#makingretailhappen

A collection of innovation, musings, information and plain old cool stuff from the world of retail.

[nzretailgeek]

The retail battle between David and Goliath

Lessons to learn

I read this great article in The Robin Report which is really worth sharing. Pam Danzinger has done an incredible summary of what the big guys in retail can learn from the little guys.

Within the retail industry there are sectors that are outperforming the rest. In NZ categories such as fast casual dining, furniture stores, and home furnishings retailers are all winning. She covers what, how and why.

This article highlights what retail Goliaths should learn from David counterparts. In particular, to keep their focus on the people-side of the shopping experience and providing an engaging experience. READ HERE to find out more.

[nzretailgeek]

REWARD OR NOT TO REWARD? THAT IS THE QUESTION.

Truth be told I am a great shopper. An outstanding shopper. Some would say a world-class endurance shopper. I am also an avid loyalty programme member. I like to be in the know. I want to be treated like a VIP for my commitment, I want to know about special news, new releases, VIP only information and in return I reward those retailers with my custom. Quid pro quo.

The NZ loyalty programme landscape is currently shifting. In the type of focus, engagement and currency interactions retailers are having with their shoppers. Some with success. Others not so.

You might be a member of this programme or you may have seen the social media outcry as Farmers department store recently changed the currency and rewards foundation of their Farmers Club. They have copped a lashing from customers. I for one have written off the programme as too hard and have already started my cosmetic buying elsewhere (admittedly a place where I also get better advice). I for one also voted with my feet when BNZ Visa was no longer a Fly Buys partner.

Customers are outraged by the loyalty programme changes

Creating non-price differentiation is difficult in retail so it is not surprising that many retailers adopt loyalty programmes to develop a deeper, more meaningful relationship with their customers.

So what are the considerations before you jump in head first?

#1 Do you have the stomach for this? What’s the plan?

This is a commitment to your customers and your team. You need to be clear you are entering on a journey that requires resources, investment, commitment, consistency and care. It’s not something you should “have a dabble in” (unless you have money and customers to burn).

This is an investment in your relationship with your customer base that needs to be worked through so you understand what the short, medium and long-term payoffs are.

The plan needs to cover all the components of the programme: timing, branding, value-proposition, incentives and rewards, loyalty currency (points, cash-back, discounts, coupons, etc), and marketing channels.

A clear when, where, why and what for. If you can’t nail that, then do not pass go and do not collect $200.

#2 Understand the roadmap of how you are going to get to know your customers

In order to get the most out of the programme you need to be clear of your end game. At what level do you want to know your customers and how are you going to collect this information.

For my coffee shop, they simply want to know your name and your order so they can get to know you 121. But at my supermarket they will want to collect information on how often I shop, what I buy, how often I buy it and how much I am worth to them as a customer. Obviously from this level of data they will be able to understand which customers are worth investing in, rewarding, recognising and maintaining. 

#3 Ensure your engagement is compelling and relevant

By understanding the type of relationship you want to have with your customer will drive the engagement you need to have with them.

Many of the loyalty programmes I am a member of have nothing to do with a tangible currency, it has more to do with how they treat me. VIP offers, special release, invited to pre-sale activity, keeping me in the know on stuff they know I would care about.

Remember also that loyalty is not just about “the more a customer buys.” The problem with these loyalty programme that they don't incentivise customers to engage with a brand in a more meaningful way. Ask customers to write reviews or share the good news. 

You want a relationship with a customer they feel proud of. That they share with their friends and their family – their tribe.

#4 Seamless, frictionless customer interactions

Customers today do not want to have the hassle of having to carry around a plastic card or hand over a coupon to redeem their reward. I love Living Rewards (Life and Unichem Pharmacy) as I don’t have to carry around a piece of paper to redeem my reward. The sales assistant tells me at the till I have earned a $10 reward and asks if I would like to redeem it on that purchase.

Likewise, I don’t mind at my local coffee shop (they are a one chain owner/operator) that they simply keep my coffee card at the counter and clip it every time I come in, until I earn my free coffee. It’s still simple and seamless for me.

Think about your customer and the interactions they have with you. It’s likely to be physical and virtual. In your world or mine. Can I access and be recognised however I choose to shop with you?

#5 Be genuine and authentic

Customers aren’t idiots. They know a dud offer when they see it and can ditch you quicker than you know by having a meaningless relationship.

Country Road and Witchery send me a reward for my birthday. It is not conditional on any purchase. It is a genuine thank you and celebration of me. This feels like authentic care vs the other offers I get from VIP programmes which offer me free fries with my burger or 20% off if I spend $100 or more. Really?

Ultimately, a loyalty programme should offer incentives for shoppers to reduce their store and brand switching by offering them better value. This value can comprise of many different aspects which can range from reward and recognition of behaviours to surprise and delights for being a part of the tribe.

 There is certainly a cost and commitment to these which you must have the stomach for. Once you start it is very, very difficult to stop without some significant customer implications (assuming your programme was outstanding). But if you are considered with your approach and authentic, you can be rewarded with insights and opportunities that far outstrip your competitors. Quid pro quo.

#makingretailhappen

[nzretailgeek]

SHINE BRIGHT LIKE A DIAMOND

Are flagship stores relevant for NZ retailers to pursue?

Sonos concept store, SOHO New York

If you have been into the Auckland CBD in recent times, you will have noticed that downtown is reclaiming its popularity and cool as both global and local brands either improve or land their physical presence with impressive flagship and concept stores showcasing the best that the brand has to offer.

I am trying to remember when it all started to gain momentum in NZ. First the impressive development of Britomart with the alluring precinct including Lululemon, Bobbi Brown, Karen Walker, Kathryn Wilson and co. Then across at Te Ara Tāhuhu Walking Street; Jo Malone, Ted Baker, Nike and Keihl’s joined the ranks. AS colour, Service Denim, Marmont and a few others helped weave the way back to Queen Street and then a few new faces including The North Face, Coach, T2 and Ugg. 

Barker’s Flagship store, Auckland City (Image: The Register)

Tous, Prada, LV, Gucci and Nespresso came to town. ANZ and BNZ dropped in impressive statement locations. Then came the incredibly impressive lines of young ladies waiting to get into Top Shop. Then Farmers returned to the city, a Life Pharmacy concept, Elizabeth Arden and the list continues. My pick of the best. Barkers. In recent weeks Adidas has landed. H&M and Zara will all be here soon. I can’t wait for Tiffany & Co. The list goes on.

Topshop opening in Auckland (Image: Stuff.co.nz)

These flagships are common place in London, New York, Amsterdam, Milan and Barcelona. But the flagship store is an international phenomenon here with a vengeance and for good reason. 

Flagships add a level of physicality to a brand and move beyond a simple shopping function. They bring to life the brand experience in a way that is inspiring and engaging allowing customers to interact and connecting with them at a deep emotional and intuitive level. 

These stores help complement the digital presence of the brand and elevate customer’s expectations of “what good looks like for the brand. These stores provide new reason to physically visit the store.

Niketown flagship store Regent Street, London (Image: Nike)

Customisation and personalisation at Niketown 

Internationally there is strong evidence that these stores are becoming an important part of people’s lives. As gathering points, cool places to see people and be seen, somewhere to hang, socialise, be entertained and learn. It is a brands ability to demonstrate confidence, commitment, leadership and romance to their customers. Flagships are an essential component of a retailers brand strategy.

Eataly flagship New York community, eating experience, social heart

Shoppers today crave new, shiny and exciting experiences so these environments will need to be refreshed much more frequently. You need to have the commitment, processes and ability to refresh without hamstringing your teams and business.

Flagships need to work off the backbone processes of the business so that it is an effective and efficient retail space as well as being inspirational. There must be clear brand alignment between the flagship store and the way the brand communicates. It cannot be a statement, merely for statement sakes or it will be confusing to shoppers. The store must keep with the look and feel of the retail experience but take it to an entirely new level.

Rayban flagship store Soho, New York - education, personalisation, interaction

So what does that mean for retailers who don’t currently have a flagship store strategy?

5 things to consider if you think a flagship store should be a part of your strategy

How important is a flagship to your consumer strategy? What does it add to the understanding of your brand that customers don’t know already?

How will you use the flagship store? Will you celebrate what you have to offer, offer new interactions and experiences or to counter your competitors?

Who are you trying to target? What will excite them? What will they experience?

How does the flagship store fit with with your physical and digital presences? How will it be different and complementary?

What will carry over from your flagship store to your other stores? How will that occur?

Building a successful flagship store strategy means: • minimising potential risks, • choosing a location that fits with your your brand strategy, • creating a fully functional store concept that maximises engagement with the brand and • leveraging the unique requirements of that particular location

Tiffany & Co opening in Auckland CBD later this year

Confidence in flagships is strong and remains a focus by best in class retailers world-wide. Global brands will continue to look to our shores (new markets) to support their global strategies. High profile locations will be the focus and the market is going to get competitive. This is an exciting time in retail. Should you shine bright like a diamond?

If you want to explore more about how a Flagship store concept could work for your retail brand strategy, make sure you contact The Retail Collective to find out more.

