REimagining                            the retail store – thought starters from                            the shopper’s p...
Who we talked to                            2200                            US Adults                                     ...
What we asked them                                    What stores do shoppers like to visit and why?                      ...
What we learnedWednesday, March 23, 2011
Writing the obituary for                            the retail store is very                            premature…Wednesda...
But the relationship between the retailer and the shopper has changed                            Past:                    ...
Understanding the new landscape for retail stores                            8               DYNAMICSWednesday, March 23, ...
Key Finding                 Shoppers organize stores in terms of                                the experiences they want ...
Shoppers distinguish 6 types of stores                            Price led                                            All...
How shoppers cluster stores:    Buying vs browsing; self-directed vs retailer-guided                                      ...
“Price Led” stores                                                              Buying                                    ...
“All About Atmosphere” stores                                                 Buying                                    Al...
Key Finding                            2   It’s not just about price,                                shoppers want everyth...
Price is important.                                                But so are quality and                                 ...
Key Finding                                Shoppers are disappointed in                            3   retailers’ ability ...
What matters most to shoppers: Importance            Convenient location                                              61% ...
What matters most to shoppers: Delivery            Convenient location                                                47% ...
Key Finding                 Shoppers are largely unimpressed with                            4                            ...
Shoppers want more                            Old school                            (Acknowledgement)                     ...
They want real help to make better informed decisions                               Easily accessible information in the s...
Key Finding                            5   Shoppers are promiscuous.                                They shop around.     ...
Loyalty to retailers is, for the most part, notably weak.                                                                 ...
Loyalty programs have a role, but what         really keeps a shopper interested is a         new and fresh experience    ...
Key Finding                                               Eataly, NYC                            6                        ...
Physical stores perform better than the web                  in several functional and emotional ways                   Th...
Physical stores should be able to                             offer experiences beyond the                                ...
Stores can become meeting                     and gathering places for                     like-minded enthusiastsWednesda...
Stores can offer learning                            and participation                            opportunitiesWednesday, ...
Key Finding                 In-store technologies are often not                                delivering on their promise...
Technology can enhance a shopper’s relationship with the store if   it delivers an enriching experience.                  ...
In-store technologies are being used to deliver on basics,    but at the expense of emotional engagement between the shopp...
In-store technologies are being used to deliver on basics,    but at the expense of emotional engagement between the shopp...
In-store technologies are being used to deliver on basics,    but at the expense of emotional engagement between the shopp...
Technology can be used                             to help establish trustWednesday, March 23, 2011
Technology can be used to                               reinforce the breadth of                                      sele...
Physical stores need to be made relevant with    Key Finding                 the Internet. It’s not stores or Internet, it...
Product                                                  email                            In-store                        ...
To concludeWednesday, March 23, 2011
8                      DYNAMICS                            ‣   Shoppers organize stores based on the experiences they want...
Let’s get                            started!Wednesday, March 23, 2011
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What do shoppers expect from their stores?

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What do shoppers expect from their stores?

