THE WSL BLOG

Around the retail landscape.

[wsltempate-blog]

An indoor-outdoor marketplace in a revitalized area of Copenhagen combines a mouth-watering mix of food stalls, diverse dining options, and intriguing stores for beauty and home.

There’s lots of inspiration on where and how to sell diverse product categories, merchandise creatively and entice shoppers to buy more than their weekly fresh produce.

[wsltempate-blog]

WSL Chief Shopper, Wendy Liebmann took a recent LA trip which turned out to be a welcome relief from the hubbub of the holiday shopping season.  That wasn’t because she didn’t spend time checking out LA retail. She did.  But rather than the retail, she enjoyed how LA offered few, if any sales, and was instead empowered by unique customer experiences.  Read on to hear what she has to say…

LA LA LAND DELIVERS GREAT RETAIL I don’t want to suggest that Los Angeles was free from holiday clutter. All you have to do is wander through the Beverley Center, along Rodeo Drive or Robertson Boulevard to be immersed in jingle everything, glitter galore and sales upon sales. However, this trip I spent most of my time in places that neither jingled nor glittered. Rather they were friendly, soulful and inspiring. Places where, more than the deal or the stuff, it was the people and the experience that made the difference.

OLD WORLD MARKET TEACHES NEW LESSONS Lately, it seems that every time I “ooh and ahh” about retail it’s a food experience. Here I go again. In downtown LA, near the newly hip cultural strip that is home to The Broad art museum, LACMA (Los Angeles Contemporary Museum of Art) and the Frank Gehry designed Disney Concert Hall, is Grand Central Market, a 100 year old market filled with food of every kind and jam-packed with people.

On a Sunday afternoon, lines at Eggslut and Ana Maria (tacos) wound round the market. You’ve never seen such diversity of people – age, ethnicity, hipsters, locals, multi generational families, all hovering over food-filled tables, or singles sitting at a bar sipping local craft beer and surveying the scene. Strangers chatted to each other, discussed food and the state of the world with equal intensity. Those who worked the stalls shared recommendations, told a story, or just kept the line moving. No sales, no deals. Just fair prices for exciting, intriguing fresh food and a dynamic experience filled with great smells, colors and lots of neon signs. There’s a lesson here: offer a differentiated mix that surprises and delights, at good value; deliver it in a simple, authentic way and you’ll have a compelling experience that shoppers flock to…for a 100 years.

SPECIAL STORE = SPECIAL EXPERIENCE

Shinola is a design company that emerged out of the ruins of Detroit, MI. It creates and sells a select range of products manufactured in the US. When founder, Tom Kartsotis, shared his idea to sell finely crafted products, like watches and bicycles, made in Detroit, potential investors scorned him, such that he is said to have replied, “You don’t know S—T from Shinola” and the company was born. It now has stores in major cities around the world. We wandered into the store in Silver Lake, smitten from the sidewalk: a chalkboard sign invited us in to see the Allbirds pop-up and a bronze bike suspended in the win-dow glowed in the afternoon sun. From the moment we walked in we were immersed in the smell of leather and fresh pine trees and music (a mellow jazz version of “It’s A Charlie Brown Christmas” played on a redesigned record turntable). That’s all it took for us to stop and buy. What really made the difference here was not the product. It was the smell, sounds and the easygoing people, passionate about the brand.

EVEN A MALL CAN CREATE MAGIC

While malls have struggled to re-establish their value to shoppers in a digital age, there’s one mall owner who really knows how to keep his malls relevant and shoppers engaged. It’s Rick Caruso who owns LA’s The Grove in Pasadena and the Americana at Brand and the adjacent Galleria in Glendale.

The Grove and Americana are outdoor malls with a town square, fountains with music and light shows, a tram, shops, food, theaters and lots of other entertainment. That’s why people go to the mall today – for an experience they can’t get online. Caruso creates a show everyday at his shopping centers not only at Christmas. That’s what makes the experience worth the visit.

THE GROCERY STORE TAKES THE STRESS OUT

A few months ago, I talked about Whole Foods’ new concept, 365, that opened in Silver Lake, CA. On this second visit, I was reminded how compelling this small format grocery store is. It offers a well curated, easy to shop experience, fresh, organic produce, mostly Whole Foods’ 365 brand packaged food, health and personal care, fresh made takeout, wines and liquor. Here, the people are terrific. Happy to chat, answer questions, tell you about a new product or show you where something is. There’s much less product, slightly lower prices and less overall service than in a traditional Whole Foods, but this doesn’t matter. In fact, it is a welcome and friendly respite from the hustle and bustle of a big supermarket.

So as we move into 2017, my call to action is for more meaningful experiences – not more deals. Shoppers know how to get those. They expect more of you if you expect them to come more often and spend more.

Happy Holidays and a Joyous, Glorious 2017!

[wsltempate-blog]

The election has not brought the calm that we had hoped for. We are still barraged with hourly crisis that leave half of shoppers distraught and the other half with high expectations for quick change. But what unites all shoppers in this post-election season is that they are anxious and distracted, and that is a problem for retail.   

