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: A Case Study of Retail Reimagined

Dee K. Knight, Judith C. Forney and Linda Mihalick

Purpose of the Study: and the disrupted and transformed the retail from a - dominated perspective to a -centric . This transition requires a deep understanding of affective, cognitive, and behavioral aspects of the consumer for retail success. This case study is one approach by a department at a large, public to prepare for in a retail ecosystem unified by digitization, technology, and consumer centricity.

Method/ and Sample: This case study describes how one department continuously evolved to build relevant guided by global consumer trends driven by technology, social phenomena, and competitive environments recreating the consumer .

Results: The case is an example of successfully transitioning programs and curriculum to prepare students for new retail opportunities that do not exist today.

Value to Educators: Educators may gain insights for transitioning their own programs or curriculum. The continuous evolution of programs and curriculum in this case study ranged from developing courses expanding an array of competencies, developing minors, concentrations, and degree programs for undergraduate and graduate programs with -level and interdisciplinary collaboration across the university.

Keywords: curriculum, consumer-centric, , program development

Dee K. Knight, Ph.D., Associate , Affiliated with UNT Global Digital Retailing Center, University of North Texas, 1155 Union Circle, #311100, Denton, TX 76203-5017. Tel: 940-565-3263, Email: [email protected]. Judith C. Forney, Ph.D., Professor, Research Director, UNT Global Digital Retailing Research Center, University of North Texas, 1155 Union Circle, #311100, Denton, TX 76203-5017. Tel: 940-565- 2448, Email: [email protected]. Linda Mihalick, M.S., Lecturer and Sr. Director of UNT Global Digital Retailing Research Center, Industry , The University of North Texas, 1155 Union Circle, #311100, Denton, TX 76203- 5017. Tel: 940-565-2433, Email: [email protected].

NTRODUCTION Retail Reimagined Retail has become the unifying nexus of an emerging I Technology and the internet emerged in the early ecosystem comprised of industry sectors that sell 21st century as significant disruptors of the retail products and services directly to . industry. Moreover, industry headlines announced Unprecedented in both its speed of change and breadth hundreds of store closures and bankruptcies of - of impact, this retail transformation is powered by the established chains as they lost their relevance in a digitization of processes, communication, and consumer-centric . However, a ; creation of an unprecedented amount of simultaneous significant part of this transformation was electronic data; ubiquity of mobile devices; and growth that store openings (14,248) outpaced closings in artificial intelligence applications (Atluri, Dietz, & (10,168) for a net gain 4,080 stores (Kesstenbaum, Henke, 2017). 2017). The NRF and Forrester 2019 of Retailing Retailers now face disruptive conditions Online Study reported that 43% of store-based retailers driven by epic changes in consumer behavior and surveyed expected to have a net increase in number of expectations. These changes are occurring at an stores with only 19% anticipating a declining number of unprecedented pace, fueled by digital and mobile stores (Kline, 2018). Moreover, 64% of consumers still technology. The two-way of consumer prefer making purchases at stores, including Millennials engagement from online – to – offline/offline – to – and Gen Z consumers (Elbaz, 2018). This retail churn online (O2O) has blurred boundaries. suggests that a retail renaissance is underway Innovative stores are integrating the best of online and (Lobaugh, Bieniek, Stephens, & Pincha, 2018) and data offline models to engage consumers and reimagine support that premise. U.S. retail soared to a consumer engagement, social interaction, and record $3.68 trillion in 2018 (Amadeo, 2019) with growth . The convergence and blurring between across all channels, and 91 percent of those sales were digital and physical environments require retailers to transacted in stores. differentiate by becoming consumer obsessed and delivering a seamless experience regardless of channel.

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Retail has moved away from a goods-dominated The Consumer-Centric Paradigm perspective to a services framework in which the Throughout the 20th century, retailers directed store intangibles, relationships, and exist within operations and the products and services they sold a smart environment (Pantano, Priporas, & Dennis, using internally determined strategies for growth and 2018). The consumer controls the outcome of profit. Growth strategies focused on developing chains everything. In this new environment, consumers of stores and investing in real estate or long-term a multi-threaded dynamic path to purchase, and they in densely populated areas. Retailers capitalized on the expect retailers to support them with no limitations of scale in offerings which gave (Haslehurst & McKone, 2015). consumers few options other than undifferentiated assortments across retail chains. Retailers controlled sourcing, , , promotions, and fulfillment (see Figure 1). Figure 1. Traditional Retail Paradigm