  1. 1. REimagining the retail store – thought starters from the shopper’s perspective NRF Innovate 2011 Dr Alan Treadgold Global Head of Retail Strategy Leo Burnett GroupWednesday, March 23, 2011
  2. 2. Who we talked to 2200 US Adults Online Survey 40 Retail Brands June 2010Wednesday, March 23, 2011
  3. 3. What we asked them What stores do shoppers like to visit and why? What makes stores interesting and inviting to shoppers? What are their expectations for personal service within the store? What role does the store visit play within the overall shopping process? What role does price play when shopping in a retail store? How synergistic does the store need to be with other shopping channels? How does the use of technology influence and enhance their store visit?Wednesday, March 23, 2011
  4. 4. What we learnedWednesday, March 23, 2011
  5. 5. Writing the obituary for the retail store is very premature…Wednesday, March 23, 2011
  6. 6. But the relationship between the retailer and the shopper has changed Past: the store managed the shopper’s experience Today: the shopper manages her own shopping experience, in-store and beyondWednesday, March 23, 2011
  7. 7. Understanding the new landscape for retail stores 8 DYNAMICSWednesday, March 23, 2011
  8. 8. Key Finding Shoppers organize stores in terms of the experiences they want to have, 1 not just the merchandise they want to buyWednesday, March 23, 2011
  9. 9. Shoppers distinguish 6 types of stores Price led All about ease Low prices important, self service can help. Convenient locations. Get what you need in time. Convenience and good return policies. Store May include self-service. Dont tend to have good environment lacks inspiration. Service can be return policies. Dont offer inspiration, but doesnt lackluster. In-store experience doesnt offer much matter. High penetration and frequency in physical that consumers cant find online. store. Lowe web penetration. All about atmosphere Ideas led Extraordinary in-store experience. Fun for A bit experimental. Have greater product selection consumers, even if they dont buy. Dont tend to than other cluster. Appealing displays. Offer fresh sell wide array of products. Prices thought to be ideas and unique products. high. Price plus Efficient errands Good value on what they sell. interesting place to Convenient locations with decent service. shop, but not as much so as other clusters. knowledgeable sales people. Lack interesting Frequently add new merchandise. Shoppers take environment. Seen as pick-up places. their time. Offer a more seamless online and offline experience.Wednesday, March 23, 2011
  10. 10. How shoppers cluster stores: Buying vs browsing; self-directed vs retailer-guided Buying Price Led All About Ease Price Plus Efficient Errands Self Retailer Directed Guided Ideas Led All About Atmosphere BrowsingWednesday, March 23, 2011
  11. 11. “Price Led” stores Buying Neighborhood Market by Walmart CVS Walmart Price Led Sears Target Best Buy TJ Maxx Self Retailer Directed Guided BrowsingWednesday, March 23, 2011
  12. 12. “All About Atmosphere” stores Buying All About Self Atmosphere Retailer Directed Guided Nordstrom Barnes and Noble Aberchrombie Pottery Barn Williams Sonoma Tiffany’s Bass Pro BrowsingWednesday, March 23, 2011
  13. 13. Key Finding 2 It’s not just about price, shoppers want everything else too.Wednesday, March 23, 2011
  14. 14. Price is important. But so are quality and experience. Price is the most important consideration in choosing a brand. 36% The most important thing when shopping is to find high quality products. 42% When it comes to stores, it’s important to me to go to those that have high quality products and excellent service. 42%Wednesday, March 23, 2011
  15. 15. Key Finding Shoppers are disappointed in 3 retailers’ ability to deliver the basics. inability?Wednesday, March 23, 2011
  16. 16. What matters most to shoppers: Importance Convenient location 61% Great selection of products 59% Store I can trust 59% Items in stock 56% Has good value for the money 55% Right mix of products 55% Has a consistent online and in-store return policy 54% Makes shopping quick and easy 53% Good range of prices on the items I shop for there 53% Prompt service 52% Keeps prices lower than the competition 52% Top-3 box agreement scoresWednesday, March 23, 2011
  17. 17. What matters most to shoppers: Delivery Convenient location 47% 61% Great selection of products 47% 59% Store I can trust 50% 59% Items in stock 40% 56% Has good value for the money 39% 55% Right mix of products 43% 55% Has a consistent online and in-store return policy 42% 54% Makes shopping quick and easy 43% 53% Good range of prices on the items I shop for there 40% 53% Prompt service 38% 52% Keeps prices lower than the competition 33% 52% Top-3 box agreement scoresWednesday, March 23, 2011
  18. 18. Key Finding Shoppers are largely unimpressed with 4 in-store service. It’s not just the delivery that’s weak – it’s the service proposition itself.Wednesday, March 23, 2011
