Your brand, your consumer and the future of retail

The heart and soul of retail is human.

We can be easily distracted by the hard data: storied brands are closing; Amazon’s market capitalization is now more than that of Walmart, Costco, Target, Macy’s and Kohl’s combined; and the “revenue cliff” is making any sort of rally in 2017 seem unlikely.

But at its core, the retail trade—online or otherwise—is about a shared experience between a merchant and consumer. The immediate time, place and quality of that experience will be shaped more by sentiment than spreadsheets.

This reality was reinforced by industry leaders during Retail Summit 2017, the annual conference co-hosted by the Columbus Chamber of Commerce and Franklin County. Regardless of discipline or geography, the message was clear: the future of retail rests on engaging the senses of customers.

“I challenge you to think how you can use your retail space to be a part of someone’s life, to empower them,” said Alison Embrey Medina, editor-in-chief of design:retail and one of the Summit’s featured presenters.

"Be experimental, be experiential— but most importantly, be human."

You wouldn’t be blamed for assuming that Amazon and ecommerce are the main catalysts behind the current upheaval in brick-and-mortar retail.

Of income and internet

You wouldn’t be blamed for assuming that Amazon and ecommerce are the main catalysts behind the current upheaval in brick-and-mortar retail. After all, our buying habits have changed dramatically during the last twenty years: we can now order in a few minutes, with a smartphone, from the comfort of our couch, what used to involve a two-hour trip to multiple stores.

Right?

“We exaggerate the impact of the internet on retail sales,” said Yaromir Steiner, CEO of real-estate planning and development company Steiner + Associates, and one of the chairs of Retail Summit.

“It’s only about 12 percent of total retail sales.”

According to Steiner, a different trend during that same period has had a greater influence: the migration of income from the lower 90 percent of the U.S. population to the top 10 percent.

“If you give more money to (the rich), they’re not going to spend more, they’re not going to buy more jeans,” he said. “That’s the shift that happened. We builders and developers did not know what was happening and we were building (stores) all that time as if nothing was changing.”

Your identity, messaging and overall personality should be in lockstep no matter how, when or where a consumer experiences it.

A vision that inspires

So how can retailers truly differentiate themselves with a unique customer experience? The process boils down to two basic priorities: create a 360° brand, and understand how you fit into a shopper’s journey.

Most retailers already have what we typically define as a “brand.” However, your identity, messaging and overall personality should be in lockstep no matter how, when or where a consumer experiences it.

That requires a comprehensive, full-circle view of your business: its physical store environment, website, email, print and social media presence should all reflect an aesthetic, mood and tone that resonates with customers.

"Experiential is the silver bullet that is going to save retail,” according to Ignaz Gorischek, vice president of architecture at CallisonRTKL.

"We will need to stimulate all five senses: embrace technology, but not have it replace sales associates or displace the service model."

Finally, a clear focus on the desires, needs and challenges present in the daily lives of consumers is vital to spurring action and creating a sense of urgency.

What makes up the typical person that walks into your business? How would you describe their personality, interests or habits? What inspires them?

Retailers’ curiosity and ability to explore these questions will be pivotal factors for the immediate future. We’ve already seen, for example, that demonstrating a social conscience or community involvement can lead to profit as well as cultural impact.  

"As merchants and brands, we want to stay with our customer through the whole cycle to ensure that their needs are being met," said Marcy Schaffir of Lane Bryant.

“You have to always be moving forward.”