Sourcing

Distribution

Consumer as Retailer in Pricing Recipient Control

Promotion

Fulfillment

The 21st century ushered in a new retail consumer is described as consumer centricity. formed by instant connectivity, contextual relevancy, Consumers now interact directly and indirectly with and convenience powered by technology (Barber, promotions through display ads, , and social 2018). In the retail sector, digital pioneers began media gaining information from influencers, reviews, bridging the gaps in the chain, reducing family and friends, and communications. Digitally consumers’ , engaging consumers in new connected consumers can access experiences, and creating loyal customers (Atluri, et. al, information to inform their purchase decisions and 2017). search for pricing alternatives for the same or similar In this new retail reality, well-informed consumers, products. Moreover, consumers move seamlessly product hyper choice, and seemingly endless digital among online and offline retail formats and control their channels (Court, Elzinga, Mulder, & Vetvik, 2009), options for fulfillment location, time, and . In the known as endless aisles, underlie the phenomena of consumer – centric paradigm, the consumer is in control empowered consumers who control what, how, why, (see Figure 2). when, and where they are involved in the marketplace. This singularity of power that is held uniquely by each

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Figure 2. Consumer-Centric Paradigm Promotion/ Information

Product sourcing

Price Consumer in Control

Retailer

Fulfillment

Location

Consumer Experience: An Industry Mandate feelings, thoughts, and actions. Successful retailers Transitioning from the traditional product- and require a with of data , operations-driven business to one fueled by implications, advanced cognitive consumer-centric strategies requires a commitment to capabilities (e.g., high-level logical reasoning understanding the consumer’s perspective, capabilities), as well as increased social and emotional expectations, and friction points while recognizing the skills as they apply to consumers. potential for business performance (Boyarsky, Enger, & A higher percentage of retail in the future will Ritter, 2016). The consumer experience is often likely require college as well as advanced degrees to referred to as a journey as it encompasses the sum total secure the and necessary cognitive, social of a consumer’s expectations, engagements and and emotional skills needed for success (Bughin, et al., experiences. It may encompass multiple channels and 2017). Moreover, as technology is integrated across all over a period of a day, weeks, or for an aspects of retail, retail careers will require graduates in extended period-of-time. This journey is also dynamic non-traditional retail pathways such as technology. in that it occurs in real time and can change at any Successful technology applications creators who moment. understand retail and the consumer. With the The consumer experience is about creating a unique emergence of unified retail (“2018 Customer value proposition for each customer. Experiences are experience”, 2018), there is a need for a tech-savvy shaped by a series of contextual touchpoints, each workforce. This includes professionals who understand requiring cross-functional execution to gain the benefits and implementation of technology understanding of the consumer’s throughout applications in unifying online and offline retail. This the entire journey (Boyarsky, et. al, 2016). Creating supports retail curricula which includes strong value through the consumer experience requires a technology components where graduates understand shared company vison centering on the consumer, the benefits of technology applications to retail and can understanding how the consumer wants to engage, and in tandem with technology professionals. delivering on consumer expectations. Foundational to the consumer experience is a deep understanding of a Retail Education Reimagined consumer’s wants and , value orientations and The new era of retail began in August 1994 with the first efficiencies. secure online retail transaction (Grothaus, 2015). Over the next 25 years, retailers and retail educators Retail Talent for the 21st Century contemplated strategies to address the quickly , including artificial intelligence and robotics, changing reality of what retail is and how consumers is being developed and used to benefit retail want to engage with retail . In 2011 businesses. While this will result in losses in many omnichannel retail was heralded as the new retail sectors, it will also create new career opportunities that paradigm for the 21st century; however, it is quickly do not exist today (Bughin, Manyika, & Woetzel, 2017). falling away as retail realize the need, Retail is a human – based industry. It grows or opportunity, and possibility for even more integrated shrinks according to the level of consumer engagement strategies that move the retail from supply in the marketplace. Deep understanding of affective, chain to the consumer experience. This is the new era cognitive and behavioral aspects of the consumer is of unified retail. critical to retail success. This insight can be gained The evolution of retailing, retailers, and retail through company-specific consumer intelligence using education along with advancing is well analytics that decipher business data broadly for trends documented (Grewal, Motyka, & Levy, 2018). and uniquely for insights into an individual consumer’s Numerous educators have addressed the need to Journal for Advancement of Marketing Education, Volume 27, Special Issue, Fall 2019 12 transform education to prepare students for a retail transforming consumer expectations, 2) social industry that is continuously being disrupted and phenomena are redefining consumer engagement, and reinvented (Crittenden, Biel, & Lovely, 2019; Rohm, 3) competitive environments are recreating the Stefl, & Saint Clair, 2019). However, a comprehensive consumer experience. discussion and analysis of unified retail and how Program and curriculum development require technology, consumer centricity, and the consumer careful research and planning, assessment of current experience are disrupting 21st century retail and its and future resources, and matching current and future impact on retail education is lacking. faculty expertise across the expanded array of competencies. A college core offered a coherent Retail Education Reimagined: A Case Study strategy that connected all programs within the college Academic programing in one department at a tier – one with the underlying construct of consumer experiences research university in the southwest U.S. has across consumer products and services industries. continuously evolved over the past 20 years to prepare Within the department, faculty identified a series of core graduates for retail careers. Its pioneering efforts to courses that were foundational to all its programs based build relevant curriculum were guided by three global on their relationship to a retail paradigm. See Table 1. consumer trends 1) technology is