[nzretailgeek]

Some of my favourite things…PIRCH

To survive in this new, complex, content-rich world and to convert shoppers into loyal advocate, it takes more than traditional retailing strategy. PIRCH is one exceptional retailer delivering elegant solutions in the mid-upper kitchen, bath and outdoor category, carving out a distinctive position in the market through their exceptional focus on quality, simplicity and connectivity.

Their physical stores have taken on a new and elevated role and they acknowledge that the journey is as important as the destination. The experience is built around the mobile and digitally-connected consumer who may research online and then wander in the store to touch and feel the merchandise. 

The most recent flagship store opened in SoHo, Manhattan, spanning just under 10,000 mtrs2 across three floors, with more than 30 interactive vignettes. As you enter the store, shoppers are greeted by a barista who offers a free coffee while inquiring what products you would like to explore. 

PIRCH brings the concept of experiential showrooms to a whole new level, with toilets that flush, appliances that work and an ability to sample all products just as you might use them in your own home.

The founders were so fed up with their own plumbing and appliance shopping experiences, they set out to deliver a concept they would love to shop themselves.

PIRCH barista’s ready and waiting

You can literally unwind in a steam room. Shoppers can reserve PIRCH’s "Sanctuary room” which includes more than a dozen shower heads, a steam room and a sauna. Otherwise you can sip on a fancy latte, chow down a freshly cooked breakfast, or spend the afternoon drinking cold beer straight from the tap.

Sanctuary room - grab a robe and get testing

This two-fold strategy of letting shoppers really feel at home and then sample the products, just like they were at home, enables a wonderful environment to browse and complete a sale. 

The products are showcased in real-to-life situations, including fully furnished kitchens, bathrooms and outdoor patio areas supported by a knowledge team of experts who can answer any question and help find the right product for your needs.

Despite this showmanship and the stores' luxury feel, PIRCH carries more than 1 million items on the plumbing side alone, which makes room for more reasonable entry prices for moderate-income shoppers. The retailer also keeps its prices steady with the manufacturer's suggested price, so shoppers have "no reason to buy from anyone else.” They stand behind not only their price promise but have their own specialist installers, someone 100% guaranteed to do the installation job with care.

It’s been said the shop is "neurologically addictive experience” and whenever the store is open, a chef is always cooking, sending the aroma of bacon or other savoury treats through the air.

Soho PIRCH Flagship

Shoppers can be irrational and unpredictable but they do crave rich, seamless, engaging and frictionless experiences. They want to touch, feel, taste, smell and interact. Shoppers want to know about the authenticity of the product, how it will solve their need, that buying from you is a good choice (or a damn great choice) and you are someone who they can know and trust.

I think PIRCH is delivering in spades, providing meaningful solutions and experiences that connects with shoppers innermost needs, wants and desires; and igniting some they weren’t even aware of.

#makingretailhappen

[nzretailgeek]

Keeping it simple for our most important customer, our people

Truth be told I am a great shopper. An outstanding shopper. Some would say a world-class endurance shopper. I don’t really understand the word austerity when I should, nor the concept of “a considered purchase.” I’ve been known to spend 3 hours on one floor of a department store and hence, I love a great sales assistant. I love the stories they tell, the product knowledge they impart or the way they can make you feel good, bad or indifferent about a product. I adore those who pamper you with their complete and utter attention.

These physical touch points of the brand work incredibly long hours, sometimes split shifts, late nights, early mornings. They are required to be multi-tasking ninjas; to always be happy, engaging, intelligent vessels of the brand. They need to be able to make you feel that your engagement with the retailer or brand is the right one, for you, sometimes beyond reason.

Over the past few months I have been documenting some interactions with retailers, brands and their team members to illustrate how systems, processes, training and policies can either support or let an experience down. Even to the point of a lost, loyal shopper.

The case of the missing coffee

Charlie and George, Stonefields, Auckland

One dreary morning I decided to have some special time with my son at Charlie and George; a well reputed café in Auckland. The place had just got over the early morning hump. We settled in a corner, planning the bucket of stuff we needed to achieve about town after placing our order which included a soy latte and a chocolate milkshake. We were waiting for some time (10 mins) when I enquired where our order was as some people who came in after us had their food and drinks served. The very apologetic lass followed up only to say they had run out of ice-cream for the chocolate milkshake. Bugger that – we needed to move on but I needed caffeinating. So I stood behind a bucket of people, got to the counter and the lady proceeded to charge me for my order. I politely explained quickly we didn’t get our order and, could I get my coffee to go. Her response was fabulous. She quickly politely questioned her team why on earth they were out of ice-cream and to pop across to the Fresh Choice to get some so not to disappoint the next person wanting a milkshake. She proceeded to hand me my coffee quick-smart and said it was on the house and sorry for ruining our morning. Situation saved. I still had a smile on my face despite being mucked around, as an empowered staff member made me feel important to them, using their charm, manners and good nature.

The case of the price check

Bunnings Mt Wellington, Auckland

I decided it was time to put the “price guarantee” that the hardware stores plaster to their DNA to check. I imagined this was going to be a terrible experience but hey, I was out to save the $60 I was entitled to between 2 planter boxes I wanted that were priced $130 at Bunnings and $99.90 at Mitre 10. These were heavy items I could barely lift. I asked two people in Bunnings what I needed to do, pointing in the direction of the planters high up on some racking. Quickly I got directed to the Information Desk while the guys I spoke to in the garden department proceeded to get them down and load them on a cart for me, not really knowing if the price was going to be honored or not, but he said “let’s assume that it will be.”

As I explained my situation and showed my picture from the same item at Mitre 10, the guy jumped online to try and find the product. With no luck he then rang the local Mitre 10 for a price check. Confirmation made, discount applied, planters loaded into my car. A seamless process which could have been scary and confrontational, made easy.

The case of the defective product

I purchased a distressed denim skirt from Esprit which ripped within a couple of weeks of purchase (and no I hadn’t gone up a size). I rang the Newmarket branch and they said, yes, this was a product fault and others had been returned, so bring it back in and they would replace it for me with another product. I did purchase it from Sylvia Park, however the closest store for me to return was St Lukes. But on trying to return the product there the sales member said (1) it had to be returned to where I purchased it and (2) they wouldn’t transfer it to the store as their policy wasn’t to do any transfers “in sale” period. The sales assistant had no opportunity to use her common sense which would say it’s our product, we have put the shopper out, I need to recover, I’ll find a way. Once I got the Sylvia Park they didn’t even have the product I wanted as a replacement left in my size (it was at St Lukes) and they duly had to do a product transfer anyway. I was duly hacked off.  

Unable to organize a piss-up in a brewery

I hate to be so harsh but I am beyond livid with the run around I have been given in the case of the returned product. I was (until now) a committed loyalist to Keihl’s skincare. A dermalogically tested natural product, it was perfect for my skin. With their policy of giving samples to trial helps transition anyone who has spent far too long with a glowing red, spotty face. So I came to trust anything their people told me. Why shouldn’t I. We were family.

Shopping at The Grove in LA the sales assistant pointed me to the newly formulated jar of cream I used. It did have SPF (which typically I react to) but she assured me that with my condition, this would be fine. So close to $160 later I walked out with my jar of magic which made my face flare up so much you could cook eggs on it. I had it with me as we transited through Sydney and asked a Keihl’s store there who said I would need to return it in the US. I was off on a trip to the US in a few months, so I took it into a store in Manhattan who said they couldn’t replace the product I wanted as they only had the new formulation but to return it in NZ as “we are all the same company.”

The Britomart store directed me to the Newmarket counter in Smith & Caughey as they couldn’t help me. These guys directed me to the international Keihl’s website. The website customer service apologised and sent me a phone number – which only worked in the US! I finally got a person who directed me to the L’Oreal Customer Service in (wait for it) New Zealand. Some months had elapsed by now. I got the Customer Service in NZ who asked me a million questions and then asked me to return the product plus receipt of purchase. After another few months of too’ing and fro’ing I got my replacement delivered to my door on June 28th. The letter of replacement is dated a month earlier. My journey started in July the year prior. Nearly a full 12 months. Guess who I am not shopping with again?

The above stories demonstrate how we need to support our front end retail ninja’s so they can do what they need to ensure they delight, engage and support our shoppers.

We need to stop laying more complicated work-arounds, complicated and senseless processes and provide them with clear communication on how they can enable flow within the store and with their customers. 

The responsibility sits with us retailers, particularly those in management and support office positions who are endlessly crafting experiences. Make sure you are crafting the right ones.

#makingretailhappen

[nzretailgeek]

The world’s first virtual reality store

I was very excited to see the launch of the world’s first virtual reality department store which is a collaboration between Myer and eBay. 

I expect early next week for my ‘Shopticals’ to be here in NZ and my best friend here from Oz with the app working seamlessly on her phone (you can only download the app in Oz so I hope it still works here!) to provide you a firsthand account of the new innovation. It is certainly ahead of the curve. 

Read more about it from Power Retail.

