What do a leading property developer, the queen of cupcakes, a fashion designer and a department store president have in common? They’re all on the leading edge of retail innovation.
Each has an impressive track record, making them a perfect fit to discuss how brick-and-mortar will thrive in the 21st century in the opening keynote at Retail’s BIG Show. The panel includes Caruso Affiliated Founder and CEO Rick Caruso, fashion designer Rebecca Minkoff, Sprinkles Cupcakes founder Candace Nelson, and Nordstrom President Blake Nordstrom.
Three of our panelists weighed in before the show, discussing what they think are important factors in the reimagination of Main Street. Read on to learn more about these business leaders’ take on the store experience, what innovations they find most exciting, and how community building has evolved in retail.
The days of offline and online retail being mutually exclusive are gone. What does it take to keep brick-and-mortar growing and successful in the digital age?
Caruso: Brick retailers must realize that they are also in the hospitality business. Retail’s strength has always been providing hands-on service and its future is ensuring a first-class experience for every customer. At our properties, guests stay three times longer and spend nearly double the industry average – because we invest in strong service and important details that make guests feel welcomed, valued and respected.
Minkoff: There’s something to be said about the experience that you get at a brick-and-mortar store. It’s great to go and try on pieces and get face-to-face customer service. At a physical store, it’s important to build out the full customer experience. At our Holiday New York City pop-up shop for instance, we have great innovations happening to keep customers coming back. We are doing a blow-out night with TRESemme, a brow bar night with Benefit, and other fun in-store “parties” to keep our customers coming back for more.
Nelson: It is key to offer customers not near your retail stores a way to get your products. Make the shipping process easy and seamless for them with a simple online order form. At Sprinkles, we found that overnight shipping of our ice cream is very expensive. We subsidize 50 percent of shipping costs for our customers to get the product in their hands. Even though we incur a slight loss, we believe in the marketing component of our product being in home freezers nationwide! It’s also important to give customers a reason to visit your brick and mortar shop. Keep your retail location special with stellar customer service and offerings that can only be found within stores.
What’s one innovation in retail that gets you excited about the future of the industry?
Caruso: Time is today’s greatest luxury and time-saving innovation is the future of physical retail: sales associate’s access data on a customer’s preferences, direct her to products tailored to her lifestyle, and complete the sale on her mobile phone. This totally transforms the shopping experience: personalized service on your timetable, in any store in the country, with no waiting in line.
Minkoff: It’s hard to pick just one- I feel like retail is constantly evolving and changing. One interesting innovation that I was just involved in was a digital store front with eBay at a mall in San Francisco. Customers had the online experience at a store. Shoppers interested in buying or browsing from these storefronts can touch the glass, and select from roughly a hundred pieces of merchandise. If they choose to buy any items, they can proceed to checkout by pushing the order to their mobile phone.
Nelson: Automation and robotics. We launched the world’s first Cupcake ATM last year and it has been a hit with our customers who specifically use the machine to purchase cupcakes rather than walk inside our bakery. On the back end, we are thrilled to offer cupcakes and cookies 24 hours a day to our customers without having to pay our staff 24 hours a day.
How has the concept of building community and engagement evolved for retailers over the last five years?
Caruso: Physical retailers are embracing their role as the lifeblood of local communities. In an increasingly digital world, Americans crave real, in-person connections and ownership in the well-being of their communities. From supporting local causes to creating social spaces for people to meet and interact, retailers are reasserting themselves as the heart of American towns and cities.
Minkoff: Right now, social media is key to building a community around a brand. I have a community that I didn’t have five years ago. Now I can post a picture of a bag on Instagram and get automatic feedback on what my customers like, love and are utterly obsessed with. User feedback is vital to growing a lifestyle brand.
Nelson: Five years ago, social media was just starting to explode. We could essentially drive traffic to our stores with any post on Facebook and Twitter. Today, the large spread of social media platforms and rise in social media advertising has made this far more difficult. That is why we are constantly working on creative new ways to engage with our customers, whether it be through charitable donations, sneak preview events, off-the-menu flavors and more.
Craving more retail insights? The conversation will continue at Retail’s BIG Show, January 12 – 15, in New York.