Exclusive Q&A on Sear's 'connected' plans
Sears has opened a new connected home flagship store near Silicon Valley and Ryan Ciovacco, president of consumer electronics and connected solutions, spoke with Retailing Today about the major initiative.
Sears has opened a more than 4,000-sq.-ft. Connected Solutions store in San Bruno, Calif., and rolled out an enhanced website, in addition to its three existing 2,000-sq.-ft. shops in the Chicago area. The physical showroom features a range of connected home solutions that are transforming how people live in areas such as the living room, kitchen, nursery, workout room, garage and outdoor area. The initiative is led by Sears President of Consumer Electronics and Connected Solutions Ryan Ciovacco, who shared his thoughts with Retailing Today.
RT: What are you trying to accomplish by opening a Connected Solutions flagship store?
RC: We are applying learnings from the three Connected Solutions shops in the Chicago area to make it easier for average Americans to visualize the benefits of these solutions by showcasing them in a home environment. We are here to provide members solutions for the greatest two current pain points in the connected products arena – 1) why do I need this product/how can it improve my life and 2) how do I set up, install and maintain the products I purchase? Sears has been the leader in the home service industry for over 50 years. We’re leveraging our home services expertise, dedicated tech support and installation network to meet the needs of our members as they consider solutions, purchase and set up at home. Many products available at Sears take less than five minutes to set up. However, we acknowledge that some customers are unable or unwilling to install some of these products. In those cases, our expertly trained sales associates can simplify installation or we can install the network, provide tech support and offer repair and maintenance, if needed. It’s smart made simple.
RT: How will the experience in the San Bruno flagship store differ from what Sears is able to provide in the smaller Chicago locations?
RC: The San Bruno flagship store is a more than 4,000-square-foot connected house where members move through connected rooms, interacting with smart products in seven different lifestyle vignettes -- the Living Room, Bath and Utility, Kitchen, Nursery, Outdoor, Garage and Fitness Room. The flagship features one of the largest cross-category selections of smart technology products in retail today. The Connected Solutions shops in Chicago occupy roughly 2,000 square feet of product assortment. In San Bruno we offer more than 100 products, twice as much as the other shops. Additionally, the flagship will be used for demo days, a venue for start-up pitches, as well as expanded member offerings, such as workshops and competitions.
RT: Why San Bruno?
RC: San Bruno is the heart of Silicon Valley, the mecca of technology as well as early adopters.
RT: How will you be measuring the success of this initiative?
RC: The success of Connected Solutions will be based on more than just the San Bruno flagship. We are also expanding the Connected Solutions assortment into 200 Sears stores so we will be looking at the initiative holistically based on the expansion and traffic into the stores across the country, sales, member feedback and online engagement on our Connected Solutions site.
RT: Talk about some of the brand partners and solution providers that were involved in executing the Connected Solutions flagship?
RC: Connected Solutions is engaged with a variety of brand partners and solution providers including Samsung, Honeywell, Quirky, Amazon, Linksys, Belkin Withings and Schlage. Brands and solutions will continue to evolve to meet the wants and needs of our members.
RT: How are you conveying connected home capabilities via the Web site?
RC: Customers can experience the San Bruno store via our interactive home at the following link: http://www.sears.com/en_us/dap/connected-san-bruno.html. All of the solutions offered in store and more can be found on our website.
RT: The connected home and Internet of Things world is changing fast. How are you staying abreast of all the changes and evaluating the suitability of solutions to offer customers?
RC: We are seeing it in motion right now, constantly evaluating our solutions to make our members’ lives easier. The decision to open the flagship store was based on the success of the three Connected Solutions shops in the Chicagoland area. Through the feedback received, we found that a more comprehensive service and tech support offering was needed. Additionally the concentration of solutions needed to fit holistically into our members’ lives rather than just a product offering. As the landscape changes we will continue to adapt our solutions, offerings and the way we educate our members.
RT: How are the Connected Solutions organized in the store?
RC: In addition to the seven vignettes mentioned above, our products and solutions are organized into four simplified shopping areas in stores and online:
1. Simply Entertaining (smart TVs, tablets, mobile phones, streaming media players, Bluetooth speakers) – Music and television have never been so connected and controllable throughout the home. Discover the ultimate entertainment experience with Smart TVs, Bluetooth speakers and streaming media players or watch your choice of movies or TV shows anywhere on your tablets or smartphone. Sears offers mobile phone service and data plans from carriers with flexible, no-commitment options.
2. Simply Fit (fitness trackers, connected scales, connected treadmills) – For members looking to track and monitor their steps and sleep habits or get motivated to be active. From connecting your wearable fitness tracker to your bathroom scale or at-home gym equipment, Sears offers a variety of solutions to help achieve your fitness goals.
3. Simply Automated (connected garage door openers, thermostats, electrical plugs, and small kitchen appliances) – Whether at work or at play, our members can experience how to use their smartphone as a remote to automate and control lights, electronics and appliances in their home.
4. Simply Secure (connected home security cameras and baby monitors) – From checking in on children or pets through innovative home monitoring solutions to receiving alerts from smoke alarms and doorbells, Sears offers the care and security solutions to give you peace of mind.
RT: How are you integrating Sears Home Services into the Connected Solutions equation?
RC: Sears Home Services is woven into the fabric of Connected Solutions. Sears has the nation’s largest network of technicians visiting eight million homes a year. Connected Solutions offers specialized installation and tech support for all of our connected products as well as home service warranties on member purchases.
RT: Where do we go from here? How do you see smart home, connected home landscape evolving?
RC: There will be 20 billion smart devices on the market in the next five years. Connected Solutions is expanding to 200 stores and we will continue to update our assortment of solutions offered to members. There are significant pain points and challenges given the complexity in so