[nzretailgeek]

Don’t blame digital commerce when your physical experience misses the mark

I have been a bit quiet on the blogging front over the past few weeks as I have been hanging out in ‘the land down-under’ spending some quality time with my father and my siblings. In my mind, NZ has often been ahead of the curve in innovation and the standards of our retail vs across the ditch. And while Australia has held the appeal in terms of sheer volume of shopper and geographical diversity, the influx of international retailers to NZ means we have really come into our own.

But while we continue to see the profound change within our customer groups; aging, socio-economically, ethnically and moving out of the big smoke to achieve the NZ dream of owning property; technology is playing a significant role in what shoppers are thinking, feeling, saying and doing.

What really struck me is that there are some fundamental basics that many retailers on the other side of the Tasman are failing on in-store. It is confounding that many of them are blaming the internet for their drop in sales, but I think they have their head in the sand.

Shopper journeys can ping pong, unfolding anywhere, anytime, on any device, so it baffles me to see how bricks and mortar retailers continue to shout, complicate, create barriers or just plain mess up the opportunity they have to connect with their shoppers. There are some basic principles that every retailer should apply within their bricks and mortar store. The simplest of approaches is to look through the lens of the shopper and asking yourself on a daily basis; “what do I want my customer to think, feel, say or do” as a result of interacting with my store and my offer.

Basic housekeeping standards

NZ retailers would be best to ensure they don’t replicate the following from their Aussie cousins and fall down the slippery slope into the sandpit (or cesspit) of doom:

Stores that smell bad (musty, overwhelming odours, dank)

Dirty toilet facilities (floors, stalls, mirrors, smell)

Dirty and broken surfaces and fixtures (dusty shelves, rubbish on floors)

Poorly kept entranceways and store exteriors (signs broken, paint peeling, posters falling down, sticky tape on windows)

Dressing rooms chaos (dirty mirrors, dirty floors, broken locks, nowhere to put my clothing or bag, poor lighting)

Messy fixtures and displays

Extreme temperatures (too hot or too cold)

Messy store aisle

Change room disaster and I hate dust balls on the floor!

This all indicates a total lack of commitment to your store environment, poor training and team engagement and in some cases under-staffing. As a shopper I think you simply don’t care and luckily I have options.

Over communicating

There is a time and a place for everything. Sometimes the store isn’t that place

The other area where retailers are letting themselves down are not understanding the communication hierarchy on the path to purchase. Again, what are you expecting me as a shopper to do as a result of seeing this communication in your store. “What do you want me to do?” Through shopper eye tracking and analysis research shows that shouting or having overwhelming displays simply become wallpaper to shoppers and they turn off.

Gosh - wonder if the chooks are on special??

Also having displays or POS material up for too long a period become wallpaper. For example, if you have launched a new initiative, product or concept, you need to determine at what point it is no longer new and simply part of business as usual.

Magnetic appeal

A key opportunity when using POS to lead shoppers on a journey is to ensure that the path to purchase continues to conversion – simply put, make it easy for the shopper to access that product/service/idea. 

On a recent visit to Kmart (I think many of you will have seen this ad I posted, but here it is again), the store security sleeves, window and front page of the catalogue all featured the super cool hoody. But do you think I could find the darn things? 

Those look cool. I need to check them out!

Yes I think this is a thing a need to see!

There should have been a display in a hero location at the front of the store and another in category. I actually had to ask a staff member who informed me that it was down the back in the sporting section. And when I got there, there was no WOW at all. Just a simple product only, end of aisle display and run of aisle product. A wasted opportunity.

Great POS opportunity to engage. Right time. Right place.

Eye candy and buy candy

For some retailers when developing merchandising displays, they get carried away building aesthetically incredible displays that shoppers are scared to touch. Customer fear that if they touch them the displays will fall, be destroyed or look terrible. So they simply don’t shop them. Other times, they build crap displays.

Hmm, this is an underwhelming display vs the environment

Anthropologie is renowned for beautiful, shoppable displays.

Building shoppable displays where customers feel driven to pick-up and purchase is key, ensuring you can easily replenish and drive stock turnover. One retailer who is “best in class” which I saw in Australia was Pottery Barn and West Elm.

H&M are renowned for engaging, inspiring and shoppable displays.

Through the looking glass I am incredibly sad that many retailers have lost the art of a stunning and engaging window display. A constantly evolving canvas for you to connect with passing and approaching foot traffic, this is an opportunity to tell stories, evoke ideas and drive shoppers imagination. One retailer who has been doing an incredible job is Kmart.

What a waste of a window opportunity on a high profile site

Just a few obstacles to my entry. What do you want me to do/look at?

This opportunity needs to become a priority for retailers to invest in to ensure there is a canvas of new, interesting and compelling reasons for shoppers to cross the lease line.

Make the perfect connection

Shoppers carry around information on their person to access anywhere and anytime to help guide their decisions. They can navigate their own way through shopping experiences and buy anything and everything at the tap of a key. They have information, coupons and offers but more importantly they can shop on the spot anywhere/anytime.

Portability of devices and data means they should have access when and where they need it. Retailers need to merge their offline and online to build these shopper experiences. So why the heck are some retailers so, so slow on providing in-store wifi access? This is a wonderful opportunity to gather customer information to continue the dialogue with them once they leave the store.

Walmart has reported in the past that 10% of their online sales, in fact, come from people who are actually within their stores. Even if your ecommerce sales account for 10% vs 90% physical store sales, I have no doubt that the vast majority of physical stores sales were somehow digitally influenced or involved at least one digital touchpoint. So don’t cut yourself off from that opportunity.

So are sub par store conditions driving customers to prefer online shopping? 

I have no doubt that some of the most persistently annoying store conditions do and in my next blog I will tell you about my experience trying to track down some shoes in Australia with no success and how retailers could better position themselves to convert sales opportunities.

[nzretailgeek]

Like a moth to a flame.... 7 easy ways to use social media to drive shoppers into your store

I have a new badge I am trying to wear. That of digital nomad. Not being contained to one specific office, I am travelling the world (well only NZ so far) working remotely, flexibly and effectively but making sure I am home by school pick-up time (most days). I’m going to try and own it for a bit, as one does.

Simultaneously, I thought I would do some good for the world of retail by starting to rank every cafe I work in by their performance on parking, wifi, working space, food, coffee, service and energy/noise level. I was particularly impressed when I sent a super large doc in a matter of seconds from one cafe. But what did occur to me is that none of these cafes (especially the ones I have rated as excellent), have done anything with my recommendations.

Increasingly I am talking with retail businesses who have got themselves tied up in knots over social media. In particular, how they can use it to drive awareness or visitation to their physical location.

Kelly Coe from Augustine is an excellent example and a pro at social media. Admittedly I think it helps that she looks stunning (I am sure she could wear a paper sack and look amazing), but she is really attuned to how to create excitement and interest in her clothing range by using pictures to sell the sizzle.

All the while giving enough information to drive customers to seek out a purchase. Her team actively helps find you what you need if it isn’t at your local store. She does this both through her loyal Facebook and Instagram following, each and every day.

More commonly physical stores typically use social media to drive customers to their website, but there are many other opportunities to be explored.

Here are seven social media strategies I've learned watching others achieve success.

1. Offer special offers (dare I say coupons) only redeemable in your store.

This is one of the most basic strategies, but it is effective. If you are launching a new product you can offer additional value or discount to drive shoppers in-store. Something like “mention this tweet and get half off your next order,” or post an image that the customer shows the sales assistant in order to receive the offer.

It's important to distinguish this approach from typical online coupon strategies, such as using coupon codes upon checkout. The key is to funnel your shoppers into your physical store by not allowing this to be redeemed anywhere else.

Smoove Clothing is well renowned for utilising this method in their secret sales promotions - where customers have to provide the "secret password", which is posted on social media, in order to get the exceptional sale discount.

2. Host a special event.

The type of event will depend almost exclusively on your customers. For example, young hipsters would probably be excited by a live music or art collaboration. But a foodie audience might like to watch a celeb cook demonstrate, meet the maker or have their book signed.

Once you decide on the nature and date of your event, start promoting the heck out of it. Farmers, with their Fashion Fixes by Lisa O'Neil in-store events, is an example which drives great enthusiasm and excitement with shoppers and results in massive sales in-store.

3. Attend a local event and use a designated hashtag.

If you are too small to host an event of your own, you can always attend someone else’s event. For example, get involved at a local festival by walking around handing out free samples or flyers. The event is bound to have a Twitter hashtag associated with it. Start posting images of your business at the event and use accompanying hashtags. This will greatly increase your visibility and relevance to a target local audience, making them far more likely to visit your physical location.

Lululemon recently attended the Wanderlust healthy living/yoga event at Western Springs attended by 2000 fitness fanatics. Prospective customers were drawn to a The Bubble Experience where they snapped photos, took videos and shared their thoughts with their social networks. Leveraging #thesweatlife, Lululemon continues to drive interest in their in-store by hosting free yoga sessions on Saturday mornings, bringing together an eco-system of awareness and visitation.

