Stores Magazine - December 2007 - (Page 73)

CONSIDER THIS/ LOEB RETAIL LETTER Copyright 2007 by Loeb Associates Inc. Used by permission. Forward Thinking at Microsoft BY WALTER LOEB I recently had the opportunity to visit the Microsoft Home concept facility to learn about the company’s vision for the future. Located in the Executive Briefing Center on Microsoft Corp.’s Redmond, Wash., campus, Microsoft Home models technology that might enhance domestic life five to 10 years from now. I was told that Microsoft spends close to $7 billion on research and development annually. I saw how entry to the home will one day be controlled by cellular phones that will identify the individWalter F. Loeb is a New Yorkual; keys will no longer be based consultant and member needed. Messages or apof the NRF board of directors pointments will appear on an whose newsletter is published entry wall and could result in monthly in STORES. immediate action. Throughout the home there will be features that make the environment reflect the mood of the occupant – walls will be able to change color, and even have animation and lighting that can be controlled by spoken commands or by clapping your hands. I believe that every home will become more earth-friendly, with dishwashers and washing machines that use little water, lights that use less voltage and cooling systems that are efficient and specifically timed to need. There is software available to enable these functions, and once greater use reduces the cost it will become more standardized. Specific technology Some of the technology gets very specific. If you have to take medicine, computerized chips can check the time, the dosage and that the individual is taking the correct pills. This ensures that senior citizens, for instance, don’t make mistakes in their daily routines. Other procedures help in the preparation of meals and in the reordering of basic foods such as milk, butter and cheese. In other words, Microsoft tries to understand the consumer’s home life and develop initiatives to help people live smarter, safer and more efficiently. While Microsoft’s engineers accept that we will continue to live much the same way we do now, their demonstrations suggest that we can make the environment more enjoyable through technology. To be sure, some of the things I saw may never come to fruition, but people are definitely interested in gaining time, preparing meals more quickly and using energy efficient utilities and light bulbs. WWW.STORES.ORG Respond to trends Some of Microsoft initiatives will create new business opportunities. Retailers will discern the changes that their customers demand. I see the need to access information faster, and store managers will be able to act more quickly as they note new trends by what customers buy. As a result, new products will be developed to cater to that customer. Not everything will transition smoothly to automation. Consumers still like personal contact and may not want to rely on preprogrammed information. They still want to be reassured that the action they have been told is necessary is really correct. They may also worry about privacy and may not want databases to have all of their personal files. However, I believe that more people will be able to interact with software through more intuitive user experiences and new operating systems. The energy-, time- and cost-saving systems of tomorrow are dependent on the initiatives companies like Microsoft undertake today. Consumers still like personal contact and may not want to rely on preprogrammed information. They still want to be reassured that the action they have been told is necessary is really correct. STORES / DECEMBER 2007 73 http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of Stores Magazine - December 2007

STORES - December 2007 Contents Executive Editor's Page President's Page Holiday Shopping Extravagance What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Niche Marketing Eight Predictions for 2008 Concept2Watch Merchandising Strategy Sourcing E-Commerce Supply Chain Warehouse Management Software Contactless Payments Marketing Marketing Online Loeb Retail Letter ARTS Update Point of View NRF News Retail Industry Calendar Last Laugh

Stores Magazine - December 2007

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