group icrs 2014

CBA’sInternationalChristianRetail Show2014

PUTTING R.E.A.L. BACK IN RETAIL

What’s Missing From


Retailer’s #1 Problem – Declining Foot Traffic

!  Contributing Problems o  Stores relegated to showroom

o  Stores losing to etailers on price

o  Can’t afford to keep up with technology

!  Retail Guru’s Solutions o  Win showroom battle with great service

o  Attract customers with price like etailers

o  Increase traffic with in-store events



R.E.A.L. Bookstore Experience



Consider this…

What if we misunderstood what the real problem is?



Misunderstanding #1: Showrooming



In-Store Smartphone Shopper Data



Misunderstanding #2: Millennials



Are you attracting Millennials?



Generational Shopping Differences in Retail

!  Values good deals & decent products

!  8 out of 10 choice of retailer driven by practical decisions

!  Grew up with few choices, and values many choices (e.g., Big Box)

!  Boomers driven by ‘cents’

!  Values stimulating, sensory, shared experience

!  4 out of 10 choice of retailer driven by practical decisions

!  Grew up with the web/Google, & values curation (e.g., Boutique)

!  Millennials driven by ‘sense’

Boomer’s Ideal Shopping Experience Millennial’s Ideal Shopping Experience



We’ve been solving for a ‘buying’ problem

How can I get consumers to buy from my store?



We need to solve the ‘learning’ problem

How can I be more involved in the places where consumers learn?



‘RETAIL’ = R.E.A.L. without T.I.s

Transforma)on in retail doesn’t require Tenant Improvements It requires a Transforma*onal Experience!

Relational Experiential Applicable Learner-Based



Group Brings R.E.A.L. to Retail



Food for Thought…



Q & A



What Do You See?



Tattered Cover Puts R.E.A.L. in Retail



Putting R.E.A.L. Back Into Retail



Sur la Table Puts R.E.A.L. in Retail



Home Depot Brings R.E.A.L. to Retail


Turnaround Framework

The Typical Approach A Better Approach



R.E.A.L. Framework (Home Depot Workshops)

R.E.A.L. What is Home Depot uniquely posi)oned to do through their workshops?

Rela*onal •  Personal interac-ons with people versus demonstra-ons •  Smaller groups of people, or clusters (e.g., By age, or family, etc.) •  Have conversa-ons and dialogue with par-cipants

Experien*al •  Be mindful of learning styles (Visual, Auditory and Kinesthe-c) •  Give ample opportuni-es for aCendees to par-cipate •  Ensure par-cipants have hands-‐on experience with their project

Applicable •  Create experiences in workshops that are relevant to audience •  Ensure workshops are gender and age appropriate •  Workshop adds value when solving problems they have or sa-sfying experiences they want

Learner-‐Based •  Be careful to keep focus on par-cipants learning, not your teaching •  People learn best and remember what they learn through experiences •  The richest learning experiences come from their own discovery, not your informa-on



R.E.A.L. Proof Points in Retail

•  “We expect more brands to employ…store associates who aren’t there to sell, but rather to solve problems, and build rela)onships. The role will change from an informa)on provider to a facilitator of engagement.” (INTERNET RETAILER, 2014)

Relational

•  “Stores that reported sales increases are connec)ng beHer with customers both through technology and compelling in-‐store experiences.” (CURTIS RISKEY, CBA)

Experiential

•  “High relevance scores correlate with superior growth and performance, even when a company is dwarfed by industry juggernauts.” (BRODEUR PARTNERS)

Applicability

•  85% of customers con)nue research (i.e., Learning) within 5 hours of first beginning their search (GOOGLE/NIELSEN) Learner-Based



What Are Top Retailers Doing?



Three Characteristics of Top Retailers

1.  Strong Brands/Branding

2.  Above Average Pricing*

3.  High Engagement

*3 of the top 20 had a discount model



RetailSails 2012 Highest Sales/Sq. Ft.



Growth by Product Type



Mobile/Tablet Usage in the U.S.



Mobile Shopper Behaviors



In-Store Wi-Fi Statistics



In-Store Wi-Fi Usage Data



Retailer Showrooming Risk Index



Brodeur Relevancy Score Data