Retail 12 Innovations Innovating for Customers
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McMILLAN
DOOLthe retailIT expertsTLE
McMILLAN
DOOLthe retailIT expertsTLE
With more than 25 years of experience in consulting, our practice firm which can provide such a high level of experience, expertise, is centered on retailing. It starts with consumers, who we believe commitment and process. ultimately determine retail success or failure. We go beyond the Services. Our consulting practice is focused in the following areas: normal facts and data of the business by developing insights that can be applied to our clients’ unique needs and requirements. Our • Create winning strategies. We help create winning consulting expertise, combined with years of retailing experience, strategies for retailers and suppliers to the retailing leads to solutions that are both practical and executable. We are industry. We are experienced in guiding companies the industry experts at interpreting the retail marketplace and through the strategic planning process to achieve fresh converting insights into successful strategies. insights and solutions. • Optimize the customer experience. We help companies We are unique in the field of retail consulting: develop a unique, consistent and sustainable customer • Partner-driven, seasoned and experienced team. We are experience. Our proprietary analytical frameworks and uniquely qualified to develop, assess and implement new deep expertise helps clients identify opportunities to retail concepts and strategies for retailers and suppliers. enhance and differentiate their ongoing relationship with their target customers. • Proven processes. Our consulting practice touches on • We lead the development of every facet of retailing, including operations, service, Develop new concepts. innovative retail concepts, formats and programs. We have merchandise, real estate, systems, culture, organization, developed ground-up prototypes, refined existing concepts presentation, multi-channel and design. and created successful programs, shops and departments • Process built upon ownership. We partner with our clients within stores. using a team process. In the end, we engage with the team • Analyze and improve performance. We evaluate and to implement our retail knowledge and ensure they will be optimize retail concepts, strategies and businesses. This able to successfully execute the retail concept and/or retail includes a feasibility assessment of startups and new performance improvements. concepts, performance improvement for existing concepts McMillanDoolittle partners are objective outsiders who are and due diligence activities. passionate about retailing. We know of no other retail consulting • Intelligence. We provide critical research, information and insights on the retail industry.
McMillanDoolittle, LLP 350 West Hubbard Street, Suite 240 Chicago, IL 60654 Neil Stern 312-784-2512 [email protected] www.mcmillandoolittle.com
3 | Retail Innovations 12 4 | Retail Innovations 12 We are a global alliance of consultancy companies AMERICAS with members in more than 25 mature and emerging retail markets. McMILLAN Since 1990, we have helped retailers, as well as DOOLITTLE suppliers to the retail sector, remain competitive and the retail experts achieve their goals by blending global retail expertise with our members’ local insights. Asia-Oceania and Africa Ebeltoft Group serves 36 of the top 100 retailers and 29 of the top 50 manufacturers worldwide.
Since its founding, Ebeltoft Group has been analyzing global retail innovation trends and, since 2005, presenting this analysis in our annual publication, Retail Innovations, focusing on emerging trends and the most interesting cases worldwide.
Ebeltoft Group´s global studies and publications EUROPE include: • Global Cross Channel Report (2014) • Retail Internationalization (2013) • Global Cross Channel Report (2012) • NeoConsumer (2011) • The Trust Factor (2011) • Environmental Sustainability (2010).
5 | Retail Innovations 12 Retail Innovation Services Partnering with retailers With a decade of global retail trend analysis and more than 20 years of supporting our local retail communities around the world, Ebeltoft Group helps today’s retailers and manufacturers prepare for the ongoing changes and brands to improve shaping the retail marketplace. awareness of global The study and adoption of innovative ideas lead to major changes in the way we see businesses go to market. trends that are shaping It is easy to spot these changes when we reflect back upon retail history. It is more difficult, but ultimately more tomorrow’s retail important, to understand and react to these changes as they are happening now. Through presentations and workshops, our local Ebeltoft Group retail experts develop dynamic sessions to help your management team landscape. better understand these changes and answer the following key concerns:
What are the main game-changing ideas that are propelling retail forward? How does this apply to me and my local retail market? How can I incorporate elements of cross-channel retailing? How do I incorporate new technologies into my retail concept? How can I think about my business model in a new way? How can I blend the online and offline experience? How can I increase the role that the customer plays in creating and determining product?
In addition to presentations and workshops, Ebeltoft Group also provides customized trend-tracking services for your company or retail sector.
6 | Retail Innovations 12 Retail 12 Innovations The four hot trends of the year
Smart Shopping is key. Make Interactions focus on what Brand Intensity delivers Responsibility remains a it as efficient and convenient to shop the internet struggles to provide: emotions and “proofs of brand.” Savvy priority factor in many concepts, in-store as it is to shop Amazon. R1 12 interaction with products (test, retailers know they magnify their most often as the cherry on top, features several cases showing how customize, make), interaction with brand intensity through storytelling. but sometimes as the cake itself. the online/offline experience can be staff (human relationships, personal The French use two different words Northern European countries for “brand”: “enseigne” refers to more fluid, often thanks to the smart shopper), interaction with the are the clear leaders in this trend, historical retailers with a functional use of technologies (i.e., Canada Post, company (co-creation) and interaction experimenting with bold models like promise and weak marketing content; Retuna, the groundbreaking shopping Eatsa). As it did last year, RI 12 also with other clients (communities). “marque” refers to brands with strong showcases several R&D concepts of Some concepts are clearly dedicated content. Retailers have to move mall dedicated to recycling. compact/extended/no-stock stores to new forms of interaction (i.e., VOID, from “enseignes” to “marques.” This (i.e., Decathlon Connect, Sephora the trendy Brazilian concept coffee is obvious in niche concepts with Flash). And, this is not only about store; Vita Mojo, the UK build-to- intensive storytelling (i.e., Dielmar, the stores, the omni-channel journey is the order restaurant), but, more widely, “living showcase“ tailor; De Dames, the new normal in any of those concepts. numerous concepts step it up with garage for women), but is also true for customization and community. mass market and discount retailers. The amazing transformation of Lidl is one such inspiring example And, manufacturers keep testing “brand experience places,” such as Crayola and Adidas.
7 | Retail Innovations 12 8 | Retail Innovations 12 Retail 12 Innovations Contents
Ebeltoft Group 5 Retail Innovations 12 cases Ebeltoft Group Retail Innovation Services 6 Smart Shopping 19 Brand Intensity 63 Top Four Retail Trends 7 Zgoda FC 20 Eataly per Autogrill 64 Mister Spex 22 Telstra Discovery Store 66 Award-winning Innovation Cases 11 Apodoc Hardbrucke 24 Level Kids 68 Migros my way 26 Tally Weijl Flagship Store 70 eatsa 12 Bloom & Wild 28 Lidl 72 Canada Post 14 Sephora Flash 30 Beauty Sister 74 La Poste 32 Carrefour Street Market 76 Siam Discovery 78 Pangea 34 ICSC: Global sponsor of Retail Innovations 12 99 Crayola Experience 80 eXperience BCR 36 Icsc Viva Design and Development Award 102 Dielmar 82 Amazon Books 38 De Dames van Hurkmans 84 Ebeltoft Group Locations 104 ME for YOU 40 Picnic 42 Responsibility 87
Interactions 45 Peerby 88 Retuna Återbruksgalleria 90 Vita Mojo 46 WeFood 92 VOID General Store 48 Toms Shoes 94 House of All 50 Reclaimed Jewels 96 Decathlon Connect 52 Seneca Anticafe 54 Ray-Ban Flagship Store 56 Targi Sniadaniowe 58 Ikea Kuchnia Spotkan 60
9 | Retail Innovations 12 10 | Retail Innovations 12 eatsa
Canada Post Retail 12 Innovations Award-winning innovation cases
11 | Retail Innovations 12 WINNING INNOVATION BELTO E F T
AWARD
R E T 2016 A I N eatsa L I O INNOVAT
Positioning A new fully technology-driven store concept offering sustainable, healthy meals for people who otherwise may not have time to eat nutritiously, or who would like to spend less on lunch.
What is it? Eatsa is a fully automated restaurant chain whose goal is to make delicious, nutritious foods accessible to more people through a technology-driven restaurant experience. Technology fuels convenience and speed in an ordering process completely driven by digital screens and menu options, with an emphasis on a sustainable and nutritious offer. The restaurant functions like a vending machine. Customers enter and order at an iPad kiosk, or via the Eatsa app, and then wait at a wall of glass cubbies, where their food appears when ready. From start to finish, there is zero interaction between customer and employee. All bowls are priced at $6.95, which makes the product accessible to a broad base of consumers.
