Future of Retail The Consumer Journey 1 What is the consumer looking for? Innovation Uniqueness Experience 2 Observations/Learnings 1. Shop-in-Shops: Consumers love to be walked through their experience. 2. Visually Inspiring: Consumers are no longer easily impressed. They want to see something “different” and “innovative.” 3. Education/Engagement: Consumers desire to make informed decisions. These experiences should be interactive and engaging. 4. Display - Mannequins: Consumers employ these tools to understand product stories. 5. Relationships: • Service/People - Consumers want to feel welcome and be heard. They crave a personalized journey and appreciate employees’ individualized efforts. • Consumer Behavior/Loyalty - consciously or not – look for reasons to reenter the store. The decision is made before they’ve even left. 3 Shop-in-Shops: Multiple Shops at JC Penny Levi’s Demin Shop JCPenney’s new Shop-in-Shops launched this past Fall in approx. 700 stores nationwide IZOD Shop - video Clip of JCPenney CEO Introducing Second Wave of Shops Shop-in-Shops: NFL Shop at Niketown Shop-in-shops have become more prevalent in the retail world. As we look to the future and the new “boss” consumer, retailers must guide that consumer experience. Niketown New York – Rather than a singular environment, we see retailers providing an “ecosystem” for their consumers. Transitioning between departments can be described as if consumer were walking through invisible doors and into new mini-department stores. 5 Shop-in-Shops: Heat Tech Shops at Uniqlo Uniqlo 5th Ave – Uniqlo fully outfits consumers across their shop-in-shops by promoting products from head-to-toe. They walk consumers hand-in-hand across the store, whether or not the salesperson is present. Uniqlo encourages consumers to explore each shop-in-shop and even employs physical doors as a means of differentiation. 6 Shop-in-Shops: Multiple Shops at C Wonder C Wonder Soho – C Wonder uses vibrant colors and lavished wallpaper to distinguish between footwear, apparel, jewelry, home, etc… 7 Shop-in-Shops: Multiple Shops at Toys”R”Us TIMES SQUARE, NY 8 Visually Inspiring Niketown New York C Wonder New York Uniqlo 5th Avenue Quicksilver Soho 9 Consumer Education/Engagement 10 Display – Mannequins: Niketown 11 Display – Mannequins: Uniqlo 12 Summary -Innovation is key Converse Quicksilver 13 Findings • Beautiful is not beautiful enough. – Retailers must grab consumer’s short attention spans and maintain that grasp. • DO judge a book by its cover. – A story told by mannequins can be as compelling as one expressed through words. • Are we there yet? – Shop-in-shops are the wave of the future. Retailers are paving the road for the consumer’s journey and enticing them to continue discovering new product stories. • Who said video games are bad for you? – Consumers are no longer looking to pamphlets and brochures. With the world at your fingertips, why would you? The proliferation of smartphones, tablets and other electronic devices make for a more interactive – and memorable – consumer experience. 14 Quick Facts by Retailer 1. Niketown – Mission Statement: "If you have a body, you are an athlete.“ – Approx. 97 Nike doors in the United States, this includes Niketown and Nike Factory Stores – Brands under Nike include - Nike, Jordan, Converse, Cole Haan & Hurley 2. C Wonder – Mission Statement: “C. Wonder is a shopping destination that transports women into a world of luxury and surprises.” – Total of 14 doors - 7 locations in NY 3. Uniqlo – – – The CEO of Uniqlo USA says: “MADE FOR ALL. We are selling jeans, not style, we don't want to push our brand logo, and you can combine our clothing with other brands.“ Total of 5 doors in the US – 3 locations in NY area 793 doors in Japan, additional doors in 11 other countries worldwide 4. Victoria’s Secret – Mission Statement: "Limited Brands is committed to building a family of the world's best fashion brands offering captivating customer experiences that drive long-term loyalty and deliver sustained growth for our shareholders.” – Total of 1,017 doors in the US - 25 locations throughout Canada 5. Quiksilver – Mission Statement: “Quiksilver is not just a brand but the name for a family of brands. Each symbolizes the sports it represents and provides people with a connection to the outdoors, beyond sport-related equipment and apparel into everyday sportswear and accessories.” – Operates approx. 850 stores worldwide – Brands under Quiksilver include - Quiksilver, Roxy & DC 15