Table 1. Summary of efficiencies in using core courses to support aligned programs College Core Department Core Courses Career Development Introduction (Specific to field of study) Creating Consumer Experiences  Digital Retailing Managing a Diverse Workforce  Retail Principles  Retail Furnishings Industry Consumers in a Global Profit-centered merchandising or profit-centered retailing Advanced Applications (Capstone)

The department developed a series of new retail, and consumer experience . Specific undergraduate courses in the following areas: 1) content, application and skill sets were identified for analytics, 2) innovation, 3) strategy, and 4) technology each degree program. See Table 2. to give context to the B.S. degrees in digital retailing,

Table 2. Summary of program efficiencies for undergraduate programs using core courses Analytics  Digital Retail Analytics  Consumer Analytics and Data Visualization  Profit-Centered Retailing Innovation  Retail Start-Ups Strategy  Digital Retailing Strategies  Omnichannel Retail Strategies  Consumer Engagement in Digital Channels  Retail Principles  Sustainable merchandising Technology  Digital Platforms and Development  Virtual Merchandising

Department faculty and industry partners – centric model and how it is differentiated from the determined that successful retail careers in the next traditional retail model? Have graduates mastered an decade would require three critical areas of understanding of data analytics as a tool for understanding: 1) all retail channels for understanding consumers, strategy, and successful retail profit and loss; 2) frame the retail building comparative analyses? Can graduates apply paradigm from the perspective of the consumer concepts to strategies that will drive retail innovation for journey, and 3) focus on consumer facing digital profit, growth and success? The department addressed . these questions through eight steps that created The department addressed the following questions innovative programs for a new retail era (See Table 3). as they reimagined the retail education strategies: Do graduates have the skillsets to succeed and thrive in 21st century retail careers? Do graduates understand how to be effective in a fast-paced and fluid retail environment? Do graduates understand the consumer

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Table 3. Steps to create innovative programs for a new retail era Steps Year Program Rationale Implementation 1 1999 B.S. in Digital Retailing Recognized gap in online retail Proposal languished at state talent was a top industry priority; level as no CIP code was no academic programs were available until 2000; approval found in national search. was granted in 2002. 2 1999 100% online Responded to large international Developed online versions of M.S. in Merchandising retail organization’s request for current courses or identified online graduate degree available alternatives. worldwide to employees. 3 2016 Ph.D. Concentration in Identified gap in understanding College interdisciplinary Consumer Behavior consumer centricity in the graduate faculty developed a and Experience academic preparation of students concentration to support the Management in technology and information university Ph.D. in Information graduate programs. program. 4 2016 Minor in Consumer Focused on impact of digitization, Supports interdisciplinary Experience technology and consumer application (e.g., Management centricity as disruptors of the management, journalism, traditional business model and , consumer value equation. ). 5 2016 B.S. in Retail Applied technology, analytics and Faculty retail expertise consumer-centricity to disruption included terminal degrees in in the retail landscape; national retail and a combined total of search found no aligned 92 years of retail experience, undergraduate program. most at executive levels. 6 2017 B.S. in Consumer Framed on premise that the single Selected by university as one Experience most important driver of business of three innovative programs Management success is the consumer offered at the main campus experience; a national search and a new campus in a found no programs framed from corporate headquarters and this paradigm. technology hub. 7 2018 Graduate Certificate in Met a growing workforce need for Organized new and existing Digital Retail employees with expertise in the online graduate courses into a Merchandising field of digital retailing. certificate for working professionals. 8 2018 Concentration in Identified a gap in consumer- Expanded academic Digital Retailing in the centric data analytics required for opportunities in M.S. in Data Interdisciplinary retail success; meets quantitative Analytics and M.S. in M.S. in Data Analytics skillsets for advanced decision Merchandising to apply data and applied fields. analytics to retail.