Key Data • Sector: Food service • Year opened: 2015 • Store location: San Francisco, California • Number of stores: 3, 2 in San Francisco; 1 in Los Angeles • Number of countries: 1, USA • Product mix: Healthy, fast-casual style foods
12 | Retail Innovations 12 United States of America
Why is it innovative? Technology and retail concept strategy drives Eatsa’s and pick up in-store from an automated locker. Customers Ebeltoft successful business model. The restaurant eliminates lines see their name on a menu board and simply double-tap the Point of View | and cashiers by using iPad kiosks. The staff is focused on the locker to access their food. Eatsa is pushing the kitchen, preparing each order of healthy and fresh food on site. Along with automated ordering, customers can easily join boundaries into a new age of For customers, placing orders is quick and convenient, since the rewards program and leave quick and instant feedback both the menu offer and the pricing strategy are very simple. food retailing by innovating on their experience, so Eatsa can constantly monitor overall through fast and customer- customer satisfaction. The receipt is emailed after the order friendly technology with T echnology and efficiency, omni-channel experience is received, and serves as a vehicle for customers to leave a focus on sustainability. Customers can create their own custom quinoa bowls, made feedback and rate their experience. Eatsa’s innovative automated in-house with fresh ingredients, behind the cubby wall. service is designed to In time, Eatsa’s computer system will display customers’ Healthy food and social consciousness promote healthy, nutritious previous orders and recommend new quinoa bowls based on The menu comprises an assortment of quinoa bowls, each eating that is also accessible, fast, cost-effective and filling. preference and history. costing $6.95, that feature a variety of toppings, as well as After ordering, customers wait at the cubby wall, where their side add-ons and drinks. Eatsa makes socially conscious name will display and their food will appear. choices by using quinoa, a sustainable plant, and keeping its menu completely vegetarian. The design emphasizes efficient For an even more efficient, streamlined lunch experience, production and convenience. customers also can order via Eatsa’s mobile app for iPhone
13 | Retail Innovations 12 WINNING INNOVATION BELTO E F T
AWARD
R E T 2016 A I N Canada Post L I O INNOVAT
Positioning Reinventing the modern post office with a focus on convenience.
What is it? Canada Post’s new “Drive-thru Parcel Centre” is an original and convenient alternative to the modern post office. The new concept store utilizes automation and self-service technologies to create a simpler and more efficient way for customers to receive and send parcels. The 4,500-square-foot store has a sleek, clean, modern, open environment and features 24/7 access, self-service kiosks, a vending machine, a drive- thru for parcel pick-up and even a fitting room. Key Data • Sector: Postal service, courier The store design encourages customers to walk through and interact with various • Format: Brick-and-mortar, “Drive-thru Parcel Centre,” 4,500 square feet elements. Service desks eliminate the barrier between customers and staff that are • Year opened: 2015 created by counter designs in other post offices. Staff and customers are encouraged • Store locations: Canada (Richmond Hill, Ontario; Edmonton, Alberta; to engage in a more familiar and accessible interaction. As do many traditional Vancouver, British Columbia) formats, the store features the philatelic wall, which displays collector stamps and • Number of stores: 3 new concept stores; elements of the new concept to souvenirs for purchase. Vending machines are available for self-service, so that be integrated into 6,200 post offices across Canada customers can purchase items like stamps without help from staff. New format • Number of staff: 8, compared to 2-3 in a traditional urban store displays, such as 14 digital screens, a large LED video wall that advertises Canada • Revenue per store: $1.2 million, compared to $400,000 in traditional Post’s latest services, as well as free wifi for customers also are available. In addition, urban stores the store can accommodate pop-up retail units for online-only retailers. • Other measures of success: New concept store is ranked No. 9 in the network of 6,200+ post offices for FlexDelivery, a service that allows These innovations extend well beyond the drive-thru feature; a more apt description of customers to select a location for parcel delivery destination this concept is Convenience 2.0. • Number of countries: 1, Canada • Product mix: Parcel pick-up and delivery service, plus retail for stamps, padded envelopes, parcel wrap, envelopes, etc.
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Why is it innovative? A drive-thru 1. Self-serve parcel kiosk: An automated all- The idea behind the drive-thru is for Canada Post to in-one service uses a “cubing device” to scan Recognizing the growth of online shopping and offer customers a “flash delivery” service experience. the package for size and weight, so that postage increasing customer demands for more flexible and Customers do not need to get out of their cars; they can be calculated by the machine. Customers can speedier service, Canada Post developed the concept simply drive up to the store’s welcome kiosk, scan the pay for their parcel delivery, print their shipping of the new Drive-thru Parcel Centre. The flagship barcode (either from their smartphone or paper pick- label and place their package in the drop-box concept store in Richmond Hill, along with two other up notice), and drive up to retrieve their purchase. for delivery. A receipt is provided and tracking stores in Edmonton and Vancouver, will test the Large parcels are placed in the vehicle by Canada is online. Customers receive a 10% discount for new elements, including a drive-thru, self-service Post staff. By extending the convenience of online using this service. modules and a fitting room. Successful elements will shopping to the delivery process, the drive-thru is be incorporated into its network of 6,200+ stores 2. Induction box: Customers who submit their particularly attractive to online shoppers. across the country. deliveries online and print their shipping labels prior to heading to the post office can visit the Self-service modules with 24/7 access center and simply scan their packages to drop Small business owners will never again have to worry them off. Packages are automatically placed in a about missing post office open hours. Customers can visit secure room for delivery and entered immediately the store at any time and access the following services: into the Canada Post automatic tracking system.
Customers drive up to the welcome kiosk to Customers then drive up to the drive-thru window to receive Staff give customers their purchases through the scan the barcode on their pick-up notice. their purchases. drive-thru window.
15 | Retail Innovations 12 WINNING INNOVATION BELTO E F T
AWARD
R E T 2016 A N IL O Canada Post, cont. IN TI NOVA
Canada Post has seen tremendous success with this slow to take off, as many online retailers do not include technology; almost 50% of parcels went through this return labels and, instead, require customers to print machine during the Christmas 2015 season. and place return labels on the packages themselves, which is inconvenient. As retailers’ return policies A fitting room become simpler, Canada Post sees greater potential for A 50-square-foot private fitting room offers customers this element. the ability to try on their apparel purchases as soon as they receive their parcels at the post office. Clothing that does not fit, or does not meet expectations, can be easily returned immediately. The fitting room has been The interior of the fitting room is bright and spacious and features a mirror.
A clean, modern, bright, open environment encourages customers Full view of the self-service parcel kiosk with The website provides tips on how customers can to walk through the store freely to interact with various elements. “cubing device.” measure their packages in order to determine their shipping rates.
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Ebeltoft Point of View |
Featured article in trade magazine Social media Parcel delivery is a major “pain point” in the online customer journey. The cost of delivery is a significant expense for the retailer, as customers generally expect free delivery. For the customer, the challenge is arranging a convenient delivery point, where he or she can be available when the parcel arrives, which adds extra steps to the customer journey.
The new Canada Post Drive-thru Parcel Centre concept is a win-win for everyone involved in the online sale: • For the smaller retailer that does not have an extensive logistics system, it provides a point where parcels can be dropped off and entered into the delivery network, even when there is no store staff and the store would be closed. • For the customer, the drive-thru area provides an easy pick-up point when home delivery is not an option. • For Canada Post, this more digitized system offers service, even when staff is not available. Having a customer pick up a parcel, rather than delivering it to their home, reduces the cost to get it into their hands. The pop-up store space is an added benefit for online retailers, tying them more closely to Canada Post’s Ship-in-a-Click service enables customers to Sample shipping label. Customers affix the Canada Post services. enter shipping information, print shipping labels and pay for the labels to their packages. their shipments online prior to heading to the store.
17 | Retail Innovations 12 18 | Retail Innovations 12 Know more smart shopping
19 | Retail Innovations 12 smart shopping
Zgoda FC
Positioning The temple of football (soccer); the biggest football store in Poland.
What is it? Zgoda FC is a two-story flagship in Warsaw dedicated to football (soccer). Football fans can buy all the sportswear in the category, as well as more technical products, like shoes and balls. Inside the store, customers can express and experience their passion for football (test area, room for clubs, etc.). The store offers an extension of the brick- and-mortar experience with an e-commerce site offering a broader assortment.
Key Data • Sector: Sport • Format: 400 square meters (2 floors) • Year opened: 2016 • Store location: Warsaw, Poland • Number of stores: 1 • Number of countries: 1, Poland • Product mix: Football (soccer) sportswear and equipment A broad assortment allows customers to thoroughly enjoy and appreciate football.
20 | Retail Innovations 12 Poland
Why is it innovative? An interactive and connected store Zgoda FC offers a high-level connected experience. Digital balls and shoes, as well as engage with the products, before Ebeltoft screens with detailed information and product enhancements buying them. Point of View | are present around the store. Some screens feature On the first floor, shoppers can play football games on Xbox A leading-edge store with advertising, showing films about products. Other screens systems in a dedicated corner featuring a seating area, TV hallmark innovations in display the website, which offers an enlarged assortment screen and Xbox console. Gamers can play and share their technology, experiential retail (“endless aisle”), and screens to help shoppers choose the common passion for football and electronic games. desired product. The digital technology enables shoppers to and personalization. place a product’s RFID tag under the screen, which will bring Personalization and Club Room up technical information, available sizes and more details to This store focuses on only A separate Club Room on the upper floor welcomes football support purchasing decisions. one key category to win club representatives and football aficionados interested in in, which presents the special orders. Coaches and football club representatives An experiential store question of whether there can prepare shirts personalized for their teams with club are enough people in this A small, enclosed football field-style space, surrounded by logos, player names and additional information. Shirts are grids and “planted” with artificial grass, enables customers market to make the store customized on site by dedicated sewing machines and profitable. to feel as if they are on a real field, where they can test transfer printing machines. Zgoda FC offers a positive customer experience, which reflects some aspects of Adidas or Nike flagships. This is not surprising, as Nike fully supported this project, although the store is a multi-brand environment.
