STORES Convention Daily - 2018 Big Show Day 2 - 14

2018 MONDAY

Forward
Continued from page 12

factors in purchasing. The real benefit: the
information collected digitally, the relationships built in person and the chance to
reduce the high costs of returns that have
plagued online apparel sales.
One Kings Lane opened its first physical retail location in Southampton, N.Y.,
this summer. Originally opened as a pop-up
shop, the brand has decided to extend the
lease and invest in a longer-term relationship with the Hamptons community. The
shop will continue to operate with regular
hours throughout the year.

The showroom strategy will gain
momentum as retailers try a minimalist
approach to selling.
Nordstrom's October debut of a
smaller retail concept surprised industry
insiders. Nordstrom Local doesn't have
dedicated inventory on hand. Instead, it's
packed with services; personal stylists can
assemble recommended items and assist
with ordering merchandise. Shoppers can
buy online while they're inside the store,
pick up those orders the same day, have
alterations and tailoring done, even enjoy
a glass of wine and a manicure.
While smaller brands have dabbled
in this approach to selling - think Blue

Warby Parker opened physical stores to help create authentic relationships with customers.

Nile and Rent the Runway - the fact that
a more traditional retailer like Nordstrom
is dipping a toe in these waters qualifies as
a watershed moment.

For several years the growth of ecommerce has put pressure on traditional
bricks-and-mortar retailers to "right-size"
physical stores. Target, Sephora and Kohl's
have responded with smaller, tech-enabled
spaces that provide shoppers with a more
efficient experience.
Look for more retailers to adopt this
showroom/webroom/guideshop strategy.
Shoppers are receptive to this type of
shopping experience. They're comfortable working with a stylist who captures
measurements, size and style preferences
digitally, and they gravitate toward the
extras - like tailoring services or a cold
drink.
At luxury shoe brand M. Gemi, associates use a clienteling app to get to know
shoppers and can easily access online inventory and arrange for shipment directly
to the customer. Comfortable chairs and a
glass of champagne go a long way toward
keeping shoppers happy and making the
experience memorable.
The economics are compelling for retailers too: Beyond less inventory, a smaller
footprint translates into fewer associates,
higher sales rates and fewer returns.

Photo credit: ©Zapp2Photo/Shutterstock

Augmented reality will be everywhere as retailers leverage the technology to engage shoppers more deeply.
Unlike its oft-cited counterpart virtual
reality, AR has been embraced for its simplicity; no need to use a headset to immerse
oneself in this technology. Lowe's Holoroom and IKEA's catalog are both examples
of AR that have taken center stage.
Gartner has predicted that 100 million consumers will shop via AR by 2020.
Given the number of applications already
in place, that guesstimate may be underestimating its reach: Today shoppers rarely
shop for a new lipstick without first trying
it on virtually. The same can be said for
furniture shopping, where an early step in
the process now calls for placing a virtual
couch into a photo of one's living room to
check the size and style. The beauty of AR
See "Forward" on page 22
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Table of Contents for the Digital Edition of STORES Convention Daily - 2018 Big Show Day 2