EXCLUSIVE: Reimagining retail spaces through digital innovation
Melissa Gonzalez, principal and founder of the MG2 advisory group within architecture and design firm MG2, will discuss digitally-focused store designs at Chain Store Age’s SPECS Show, March 9-11, at the Gaylord Texan in Grapevine, Texas. (Click here to register for the conference.)
Gonzalez spoke with CSA about blending physical and digital elements.
What factors are influencing retailers to blend more digital elements into their physical store designs?
Retailers are reimagining physical spaces for a variety of reasons, including because as consumers navigate seamlessly between online and offline channels, they expect personalized interactions and instant gratification at every touchpoint.
The expectation of consistent and integrated experiences makes digital integration in physical environments essential. It enables retailers to meet evolving customer demands, deliver tailored experiences that resonate with consumers and foster long-term loyalty.
Operational efficiency and cost optimization are also influencing decisions. By leveraging digital technologies such as artificial intelligence, Internet of Things and robotics, retailers can significantly enhance productivity and profitability. These technologies automate routine tasks. They also free up resources that can be redirected toward strategic initiatives, high-touch customer interactions and innovative solutions.
Finally, retailers crave data-driven decision making. Data is the cornerstone of modern retail. It provides valuable insights into customer preferences, market trends and operational performance. Using data-driven strategies can optimize pricing, personalize marketing campaigns and enhance the overall customer experience, ultimately driving revenue growth and profitability.
What are the key criterial for successful data integration?
First, technology must solve a problem or pain point. Ideal solutions must also be intuitive to current behaviors so that you can elevate experiences.
Most importantly, there needs to be ease of use. This means solutions need to be frictionless for the user — regardless if it is a consumer or an associate. Meanwhile, they should also be something the brand or retailer can effectively maintain (content refreshes, consistent connectivity, etc).
How can retailers determine which innovations are the best fit for their designs and experiences?
Priorities vary from retailer to retailer, and brand to brand. However, it’s critical to consider the following:
•What is the point/mission of our stores?
•What are we furthering, evoking, solving? Is it inspiration, fit, etc.?
•How does a specific innovation fit into the full spectrum of the brand experience?
Once you have identified your needs using this checklist, you can begin to create priorities. However at this point, consistent connectivity, intuition of natural behaviors and supporting a holistic strategy are table stakes. You need to consider the bigger picture which includes delivering personalized recommendations, and driving efficiency across a seamless omnichannel experience.
Overall, you want solutions to deliver a customer-centric approach, learn from the data collected and implement iterations based on those learnings.
What store-level innovations are retailers focusing on when introducing tech-driven in-store experiences?
There is a spectrum of things being tested, including endless aisles. Whether adding solutions on the sales floor, in the fitting room or in the sales associates’ hands, retailers continue to explore and integrate endless aisle applications as a means of furthering customer exploration and discovery, and making the purchase experience as frictionless as possible.
Other innovations fall under the fit tech and personalization areas. Still in early stages, these solutions enable consumers to better understand how merchandise fits, while expanding their merchandise discovery through personalized recommendations.
Also, extending the dialogue from online into store, retailers are deploying screens that overlay digital content on product displays. With the push of a button or the swipe of a screen, customers are granted an immersive experience with a product.
What role does AI play in creating more digitally-focused store designs?
AI has a spectrum of roles. But overall, it has the ability to facilitate personalization for customers while allowing brands and retailers to continuously learn from every digital customer interaction. When customers opt in and use digital communications, whether a digital screen or mobile app for example, AI can analyze and help predict preferences and tailor the shopping experience.
Internally, AI can improve demand forecasting and planning. With access to historical ordering and product movement information, store teams gain insight into fulfillment needs, visual merchandising opportunities and targeted in-store messaging.
Looking ahead, as brands tap into vast amounts of data and insights, they will be primed to create AI-powered stores that drive hyper personalization. And with an ongoing focus on Gen Alpha and their preferred interactions, these locations will feature advanced visual search and the Metaverse to create even deeper immersive retail experiences.