Screens energize the store. Customers are surrounded by You can get comprehensive information An in-store football field relevant merchandise. about a shoe by placing it under the screen. to test balls and shoes.
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Mister Spex
Positioning Optician with a strong omni-channel presence; innovative store layout; highly competitive prices.
What is it? Mister Spex, Europe’s leading online eyewear merchant, opened its first brick-and- mortar store in Berlin, Germany, last February. The concept received the Red Dot Award 2016 in the category Communication Design. The layout, omni-channel approach and informal atmosphere of the store break from traditional optician shops’ presentation. In addition to offering a selection of 1,400 eyeglasses and sunglasses, Mister Spex reinforces customer retention by providing professional optician services on site, which were previously outsourced to partner opticians, to extend the formerly online-only model.
Key Data • Sector: Optician • Format: 150 square meters • Year opened: Brick-and-mortar store, 2016; online shop, 2007 • Store location: Berlin, Germany • Number of stores: 1 • Number of countries: 1, Germany • Product mix: Corrective eyeglasses, sunglasses, lenses, optician services The lounge area features a wall of available frames, as well Customers can browse and try on frames. as tablets for those who prefer online shopping.
22 | Retail Innovations 12 SwitzerlandGermany
Why is it innovative? Ebeltoft Customers can relax in the lounge, while using a tablet to Online offline mashup Point of View | shop online for the company’s products, as well as shop in As a former online pure player, it was essential for Mister Spex the store. Customers also can see an optician on site. to undertake an omni-channel strategy with its first brick-and- Mister Spex was among mortar store in order to enhance the customer experience. the first former online pure Unconventional store layout and customer journey The entrance welcomes customers with convenient and clear players to “take a step back” The Mister Spex store design features a completely open information about current product promotions, both in the to the brick-and-mortar retail storefront, which draws customers in and increases the store and online. Also, the organization of the assortment is model by opening an offline number of store visits. The innovative layout replaces modeled on the online approach, with the glasses displayed store. Offering customers traditional consulting desks, where opticians and customers to correspond with face shapes. Customers are provided with the full shopping and service sit opposite one another, with one large consulting desk in small wooden trays that accommodate four pairs of glasses experience, while keeping the center of the store. Now, opticians and customers sit side they have chosen to consider for purchase. Mister Spex also offline prices at the same by side, enabling customers to take a more active role in the carried over its popular shipping carton to the brick-and- highly competitive level as purchasing process. The consulting desk is equipped with mortar store. their online prices, Mister tablets to connect with the online shop. Also equipped with Spex exemplifies “smart tablets is an in-store lounge area featuring a focus wall of discount.” Serving up to designer glasses to inspire selection and purchases. 1,500 visitors on a Saturday, Mister Spex can capitalize on its deep knowledge of customers and brand awareness. Known for convenience, informality and reliability, Mister Spex has become “the Apple store for glasses.”
The strategic and targeted offline positioning will be expanded into additional stores in the near future.
Both in the store and online, glasses are sorted to correspond with face Reflecting the homepage of the online shop, the front of the store shapes. A visual merchandising element at the entrance explains the process. features a table promoting seasonal offers.
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Apodoc Hardbrücke
Positioning Apodoc is a walk-in medical practice, with no appointment needed, that also offers a pharmacy and a coffee bar.
What is it? Apodoc is a combined medical practice, pharmacy and coffee shop, where doctors, pharmacists and restaurateurs work together. All benefit from the synergy of patients, customers and health professionals sharing a space. Patients/customers appreciate being able to accomplish multiple tasks in a single physical location.
Key Data • Sector: Medicine, pharma, café • Format: 820 square meters • Year opened: 2015 • Store location: Zurich, Switzerland • Number of stores: 1 • Number of countries: 1, Switzerland • Product mix: Pharmacy, medical practice, coffee bar Café Medici offers delicious espresso, fresh At the pharmacy, individual patients are fruit juices and snacks. counseled and treated.
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Ebeltoft Point of View | Why is it innovative? Apodoc is a successful Apodoc is a medical practice where patients/customers recommendations from pharmacists, access to physician concept that presents can walk in for care 13 hours per day, even without an expertise and the opportunity to relax with delicious coffee multiple new opportunities appointment. Café Medici is a combined café-waiting area for and healthy snacks from Café Medici, all in one place. for pharmacists and patients. The café serves Italian espresso, healthy fruit juices doctors. The concept and regional gelati from Zürich. Saving space and optimizing resources revolves around the Locating a pharmacy, a clinic and a café in the same spot patient’s/customer’s Synergy optimizes resources for the patients/customers, as well as needs, and offers multi- At Apodoc, Café Medici ensures that the patient’s/customer’s for staff. The patient/customer benefits from the convenience faceted convenience. Now, waiting experience is positive. The patient/customer will be of the concept, including being able to consult with a doctor the patient/customer has served in the café, regardless of whether he or she has an and/or pharmacist without an appointment. The patient’s/ access to experts without appointment to see the doctor, and can get a prescription customer’s time is used efficiently, eliminating travel between an appointment, as well filled immediately. Apodoc also enables pharmacists and offices and stores. The staff benefits from knowledge-sharing, as an enjoyable wait over doctors to share information about medications and treatment which leads to a better customer experience. The unique high-quality refreshments. options, creating the best possible experience for the patient/ concept offers convenience and coherence within the medical Apodoc is an example of how customer. Patients/customers benefit from advice and field that hasn’t been seen before. the medical industry can reinvent itself by catering to patients/customers. The concept taps effectively into a flourishing trend for retailers to mix different concepts, most commonly a retail space with a café or restaurant. Within the medical industry, Apodoc is the first of its kind, opening up great potential for further developing the concept.
Multiple health professionals cooperate and benefit from Welcome desk of the medical practice. There are friendly faces throughout the each other, which is an advantage for patients/customers. building.
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Migros - my way
Positioning Freshly made, customized food and beverages. Take-away with self-checkout, as well as delivery service, at fair prices.
What is it? my way is a new take-away concept from the Swiss supermarket chain Migros. It offers both an online portal, as well as a shop in Berne, Switzerland, where individual customers can customize their own food and beverages. The employees of my way prepare the fresh food and beverages as they are ordered, not in advance, and the customers can pay for their take-away order via self-checkout in the store, or get it delivered to their home, if ordered online. my way offers leading-edge customization within the food sector of retail.
Key Data • Sector: Food and beverages • Year opened: 2015 • Store location: Berne, Switzerland • Number of stores: 1 my way store, part of Migros Aare (230 stores) • Number of countries: 1, Switzerland • Product mix: Hot beverages (e.g. coffee and tea), hot (e.g. pasta) and cold (e.g. sandwiches, salads) food, various menus
A colorful buffet is the centerpiece of a The customer can customize his or her order via unique customer experience. the website and get it delivered to their door.
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Why is it innovative? Ebeltoft my way is an innovative concept offering customers the individual desires to customize their meals. my way offers Point of View | choice of creating their own menus, salads and/or gluten-free, lactose-free, as well as vegetarian food and drinks. sandwiches, both in-store and online. The trend caters to the desire for more customized, Fast and easy shopping fresh and local food and Everything is freshly made in the store, in view of customers. There are two easy ways to order food and beverages – in beverages. Formats such Customers can pay either at a checkout or self-checkout, the shop, or online. When ordering online, you can pick up as my way meet all the making the process fast and convenient in-store, as well your order in-store or get it delivered to your doorstep. The high-priority needs of as online. payment process is simple: Customers can pay at checkout, the customer, especially self-checkout or online. convenience, customization Customization of fresh food and beverages and healthiness, in terms of This take-away format allows customers to create their own both product and delivery. food and beverage experience, and satisfies customers’ The concept is tapping into trends that serve busy customers who seek healthy, convenient solutions for their meals. Customization is an added bonus for the my way customer.
my way employees prepare fresh food and Payment is quick at checkout. Diners can customize their own Home-delivery service. beverages in full view of the customers. food and beverages.
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Bloom & Wild
Positioning Fresh flowers delivered by mail.
What is it? Bloom & Wild is an online-only flower delivery service. The business ships flowers and other small gifts for next-day delivery across the UK, and same-day delivery in London, as well as offers a monthly subscription service. Individual bunches range from £20-£55.
Key Data • Sector: Online gifting • Format: Online pure player • Year opened: 2013 • Store location: Online only • Number of stores: Online only • Number of countries: 1, United Kingdom Flowers are fresher and thrive longer. By shortening the supply chain, Bloom & • Product mix: Flowers, other gift items Wild can ensure a fresher product, less expensively – but no less elegantly.
