million a year to the margins of the two companies. These opportunities included redesigned shelf sets that highlighted the manufacturer’s charitable efforts, more sophisticated end caps (the displays at the end of shopping aisles), and in-store and on-shelf advertising. Subsequent in-store testing boosted sales in the subcategory by around 10 percent.

Simulations can’t test all in-store marketing tactics (say, free food samples) or accurately gauge interest in high-involvement categories such as apparel. They can, however, eliminate biases (for instance, the cleanliness of stores or the skills of salespeople) that often confound the results of traditional pilots. Moreover, online simulations allow manufacturers to save not only money but also time by testing thousands of shoppers simultaneously. Manufacturers can therefore roll out marketing programs before their rivals do—without risking actual sales. Such simulations also help manufacturers work more closely with retailers to develop marketing tactics that benefit both parties. Online simulations are applicable in multiple retail formats, including pharmacies, movie theaters, and banks, and in categories beyond consumer packaged goods.

Supermarkets upgrade décor and offerings to counter competition (in Packaged Food in the US)
http://www.euromonitor.com/Packaged_Food_in_the_US
Supermarkets upgrade décor and offerings to counter competition
Pressure from competing channels forced US grocers to invest in their stores to maintain their strong position in retail food distribution. Instead of competing on price to challenge Wal-Mart which is difficult to do, supermarkets decided to enhance their food selections and improve the ambience of their stores. Many grocers redesigned their stores, expanding their selection of prepared foods, adding sushi and pizza bars, and extending their wine and cheese selections. Safeway supermarket chain has been at the forefront of this trend, rolling out its “lifestyle” format to all new stores and remodels starting in 2005. In its lifestyle store in Livermore, California, Safeway offers a wine department containing over 2,000 varieties of wine and a chocolate fountain used for dipping some of the store’s own gourmet pastries.

Key trends impacting store design
http://www.insideretailing.com.au/articles-page.aspx?articleType=ArticleView&articleId=833
International design and branding agency Dalziel-Pow identifies the key issues and concepts that will impact on store design in the coming years. - By David Dalziel, creative director, Dalziel-Pow
The store of the future will build on the fast moving competitive and aggressive market in which we all operate.

International influences will push the market on in the UK and the UK experience will influence developments in the emerging markets of India, China, Turkey and South America. Already in these markets we can see the ambitions with the building of bigger and more luxurious malls full of the best of the world’s brands and the strongest local players.

So, the store of the future is in a mall and it is large, at 1500sqm. All retailers are looking for larger and more compelling stores and this proposal offers that. The store of the future brings fashion to a youthful 18 to 25-year-old market, reflecting the emerging markets strength in that age bracket. So, what are the issues facing this sector?

Deflation
Deflation is a key concern, it is our belief that the price of goods on sale in the middle market is low enough. The fixation with price has taken us to a lower level than ever before where a product can be sold as cheap as £4 ($A9.50) for a pair of fashion jeans and £2.50 ($A5.95) for a school uniform... and this in the most affluent market in the world. This trend is ultimately self-defeating and needs to be stabilised.

Fast fashion
The second issue is speed to the market or ‘fast fashion’. Fashion is fast enough, with retailers chasing styles so slavishly that they are tying themselves in knots. The true winners in this market are those who can create and interpret trends in their own vision.

Jeans retailer Lee’s stores are made up of seperate ‘boutiques’, each with its own identity.

Definition
The third issue is individuality and definition. In such a crowded market how can a brand stand out and how can design help them achieve that stand-out? This unique personality can be achieved by adopting several principles: Open architecture, the ability to flex space, the broad stretch of product, the introduction of revenue building events, the introduction of technology in the service proposition and the adoption of responsive, responsible design.

Open
Open architecture challenges the preconception that you can entice customers into a 1500sqm store through a 1500mm door, a practice adopted by many brands who are now waking up to the fact that if you are open in your approach and invite the customer into your store they might come. If the window is supportive and the entrance is impressive you can almost see the double take as the shoppers walk by. We predict more and more open shopfronts in the coming years.

Flex
Flex is a given in retail. If you can guarantee one thing about the future of retail it is that it is going to change. The offer changes, the brand position may change, the customer’s reaction to your store will change and by its very nature fashion changes. Only very flexible solutions can respond to those changes and by building in that flexibility you can create a future-proof solution. Moving walls, moving graphics, mobile furniture, modular lighting can all be used to support this ideal.

Stretch
Stretch is the understanding that your customer is in different moods on different days and will need different offers to satisfy those moods. Knowing your customer and giving them what they want will require the retailer to offer a breadth of product in the same venue. This can be achieved through brand stretch, where one brand can sell many items, (ie. clothing, footwear, accessories, homewares, etc.), or by the introduction of strong guest brands, where the retailer’s credibility is not strong enough.

Events
Events are where the store and the brand can come to life. Dedicating space within the store for product launches, catwalk shows and most importantly selling in down times. A great tool to build loyalty, create theatre, drive sales and ultimately bring profit. Monday to Friday it can tick over... Friday to Sunday it can come to life.

Service
Service is where the significant changes will occur. We have recently planned a successful Oxford St store with 64 tills. The displaced stock on those walls feels like 30% of the available space. Imagine if that cash function were spread amongst the dozens of staff the retailer employed, every member of staff a till, every member of staff actively servicing the shopper. This “can do” attitude to service and technology can be applied to every point of contact from the front door to the fitting rooms. 100 Personal Shoppers! Live shopping across the space on terminals and with the staff, it happens at the airport check-in and on the train, so why not in store?

Respond
Finally, respond. Responsive retailing is driven by customer demand. ‘Paper bags, not plastic’ will become law, controls on power per square metre will become law, the specification of sustainable and responsible materials will become law so make that the heart of your brand, not just a PR activity. Anything we don’t do now that could be done, should be done and we don’t need to wait to be told to do it. So, in conclusion, create a unique and individual brand experience by adopting these principles and differentiation will come. Everyone who tries to create a unique experience will go some way towards achieving it and that has to be an improvement on those dozens of poor stores out there. The biggest trend in design is design itself and we have a lot to do. From value to high brand, they all want it and those who use it are reaping the benefits.

The above is a transcript of Dalziel-Pow’s presentation to the World Retail Congress 2007 in Barcelona.

Design's role in experiential retailing
http://www.insideretailing.com.au/articles-page.aspx?articleType=ArticleView&articleId=818
Extract: Store design is key to forging that all-important connection with customers and leaving with them a lasting memory of their experience. By Kiren Thandi, journalist, Inside Retailing Magazine.

It’s something women have known for generations: there’s more to shopping than coming home with the things you went out to buy.

As David Gester, vice president of Baltimore-based international design firm RTKL says, retail is about so much more than merchandise. “It’s about casting customers in a story, reflecting their desires and aspirations, and forging long-lasting relationships.

“Retailers and retail developers are banking on the fact that given a more three-dimensional shopping experience replete with sights, colours, sounds, textures and movement, consumers will stay longer, shop more, and leave with lasting memories.”