Wunderlust and Lululemon (read more) - Image: The Register

4. Post images of your physical location.

Posting real-time pictures of your business on a regular basis brings to life who you are, what you stand for and all the perfect reasons a customer should come and visit. New entrant Good Grocer NZ #goodgrocernz ritually posts about what's new, fresh, tasty, the view of the store, customers having a good time – today, the video of a fresh batch of Bombe Alaska sticks being made reinforced the store’s ‘made for you today’ differentiator

It doesn’t matter what type of pictures you take, as long as you take relevant and appealing ones. These appealing pictures, posted regularly, will convince your social followers that your physical location is worth the visit. I know it works – it's why I needed to go visit Farro on this day.

5. Show off your best asset - your employees and your partners

People like to see other people. Show off these bright shining stars by employees’ posting images of them having a good time and/or put up profiles of each individual and bring to life their personalities.

Give your social followers a look at the types of people responsible for keeping the business going. This gives your physical location a warmer, more welcoming appeal that encourages increased foot traffic.

6. Encourage social reviews.

To my point at the start of the blog, take advantage of the people who have already visited you. You can do this in your store, by making signs that encourage your users to post images and descriptions of their in-person experience or encourage through other communication you may have. Another option is to do this online, by making a post that asks your followers to recount their most recent in-store experience. Burger Wisconsin regularly does this. Try to be original in your phrasing, and respond to the people who have both good and bad things to say.

7. Share and retweet your fans.

Nothing breeds brand loyalty like shares and retweets. If you see a customer post something positive about your physical location, share or retweet it and thank them for their positive feedback. Doing this regularly naturally encourages more feedback from your in-person customers but also shows off the fact that you appreciate your physical customers and makes your physical location more visible.

Using social media is not hard  - it just requires courage, consistency, commitment and most importantly relevant and interesting content. Be brave and bold. Try different things. Attract those moths to your flame. And if all else fails, a cute dog will always work.

[nzretailgeek]

Microsoft Retail in the Digital Age

The growing presence of cell phones, tablets, and connectivity to the web means consumers now have the ability to retail hop between channels and make a purchase choice at their own disposal.

This Omni channel shopping approach is beginning to redraw the retail landscape where consumers have more ways to shop and interact with retailers, and retailers are rewarded with more valuable relationships and customer insights. Consumers are quickly embracing e-commerce which will serve as a catalyst for blending the brick-and-mortar and online retailing experience.

Although Omni channel creation is making strong inroads, NZ retail business strategies are still in their infancy. I am delighted to be a keynote speaker at the upcoming Microsoft Retail in Digital event. 

If you want to uncover more about how you can level your place in the retail field amongst the global digital giants, you should join us. 

Microsoft has just opened up a few more seats to this event, and even better; if you click on the link below, you register for FREE.

11Ants will also be presenting I think there are some of the cleverest guys in the business on integrating in-store and online channels. Some of NZ top retailers are already coming to the event, so you will get a chance to network with others in our industry.

The session will include:

Understanding the impact of global and local retail trends (with Retail experts Marcy Larsen and Juanita Neville- Te Rito)

Integrating in-store and online channels (with ISV, 11Ants)

Developing the right technology infrastructure (led by Spark)

Driving transformation and growth

WHEN: Wednesday 25th May 2016

LOCATION: SkyCity AUCKLAND, NZ

TIME: 8:00 am- 11:30 am

Register for the event and get in quick while there are seats left. 

[nzretailgeek]

I don’t sweat. I sparkle.

I’ve had the recent good pleasure to need to acquire some activewear. Due to an overwhelming desire to get back to my retail roots, I’ve taken it upon myself to inject a little more balance in my life (and I don’t mean Body Balance classes). What I have discovered with my change in lifestyle, is that there is truly a uniform to be worn in the suburbs on a weekday morning. It tends to be quite put together. Stretchy.

Often the latest colours with matching shoes. One can wear it walking the kids to school, over coffee with friends, in the supermarket, doctor’s surgery, practically anywhere - and it can even be worn until school pick-up, which seems quite unhygienic to me. This uniform is one of the key drivers to the cool and ever growing category of Athleisure.

Yes, the parody on YouTube might cut a bit close to the bone (I did go grocery shopping in my activewear), but the burgeoning Athleisure category is hot with everyone from Kmart to Louis Vuitton wanting a piece of the action.

Elly Strang from The Register wrote a great piece covering some of the driving factors around the category which has driven the likes of Lululemon’s share up 20% in the last few months and spawned collaborations such as Beyonce and Toyshop.

But who are the rising retail stars here and abroad beyond Lululemon?

 Athleta

Owned by Gap Inc, Athleta is one of my “go to” retailers whenever I am in the US. Athleta has been about since 1998 and was acquired by Gap in 2008 and has been delivering clothes that are versatile and fashionable for a “life in motion.” Gap, which has been struggling with sales for some time has high hopes for Athleta with over 120 stores throughout the US and more to open this fiscal year.

Athleta stores are not dissimilar to the layout of a Lululemon but I find the functionality and depth and breadth of range far more extensive, with team members who are a little more real and less “chi” than their Lululemon counterparts. On a recent trip to the US, I was delighted to see that whatever your size or shape, you could easily access cool, functional athlesiure wear at about 2/3 of what you would pay at Lululemon.

Image: Fillmore Street, San Francisco

They also recognize that often your shopping partner might need a rest and have created a seated area adjacent to a community area. A place where you can find out everything you need to know about activities and lifestyle related stuff in your area.

Image: Fillmore Street, San Francisco

Athleta has also recently hitched its brand to the girl power bandwagon. Called “The Power of She,” the campaign includes a 15-second TV spot, a longer version for digital, as well as display, mobile and social. “The frenemy is finished. Undermining is over,” which is such a lovely now message to engage your brand with, as it shows girls and women swimming, surfing, fencing, kickboxing, dancing and running. It also coincides with the launch of its Athleta Girls range which promotes activity for pre-tweens to teens.

The Power of She

Stirling Sports Woman

Image: Inside Retail

A little closer to home Stirling Sports have recently launched a flagship women’s store at Sylvia Park. And I have to admit, on every visit I have purchased something. What I think this store has been able to do is curate a tight, well presented range of product which is on-trend and is not too expensive.

The beauty of the selected range is that you are not going to see everyone else wearing your look and the stories are brought together well in-store to take the guess work out of creating “your look”. As well as your typical Nike and adidas, there is a great selection of Under Armour, Lorna Jane and adidas StellaSport.

I do hope they open more of these stores. Located in a mall or a high street it is such a pleasurable experience to wander a dedicated woman’s section that looks, feels and smells better than your standard sports store. It’s no Lorna Jane (I’ll cover that another blog), but it is a great start. My one criticism. They do need to start building their community however, sooner rather than later.

Stylerunner

Founded in 2012, Stylerunner has shown triple-digit year-on-year growth and has managed to firmly establish itself in the highly competitive activewear market. 

Australian-based, this business is a pure-play retailer selling brands from 2XU to Camilla & Marc. What drives the Stylerunner business is they’re  adept at understanding their audience and as such, connect incredibly via digital media. 

There is not a morning I open my Instagram, that I’m not lured to purchasing another cool product that will make me look the part or feel like a supermodel athlete.

Image: Stylerunner

Stylerunner has also adopted a cult following, who purchase purely off the Insta posts. Again women like me with a dream or hard out Aussie chicks who actually look amazing in the product (I’m not the latter).

Wouldn’t I look this amazing and cool if I had these shoes?

Stylerunner co-founder Julie Stevanja was just last week named Young Retail Entrepreneur of the Year at the 2016 World Retail Congress in Dubai. The award recognises young retail entrepreneurs who have harnessed new technology’s ability to question existing retail sectors and products, and to re-think ways of delivering to customers or opening up new niches. Testament to the powerful retail offering.

Kit and Ace

In a league all of its own, Kit and Ace, the technical luxury apparel retailer that has its roots in Lululemon, is on its way to New Zealand.

Image: Kit and Ace, Lolita

A Canadian apparel brand, Kit and Ace was founded in 2014 by the former lead designer of Lululemon, Shannon Wilson and her stepson JJ Wilson. Their inspiration….after spending years dressed head to toe in stretchy performance wear, they were looking for clothing that offered the same functionality but met their desire for sophistication, style and luxury. Since they couldn’t find what they were looking for, they created it.

This isn’t gear you would really want to work a sweat up in. These products are like being placed into a cocoon of silk to simply exist. Wax-lyrical I may, but until you try these products, you have no idea what you are missing out on. Kit and Ace is based on the idea of comfort, but takes it out of the gym.

Image: Kit and Ace, Melbourne

This brand lives and breathes its spirit and culture. On a visit to the Melbourne outpost of Kit and Ace I was escorted on a journey by the Junior Shop Director Kate. She knew the technical detail of every product and how it would make my life just that little bit better.

The store fit-out was clean, sharp, well curated and easy to navigate, with stories of inspiration and art throughout.

Image: Local art you could purchase from the Kit and Ace store, Melbourne

More recently Kit and Ace have introduced pop-up stores in chic hotels across the globe. Called The Carry-on, the stores are open for just a few days in San Francisco, L.A, Melbourne, London, Sydney and New York, and offer a pared-down collection of the company’s travel-friendly clothes. Based on feedback from shoppers on just how amazing the clothes are to travel in, the idea became a reality.