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Why is it innovative? Ebeltoft While next-day delivery flower services are relatively common Bloom & Wild leverages technology to develop Point of View | in the UK, Bloom & Wild combines an innovative use of a market-leading customer experience for technology with an intelligent, efficient approach to supply- chain flower gifting The use of couriers by management to ensure better access to a superior product. The website and app are built for efficiency, with customers traditional flower delivery able to enter a new order in as little as 30 seconds. The businesses has always Bloom & Wild has pioneered the delivery of mobile app, which accounts for approximately 50% of orders, presented the possibility of flowers through the mail can be seamlessly integrated with the user’s address book missed deliveries, ruining the element of surprise Rather than relying on a traditional courier service, the and calendar, saving time otherwise wasted on filling out and adding cost to the business has developed hi-tech boxes that keep flowers intact information and tracking birthdays. overall order. Through and well watered throughout transit, yet are easily delivered its innovative box design, through a household mailbox. The method allows far more Bloom & Wild remedies this flexibility with ordering, as well as prevents missed deliveries problem. Also, its shortened and ruined surprises. supply chain and curated Rather than buying flowers through traditional product selection maximize supply channels, Bloom & Wild has partnered freshness, while minimizing directly with flower growers cost to the customer. By shortening its supply chain and curating a more limited selection of flowers than is offered elsewhere, the business generates cash savings that can be passed on to the customer and ensures a fresher, higher-quality product. Typical gift flowers suffer from extended travel times as they pass through various middlemen from field to end-recipient, but Bloom & Wild’s flowers spend less time in transit and thrive longer in the home.
Innovative packaging replaces the expense of a courier with the efficiency of the postal service.
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Sephora Flash
Positioning Beauty at any price, large choice of brands (10-12% private label).
What is it? Sephora Flash is the R&D format of Sephora. This format is designed to accommodate the whole added-value offer in a compact store, decreasing both size and break-even to address smaller locations. Only 25% of the usual assortment is present, but the level of service is high and digital devices ensure access to the full range.
Key Data • Sector: Perfume and beauty • Format: 130 square meters (vs. standard Sephora, 400 square meters) • Year opened: 2015 • Store location: Paris, France • Number of stores: 1, Sephora Flash (320 Sephora stores in France) • Number of countries: 29 (in 2015) • Product mix: Makeup, perfume, beauty accessories The store caters to customers for whom Customers can scan a card — called the “digital personal beauty is a high priority. basket”— which is recognized by provided devices, creating a fluid experience.
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Ebeltoft Point of View | Why is it innovative? Sephora Flash is a first step – and clearly not A compact store to address smaller locations No compromise on service the final one – toward a While standard Sephora stores offer about 14,000 SKUs, The store is smaller and the range is limited, but the high successful concept. At the Sephora Flash is limited to 3,500 SKUs. In-stock products level of service remains basically the same as in a regular moment, several aspects are mainly private-label makeup and accessories. The Sephora: makeup bar, eyebrow service, a mirror for selfies, are not optimal: the digital perfume range is rather small, featuring testers, but no stock. mobile phone charger, automatic sample distributor, etc. range extension is far from Care products are limited to a very short range. being easy to use, the focus on private labels seems Digital extensions excessive in makeup, the In each store aisle, digital devices access the full range on digital baskets work only for more than 15 touchscreens. products with an NFC chip, which many products do not yet have, etc.
But many interesting aspects should be highlighted: the choice not to compromise on services and the radical choices within categories. Sephora addresses categories in varying ways (i.e., significant range, but limited to private labels in accessories and makeup; showroom in perfumes; very short range in care products, with few brands). The sales associate scans the card and the Delivery is free, both to a home or in-store. Payment also can be digital, with a sales product. associate scanning credit cards with an iPhone.
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La Poste
Positioning Optimize the concept for professionals who frequent the store by offering more services and flexibility.
What is it? This new concept targeting business professionals is designed to make the in-store customer experience more efficient and enjoyable through diverse new services including wifi access, as well as assistance with paperwork and database management. La Poste Pro aims to be a meeting place for members of the professional community, as well as “partner” with small/medium local professionals.
Key Data • Sector: Postal service for professionals and small companies • Format: 100 square meters • Year opened: 2015 • Store locations: France (Paris, Poitiers, Le Mans, Besançon, Auxerre, etc.) • Number of stores: 17 • Number of countries: 1, France • Product mix: Services and products (envelopes, stamps, etc.) Customers used to collect their mail at the welcome The concept spotlights products for sale desk. Now, they can access their mailbox independently, in the center of the store, in a comfortable removing the barrier to efficient self-service. setting with modern furniture.
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Why is it innovative? Gain time, instead of losing it Help professionals with new services Ebeltoft The new concept of La Poste is based on ensuring that all La Poste wants to be a reliable “second office” for Point of View | customers have a positive experience at points of sale. One professional business customers. This concept provides approach is to reduce or eliminate excessive time spent on meeting rooms, a conference table, comfortable chairs and Customers’ feedback on day-to-day activities, such as collecting mail or purchasing a private room, as well as access to a printer and wifi, so pilot stores has been highly products. The new concept includes a self-service area, customers can check email. In effect, the concept becomes positive, expressed in terms where customers can collect their mail. The next step is to a professional business center. The La Poste team also can including “useful, time- integrate digital equipment. Instead of having to collect mail help the customer manage his or her database, or assist with saving, modern, friendly,” etc. from an assigned box, the customer will receive an SMS with paperwork, if needed. Additionally, the new concept a code to retrieve mail directly at La Poste. Both frequent and has had an extremely positive occasional customers will be served efficiently. New relationships in a modern environment impact on staff, who use La Poste wants to host professionals at a central hub in words to describe it such as Customers also can buy products (envelopes, stamps, etc.), every town. The updated brand features a dynamic palette, “pride, efficiency, relationships which will be marketed in the store. Digital screens will make with yellow as its primary color, contemporary signage and with customers,” etc. Beyond it easy to purchase a product. materials, and new furnishings. a new design, the concept embodies a new vision for La Poste Pro at a time when mail/package activity is declining by 5% every year. The new relationships among staff and customers signal a significant positive change, and the physical concept appears to be a powerful step toward helping staff embrace the changes.
In addition to meeting rooms, the concept The customer can work at the “connected bar,” The brand message emphasizes a service-driven provides a private room that reduces or with wifi access. closeness with customers. eliminates noise.
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Pangea
Positioning World’s largest travel store (in both size and offer) for purchasing vacations.
What is it? PANGEA is an experiential store, the physical locus of an omni-channel strategy offering customizable vacation and activity packages and comprehensive services for travelers. It features a unique environment and product display, where customers can browse and buy via any of 40 touchscreens, or be advised face to face by expert travelers. It also offers diverse add-ons, from sending your luggage to the hotel, to stocking up your home fridge for your return. The store creates a lively “experts in travel” atmosphere with a coffee shop, travel book shop, successful events agenda and a Travel Lab, where new packages are developed, with real-time customer input about their dream vacations.
Key Data • Sector: Travel and leisure • Format: Flagship of 1,500 square meters, physical locus of omni- channel strategy • Year opened: 2015, fall • Store location: Madrid, Spain • Number of stores: 1 • Number of countries: 1, Spain • Product mix: Customizable packaged vacations and experiences, Travel Choose one of four worlds to browse and buy: Diverse events related to travel and cultural activities Lab, book shop, coffee shop, two auditoriums/areas presenting free Enjoy Madrid, Rediscover Spain, Escape to Europe, are hosted almost daily in PANGEA, building its events and other services for travelers or Travel the World. concept of “a place to experience the world.”
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Why is it innovative? Experiential shopping in the travel sector PANGEA The Travel Store is designed to be a meeting point for Now that most travelers are buying their tickets and booking travelers and adventure lovers who enjoy browsing, reading, their hotels online (often getting lost in too much information) talking and sharing travel experiences (just like Decathlon and rarely visit a travel store, PANGEA reinvents selling attracts sport lovers and a visit to Ikea is not just to buy home Ebeltoft vacations and leisure activities. furnishings). Assistance is offered by travel experts, many of Point of View | Packaged vacations are customizable experiences whom have lived most of the experiences they sell. The travel book shop in the store helps customers find extra information, At PANGEA, you buy an experience, not just a plane ticket or PANGEA is an interesting the coffee shop offers a place for relaxed conversation, the hotel reservation. The product includes “can’t miss” activities reinvention of the traditional Travel Lab is a great space for planning an out-of-the-package at the chosen destination, from a day trip to see dolphins, to travel agency. Now that vacation and the successful events agenda draws people for cocktails at sunset with a great view. There are more than customers buy their travel presentations, workshops or lectures almost daily. 1,000 packaged vacations with fully customizable activities. online, it offers something This concept offers a service the customer of the ‘70s and Successful, comprehensive omni-channel strategy extra – experiences – while ‘80s once accessed through a travel agent, but millennials From product display to buying process, live and online catering to customers’ now see as a new and easy approach to leisure travel. seamlessly merge. Customers can start browsing online and familiarity and comfort with These vacations have names such as Sleep in a Tree or Find finish buying via any of the store’s 40 touchscreens equipped computer-based processes. Peace and descriptions that include more of what you will with fully integrated payment devices. Or, they can start in Plans to expand the do and experience and less of what you will see. And, if you the store, being advised by a travel expert, go home and physical stores include four can’t travel, they also have inexpensive local experiences, pay online. The shopping process and look and feel of the or five in Madrid, one in such as Star Wars (lasertag activity + barbecue) or Retiro on products are shared on mobile devices, desktops and in the Barcelona and the possibility Wheels (bicycle guided tour through Madrid’s Retiro Park + a store, making it easy for current online travel shoppers to feel of international locations. rollerskating class). comfortable in a brick-and-mortar travel store. We need to see how this 1,500-square-meter flagship concept evolves into a replicable format, because it is a high-cost model for broad expansion, especially in the same city.
