SPECS 2015: Three Store Planning Innovation Takeways
Chain Store Age hosted its 51st annual SPECS 2015 conference on March 15-17, in Las Vegas. Here are three takeways from the conference concerning technological innovation in the store planning area:
1. Overflowing Shelves are the Enemy
For most brick-and-mortar retailers, having shelves chock full of merchandise with every possible variation (such as size and color) is the definition of successful merchandising. But in actuality, overflowing shelves leave store associates too busy to assist customers, who are left overwhelmed.
“Managing shelves is time-consuming,” Nadia Shourabora, CEO and founder, Hointer, told attendees at her session “Reinventing Brick and Mortar Retail.” Shourabora, a former supply chain executive with Amazon.com, proceeded to explain how specialty denimwear retailer Hointer applied e-commerce design features to the in-store retail experience.
“It’s so easy to shop online; you click and you’re done,” said Shourabora.” But you lack the touch, feel and personal experience of the store.”
Using proprietary technology, Shourabora turned Hointer stores into mobile-enabled showrooms where one sample of each denimwear product was placed on shelves or displayed on mannequins. Customers examine the merchandise, consult in-store stylists if they choose, and can then order as many variations of a product for try-on as they want using a mobile device.
Goods are automatically shipped to and retrieved from dressing rooms, and checkout and loss prevention are both streamlined as Hointer can automatically determine what items are brought into and out of the dressing room. Sales and customer satisfaction have both benefited significantly from this mobile showroom approach.
2. Digital is Sign of the Times
Most retailers are well aware of the colossal shift in how customers engage with them. Consumers armed with connected devices are coming to stores having done extensive product and price research, want to accomplish more in fewer store visits, and also expect the store to function as a seamless touch-point in the broader omnichannel experience.
What many retailers many not know is how digital signage in stores can help them satisfy the wants and needs of the modern omnichannel consumer. Spenser Paul, retail specialist at Google, outlined the benefits of digital signage in his presentation “Transforming the Store with Technology & Collaboration.”
“Consumers want an immersive experience,” said Paul. “You can easily display a message across all stores instantly with digital signage.”
In addition to dramatically reducing the cost and time associated with manually updating traditional paper signs, Paul said switching to digital signage also lets retailers deliver information in a much more dynamic way, suiting the needs of modern consumers.
“Consumers want informed and purposeful store visits,” said Paul.
3. Knowledge is Power
Shourabora also touched upon how Hointer’s ability to drill down into how consumers examine, try on and ultimately select clothes provides a new wealth of data on customer demand.
“I can measure conversions based on how many items are picked from a store display, and then look at how many of those convert to a sale,” said Shourabora. “The numbers are different than pure sales.”
Retailers now have visibility into data such as what items may sell in low numbers but convert well from the fitting room, allowing them to adjust store layout and merchandising to boost try-on rates. They can also determine if certain items sell well to a specific type of customer, allowing them to boost in-store sales with highly targeted promotions and selling.
“In the past, retailers sold items that sold well in the past,” said Shourabora. “There are different way of selling.”