Kit and Ace have now more than 60 stores and growing, with NZ on the cards soon. They focus on building local communities and where possible the store fit-out is both designed and made locally, crediting each artisan’s work.

Image: Local artisan craftsmanship credited - truely hyper local

Each store compiles something called The List, which might include anything from restaurant and club ideas from its influencers, to cool hotels in the area. In Melbourne we found a couple of retailers we may not have trudged further up the road to find nor the hole in the wall amazing coffee.

Their content play; The Brief, are well curated editions of important, need to know stuff as part of this tight knit community. Everything from health, culture, lifestyle and wellbeing and how to make it a part of your daily life.

What each of these retailers have done, which makes them worth mentioning, is they have gone beyond the act of simply stocking product to appeal to woman who want to work out or be comfortable within their active leisure.

Yes, retailing is about selling goods. However, these brands have built an art around the offer. A balancing act and perfect combination of:

Giving you reasons to believe: product delivering what it proclaims - and that can be making you simply fit in with the mummy-brigade

Telling you those stories with authenticity: being curated and presented in a way that actually appeals and propels you to covet - a picture tells a thousand-words; and

Making you feel like a part of a community: a special group of you who know better than anyone else what this brand/product does for your wellbeing. Sometimes simply mental wellbeing.

[nzretailgeek]

Absolutely, positively, unmistakeably Smitten

One of my favourite retail futurists, Howard Saunders, recently posted an opinion piece on the rise of Microtowns. This is an entirely new retail concept to me; Howard is famous for making new stuff up, and Howard believes that Microtowns are providing an alternative to the homogenised high streets. Essentially hipster green shoots popping up everywhere.

And whilst I agree with his thoughts on why these Microtowns are becoming an increasing part of our retail landscape, I also think they have been borne from other emerging retail trends including hyper-personalisation, hyper-localisation and social community consciousness.

So what is a Microtown exactly? Well Howard tells us……

The term Microtown was originally coined to describe a place that had near bled to death because its citizens abandoned it to work elsewhere, so that it became a tiny, broken version of its former self; a kind of pre-ghost town.

Howard’s now hijacked the term to describe something far more significant: the nuclei that is the genesis of new communities. Those edge-of-town micro-brewers and food artisans; pioneers building our future, have re-awakened our shopping streets, and in the process, redefined retail itself. They have already shifted the centre of gravity away from the mediocrity at the heart of so many towns.

Read more about Microtowns from Howard Saunders

http://www.22and5.com/forget-the-high-street-microtowns-are-where-the-action-is/#!

It is very exciting that in Howard’s top picks of his favourite Microtowns, Auckland’s City Works Depot is the first mentioned; and this guy travels the world! He was quite smitten with it (and apparently not impressed with much else on offer in town).

I however was smitten with the Proxy

On a recent trip to San Francisco, we fell upon a precinct that is a portable microtown in Hayes Valley. This little container village was a pop of excitement on a dull, wet day; essentially a cohort of experiences “which seeks to mobilize a flexible environment of food, art, culture, and retail” according to the website.

PROXY was born as a response and a solution to the ever-changing urban lifecycle, “existing as a temporary placeholder and an instigator of evolving cultural curiosities in art, food, retail and events.” The design embraces the diversity of a city and encourages the rotation of new ideas and businesses as well as innovative public art installations which come and go like new visitors at the site.

PROXY is home to ultra cool retailer, Aether Apparel which is a technical clothing for men and woman with a clean modern aesthetic. They built a concept space constructed from 3 shipping containers with a custom glass-encased cantilevered lounge and the ultra-cool feature of a belt-driven dry-cleaner style conveyor system for stock (yes I get excited about the strangest things). But the design and experience makes for a truly unique, local store.

Super cool dry-cleaner style conveyor system for stock

True&Co

On the day we were visiting, we got to experience the launch of the True&Co Try-On Truck. True&Co started as a lingerie etailer who wanted to create “a live version of our personal fitting experience, inspired by the 'tiny homes' movement. We wanted women to feel at home in our mobile shop," according to Michelle Lam, True&Co.'s CEO and founder.

The customised space is meant to evoke a boutique filled with "the breezy warm feel of California sun on weathered wood," according to a press release, featuring four fitting rooms for sampling a selection of True&Co.'s well-curated bras. These bras are selected based on the fitting as well as a five-minute Fit Quiz that you take at the start of your process. You can book a free appointment here; any bras you buy will be shipped to your home.

After the launch in San Francisco, the Try-On Truck was off through Northern California and then heading on to Los Angeles. After that, anywhere……

Smitten

Smitten originally started as a truly mobile experience before setting up sticks in the PROXY

What got me super-excited; Smitten, on this day, was a cute little dessert shop, like no other dessert shop you have ever seen. With swirls of fog billowing out of mixers, a Hogart’s style concoction of sheer delight was being crafted inside.

Smitten was the brainchild of founder Robyn Sue Fisher, who really didn’t like how ice cream was made today. The baffling ingredient listings of unpronounceable names compelled her to make an ice cream “closer to the cow” or “new, old-fashioned ice-cream.”

The centre of this experience is the Brr, a proprietary ice cream maker that churns out the good stuff. Made to order, using liquid nitrogen at a super-cold temperature, means the ice cream is far smoother than regular ice cream (a whole science behind it).

The Brrr ice cream machine

This is a wonderful experience as a shopper. From entering the inviting store, to your “Brrister” explaining the process, then handcrafting your ice cream to order, this is the ultimate in perfection.

 What makes this “from scratch” ice cream so delicious is the love and care given to the highest quality ingredients. Partnering with the best-of-the-best local farms and purveyors, they seem to find the freshest and most flavourful ingredients.

Seasonal Flavours

Be smitten yourself http://edition.cnn.com/2013/11/13/tech/innovation/smitten-ice-cream/#

Microtowns are an evolution from the tired, dreary and pitiful state of the worst the retail sector has to offer. They are providing a renaissance of sorts; the craftsmanship, passion and mastery of retail that has been lost with the “stack it high, watch it fly” mass market approach. These communities are rewarding us with a wonderful array of hyper-personalised, hyper-local and hyper-cool products to buy and experience, bringing passion back into the art of retailing - doing it their way.

[nzretailgeek]

The Sephora effect...... The journey and the destination

Everyone is talking 2016 as the year of digital convergence; emerging technologies and business models creating new ways to attract, engage and convert shoppers into buyers. And we all know that the new normal are shoppers in a constant state of partial awareness with mobile phone in hand – just like I am right now, one eye on the kids, one on my iPhone and the fingers typing while I am searching flights to Australia to go see my Dad AND respond to Facebook all simultaneously. So it’s exciting to see when retailers take this digital convergence to a new level of excellence by integrating technological solutions into meaningful opportunities and innovation driven by shopper’s needs and desires. Seamlessly.

Truly engaging the “on my terms” shopper, these in-store experiences are built around the mobile and digitally connected customer and embraces the understanding that they may research online, purchase in-store, or touch and feel the merchandise to purchase online later. But some have evolved beyond that cleverness to a Total Retail interpretation - understanding that the journey is just as important as the destination. Once such player regarded as best in class is Sephora.

Sephora – Digitally daring, innovative, flashy

Sephora continues to embrace Total Retail incorporating technological solutions into many parts of the shopper journey. On a recent visit to their new flagship ‘phyigital’ store in San Francisco, not only can you continue to touch, feel and smell but you can be truly creative and play, explore and imagine many other possibilities to create your best look.

The store in Powell Street opened late November 2015 with the store featuring many solutions and the ability for hands-on experimentation. A key feature is the Beauty Workshop station, where up to 12 customers at a time can take a make-up class taught by team members and supported by video tutorials. The digital Beauty Board; a shoppable screen, is where shoppers can explore user-generated content and find the products they like instore, but go further to filter products best for their skin type and colour. These are supported by Digital Trend Tables that display the store’s best-selling and best reviewed products in real time.

Sephora Beauty Tutorials

Sephora Beauty Work Stations

Fragrance Trend Table

Beauty Studio

Much of this content is repurposed online and on mobile. Shoppers can read product reviews, watch video tutorials and read articles about products. They can also sign up for Sephora Flash, a free, two-day shipping membership.

The Sephora’s mobile app, has an exclusive feature being a “pocket contour” makeup tutorial. It uses a shopper’s photo, and an augmented reality makeover that serves up personalised recommendations based on the user’s skin type and tone.

Pocket Contour Map

Image: FastCompany.com

Which technology is right for my business?

Sephora has a very clear view when it comes to utilisation of technology. It’s not about having the newest flashy gadget, their intention is to “help our clients.”  What most impresses me about Sephora is that they state the obvious and then deliver on it. For example, all Sephora experiences must have information and accessibility that matches the size and purpose of the screen the shopper is using. If you are shopping whilst at home cooking dinner, then the experience must match that.