Online and in-store display of products share both look In addition to transportation and lodging, a seven-night vacation on the island of Lanzarote includes and feel. tickets to four museums and monuments, sailing in a catamaran and a Sea Trek adventure. These add-ons are optional and the customer can eliminate them to reduce costs.
35 | Retail Innovations 12 smart shopping eXperience BCR
Positioning Technology-driven banking around the clock, with a personal counseling component.
What is it? BCR, the biggest bank in Romania (part of the Austrian group ERSTE), launched in 2016 as eXperience BCR, exemplifying new banking trends and integrating advanced technologies for communicating with and counseling customers.
Why is it innovative? The new store concept supports the BCR strategy to prepare customers for the digital banking era. eXperience BCR is the first concept that provides the unique experience
Key Data • Sector: Banking • Format: 820 square meters • Year opened: 2016 • Store location: Bucharest, Romania • Number of stores: 1 • Number of countries: 1, Romania • Product mix: Banking services delivered via digital technologies
Innovative store format prepares customers for the digital banking era.
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of banking via cutting-edge technologies, such as interactive Non-stop counseling via digital tools Ebeltoft touchscreen desks, iDesks, video counseling, 24/7 complete Starting at 6 p.m., when the bank closes, the customer can Point of View | banking services and a business hub for BCR customers. access the comprehensive technology offered by the new concept. Also available are the same digital tools used during BCR took the first step Fully digitalized agency open hours, as well as the popular live video counselor, toward changing customers’ eXperience BCR is the most advanced digital bank in the which links customers to a bank advisor. perceptions of banking Romanian market. It is equipped with current technologies, services and products by such as interactive touchscreens for counseling services, as Bank serving as business hub adapting to the latest digital well as comprehensive counseling through banking products BCR creates a closer relationship with customers by providing trends. By creating a fully and services. The location also is equipped with one iDesk, an the tools necessary for moving their business meetings into the digitized ecosystem, within information screen offering the best financial solutions for the bank. eXperience BCR launched a new concept of a business which clients have non-stop customer via direct connection with a counselor. hub, which is space designed for corporate customers that access to bank services, is equipped with facilities such as projection area space, BCR both leverages digital conference systems and meeting tables. capabilities and responds to customers’ needs. The new concept is already a success; the bank has announced it is launching 10 new digital locations in the next period.
The bank is equipped with cutting-edge technologies The video counselor system is the most Business hub facilities make the bank a that link customers and services. popular service. partner with local businesses.
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Amazon Books
Positioning The Amazon brick-and-mortar bookstore appeals to a wide range of customers. Some stores are catering to specific demographic sectors (i.e., universities catering to students).
What is it? The pure online player Amazon has opened a brick-and-mortar concept. A pioneer in developing a new way to buy books, Amazon is leveraging its insights into customer buying habits gained through its online presence. This physical bookstore encourages browsing and serendipity.
Why is it innovative? Amazon has used its deep knowledge of showroom and consumer behavior to create a brick-and-mortar, price-matching environment with the added bonus of instant gratification.
Key Data • Sector: Bookstore • Format: 700 square meters • Year opened: 2015 • Store location: Seattle, Washington, USA • Number of stores: 2, Seattle, Washington, and San Diego, California; 1 store planned for Portland, Oregon • Product mix: Books and Kindle e-readers, Fire tablets, Fire TV streaming-media devices
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The best of online and offline retail worlds images to read full reviews on Amazon.com. At the register, By creating a comfortable, cozy, casual interior featuring swiping a credit card tied to an individual customer’s Ebeltoft long counters, window seats and a children’s play area, Amazon.com account automatically triggers an emailed Point of View | the store delivers a traditional feel-good bookstore receipt and puts the purchase in his or her online Amazon environment that also encourages customers to linger and order history. Everything Amazon, in one place. Using insights into customer experiment with the Amazon app. All books are displayed buying habits learned through its face-out on both shelves and displays of varying heights. Optimized display and range planning online presence, Amazon Books has knocked down the virtual walls Amazon is using customer data for product assortment. Deep insight into customer buying habits gleaned through between online and physical retailing, Amazon Books removes “better deal” fears. Signs and its online presence allows Amazon Books to stock its store strategically applying online content scanners signal that the price of the book on Amazon.com with titles most likely to move, eliminating the need to send and transactional expertise to in- is the price customers pay in the store. Customers are books that aren’t selling back to publishers. The company person shopping. Amazon has joined encouraged to open the Amazon app to answer the stocks bestsellers, as well as books that get high ratings the trend among online stores to open question, “What’s the price?”, eliminating associates having from customers, including little-known titles. to sticker and re-sticker price tags on inventory. physical retail locations in order to Similar to an Apple or Microsoft retail store, Amazon reach its customers in new ways. Books offers hands-on experiences with Fire TV and
Omni-channel customer brand experience Echo devices, Fire tablets and Kindle e-readers, so that Amazon Books is leveraging the e-commerce experience by Amazon competes through innovation customers can make side-by-side, hands-on comparisons. applying to the store what has been learned from the web, and services. For example, Amazon The store also features extensive displays of private-label accommodating both online and physical domains. While is driving innovation in delivery. Amazon Basics products, from cables to Bluetooth speakers, browsing, shoppers are exposed to Amazon’s star ratings Its “one-day delivery” program conference systems and meeting tables. and review excerpts and encouraged to snap barcode has made Prime membership a popular service. The company has experimented with ways to drive the delivery time down to even less than one day, with initiatives that include the use of couriers, lockers and drones. Retail locations will help Amazon win on delivery and could double as product pick-up locations, distribution warehouses and, eventually, drone airports from which products are flown to nearby homes and businesses.
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ME for YOU
Positioning ME for YOU serves customers refreshments and services their phones in a unique environment, keeping customers entertained and connected.
What is it? ME for YOU is a unique concept, where customers can enjoy food and drink while their phone is repaired by Dr. ME. The service is reliable and fast, offered in a welcoming environment with free wifi. ME for YOU offers an unusual blend of a lounge with a workspace in The Hague.
Key Data • Sector: Food and phone • Format: 200 square meters • Year opened: 2016 • Store location: The Hague, The Netherlands • Number of stores: 1 • Number of countries: 1, The Netherlands • Product mix: Food, drinks, phone accessories, phone repair service, innovative tech products
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Why is it innovative? Ebeltoft Total service concept Expertise and personal service Point of View | ME for YOU serves customers refreshments and services Although selling mobile devices is not the main objective ME for YOU knows how their devices, providing snacks while the “phone doctor” of ME for YOU, new phones are available for sale at this to create a positive in- performs device repairs. While waiting for repairs to be location. Staff provide expert advice about phone options to store experience and completed, ME for YOU customers can spend time customers as they enjoy their coffee. responds to the trend to productively and stay connected via tablets while they snack. provide customization and Having a phone repaired becomes a pleasant activity in a Store as playground convenience for customers. comfortable setting. Customers are welcome to enjoy a coffee The store also offers several innovative value-add services, The customer journey and or lunch, whether or not they are there for a phone repair. such as the option to create customized phone accessories while waiting. Customers also can experiment with virtual the role of physical stores reality experiences, drones and other gadgets, including robots. are changing. Making a transaction is not the main objective at ME for YOU. It is a place where people can work, meet friends, enjoy a coffee and access services without feeling they are wasting time. It is a playground, where customers can become designers by creating a uniquely individualized phone case. By combining different concepts, ME for YOU created a format that works.
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Picnic
Positioning The first online app-only supermarket in The Netherlands. Customers can easily order the least expensive groceries through the Picnic app, as well as enjoy convenient delivery services.
What is it? Picnic is the first online app-only supermarket in The Netherlands. Customers can grocery shop via the Picnic app and their purchases are delivered to their home, at no charge, by an electric van. The purpose of the concept is to reduce costs by eliminating stores and unnecessary intermediaries. Picnic is an innovative, sustainable, technology- driven concept. The high complexity of technology and underlying systems makes copying this concept difficult.
After three years of highly confidential work, the concept was secretly tested in Amersfoort. In September 2015, Picnic officially launched in Amersfoort, after which it expanded service to other areas in The Netherlands, including Leusden, Soest and Utrecht.
