Are You Ready for the Retail Renaissance? The 5 Elements You Need to Stay Ahead

The phenomenon of experiential retail is here to stay. As Eoin Comerford, Former CEO of Moosejaw, puts it, consumers need a real experience to build connections and these connections can only be offered in a physical store. 

According to him: “The D2C movement within brands has stopped their growth and stunted their level of relationship with the consumer because it's created these artificial barriers between them and their retail partners that make it more competitive than it needs to be.”

Brands like Dick’s Sporting Goods are cashing in on this wave through concepts like House of Sport, where they are rolling out mega outlets equipped with experiences like wall climbing etc. Comerford compares this with their competitor Academy Sports who failed to think ahead and hence is falling behind in the market share.

Another truly innovative brand that is redefining offline retail is Bründl Sports. CEO Christoph Bründl explains how his brand is ditching the multichannel approach to focus on unparalleled sports experiences. Their stores are designed as immersive “theaters” or “cathedrals,” where customers can truly engage with brands and create memorable experiences. The success of this offline-first philosophy marks a unique shift from the erstwhile need for retailers to be omnipresent across various channels.

So far, having separate retail and wholesale channels may have worked for brands. But this has led to the creation of silos that prove a hindrance to collaboration between the two. Brands must understand it is not a zero-sum game where the loss of one is the gain of another; rather, D2C and wholesale must work in synergy to maximize sales and profit.

Eoin Comerford suggests an integrated approach where the brand’s D2C channels become a comprehensive marketplace. By doing so, brands can direct their customers to local retailers that cater to their demand. So, the customer does not have to leave the website to search for a product but rather gets all the information in one place.

These silos must also be eliminated in the area of sharing data insights. For example, while brands know regional customer preferences, retail stores are engaging with the customer on the ground. The insights gained from both these scenarios can be used to understand customer preference better and turned into actionable strategies that benefit both the brand and the retailer.

Is the consumer content with just the regular offers you mail them based on purchase? Not anymore! Personalization has moved beyond these algorithmic derivations that work at a macro level. Hyper-personalization is the way forward.

It refers to understanding the needs, wants, and desires of the customer at a deeper level that is not purely transactional. Roger Hurni, Behavioural Marketing Strategist, who advises clients on understanding customer behavior and motivations, explains how it extends beyond product recommendations to the product itself. He gives examples of how Converse allows its customers to pick the color, print, and other accessories for their personalized sneakers.

Bründl explains how their stores focus on personalization through things like bike remeasurements that enhance satisfaction because the customer feels like they have received a tailored bike. In short, AI can be leveraged to offer hyper-personalization not just in marketing communication but also in product offerings and the overall customer experience.

In sharp contrast to the concept of everything for everyone in multi-category retail is emerging specialization. Margit Gosau, CEO of Sport 2000 International, calls this the ‘Absolute Strategy’ wherein retailers focus on a specific category based on their core strength. She elaborates on how they have applied hyper-specialisation to stores through Absolute Run and Absolute Teamsport.

Absolute Run stores are developed in collaboration with brands, retailers, and consumers. In this format, half the store is dedicated to products concerned with running while the other half offers a community experience for engaging customers. Needless to say, the niche store finds a loyal audience and can focus better on its product offerings. 

These initiatives have propelled Sport 2000 to a leading position in specialized retail sectors like sneakers and e-commerce in Germany.

Retail can never be purely transactional; rather, it is an amalgamation of experiences, emotions, and connections. An important element of this is the store staff. People prefer to purchase offline because they can benefit from the service and competence of the salesperson.

They are the representatives of the company who engage directly with the customer. Brundl compares them to the star players in a football team- they are the ones who make the “goals” and determine how much and what the customer buys. Skill and passion can be key differentiators for brands keen on offering a great in-store experience. As Hurni puts it - “The goal isn’t just to make a sale, it’s to cultivate customers for life.”   

This is an area where brands must invest to get better conversions. If the salesperson lacks in-depth knowledge of the product or is unable to offer information/advice then it reflects poorly on the brand. For them to be a game-changer, the staff must be trained to equip them in the art of sales as well as product knowledge.