Just over a year ago, Sephora Innovation Lab was born inside their San Francisco headquarters. 

Their aim: to figure out what a beauty brand looks like in a world changed by technology and how to apply this to their shopper journey; in-store, app, online, wherever. 

Located in a warehouse and outfitted with a mock storefront, the lab is responsible for taking ideas for new products, perfecting them, and launching them. With a focus on teaching shoppers about products and techniques, Sephora understands that today’s shopper is savvy and wants to understand a product, why it will work for them and how to use it. 

Inside the Innovation Lab

Image: FastCompany.com

Showrooming transformed

Taking the Total Retail experience a step further, Sephora has opened its new Flash concept store in Paris; an experience that encourages shoppers to shop online, while they are in the store. Some say “turning showrooming on its head.”

Sephora Flash, Paris

Image: thatsitmag.com

The store is less than a tenth of the size of its largest store yet remains a rich and engaging experience. With approximately 60 products on display, touch any interactive terminal and 14,000 are available to you in an instant.

Nano the Robot can help

Image: Charron.com

Seamless integration is apparent. You can choose a traditional shopping basket or a digital shopping basket from a robot called Nao. This credit card size “Panier Digital” has embedded NFC meaning you can load while you browse and then pay at the checkout for delivery or to pick-up. Physical experiences are still high on the agenda with a lash and make-up bar, then snap a selfie with a connected wall mirror.

Cool, connected, sophisticated.

Digital shopping basket “Panier Digital”

Image: Premiumbeautynews.com

The reality

Yes Sephora is a retail behemoth, but even they understand that in-store technology is difficult to scale. So they treat flagship stores as exactly that, flagships, for a reason. Flagships showcase the best of “what good looks like” and the best of the best of the brand experience. This then allows Sephora to sprinkle this retail magic to other touchpoints throughout their network worldwide, always delivering, or exceeding, the expected “Sephora experience.”

Sephora have confirmed there are plans to retrofit some digital enhancements into older stores. Beacons will be heavily utilised to serve shoppers instore maps, promotions and shopping capability as well as rich content. 

What this demonstrates to NZ retailers is you don’t have to have a one size fits all. That doesn’t make economic or shopper sense. But ensuring that the user experience is seamless and fluid whenever, wherever or however they shop, is critical.

A nimble, holistic and fluid ecosystem, Sephora is making it possible everywhere, that no matter where you’re shopping, you will leave with something.

[nzretailgeek]

Doing the right thing

I think that we as a people are always prone to think about, well, tomorrow will be a better day. Well, why will it be a better day? And I think the more that we believe in doing things better, doing the right thing rather than hoping that that's going to happen, let's make it happen. Bobby Knight 

We continue to grow our appetite for retail with more culturally enriching, harder to come by experiences. We seek authentic stories and search for greater meaning and depth to brands, products and shopping experiences.

Those doing really well in this space in the market where customers understand exactly, “why we do what we do.” They tend to offer experiences that are localised providing a sense of worth, ownership, belonging and wellbeing within a community. These are frequently peppered with sensory experiences and a touch and feel tangibility that takes the brand experience from selling to a sense of pride and purpose.

Demand for retailers to provide ethical products, demonstrate leadership in sustainability and social responsibility and create positive associations for their brand has grown in recent years. Shoppers are smart and see through authentic association vs the cheap talk some brands attempt to deliver as contributing to a better being or worthwhile cause.

Neilsen has reported that beyond the heart space, this is a positive head space for retailers  with 55% of people around the globe prepared to pay more for ethical and good product. 

On a recent trip to Brooklyn, I wandered the streets with a colleague seeking out the new flagship Whole Foods Market store committed to driving innovation and sustainable solutions.

Alas, we couldn’t find what we were looking for as it wasn’t yet open and if we are honest we were actually attracted to the descriptions of views of Brooklyn and Manhattan skyline with Pub Grub at their rooftop restaurant called The Roof.

But some close friends have and I now have an excellent report - At over 5200sqm, the new flagship offers the incredible array of high-quality natural and organic foods synonymous with the brand. But then it takes it up a notch, literally, with a rooftop greenhouse built in partnership with New York’s Gotham Greens.

The store stocks hundreds of locally sourced products with a staggering 200 items locally sourced specifically for this store. Bringing Brooklyn and local to life the store has a café with seating for 250 and a rooftop space for 100 which means it is a true heart of the community, way beyond just a good grocery store.

With its sustainable point of difference centre to the offer the 200sqm garden grows greens, tomatoes and herbs, which are sold instore as well as partnering with local Gotham Greens to run the greenhouse and plans to harvest 150 tons of produce per year.

This is also a Zero Emissions store with six solar canopies providing shade for cars as well as generating 25% of the store’s energy. With wind turbines, grey water reuse, CO2 refrigeration and building materials from reclaimed and repurposed materials, it ticks many “good boxes”.

Image: InsideRetail.com.au Gotham Garden’s The Greenhouse Rooftop Garden

To top it all off there are a couple of speciality sections: a large section of artisan, hand-cut cheeses, a Yuki Ramen bar, a made-to-order juice bar, upscale coffee bar, a rooftop bar with 15 different types of beer on tap and a further 25 more in bottles, a growler station with 10 varieties of beer and an enormous selection of craft beers. My ideal store really.

Whole Foods continues to lead in innovation redefining the meaning of local, experiential and green.

Shopping without waste

Closer to home in Australia, The Source Bulk Foods offers a smaller scale “good” experience.

Delivering a more authentic way to shop the founders built a business based on good healthy foods produced locally and organically. With an insight that health foods were heavily packaged, they knew in their hearts there was a better way. Moving products into bulk in gravity bins, they knew they could make a big difference if unpackaged foods were readily available for shoppers to come and buy as little or as much as they liked, and pack into their own containers.

Now Australia’s largest specialised bulk food provider, the business offers exceptional customer service in addition to their exceptional range. Offering non-food product alongside food, the store brings to life ideas and opportunities to minimise our footprint on this earth while still eating and using nutritious and good products.

I visited their Caloundra store on a recent trip to Australia and was delighted with their simple, clean, modern store layout. It is interactive and the team were fun, knowledgeable and engaging. I felt like I was getting quality food at great prices and doing good for the planet at the same time. Part of my tribe’s purpose really.

And rounding off our selection of doing the right thing, French grocery retailer Intermarche, sprang into action over the 100 million tons of fruit and vegetables thrown away worldwide simply because they are ugly. Intermarche launched the “inglorious fruits and vegetables” campaign to rehabilitate the imperfect fruit or humble vege, selling them in their store 30% cheaper to attract customer to change their ways.

This movement of goodness and doing the right thing is being embraced in a big, big way at every touchpoint on the path to purchase by retailers in response to customer demands and desires.

It is about delivering authentic, meaningful and personalised experiences for shoppers. Retailing with depth, provenance, head, heart and soul.

Shoppers today are seeking retailers and brands that they can trust, provide meaningful experiences, and they want to feel proud of their tribe. If you are feeling that this is an important way for you to embrace your brand just remember that this is about creating genuine connections, sharing and building a community. Shoppers are a clever bunch and will easily detect what is real and what is simply lip service. Be true. Be bold. Be real.

[nzretailgeek]

The retail gift that keeps on giving

In last week’s blog I covered off at a high level of what I believe are the top 5 trends to impact retail in 201. Over the coming few blogs I’ll dive deeper into the retailers who are delivering on these trends in many and varied ways. Indeed they usually exemplify all 5 trends and that is why their retail experience and offer is relevant, engaging, seamless and inspiring.  

First up is retail subscription services, which can be a powerful offerings marrying together all of the key trends. From Dollar Shave Club and closer to home, My Food Bag, to the biggies of Amazon Prime and Netflix, it is proven that a compelling product and outstanding customer service, can result in an amazing business proposition.

I often hear retailers saying “if only I could figure out how to make a part of my offer subscription based, I wouldn’t have to work so hard as I would have a dedicated base of customers.”

However, the good things are usually balanced by the not quite so good.  Subscription services give shoppers a taste of something new and different, often tapping into an unmet need. However, if the product doesn’t ultimately cater, the appeal wears off. For me that was My Food Bag which, at the time, had no gluten free offer.

Subscription offers start with a bang and rise on a rapid wave of shoppers who are eager to try new things. After a while, interest wanes as customers realise they don’t actually need the new thing, or their life has not been improved. A massive sustained effort is required by the retailer to figure out how to reactivate lapsed shoppers and find new ones. Innovation and newness are key for evolution.

Vigga – what if clothes could grow with your child

I was delighted to hear from the founder of Danish brand Vigga at The Big Show who not only embraces many of the key trends in their offer but is also one of the hottest subscription service ideas in the world.

Vigga offers parents the opportunity to dress their kids in high quality, recycled designer clothing, made from sustainable materials, at the cost of only DKK 359 per month (US$52).

The start-up was founded by Vigga Svensson and was based on her values system and belief that we can take better care of our planet by sharing with each other and recycling as much as possible. She started out as clothing retailer for eco-friendly kidswear but realised she wasn’t solving the real problem, which is that using clothes only a few times incurs huge cost and resources. And if you have kids you know just how quickly they grow between the ages of 0-2 and how much life these garments can have beyond your child.