Key Data • Sector: Food • Format: App • Year opened: 2015 • Store location: Online only • Number of countries: The Netherlands • Product mix: Groceries
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Why is it innovative? reduces food waste. Also, Picnic does not print receipts, further supporting sustainable living. Customers’ receipts are Convenience available in the Picnic app. Grocery shopping takes time, which many people do not have, or they simply don’t enjoy this activity. Picnic launched an The product range Ebeltoft easy-to-use app for purchasing groceries from wherever and Customers can expect a product range on the Picnic app that whenever the customer desires. Via the app, customers can is similar to that in traditional supermarkets, including fresh Point of View | swipe through various departments and select their favorite vegetables, meat and bread, as well as premium branded Picnic succeeds in products. The saved order history makes re-ordering easy. products and private-label items. The product range of Picnic differentiating itself from Picnic offers three set times per week, per neighborhood, is dictated by customers and can be easily changed. Picnic other supermarkets. It exists for delivery. The app displays a radar-enabled map from the is also flexible with regard to weather, seasons or trends. If to make customers’ lives moment the customer’s delivery process starts, so the app a customer requests a product, Picnic can add it within 24 simpler, cheaper, more user knows exactly when the delivery person will ring the hours to the range. convenient and more fun. doorbell. No more time wasted waiting! Price advantage The process of ordering Sustainability Picnic guarantees the cheapest price. Every night, the company groceries is fast and easy Picnic is sustainable in several ways. The electric van price-checks 50,000 items and adapts its prices to be and the app radar shows used for delivery is environmentally friendly and creates no competitive. If customers find the product elsewhere for a lower exactly when the order will emissions. Also, the assortment is sustainable. Traditional price, they get it free from Picnic. This is possible because Picnic be delivered. By eliminating supermarkets buy and display products before they are does not support physical stores and because of its electric van. as many intermediaries purchased, so fresh products are in the store for several Picnic delivers all the orders in one neighborhood at the same as possible, Picnic can days before they are bought by customers. Picnic is able to time, three set times per week. This saves time and money and guarantee the lowest price. order exactly the amount of fresh products needed, after is environmentally friendly, enabling Picnic to offer free home Picnic has developed a challenging, but effective, the last customer updates her or his order at 11 p.m. This delivery with a minimum order of €25. business model focused on cost-efficiency in densely populated regions.
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Vita Mojo
Positioning Lunch and dinner for health-conscious city workers and local residents.
What is it? Vita Mojo is a health-focused take-away restaurant offering customizable meals. Customers choose any desired combination from among five proteins, 14 starches and vegetables and five sauces in order to create a meal that is suitable for their nutritional needs and preferences.
Key Data • Sector: Food and beverage • Year opened: 2016 • Store locations: St. Paul’s, London, UK • Number of stores: 1, London • Number of countries: 1, United Kingdom • Product mix: Health-focused take-away food
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Why is it innovative? Ebeltoft Vita Mojo offers unparalleled customization, allowing Vita Mojo is the city’s first entirely cash-free Point of View | customers complete control over the composition of their restaurant Customization in the food- meal. Customers are able to tailor their meal to their Customers can choose and pay for their meal online via to-go market has become nutritional requirements, with each meal’s calories and the restaurant’s website and, at the same time, select a increasingly prominent and, nutritional content quantified before purchase. Technology convenient time to pick it up at the store. Payment is either in some cases, is even plays a key role in the efficiency of the order process: online or through a contactless card. For walk-ins, the expected by customers. customers order in advance online, or in the store via restaurant provides a row of permanently installed iPads for Vita Mojo’s innovation is provided iPads. immediate ordering. its seamless integration of technology into the process, Vita Mojo offers unparalleled meal customization removing the need for Using either in-store iPads, or from the comfort of their desk, communicating complicated customers can design their meal precisely by selecting the orders and significantly portion size of each ingredient at set weight intervals. A cutting wait times in- number of diagrams update live as the contents of the meal store, while simultaneously change, informing customers of both the current price and managing to provide high- the current nutritional content of their selections. level nutritional information to an increasingly health- Vita Mojo aspires to serve as a personal nutritionist conscious customer base. It for customers remains to be seen whether The restaurant’s head nutritionist, who has worked with the team can deliver on its leading Formula 1 drivers, helps develop the menu and create ambitious goal to align meals a dialogue around nutrition with customers. In time, users with an individual’s personal will be able to submit information on their physical attributes nutrition requirements, but and dietary goals online in order to measure their progress. In the initial response to the addition, an app currently in development will allow users to concept has been positive. sync their meals with their required nutrient intake.
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VOID General Store
Positioning VOID General Store is a multi-task, multi-brand enterprise combining a convenience store, bar and content developer (music and videos).
What is it? VOID started as a lifestyle magazine covering skate, surf, fashion, music and night life. After almost 100 issues, in 2014 VOID became a general store in Leblon, Brazil, where millennials and Generation Y get together to have fun, listen to music, buy cool stuff and share drinks. It’s a totally new store concept, combining lifestyle online and offline. It’s also an extremely active social media domain conveyed and shared via videos and photo content, using platforms including YouTube, Instagram, Twitter and Facebook. VOID General Store curates the latest brands of beer, including the primary Heineken product from Rio de Janeiro, attracting customers who have confidence in VOID’s selectivity and good service. The bar and the store perform very well together.
Key Data • Sector: Food and bar, convenience store, millennial fashion, lifestyle, music • Format: 150 square meters • Year opened: 2015 • Store locations: Barra da Tijuca, Rio de Janeiro, Brazil • Number of stores: 7 • Number of countries: 1, Brazil (6 at Rio de Janeiro, 1 at Porto Alegre) • Product mix: Convenience store catering to young people, offering a mix of products, from clothes to accessories, from beer to music
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How can convenience (simple quick, efficient purchases to Why is it innovative? Ebeltoft meet daily needs) and community/lifestyle merge? Exactly VOID General Store is a unique retail example of a disruptive Point of View | how VOID blends them. Everything is connected — a mix of way to create real conversation with the target. It is not just products share physical space, tied together by a common a brick-and-mortar initiative, but a radical combination of Since launching its first store in message in several categories. Secondly, there is a surprise content and retail: magazines (physical and digital), videos 2014, VOID General Store has factor: finding clothes to purchase in the same area where at YouTube, Instagram and the entire organic environment, opened six different locations with the same proposition: you buy beer, meet people and grab dinner. This is key in featuring live music and young people having fun together. Create an environment where addressing a young market that understands and appreciates A convenience store with a full range of product customers enjoy shopping an eclectic and welcoming place designed around them. and gathering for fun. The convenience segment is differentially curated for the mix, in a modern environment neighborhood. For example, in Leblon, the nearest place Lifestyle Curator This innovative success to buy surfboard wax was in Arpoador, therefore, though “Our message goes beyond our stores,” VOID has a strong is based on the perfect VOID is not a surf shop, in Leblon, the store sells wax as a proposition: to be a youth lifestyle curator producing content combination of entertainment, convenience and it is received well by that local audience. for the internet, magazines and in-store activities. in-store activities and online presence. This strategy allows VOID to create and maintain a huge personality among customers and create a long-term conversation with its customer community, which would be difficult for competitors to replicate.
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House of All
Positioning Lifestyle and collaborative spaces offering simple solutions at affordable prices, targeting young adults and teenagers.
What is it? The business started with the House of Work, a place to meet professionals who need an organized workplace. Other such complementary places emerged, including House of Food, a co-kitchen where any aspiring chef can open the kitchen to the public; the House of Bubbles, where people have access to a fashionable wardrobe by subscription; and the House of Learning, where anyone can teach and offer training. Combined, all the Houses create a distributed cultural environment for contemporary consumers. It is important to note that all activities are not offered at each location. For example, Rio House of Food is in Botafogo, while the House of Learning is in a Lagoa neighborhood. Combining unrelated activities Key Data within one space transforms the activities: • Sector: Sharing economy washing clothes becomes a pleasure, and makes a profit, when a bar is located in 2013 • Year opened: the same facility as a laundry. Co-working • Store locations: Pinheiros, São Paulo, Brazil environments encourage many different ways • Number of stores: 8 to engage and optimize the circular economy. • Number of countries: 1, Brazil (5 at São Paulo, 2 at Rio de Janeiro, 1 at Belo Horizonte) • Product mix: Co-working, food and bar, fashion, laundry, music, education and training House of Learning: Participants can rent a small auditorium, where they can present conferences, lectures or courses. The space provides the necessary infrastructure in an environment that adapts to accommodate each event, with modular furniture that can be used as tables, benches, chairs, cabinets, etc.