The department developed an innovative B.S. in Responding to the new consumer-centric paradigm digital retailing degree (Step 1, 1999). The proposed in retail, the department developed a B.S. in Retail that degree languished at the state level due to no taxonomy allows for growth in interdisciplinary courses considered in the U.S. Classification of Instructional Programs through the lens of unified retail as the emerging (CIP) under which this ground-breaking degree could standard (Step 5, 2016). The university selected the be classified. The degree was approved (2002) after department to develop a B.S. in Consumer Experience 2000 revisions included a new and appropriate CIP. Management as an innovative program to be offered Responding to a global retail company’s search for jointly on its main campus and new metropolitan online master’s programs, the department developed a campus (Step 6, 2017). The department developed an 100% online option for its M.S. in Merchandising (Step online Graduate Certificate in Digital Retailing to meet 2,1999). a growing workforce need for technology expertise Consumer centricity was a gap identified for (Step 7, 2018). The university’s Interdisciplinary M.S. graduate students enrolled in technology and in Data Analytics began offering a digital retailing information programs. Faculty developed a concentration (12 SCH) to provide students quantitative concentration (24 SCH) in consumer behavior and skillsets for advancement in decision sciences and experience management to support the university’s applied analytics fields. (Step 8, 2018). Ph.D. in (Step 3, 2016). The department continued program development with an Challenges undergraduate minor (18 SCH) in consumer experience Faculty at this university are pioneers in two fields (i.e., management open to all university majors (Step 4, digital retailing and consumer experience management) 2016). that are critical to the retail industry and retail education. Journal for Advancement of Marketing Education, Volume 27, Special Issue, Fall 2019 14

In addition, the faculty added a new degree in retail at a 2019. Digital retailing graduates are in high demand. time when the retail industry is facing unmitigated According to internship and alumni data, 100% of disruptions and challenges to its relevancy in its current graduates are employed in the field within six months of state. The university embraced all eight educational . The first three consumer experience majors , as did the college’s industry partners. were admitted into the program in Spring 2018; by fall Notable challenges were met when articulating these 2019, the program grew to 73 majors. The retailing new fields of study to the state’s board of education and program was launched in Fall 2016 and is experiencing to the larger public. the slowest growth of the three newest programs. Creating awareness and building advocacy for the new programs resulted from communication with faculty Summary and sessions with college recruiters, university Retail is transitioning into a broad ecosystem unified by ambassadors, academic advisors within the college digitization, technology, and consumer centricity. and across the university, high career Preparing students for careers in this exciting and counselors, and high school recruiting events. challenging environment means retail programs need Messaging to students and parents during preview continuous revision to stay relevant. events and orientations was critical in articulating This case study presents comprehensive insights career opportunities. into the strategies and actions one department Faculty with the academic credentials and digital achieved through vision, industry insights, and stepping retailing expertise and experience were rare. Self- out of its comfort zones to prepare students for unified identified faculty developed digital credentials through retail in the 21st century consumer-centric . By additional academic , industry , taking these steps, the department realized additional and/or training programs. Also, industry executives with benefits. The innovative degrees and programs are specific expertise were recruited as adjunct faculty; creating a of discovery. Faculty and students similarly, some faculty were recruited for new full-time are engaging in industry-sponsored projects, lecturer positions supporting the degrees. research teams as university undergraduate research fellows and mentors, adding new technologies such as Impact gamification to enhance course , and Enrollment in the digital retailing program was slow, but integrating applied research across the curriculum. steady until 2011 when it increased 450% through

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