VMSD - October 2016 - 32

SPECIAL REPORT: SHOPPER INSIGHTS Preferred Purchase Method* NEW CHECKOU T MODEL S Self-Checkout Buy Online P/U Outside Store Buy Online P/U Inside Store Employee-Assisted Mobile RFID Mobile Self-Checkout Single Line, Single Register Fingerprint Scan Beacon Tech Retinal Scan Digital Natives Digital Immigrants 74% 67% 66% 60% 58% 57% 48% 43% 43% 35% 56% 52% 48% 43% 39% 33% 30% 24% 19% 19% *Results were calculated using the top two box scores based on purchase intent. estate are at last being freed for reinvention and innovation. Ending the dominance of old-school checkout options makes room for a more emotionally satisfying shopping experience. It is a revolution in store spaces and square-foot utilization. THINK LIKE THE 'DNA' Brands must have more than a mere familiarity with technology. It's not a question of accommodation or implementation of the newest gadgets. It's more than an evolution in the fundamentals of identity formation and social interaction, it's a revolution in the very essence of identity. The desire for dynamism is rooted in an existential shift, one brands cannot ignore if they want to connect with these digital natives. The advancement of technology hasn't just changed the way people shop, but 32 OCTOBER 2016 | VMSD.COM rather, it's changed the way they form their identities and navigate their worlds. How digital immigrants and the DNA behave, how they think, and what they want from brands will never be the same. REINVENTING THE STORE The DNA has been raised in the era of the Internet and smartphones, and they shop and think differently than previous generations. These consumers are automatically importing expectations nursed and nurtured online into all aspects of their lives, including retail stores, and this influence will only grow. The expectation of retailers is for them to embrace innovation to end the hassles and wasted time of the traditional checkout model. Younger consumers have not abandoned physical stores exclusively for online retailers, but they have embraced innovation there. This is not merely a shallow craving for novelty, it reflects a fundamental change in orientation and expectation, and these young people are ready to reward those brands that meet them where they live. For an older population, there can be some challenge in understanding the desire for and acceptance of change. For those raised with the unendingly iterative improvements and offerings of the iPhone, for example, innovation is a given and a positive in and of itself. Stores that want to stay relevant to the DNA must innovate now. If you are just starting to develop a "store of the future" concept or a plan to attract this new generation of consumers, you may already be too late. Your customer base wants innovation and still loves to shop, even if they are online shoppers and Amazon Prime members. These are shoppers who want to shop on their own terms. While these terms might not be negotiable, the DNA is ready to prove loyalty to stores that fit into their lifestyle and help them amplify and express their identity in a digital world. x Lee Peterson is executive vp, brand, strategy and design for Dublin, Ohio-based design firm WD Partners. This year, Lee presented the firm's exclusive consumer study results at VMSD's International Retail Design Conference (IRDC) in his session, "The DNA of the Digital Native Audience." http://www.VMSD.COM

Table of Contents for the Digital Edition of VMSD - October 2016