The document summarizes observations from visits to 6 retail locations ranging from luxury to discount. Key findings include that higher-end stores like Nordstrom and Barney's focused more on atmosphere and experience through features like design, restaurants, and leisure areas. Middle brands like GAP and American Eagle emphasized customer connections and value through signs, fixtures, and greetings. Lower-end Nordstrom Rack prioritized utility and efficiency over experience. Overall, Barney's provided the best experience through use of negative space, while American Eagle had the best customer service.

1. OBSERVATION LAB
RETAIL AND THE CUSTOMER EXPERIENCE

2. 6 RETAIL LOCATIONS WHERE CANVASED TO FIND
INSIGHTS FROM THREE AREAS:
• The atmospherics and its use in guiding the customer experience
• The employee to customer interaction
• The customer wants and responses to value

3. RETAIL LOCATIONS RANGED FROM LUXURY TO
FAST FASHION / DISCOUNT
• Nordstrom
• Barney’s New York
• JNBY
• GAP
• American Eagle
• Nordstrom Rack

4. NORDSTROM
• In my observation of Nordstrom not only was it the most luxurious and expensive
of the brands, but also had the most dedication to a diversified set of
experiences.
• Notable features:
- Multi level building with different experiences and design to cater to different
demographics.
- Bar and Restaurant in store, adding to the multisensory experience of going to a
Nordstrom.

5. NORDSTROM
Adding places of leisure gives the customer an opportunity to indulge in the overall
experience… creating a kind of laissez faire atmosphere.

6. NORDSTROM
• Had five levels with the design differing on each one to change the atmospherics
and customer experience.
• Most notable among these floors where:
• Women’s Designers
• Lifestyle and Brand Partnerships

7. NORDSTROM
• The women’s designers floor: All white,
reflective floors, brighter lights, and birch
accents.
• Creates a space for the
clothes to take center
stage.
• Contrast this with…

8. NORDSTROM
• Notice the wood ceiling,
warm lighting, clover covered
green pillar, and brown floor.
The atmospherics invite one
to welcome the merchandise
into their lifestyle.
• Nike Partnership plaque in rose gold
reaffirms the distinction and luxury
customers have come to expect from
Nordstrom.

9. NORDSTROM
• Guests were middle age
professionals. They all
appeared affluent.
• Staff took a very laid
back approach to
customer
engagement. Took
me about ten
minutes to be
greeted.
• Music was very subtle. No
apparent scent.
• Security was highly visible
in the entrance. Cash
registers were located in
various couture zones.

10. BARNEY’S NEW YORK

11. BARNEY’S NEW YORK
• Of the six brands I observed – Barney’s was the only one who made use of
negative space and provided the best over all experience for me.
• Let’s take a look at some of the reasons why.

12. BARNEY’S
NEW YORK
• Main lobby is very open
• Amber lighting, soft music, and
ambient temperature.
• Employees are center and
greeted me immediately.

13. BARNEY’S NEW YORK
• Their second floor apparel
makes use of negative space
brilliantly with a sophisticated
suspension system for the
clothes. Contrasting white
space with black reinforcement
beans and bright lighting
makes for a luxurious –
industrial – edgy feel that
recalls the backstage of a
runway show.

14. BARNEY’S NEW YORK
• One employee described the brand to
me as, “THE place for up and coming
designers.”
• Customer demo was young
professionals in their early to mid
twenties.
• You felt like you were a part of the
emerging change in the fashion
industry.

15. JNBY
• Unlike Nordstrom and Barney’s,
where there was a premium put
on exclusivity and closed doors,
JNBY in contrast was minimal,
warm, airy, welcome – with open
doors.

16. JNBY
• The contrast of white
with gold/black
highlights the nature of
JNBY / designed luxury
with the motto “just
naturally be yourself.”

17. JNBY
• JNBY was the first
store I visited
where I found a
save rack of
discounted
merchandise.
• JNBY felt like the
perfect
approachable
high end
department store.

18. JNBY
• JNBY was welcome, I was greeted immediately.
• The employee let me walk around and enjoy the experience without interfering.
• Fitting rooms were located in the center of the store.
• The music was noticeably louder here, a trend I found while observing. There is a
negative correlation between price and sound (higher priced stores had lower
music volumes whereas lower priced stores had higher music volumes).

19. GAP

20. GAP

21. GAP
• GAP marks a clear delineation of value proposition and customer wants.
• Doors are open and for sale sign is clear at front of entrance to draw customers
who are looking for a bargain.
• There was no music in the store at the time I went (apparently their amp broke).
But from past visits the music has been very loud.

22. GAP
• Less focus was put on the atmospherics
of the space. Harsher lighting, louder
music.
• Most of the design space was modular,
and heavily branded.
• Drew a wider demo – saw families,
college kids, moms, etc. Mainly middle
class.

23. GAP
• Merchandise is more full
than any other previously
visited to store. The main
message, “this is a place of
abundance.”

24. GAP
• First store with a dedicated
area for clearance items.
• First store with impulse
fixtures.
• All of this aims at the
price conscious shopper
looking for value in the
form of deals.

25. AMERICAN EAGLE
• Utilized the same value/ sale
approach as the GAP.
• But two things stood out to me
while visiting AE.

26. AMERICAN EAGLE
• First was the space. It was massive.
Then there was location. It was the
only store outside of the shopping
district in downtown Seattle,
making it a destination spot for
tourists.
• The combination of these two
aspects, its size and location, gave
this would be standard mall brand
a leg up on the other competitors
in the space (think GAP).

27. AMERICAN EAGLE
• The fixtures here were
thoughtfully planned. The
inventory is not over the top like
GAP or Nordstrom Rack, and the
use of suspension (a la Barney’s)
and plants (JNBY) created an
experience in the space, not just
branding.

28. AMERICAN EAGLE
• It also needs to be noted that the customer connection at American Eagle was the
best of all the stores I visited. And this isn’t an isolated experience. I have visited
other stores in the past and am always greeted by very friendly extroverted
people. The feeling is genuine, young, carefree, and casual hip.

29. NORDSTROM RACK

30. NORDSTROM RACK
• We reach the end of our journey with the Nordstrom Rack store.
• Seems to appeal to the frugal person and the lower – middle class.
• The design is focused on utility and efficiency over experience and connection.

31. NORDSTROM RACK
• Registers are
centrally located
and allow for the
efficient service of
large groups of
guests.
• Serves demos who
are looking for
cost savings and
who are there
specifically for
clothes not any
kind of connection
or experience.

32. NORDSTROM
RACK
• Everything is done to
maximize inventory space.
Zero branding, zero
fixtures.
• Atmosphere feels like a
Ross.
• Harsh lighting, grey floors,
and very loud music.
• Zero customer greeting or
connection.

33. TAKEAWAYS
• High end focuses on luxury, atmosphere, and experiences.
• Middle focuses more on connections and value.
• Lower focuses on value and efficiency (Nordstrom Rack).
• Negative correlation between price and music volume.
• Overall best experience happened at Barney’s.
• Best customer service happened at American Eagle.
• Worst experience was at Nordstrom Rack because it wasn’t really an experience but
felt more like a grocery store for clothing.

34. THANK YOU
I want to hear about your best and worst retail
experiences. Email me at gapearce@asu.edu