design:retail - October 2017 - 51

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for 2018 as well, with the majority of respondents
(58.1 percent) planning no change in staffing levels
next year. But opportunities remain-36.7 percent
of companies plan to increase design staff headcount in 2018.

TESTING STRATEGIES
In order to stay relevant and entice consumers
into their brick-and-mortar stores, retailers are
implementing new design strategies and experimenting with new ways of thinking to gain traction.
In today's climate, our respondents commented
that it's essential to be more "thoughtful and strategic," "flexible and multipurpose," and "even more
experiential" than ever before.
Integrating digital and technology into brickand-mortar stores continues to "erase transactional
friction," as one respondent noted, is an area of
focus. Services such as order in-store and ship direct
to the consumer, and buy online pick up in-store
(BOPIS) are top of mind, as well as interactive displays with product knowledge and offerings, mobile
POS, virtual reality and visualization software.
On the other side of the spectrum, some retailers are backing away from tech overload. "We've
eliminated all non-essential tech and are focusing
on making human connections," one respondent
said. "Conversations, handwritten notes, phone
calls, closet visits all foster better relationships than
staring at a vacant screen." While others are focusing on increased creativity, visual merchandising
and props-simply "getting things lower for the
customer and having things available for customers to touch and feel," a respondent noted. Creative
ways to deal with budget constraints remains another essential element, as another respondent
noted: "Many retailers are cutting budgets on visual

displays for stores. In order to keep this alive, we've
been exploring other options. Pop-up shops, instore events and experiential moments to keep the
stores active."
In terms of adapting to new consumer mindsets,
our respondents were split on how well they are
faring. While some readers believe they are adjusting well and staying vigilant to remain as ahead of
the curve as possible, others feel unsure whether
their changes are enough, and another group is
certain they have fallen behind. The ever-changing,
constantly evolving consumer proves an elusive
challenge for many-"Every day feels like catchup" one respondent said; "I think we can always
do more" another added; and another noting, "We
are behind. But it's challenging to get the budget
to really make the right changes." Despite mixed
results, the overarching vibe is that experimentation and working hard to not be complacent are
successful factors for staying in tune with consumers. Moving quickly and keeping an open mind are
key, according to several respondents. "Speed is the
new norm, so now the shift is adjusting company
culture to become comfortable with getting something out there that is 'quick and dirty,' so we can
fail fast, get some learnings, and refine as we roll
out," a respondent said.
Respondents are seeing several trends and challenges emerge this year. Experience-focused design
reigns supreme as retailers struggle to capture
wavering consumer attention. "Anyone can buy stuff
anywhere at anytime. Now, more than ever, the retail
experience needs to be enhanced," one respondent
said. Another added: "We need to be more creative;
yet we continue to decrease budget and labor for
creative departments. Retailers cutting costs should
be restructuring those finances to invest in more

creative talent at the corporate and store levels. Visual merchandisers, artists, sculptors and stylists
are more important than ever." And yet another
commented, "It's all about experience now for
younger and older consumers. Making memories
first, products second."
Shifts toward a "showroom" experience,
smaller footprints, reaching urban consumers
and younger age groups are other hot topics our
readers are testing out. Challenges this year and
beyond include financial constraints and restrictions, and the need to generate short-term sales
and revenue being in tension with the need to
significantly transform and shift. Also, as one
respondent put it, "Internally, getting people to
realize digital is a tactic/medium, not the end-all,
be-all unto itself. It still comes down to delivering relevant messages to the shopper/consumer
at every point of contact."

ON THE HORIZON
Looking ahead to 2018 and beyond, the retail
design industry will be tasked with tackling new
obstacles, like engaging and attracting Gen Z; and
consumers who are becoming more interested
in where their money is going (it's no longer just
about the product, as one respondent noted.). The
target is constantly moving, and our readers are
working diligently to try and hit it. More promising
though, is the notion and belief from our readers
that retail is NOT dying; it's just evolving. As one
respondent summed it up: "It is revamping itself
and morphing into a new model where physical
stores, online and catalog businesses are aligned to
sell product with a cohesive strategy and message
across all channels."
We think 2018 should be interesting.

Table of Contents for the Digital Edition of design:retail - October 2017