The subscription model ensures that outgrown clothes are reused in an eco-friendly manner.

Image: Vigga

Vigga’s clothing is produced in high quality cotton, in close collaboration with GOTS (the Global Organic Textile Standard) and are original. According to Ebbletoft Group who recently awarded Vigga with an innovation award, “With the aim of ‘closing the loop’, the brand keeps to a zero waste policy, with the idea that the clothes recirculate while remaining attractive and in good condition, thus the focus on high-quality cotton. Garments are always checked for faults and washed at eco-certified laundries when changing owners. Users are advised to handle the clothes in an eco-friendly fashion as well. Finally, when items are worn out, they are sent to recycling.” 

The collections are adaptable to suit children’s growth with trousers and sleeves that can be rolled up or down and necklines that can accommodate various head sizes.

This clever, earth-friendly concept offers parents a whole new way to consume and provides a high-end experience that brings the sustainable circular economy up to the next level. Vigga has ambitions to grow globally and I hope they achieve that goal.

http://www.vigga.us/in-english

Peloton Cycle – the first and only cycling studio streaming live into your home

Now this is so very, very cool and something which would be embraced in many corners of the world. In my youth (well pre-children) I used to be one of the Lycra clad pack of Auckland cyclists.  If you understand Auckland weather and traffic, this can be a less than an enjoyable experience, but a step up from the tedium of cycling alone at home.

I discovered Spin classes post kids which were great, but the timetable never really suited me. Enter Peloton Cycle a well-taught cycling class with trained instructors pushing you hard, in a group environment but in the comfort of your own home.

Founder John Foley developed this experience, available to riders anywhere through a touchscreen tablet mounted on a bike. Choosing from an on-demand service or a live streamed class you can see the instructor, hear the students in the room, ride to the music and monitor your performance. The leader board keeps you pumped to work harder.

Getting a signature Peloton bike will set you back $1995 (US) and a monthly subscription fee for on-demand content is $39/month. On top of that you can buy packs of classes that start with a first pack ride of $20 for new riders ($30 on-off ongoing) up to 20 pack at $650.

If you think about the sheer numbers of people who are moving towards riding a bike as a low-impact workout, then this is gold.

The glitter and the glamour

There’s a bunch of pluses to subscription experiences. They can drive frequency of use and hence increase consumption vs having to source from a bricks and mortar environment.

Being part of a “club” builds a wonderful sense of community and can increase a shoppers’ stickiness and advocacy, which is invaluable. Getting packages and engaging in the process builds anticipation and can make a shopper feel really, really special.

The best of these ventures tap into unmet needs whether it be convenience, exclusivity, being elitist, conscious consumerism, whatever.

So you think you’ve got the next ground-breaking product or service just ripe for the market? I picked up these 3 questions to use as a litmus test to determine if you are going to be the next Nespresso pods.

1. What kinds of products are ripe for change? In addition to existing categories such as nappies, what’s for dinner tonight, razors, what emerging product areas can adapt the disintermediation model? Any product that can support an experience that replaces the in-store experience, through a different channel has potential

2. Why and how shoppers are choosing you? Through online surveys, social media, apps and loyalty program data, you can tap into and assess why your best customers choose your product. Ongoing research can help you track how consumers purchase the products over time to identify the potential of other delivery methods. Don’t assume that an online channel is suitable for all categories. Shoppers are likely to grab their golf balls when checking out golf clubs.

3. What’s the real opportunity here?  So your insights are telling you your idea/product can be used to create a new service delivery approach. Great. But if I can get the products I want with the same quality experience from a retailer I already shop with, why would I switch to a new, unknown product or service?

Be clear on what the purchase process is and probe whether it needs to be reassessed each time it’s purchased.  (If so, it’s unlikely to be a fruitful opportunity). Timing is crucial (I can’t solve that one for you).

But if it passes those two qualifiers and if no one is, then perhaps you should.

#makingretailhappen

[nzretailgeek]

Officially declared: The year of change

Yes that’s right. Many of you are already head-down planning FY17 and how you can stretch your budget to meet those targets. Hopefully you have enough reserves of Vitamin D left over from your annual holiday or have stocked up on enough gin to be enthusiastic, fired up and curious about how you and retail will shape 2016. Officially declared (by me) as the year of change. I know every year is a year of change, but some more than others.

I was fortunate to attend the NRF (National Retail Federation) Big Show Retail Conference in New York in mid-January and it gave me considerably more food for thought than I could digest in -9 degrees. Let’s just say you can’t expect a Brisbane-born girl living in Auckland to own the right wardrobe for strutting the sidewalks in that weather.

This was a record-breaking show with more than 34,000 attendees, 540 exhibitors and days packed with presentations and a chance to meet some of the best retailers and understand a bit about what makes them great.

I returned with my mind full of ideas and opportunities and a chest full of flu, contemplating the power of digital, in particular our smartphones, continuously in hand.

Yes our ‘Smart’ devices ae all knowing. They know exactly where we are, our tastes in food, music, film and fashion. They follow our friends, family, finances, our secrets, our hopes and even our dreams. Yes the universe is in our hands. But while it was a good reminder, it’s not new news. So what else did I glean?

Juanita’s Top 5 Trends #makingretailhappen for 2016

#1 Total Retail

A nimble, seamless, holistic, fluid ecosystem; some are calling this Hybrid Retailing. A wave of exceptional operators are making beautiful things in this space. Some started as pure play or omni operators but have now carved out an exceptional space through their focus on quality, simplicity and connectivity.

Think Warby Parker, Shake Shack, Bonobos. Their physical stores take on a new and elevated role and gone are the days of “stack it high, watch it fly”. These brands understand that the journey is as important as the destination.

Photo: Warby Parker

The in-store experience is often built around the mobile and digitally-connected consumer and embraces the “on my terms” shopper who may research online and then purchase in the store, or “touch and feel” the merchandise in the store and purchase online later.

#2 Digital convergence

2016 is about emerging technologies and business models creating ways to attract, engage, and convert shoppers who live in a constant state of partial awareness. But technological solutions have to integrate to provide meaningful solutions and innovation driven by shopper’s needs and wants. Seamlessly.

For example, we’ve moved beyond the stand alone beacon and it is getting integrated into other retail hardware, such as lighting. And beyond that, the blend of social and digital networks creating new vibrant retail opportunities. Excellent examples include Peloton, Lowe’s, Sephora, and Walgreens.

Image: Peloton

#3 Enriched engagement

This trend is being embraced in a big, big way at every touchpoint on the path to purchase. It is all about delivering engaging experiences from selling to seduction. Authenticity, meaning, depth delivered seamlessly, personalised and with relevancy. Check out the great experiences offered up by Toms, Nixon, Found Muji and Mast Bros Chocolates.

Image: Mast Bros Chocolates

#4 Social community

Shoppers today are social souls seeking trust, meaningful experiences, and they want to feel proud of their tribe. This is about creating genuine connections, sharing and building a community. Eataly for example offer a wider range of beautifully curated product in an immersive experience where you can shop, explore, share, drink, dine and learn.

REI also demonstrates leadership in this space by ensuring shoppers get information and products where and when they desire without compromising on the ethos of the company. Take a look at their #Opt Outside campaign for example which shunned shopping at Thanksgiving and Black Friday and inspired people to get outdoors.

Image: Eataly, New York

#5 Useable Data

This year will be characterised by data and analytics. That’s a line you may well have heard before 2016 but I’m not talking big data. Instead this is the year of smart, useable, meaningful data with the tools and ability to deliver hyper-localised, personalised offers.

Retailers need to get a better handle on who is walking into their stores and to start gluing together the entire journey beyond their digital and loyalty programmes which only tell part of the story.

The North Face provided a demo at NRF show developed in partnership with IBM Watson which would appear to have a great future. After completing a series of questions, taking them through the decision making funnel such as “Where are you going?” and “What activities will this be used for?” shoppers were led to product suggestions based on the answers.  It’s a concept still in development and the next step would be connecting content and ideas back to shoppers, creating lifelong relationships enhanced by machine learning.

Image: The North Face / IBM Watson - www.fluid.com

Under Amour is exploring concepts of connected fitness, with apps tracking training behaviour, gear usage and overall health which will result in recommendations for products as well as building information around trends which could influence product innovation, inventory decision making and refining store curation.

Image: www.bidnestetc.co

Over the next few blogs I will delve a little deeper into these key trends I have identified, bringing to life the good, bad, mad and exciting of what this means in the wider retail eco-system.  So have a read and explore what this could mean for you in your business and how you can make the right changes. This is, after all, the year of change. #makingretailhappen

[nzretailgeek]

Customising convenience – oxymoron or genius?

Fiona Kerr has the good fortune to be a Business Director at retail advertising agency, Hotfoot and regularly gives thanks that shopping is all in a day’s work. 

This week Fiona’s guest blog delves into a questionably culinary experience and she has put her body on the line to bring insights of tasty proportions.