  19. 19. Shoppers want more Old school (Acknowledgement) New school (Relevance)Wednesday, March 23, 2011
  20. 20. They want real help to make better informed decisions Easily accessible information in the store 46% Help when they need it, but to be acknowledged and left alone when they don’t 40% Service personnel who are insightful and well informed 49% Don’t want to wait 52%Wednesday, March 23, 2011
  21. 21. Key Finding 5 Shoppers are promiscuous. They shop around. Their loyalty has to be earned every visit, not just bought with a card in their wallet.Wednesday, March 23, 2011
  22. 22. Loyalty to retailers is, for the most part, notably weak. Loyalty is limited even among a store’s current shoppers. 52% 48% Definitely prefer to go to this store or a Don’t have a strong preference competing storeWednesday, March 23, 2011
  23. 23. Loyalty programs have a role, but what really keeps a shopper interested is a new and fresh experience each time they visitWednesday, March 23, 2011
  24. 24. Key Finding Eataly, NYC 6 Shoppers look to stores to deliver what the web cannotWednesday, March 23, 2011
  25. 25. Physical stores perform better than the web in several functional and emotional ways The physical store is better than their website for… Average store Getting it 51% Stores excel at being pick-up points and time savers. Returning it 47% They do relatively poorly when it comes to stimulation and learning. Saving time 42% Stimulating or entertaining me 32% Learning about brands or products 26% Saving money 25%Wednesday, March 23, 2011
  26. 26. Physical stores should be able to offer experiences beyond the reach of the webWednesday, March 23, 2011
  27. 27. Stores can become meeting and gathering places for like-minded enthusiastsWednesday, March 23, 2011
  28. 28. Stores can offer learning and participation opportunitiesWednesday, March 23, 2011
  29. 29. Key Finding In-store technologies are often not delivering on their promise of a better 7 shopping experienceWednesday, March 23, 2011
  30. 30. Technology can enhance a shopper’s relationship with the store if it delivers an enriching experience. Technology for efficiency Technology to deliver more enriching, engaging experiencesWednesday, March 23, 2011
  31. 31. In-store technologies are being used to deliver on basics, but at the expense of emotional engagement between the shopper and the retailer Buying Self Retailer Directed Guided BrowsingWednesday, March 23, 2011
  32. 32. In-store technologies are being used to deliver on basics, but at the expense of emotional engagement between the shopper and the retailer Buying Quick and easy self- service checkout Welcomes, tries to enhance my cell phone use during A place to go pick up in-store shopping something Ive already learned about online Kind of store where I go on their website on my cell phone Has put lots of technology while Im in the store in the store to improve my information access Makes it easier to order online & pick-up products at the store Self Retailer Directed Guided Allows me to shop online but return in-store It’s easy to move between their website and store - a lot of synergy between them BrowsingWednesday, March 23, 2011
  33. 33. In-store technologies are being used to deliver on basics, but at the expense of emotional engagement between the shopper and the retailer Buying A store I can trust I can learn more about the merchandise in the actual store than online or catalog Has figured out how much or little interaction I want with the sales staff & has gotten it right Self Retailer Directed Guided When I leave the store, I always feel good - like I got something out of the experience above & beyond any products I may have purchased The kind of store where I go there more because I want to than because i have to BrowsingWednesday, March 23, 2011
  34. 34. Technology can be used to help establish trustWednesday, March 23, 2011
  35. 35. Technology can be used to reinforce the breadth of selection Adidas virtual footwear wall features 4000 styles of shoes, and links to Twitter and FacebookWednesday, March 23, 2011
  36. 36. Physical stores need to be made relevant with Key Finding the Internet. It’s not stores or Internet, it’s stores and Internet 8 +Wednesday, March 23, 2011
  37. 37. Product email In-store support web offer In-store sale Recycle emailWednesday, March 23, 2011
  38. 38. To concludeWednesday, March 23, 2011
  39. 39. 8 DYNAMICS ‣ Shoppers organize stores based on the experiences they want to have ‣ It’s not just price – they want it all ‣ They’re disappointed in retailers’ inability to deliver on the basics ‣ In-store service is a real opportunity ‣ Loyalty has to be earned thru better in-store experiences ‣ They’re looking to stores to deliver what the web cannot ‣ In-store technologies are not delivering on the promise ‣ It’s not stores or web, it’s stores and webWednesday, March 23, 2011
  40. 40. Let’s get started!Wednesday, March 23, 2011

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