Put Down the Crystal Ball…And Step Away Slowly.
“What’s the future of retail?”
We get asked this all the time.
We ask each other this all the time.
We read articles on the topic, like all the time.
You want to know what I think? Nobody really knows what the future of retail is, and guess what? If you’re a retailer, focusing on the future of retail like it’s a magic wand is likely a daft exercise.
Don’t get me wrong, we literally get paid to answer this question. So I’m not trying to shoot myself in the foot here. But so often this question launches into a discussion about technology, QR codes, AR, and self thinking computers that yell at you when you don’t bag something properly.
Shoppers screaming “For f*cks sake, i put the lotion in the bag!!!!” at a self checkout is not the future of retail any of us want to see.
The reality is, I think retailers should define their own future of retail, and they already know and possess the basic building blocks. There is no magic trend or technology on the horizon and there never really is (or was). The only thing that really affects retail on a macro scale are unpredictable events like pandemics, terrorists, and inflation. The rest is like 7,000 years of retail evolution.
Read my thoughts or stop here and just bet it all on this free AI generated image below.
Technology
Often the conversation about the future of retail revolves around technology. Retailers need to remind themselves that technology is a tool to facilitate better in-store shopping experiences but technology itself isn’t the future of anything. AR (augmented reality), VR (virtual reality) , AI (artificial intelligence), QR codes, mobile devices, etc. are all just tool.
Start with the problem and strategy and then leverage or invent the appropriate technology to solve the problem. Not the other way around. Do shoppers need to see the couch in their living room? Well maybe meet them in their living room, not aisle 5 of your store. Want to alleviate long lines at checkout? Then allow shoppers to use their mega computer mobile phone to checkout in aisle.
Leverage technology to break down barriers to purchase instead of creating new and more terrifying barriers.
Experience
A well thought out, meaningful experience is definitely the future of retail. And it always has been the future of retail. Reward guests for coming into your store by educating, entertaining, and empowering them.
Much of product research and education is done online ahead of time. And shoppers rely on peer and expert reviews. If you’re going for spur of the moment purchases, empower shoppers to be inspired, informed, and confident that they are inviting the perfect item for them into their shopping cart. Get them thinking about benefits they weren’t even thinking about. A long list of technical specs and marketing copy is a waste of space. Our brains need information fed to us as fast as possible and shoppers need to feel non-threatened.
Provide convenience, meaning and delight to the person who took the time to visit your store. Provide top notch customer service and don’t rely on associates for storytelling or fulfillment unless your system is set up to do so. The risk is too great and hurdles too high, to fall down when it comes to customer service. Leverage technology like mobile devices, interactive displays, and world class self checkout experiences if you can’t leverage real human beings to serve your guests.
Supply Chain
The pandemic provided a master class in the importance of a resilient and elastic supply chain. You’ve empowered guests to pull the trigger on a purchase, follow through immediately with instant gratification. Have items in stock at all cost. If you don’t have it on the shelf or back room, create a seamless way for shoppers to get the product delivered to their home, or another convenient location.
As a retailer this is what you should spend your free time on. You do not want to disappoint in a world where we can have puppies delivered same day to our doorstep.
A multi-faceted approach to fulfillment is your best bet with online ordering, in-store ordering or scan and have it ready for me, and “buy online, pickup in store” (BOPIS) storage lockers all viable customer facing supply chain solutions.
Brands
Retailers, please work with your brands. Yes, maintain your retail experience and provide brands with guidelines, but dial back on any friction you have with your brands. The brands know their products and market. Give them a voice in how to sell their products through the lens of your retail language.
Yes, you can monetize brand spaces if you so choose, it can take the edge off and result in better experiences for guests.
It’s a two way street though, brands are helping retailers by creating consistent brand experiences with modular displays that are scalable and adaptable to retailers around the globe. These systems keep display costs low for the brand, and give flexibility to the retailer to better match brand experience with the retailer’s audience.
Retailers
We see so many retailers create so many rules, or so focused on cost cutting that the diminish returns lead down a slippery slope that no magic technology or pretty rendering could fix. Stop stepping on your own toes and get back to your roots as a retailer. I won’t name names but many big name retailers, in my opinion, get in their own way. They don’t access or share their data with the partners they pay lots of money to to figure out the future of retail so it all ends up being like throwing darts at a board.
You know your mission and secret sauce, double down on that and embrace your shoppers and brands. Build a resilient supply chain. Build consistency and an open culture that fosters innovation and experimentation. All of these concepts are not mutually exlcusive with cost savings and doing things efficiently. Work smarter not harder. You have everything you need, just get out of your own way.
Focus on the entire shopper journey from online, to parking lot, to product experience, and finally checkout or fulfillment. Support your internal teams, and trust the partners you are paying good money to help you get your message to the masses.
Shoppers
The future of retail is a renewed focus on shoppers. I’m always amazed that brands and retailers often treat shoppers as a voiceless people sitting on the sidelines. Smart brands and retailers start with the shopper and change their internal baggage first instead of trying to teach shoppers to conform to their ways.
Get out there and listen to the marketplace. Experiment, try new things, and fail often. Complacency and doing things the way they’ve always been done means you’re doomed. Invest in research and strategy. Go back to your roots of what sets you apart from the competition.
Ultimately make it easier for us to spend money in your store, not more difficult.
There you have it!
The future of retail is right in front of us and you have all the tools you need.
If you’d like a partner in this journey, help you get back to your roots, or would like to know about what’s inside our magic crystal ball, contact Neon Carrot at 330.858.8926 or email me at chris@neon-carrot.com to set up a conversation. We’ve got expert researchers, strategists, and designers who would love to partner with your brand to create meaningful and innovative shopper solutions now.
And yes, we can create an in-store VR experience or a shelf checkout that doesn’t yell at people, if that’s what you need.