At first glance it seems to be an unlikely coupling - customisation from the king of convenience.

 McDonald's, the brand and the experience is synonymous with fast food, value and above all else, consistency. The same great (debatable) taste no matter which country, city, suburb, time zone or year you find them in.  

But hold the line. They’ve brought to market a premium, tasty, personalised meal. It’s not new, it’s not innovative but hats off to a job extremely well done.

It provides the trifecta of customer experience - accessibility, choice and differentiation. They’ve taken the mundane, no surprises Maccas experience we love to hate and elevated it to something interesting, sensory, yet comfortingly familiar.  

How does it work?

On entering the store you find a line of large format digital screens with "Place your order here" emblazoned across the pixels. Then you start creating your own burger by touching the images and words on screen to select your ingredients. It’s really that simple.

Your creation in 5 simple steps

1.      Choose your bun - brioche, ciabatta, farmers loaf, etc

2.      Get saucy - a range of different sauces - BBQ, tomato, chipotle mayo, aioli, garlic, honey mustard, pesto mayo. The list goes on and on.

3.      Fresh'n it up - add your salad (rabbit food my mother used to call it) pineapple, beetroot, tomatoes, caramelised onions, pickles, lettuce, jalapeños, etc

4.      Turn up the taste - add bacon (crispy or rasher), eggs, mushrooms, tortilla chips and guacamole.

5.      Make it cheesy - Swiss, cheddar, mozza, Parmesan, whatever takes your fancy.

There’s even a diet and allergy requirements section and the touch of a button shows you what ingredients are vegetarian and gluten free.

You can choose to pay by EFTPOS at the kiosk or at the counter and then take your numbered docket and clip it to your chosen seat or you can watch your meal being created at an open serve-over with all the fresh ingredients displayed. The chefs wear “Create you Taste” branded black aprons and chefs caps, standing out from the regular staff. Your burger is brought by wait staff on a wooden board, piping hot with a flagged kebab stick.

What does it mean for Maccas?

More moola: The obvious difference is the price of the burger which is based on a base cost plus the ingredients you add to your creation. While a normal Chicken burger can set you back around $8 my burger was $13.50. For the sake of research I sacrificed my newly implemented diet plan and ordered a grilled chicken burger on a brioche bun with grilled pineapple, caramelised onions, lettuce, Swiss cheese and pesto mayo. Customers are enjoying this new experience, the store is increasing average spend per customer and new customers are being enticed in the door. Result.

Offer shift: I don't think a huge overhaul of in store systems would have been required to implement this new offering – a few more staff, increased stock orders and possibly different cooking techniques, but I bet they didn't need to change very much. The key parts were already mostly there.

Engaging experience: The real beauty lies in the fact that this isn't new news but McDonalds appear to be owning it. Think Tank, Pita Pit, Subway, Dominos, or just about any fast food joint you can think of, have been "making your meal” forever.  But take an existing concept - modernise it, make it just a little bit cool, stick it into a different category with a twist and hey pesto (I couldn’t resist), instant hit! The store was pumping for a late lunchtime mid-week.  I could barely find an open seat and at a guess 80% of the customers were ordering and feasting on customised burgers.  

If I had to be picky, my only critique would be that the experience was a little disjointed. It just didn't taste like Maccas. At all. Which I found surprisingly dissatisfying for this wannabe health junkie. 

If you’re an original Maccas aficionado then ‘Create your Taste’ might not be to your taste. But if, until now, Maccas has never been your thing, you should get right in and buy to try. Oh and of course rate your experience through their new ‘mymaccas’ app.

Post Blog Commentary from Juanita Neville-Te Rito

Kiosks have become all the rage in the QSR segment as I saw first-hand recently in the US. As Fiona has highlighted the self-service nature do provide a new “edge” to the existing offer and this has incredible appeal to digital natives who often don’t want to talk with the sales person behind the counter. They want to control the experience on their terms.

Kiosks are help manage demand in busy periods. I for one know that when I enter a Maccas with my kids the line often makes me want to weep. But this innovation has helped retain me rather than my quick negotiation with my kids that I will give them a pony if we leave and eat somewhere else.

From all the analysis I have seen it would appear that kiosks don’t actually reduce staff head hours. Remember that there is a significant amount of drive-thru that isn’t engaged in this offer to be served. But it does significantly heightens the experience especially in speed of service and perceptions around food quality. There is a cost to this customisation in preparation and food cost, but the enhanced offer should drive in more people, spending more, more often. The retail trifecta. #makingretailhappen

[nzretailgeek]

Christmas Retail Roundup UK 2015

I am a sucker for a good Christmas ad and unfortunately in this hemisphere we do a pretty poor job of it all. I love a good old tear jerker, and UK retailers seem to be alone in pulling this off.  John Lewis tends to be top of the pops.

This year we have high glamour, big production values, captivating music and good old family values of a traditional Christmas all working to try and engage hearts, souls and minds. However I’m not convinced anyone is scoring a bullseye and I certainly haven’t blubbed my way through the Christmas 2015 offerings.

Over to you to make your mind up.

I have featured one of my all-time favourites at the very end as a reminder to retailers of what they should be aiming for when they are trying to capture the spirit of Christmas and engage me in their brand and offer beyond reason. The sweetest Christmas present of all.

John Lewis Christmas TV ad 2015 – #ManOnTheMoon

I follow a great blog “This is Retail” in Australia and they explain that “The Man on the Moon is given depth and edge thanks to its link with Age UK. The idea pivots on the heart-breaking fact that one million elderly people in the UK won’t speak to a single person in the month of Christmas.” There is merchandise again linked to the campaign including a mug, gift tag and card which will all be donated toward the charity Age UK.

Aldi Telescope TVC Christmas 2015

You have to check out the Aldi Parody of this TVC which highjacks the John Lewis creative and takes the piss basically through comparison of the price of telescopes. Genius.

Waitrose Christmas TV ads 2015 – What Makes Your Christmas?

Another homely good old Christmas ad which features celebrity chef Heston Blumenthal and a strapping jazz soundtrack exploring all the ingredients that makes Christmas special in your house.

Sainsbury’s Christmas ad 2015 – Mog’s Christmas Calamity

This is my least favourite of all the ads although it features the much-loved children’s book character Mog as the star of its Christmas campaign. It’s quite a production at 3.30 mins with a new book, Mog’s Christmas Calamity, on sale exclusively in Sainsbury’s stores for £3 alongside a £10 soft toy. Perhaps I have no taste as it has been declared ‘the best Christmas advert ever’ according to Twitter. Apparently.

https://www.youtube.com/watch?v=kuRn2S7iPNU

Harvey Nichols Christmas 2015 – Avoid #GiftFace

Harvey Nichols campaign this year is based on the premise and research which suggests “72 percent of U.K. adults have admitted to pulling “gift face” to save the feelings of a loved one—and 63 percent admit to wearing or using an unwanted gift after Christmas to keep up the pretense”.

Topshop Christmas 2015 – New Supers

Topshop has enlisted the help of eight fledgling supermodels dancing around for Christmas 2015 with a super soundtrack; Bella Hadid, Sophia Ahrens, Imaan Hammam, Malaika Firth, Ella Richards, Marga Esquivel, Grace Hertzel and Aneta Pajak. As each model sports a different style of dress highlighting the retailer’s key pieces for Christmas. I’m sure this will bring the young lasses running.

https://www.youtube.com/watch?v=tW0N15XBbHg

H&M Happy & Merry Christmas TV ad 2015

Katy Perry turns sexy Santa for a festive H&M campaign belting out “Every day is a holiday”. Katy first appears as a fairy before bringing to life a cast of characters, from life-sized gingerbread men, to oversized presents on roller-skates and giant teddybears. Throw in some gorgeous kids and a sexy male model apparently from Taylor Swift’s video. Katy catty side swipe? 

https://www.youtube.com/watch?v=E71sKFD-spQ&list=PLA2E182A856EF9C5F

M&S Christmas TV ad 2015 – #TheArtOfChristmas

Yes another snappy production of product, tunes and smiling, happy faces.

https://www.youtube.com/watch?time_continue=7&v=OrYZEepTQ5M

Boots Christmas TV advert 2015: #DiscoverMore

https://www.youtube.com/watch?v=IJqTd4L1UTI

A lovely bit of glamour but doesn’t pull on the heart string as much as the 2013 TVC which I still think is one of my favourites because of the music

https://www.youtube.com/watch?v=nplrDHgjpQk

The Argos Christmas TV Advert 2015 – #JustCantWait For Christmas

Well just how many products can you swish into a 60 sec TVC. Great focus on same day and instore click and collect.

https://www.youtube.com/watch?v=CBYDvRDlsrQ

But not a tear rolled down my cheek this year. Christmas fail? I wouldn’t go that far as there are still some lovely productions to try to capture the hearts, minds and wallets of shoppers. Nothing like good old family traditional values or show stopper glamour to make you feel good parting with you precious dollars.

Next blog I will explore the delights that our own backyard has served for us, but I’m happy and tearful to wrap up with a fine example of what a real Christmas ad should do to you. Apple Christmas 2013 gets me every single time.