Here is a prediction we are sure of: Following this election there will be months, probably years of prolonged uncertainty, and uncertainty makes shoppers anxious about spending.  

WSL’s How America Shops® research has tracked shoppers behavior for years, and there are certain truths you can count on:

1. Anxiety means less spending.

We don’t have to go back further than the recent Great Recession just 8 years ago to see the pull back in shoppers’ willingness to buy.  A fear of spending crossed all demographics.  

In 2008, a mindset that we called the cautious pause informed every shopping decision for most shoppers.  58% of shoppers agreed with the statement “Before I buy something I stop and ask myself ‘is this a smart use of my money?”  It has taken a full 7 years for that cautious pause to decline 10 percentage points to 47% at the end of 2015, and yet retail sales of CPG products are still depressed with growth at fewer than 2%.

The lesson to carry forward today is clear: When shoppers get anxious and distracted shopping suffers.

2. The shoppers who are driving the most retail growth are shoppers who are most anxious.

The many niche segments of minority shoppers who have been driving retail growth, such as Hispanics, are living under a cloud of uncertainty. There is not likely to be retail therapy for this group.

This is why retail sales growth continues to be challenging.

[wsltempate-blog]

The recently released projections from the 2016 holiday selling season are positive and reflect the economy’s overall stability and growth.  In all, an encouraging forecast.  However, shoppers are disillusioned and feel there are not a lot of distinctive and compelling choices when it comes to shopping (or politics for that matter).

In our latest How America Shops® survey we’ve noted some worrisome indicators that may well impact the season.  Throughout 2016 we have seen that there are issues that will continue to impact – even rattle – retailers over the holidays, into 2017 and beyond.

In our most recent study, entitled “How Mediocrity Undid Shopping,” we asked 2,600 shoppers around the country to evaluate 13 industries (from Financial Services, Automotive, Electronics to Health, Beauty, Food and Fashion…and the Government), 44 product categories and 45 retailers on a wide range of attributes (from value to empowerment to honesty to differentiation, and more). What we found was what we called a “lack of respect” for shoppers.

On average, only one-third rated the industries as delivering what they promised, empowering shoppers to make the right choices, or being fair in the prices they charged. The worst rated (no surprise) were the Government, the Pharmaceutical Industry and Insurance Companies. The better ratings (still only by a minority) were Electronics, Food and Beverage, Retail and Clothing.

In this report we recommend that brands and retailers break the cycle of weak sales by refocusing on the principles that make shoppers excited to browse and buy - Respect, Fairness, Honesty, and Trust.  

Here is some of what you will learn in “How Mediocrity Undid Shopping”

Understand the pillars of shopping that have been neglected: respect, fairness, honesty and trust

See the ranking and scores on these measures across 13 industries, 44 categories and 45 retailers

Learn what brands and retailers need to do to restore growth to American Shopping

Walk away with best-in-class examples of brands and retailers who have risen above mediocrity

     For more information on the full report, click here.

[wslstrategic]

Shopper Insights Series: Getting Shoppers to Switch to Your Brand

Between one-quarter and one-third of shoppers are open to trying new brands they find in a brick and mortar store, particularly in the categories of sun care, baby care, home fragrance, men’s grooming.

Through smart shopper marketing, brands can drive consumers to switch brands while at the shelf. In this edition of ECRM/WSL Strategic Retail’s Shopper Insights Series, WSL President Candace Corlett discusses how new brands can be a “brand interruptor” and influence shoppers to give them a try.

Previous Shopper Insights Videos:

Addressing Cost-Conscious Shoppers

How Mobile is Changing the Way Consumers Shop the Store

[wsltempate-blog]

In the past year, we’ve talked to 10,000 shoppers, tracked 50+ categories, analyzed 150+ retail formats, and interviewed over 100 retail executives. After sifting through all those insights, we’ve put together 5 key trends that you need to know (and act on) to thrive in 2018 and beyond:

1.New retail settles in and it’s made up of smaller stores, local places, discount spaces, and of course, digital. These fringe channels are stealing your share, one shopper at a time. (You cannot sweep it under the rug any longer.)

2. Digital redefines the trip. It means faster trips, less trips, less browsing, and smaller baskets. (No wonder retail sales are sluggish.)

3. There’s a new shopping world of predictable contradictions. She feels financially more secure, but growth remains slow. (And it won’t change ‘til you sell her what she really wants – an easy, stress-free, financially secure life.)

4. Shoppers accept mediocrity, but not by choice. She has 2-3 name brands that she switches between because they are equally “good enough.” Nothing but low price differentiates one from the next. (But beware: what is shaking up the shelf are those niche ankle biter brands.)

5. It all comes down to Happiness. It’s why she shops in the first place. Amazon, Publix, Costco, Sephora are at the top of her list of retailers that make her feel good. Far down the list are the drug chains. To success in 2018 and beyond you must recognize a new retail world is here and the opportunities to thrive are endless. She wants it fast, easy, and differentiated. Can you move beyond promotion to add real value? Can you accept that iterative innovation no longer works? How will you deal with fringe channels and ankle biter brands stealing your share? Are you agile enough to cause disruption? Do you know her well enough to deliver happiness?

source: WSL POV 2018-2020