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Why is it innovative? House of All exemplifies a new consumer relationship — a analyze the lifestyle created within the environments to Ebeltoft practical, sharing economy among neighborhoods and local generate insights, business intelligence and content. Point of View | businesses. The Houses translate the model into physical retail, offering innovative ways to access products, instead of Trend Boutique Since its first store opened own them. The influence on the neighborhood of the Houses makes them in 2013, House Of All has great showcases for new and trendy products and services. established seven more A laboratory of experiences and communication Visitors identify with the activities and products and support the locations that exemplify projects sharing philosophy, creating a strong and proliferating network. and embrace the sharing A laboratory of experiences and communication projects economy. The strength and agility of the growing format is grounded by three pillars: collaborative creation, decentralization, relationships and trust. The key to this business is the conversion of customers to become influential brand ambassadors and contributors who help transform the spaces as they evolve.
House of Food: Focused on experimental House of Bubbles: A wardrobe is shared House of Work: 38 people from diverse sectors cuisine, it is a full industrial kitchen, with among people who want to rethink the way they are accommodated monthly, as well as 50 more per utensils and accessories provided, hosting acquire and wear fashion. Curated to include day informally using the space. Valuable intellectual amateur to superstar chefs to use as they pieces from the best brands, these clothes are capital and a network of contacts arise from these wish. The ideal creative environment for testing versatile and contemporary. Because clothing interactions. Products available for customers include menus, price and acceptance. The service is all must be returned washed, the area offers a Natura, Heineken, Facebook, Google, Ambev, Pepsico, grab-and-go. staffed laundry, where customers can also get a Nike, Janssen and Pinterest, brands that reflect the beer or play video games. environment and participants in this ecosystem.
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Decathlon Connect
Positioning Initially an up-to-4,000-square-meter, big-store format, which has been compressed into minimum space without limiting the shopping experience by connecting technologies and services.
What is it? The French sports discounter Decathlon, usually known for its giant sales areas and remote store locations, has opened a store in the city center of Munich, occupying only 200 square meters. Another even smaller store opened in Stuttgart. The capacity restrictions are overcome by the use of digital services and an extensive online-offline mashup via tablets. Decathlon’s idea is not to develop a whole new store format, but to enrich its established stores with value-adding retail technologies.
Key Data • Sector: Sports fashion and equipment • Format: 200 square meters (Munich), 50 square meters (Stuttgart) • Year opened: 2016 • Store locations: Munich, Stuttgart • Number of stores: 2 • Number of countries: 1, Germany • Product mix: Sports clothes and equipment, click-and-collect emphasis, try-and-buys Tablet PCs around the store offer customers the opportunity to order products online, when they are not in stock, to be sent to either the customer’s home or the store, where the customer can try and buy them later.
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Why is it innovative? Unique store layout The shops are divided into three experience zones. Each is a Decathlon’s connected concept manages to reduce the original different color and focuses on one step in the purchasing process. Decathlon store size by at least 80%. With the integration of The blue zone is for free product try-outs of in-store and ordered interactive platforms, the retailer aims to intensify customer “passion brands,” enabling customers to interact and experience communication and simultaneously enrich the brand with Ebeltoft the products. The grey retail zone is equipped with touchscreens, additional services, like click-and-collect and try-and-buy. Point of View | providing access to the whole assortment, as well as further Within the try-and-buy concept, customers can try products in- product information. At a neatly arranged shelf in the white click- store, or that were ordered online, before buying them. With its connected store and-collect zone, customers can pick up their products with less format, Decathlon looks for a employee interaction, simplifying the transaction process. Small, compact store format in central locations solution to size-limited shop floors in inner-city locations Despite the compacted sales area, Decathlon is able to offer its Customer retention with new touchpoints whole range of 35,000 products to customers in Munich and and addresses the needs of Leveraging digital technologies, Decathlon has created new busy customers. Although the Stuttgart. Apart from a stocked basic assortment of bestsellers, customer touchpoints. Specially trained employees guide brand highlights and innovative products in each category, retail space is downscaled to customers through the digital experience, softening and an unprecedented minimum, customers can access the assortment via tablet PCs. The store expanding the sales role. In addition, products are demonstrated locations, next to a public transport hub in Munich and the inner the brand and shopping in action, another opportunity to shape the brand image of experience is intensified, city in Stuttgart, both with high traffic, play a role in the click-and- Decathlon for the customer via interactive digital platforms, such collect service. supporting Decathlon’s motto: as the virtual reality game “Run the Store.” “Sport for all – all for sport.” It remains to be seen whether what is known and understood about customers and the online-offline mashup will be transferred successfully to the physical stores.
Dividing the store into three colored zones gives structure to the sales In the virtual game “Run the Store,” customers can run through a area and enables customers to orient quickly. full-sized store to explore and experience brand variety.
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Seneca Anticafe
Positioning Coffee shop, library, workplace and events center.
What is it? Seneca Anticafe is an innovative and unique concept in Romania dedicated to the philosophy that, “Nothing belongs to us, only time is ours.” It was designed as a platform for people, not for brands. At Seneca, you pay only for time spent, not for the products you enjoy. Inside, the customer becomes Cicero, Seneca, or another philosopher indicated on a bookmark that accompanies each individual on his or her journey among dozens of books, magazines and encyclopedias. Customers have access to areas designed for activities including drinking tea or working.
Why is it innovative? Being a “social business,” Seneca Anticafe built a community of people who work together and care for each other. The congenial atmosphere is meant to foster an Key Data • Sector: Coffee shop • Year opened: 2014 • Store location: Bucharest, Romania • Number of stores: 1 • Number of countries: 1, Romania • Product mix: Coffee, tea, food, books, magazines, conferences, workshops, workplaces, internet services, office equipment
Various areas for working and relaxing. The spaces were designed to evoke the feeling of being with friends.
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environment where people can meet to share knowledge, presentation area, or use computers in the workplace, you food, beverages and books they bring from home. Noise and will find the necessary tools to do so. Computers, tablets, light chatter is discouraged. Customers pay only for time spent — desk, projectors, screens and an amphitheater, which can it is their responsibility to make that time valuable. turn into a stage, are available. Ebeltoft You pay for time, not products You can bring your own products Point of View | Seneca Anticafe promotes changing customers’ perceptions If you don’t like the food offered, including tea, lemonade, about what we pay for, charging only a flat hourly fee for biscuits and snacks, or want to bring something prepared The main goal of Seneca time spent. After five hours, time stops, and no more fees elsewhere, Seneca provides a kitchen equipped with fridge Anticafe is to offer a unique, are added. The concept differs from the classic coffee and microwave oven. Customers can bring food from home, personalized experience by shop, emphasizing personal enrichment through reading or may even find the fridge stocked with food and fruits bringing people together and spending quality time in a comfortable, casual setting. brought by other customers to share, or tea and lemonade and changing their beliefs The books available to browse also can be purchased. In already made for the community. about consumer habits. addition, small companies or freelancers can use the café The concept comes in as a workplace by paying a monthly subscription. You can add value to the community response to a digital world Beyond being a café, Seneca Anticafe is a community, where that excessively values Five areas designed to create a complete space customers will always find something new to learn. If you things instead of time, and for community development made a short film and want your friends to see it, or you emphasizes the benefits The concept is structured in five areas. Whether you want to want to learn about a specific topic, Seneca Anticafe offers of enriching knowledge. relax and drink tea you prepare in the kitchen, read a book in the space and materials to make it possible. There are weekly Seneca Anticafe is the the library area, work on your projects in the research and workshops on various themes, as well as philosophical place where you can development area, organize meetings and workshops in the debates, exhibitions, conferences and private events. invest in yourself and in the community, instead of sustaining big companies’ development.
Workplaces are equipped with all the Workshop for children and parents. Amphitheater zone necessary tools.
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Ray-Ban Flagship Store
Positioning Innovative customization center and cultural hub, the first brick-and-mortar store for the Ray-Ban brand in the U.S., aims to elevate the brand image.
What is it? Ray-Ban opened its first flagship store in SoHo, in New York City, housing numerous prescription and nonprescription sunglasses for customers to choose among and customize. The location offers a multifaceted experience as a store, music hall, artist exhibition space and community cultural haven hybrid, featuring everything from live performances to film screenings. The store’s breadth of offerings embrace and showcase the brand’s long history.
Key Data • Sector: Customization/technology in fashion accessories • Format: Brick and mortar • Year opened: 2015 • Store location: SoHo, New York City, USA • Number of stores: 1 • Number of countries: 1, USA • Product mix: Sunglasses/prescription glasses
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Why is it innovative? Ray-Ban has expanded its standard wholesale business by customization station is located on the first floor, where opening the store and creating a place for customers to touch, customers can design their own pair of Ray-Ban glasses via Ebeltoft feel and try on the products in an innovative setting. From 3-D iPad. The customization experience is derived from the brand’s Point of View | Magic Mirrors to an optician on site, the Ray-Ban store caters online offering. Customers can personalize by choosing among to every customer need. The Remix customization center in the Ray-Ban Aviator, Ray-Ban Original Wayfarer, Ray-Ban New The new Ray-Ban store store is set up with iPads, where customers can design a pair of Wayfarer and Ray-Ban Justin models. On the iPad, customers offers an excellent example glasses uniquely suited to their taste. Customization options for can view and consider all available options and, with a few of a brand successfully glasses include a color combination for the frames, temples and clicks, create the perfect pair of sunglasses, matching their entering into brick and lenses. Engraving is also available. favorite frame colors with temples and lenses. It’s also possible mortar by introducing virtual to have an etching on the temple or case featuring a name or elements to the standard Technology-driven, playful experience symbol. The result is a unique accessory that exactly fits the sunglass shopping experi- The store uses innovative technology to help customers find personality of the customer. ence. Ray-Ban is capitalizing the perfect pair of sunglasses. The 3-D Magic Mirror offers on the opportunity for guests the ultimate augmented reality experience, where they Additional on-site service: eye examination customization in the can virtually try on the latest Ray-Ban styles. The store offers an on-site optician. Customers can schedule eyewear industry, expanding appointments with the doctor online for the Soho store, with beyond being a glasses Product customization service availability in the morning, afternoon and evening, making it a store to also being a place Customized glasses are delivered within a week. The Remix one-stop shop. to get a prescription, and invigorating the store as a multi-use space.
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Targi Sniadaniowe
Positioning Infusing the town with energy, an open air breakfast market creating a new way to meet, eat and spend time together.
What is it? Targi Sniadaniowe, otherwise known as “the breakfast market,” is a weekend event in four locations within two cities in Poland (Warsaw and Poznan), where customers can purchase food for breakfast or lunch, including bread, delicatessen items, fruits and vegetables, coffee, or ready-made meals, and dine in a congenial atmosphere. The environment is more than a place to buy food, but also a meeting point, where customers can enjoy being together with like-minded people. All components of the experience are meant to create a unique atmosphere, from the furniture (big tables, hammocks), to the physical areas (playground for children), to the numerous theatrical events.
Key Data • Sector: Food (fresh food and restaurants) • Format: Open air markets (about 2,000 square meters each) • Year opened: 2014 • Store locations: Warsaw and Poznan, Poland • Number of stores: 1 • Number of countries: 1, Poland • Product mix: Fresh food and restaurant A large range of products for breakfast: breads, delicatessen, pastries, coffee.
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Ebeltoft Point of View |
Targi Sniadaniowe is an interesting Why is it innovative? concept, a hybrid blending an open A place to enjoy food and community air market with a country festival. You can go to Targi Sniadaniowe to buy products for Every weekend, thousands of area breakfast or lunch, or simply sit at big wooden tables to eat residents of all ages enjoy the or share time with friends. unique ambiance and opportunities to spend time outside with family A place to live and friends, discover new dishes, meet new people and learn about The breakfast market organizes frequent special events, various cultures. such as concerts, workshops for kids, or celebrations of a region or country, with stalls promoting various cultures and Like Eataly, Platea Madrid or traditions. Visitors can hear good music and let their children Ready-to-eat dishes cooked on site by local restaurants or Gourmeet, described in past editions play. Much more than a shopping location, the breakfast market individuals. of Retail Innovation, the breakfast hosts diverse experiences and offers a lively, friendly, casual, Targi Sniadaniowe extends far beyond being a food market. It market functions as a retail open educational weekend environment. was created as a place to spend time eating and at leisure with air market, restaurant with on-site relatives, friends, and people just met at the market. cooking and cultural experience.
The concept started in Warsaw and has been replicated elsewhere.
A key to the success of this concept has been its excellent organization, including a chart detailing the location of all stands, tables and conveniences (toilets, sinks, hammocks, games for children) and the timeline of weekly thematic events.
The breakfast market is not only an open air market, but also a meeting spot, where customers enjoy the pleasure of each other’s company.
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Ikea Kuchnia Spotkan
Positioning Experiencing the Ikea kitchen in a fun, friendly environment.
What is it? Ikea Kuchnia Spotkan (in English, Ikea Kitchen Meeting Point) provides a space in the center of Warsaw where customers can book one of two available rooms to gather, cook and eat together in a fully equipped kitchen. Customers provide their own food, or can order from Ikea’s online grocery store partner.
Key Data • Sector: Furniture • Format: 143 square meters (2 rooms) • Year opened: 2015 • Store location: Warsaw, Poland • Number of stores: 1 • Number of countries: 1, Poland • Product mix: Kitchen (showroom)
Two rooms with fully equipped kitchens. An attractive environment in which to cook, eat and spend time with friends.
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Why is it innovative? Ebeltoft An engaging way to test Ikea kitchens before Authentic brand discovery Point of View | buying For Ikea, this also is an opportunity to showcase the range of Ikea always has been a Buying a new kitchen is an important and exciting decision, the company’s living experience furnishings. The kitchens are leader in offering customers but costly. The Meeting Point enables customers to test part of two full apartments that also include a dining room, a genuine experience out a new kitchen in a setting that is more natural and living room and children’s room, where they can rest and play, in its stores, presenting authentic than a store, identifying their preferences, so while their parents cook. entire room sets to enable they can feel confident about their purchase. The concept Community events customers to imagine how encourages conversion by creating a positive environment Ikea Kuchnia Spotkan regularly organizes events, such as their own home might look. and experience associated with friends and family. cooking workshops and evenings for senior citizens, in an The Kitchen Meeting Point effort to drive engagement with the concept. is a natural extension of this, freeing the brand from the potentially artificial feel of a room set in a store, and inviting customers to experience the world of Ikea in a more authentic setting. The association of the brand with positive social experiences is likely to drive a positive predisposition to the brand and to purchasing, provided the strategy can get customers through the door for more than just the novelty of the experience.
Living room near the kitchen. A room where children can rest and play, Cooking and dancing for senior citizens with a while their parents are cooking. famous senior DJ.
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63 | Retail Innovations 12 Brand intensity
Eataly per Autogrill
Positioning Moderately priced, high-quality Italian food targeted toward Italian and foreign travelers.
What is it? This concept brings something new to Italian toll roads: high-quality products at affordable prices, made possible by direct relationships with producers and distributors. Eataly’s newest venture is part of Autogrill’s strategy of diversification of formats in order to accommodate the more sophisticated demands of modern travelers. Eataly serves as a symbol of traditional Italian wine and food, blended with a quality food business and consumer experience. The location ensures a high degree of visibility, along a highly trafficked stretch of the A1 toll road, which runs through Italy from north to south. It is also close to the junction between A1 and A22, used by many tourists traveling from central Europe to Italy. The offer includes Neapolitan pizza, traditionally prepared and cooked in a wood oven, Key Data and a 24-hour café by • Sector: Food Eataly and Kimbo, a long- • Format: 3,400 square meters on 2 floors standing partner of Autogrill. Stations include a patisserie, • Year opened: May 2016 vegetable market, pasta • Store location: Modena, Italy. Service area is La Secchia Ovest toll road A1 restaurant and gelato area. • Number of stores: 1 Eataly and Autogrill The first floor of the space • Number of countries: 1, Italy is dedicated to table-service • Product mix: Traditional artisanal Italian food products and high-quality restaurants. food service served in a fast-casual style
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Why is it innovative? customers to purchase food items eaten in the restaurant and In the retail area, the service section offer includes a rich recreate their food experience at home. In the non-food area, assortment of food products from the various regions of managed by Autogrill, customers can find classic categories of Ebeltoft travel products and souvenirs, like sunglasses, small electronic Italy, which emphasize the rich biodiversity of Italian food, its Point of View | environmentally sustainable qualities and its association with a gadgets, children’s games, sunscreen and cosmetics. healthy lifestyle. In the catering section, customers find fresh food This new “Made in Italy” A new service in the food business products cooked on site using traditional techniques. Bread and concept reflects current The ground floor is divided into three restaurant areas, with pizza are cooked in wood ovens. Table service in the restaurant trends toward healthy seating for 350 people. In the kitchen of the restaurant La area is also a first for the Italian toll road food service system. nutrition, local food culture Pasta, where customers can watch the cooking process, and sustainability, shared pasta is handmade in various formats, while in the pizzeria, Integrated identity of the concept values that can help raise La Pizza, Neapolitan specialties based on authentic recipes The outlet combines the basic and essential style of Eataly Autogrill’s positioning on are served. La Sosta (“the stop”) offers a meat menu from with the typical offer of Autogrill service areas. The slogan a large scale. The goal of Piemonte livestock farms with Slow Food certification, which “Eat better, travel better” welcomes travelers to the fast the concept is to become guarantees uncompromising high-quality standards and food and retail section, on the ground floor, where they find a destination for travelers environmentally sustainable methods. a Kimbo-branded cafeteria, long-time partner of Autogrill. interested in purchasing This cafeteria contains an expansive offering, in addition to Greentailing and consuming high-quality the traditional kiosk present at other Eataly formats. Food is Italian food products on the The concept is green-conscious, in line with a strategy pursued prepared on site, a process which customers are welcome go. About 1,300,000 visitors by Autogrill for the last 10 years. Photovoltaic panels in the to watch. Naturally leavened breads are baked with organic are expected in the first year. parking lot provide shade for cars and energy for the service flours, healthy pastry is prepared by a chef, ice cream is The challenge will be to sell area, and the restrooms are equipped with waterless urinals. made with milk from the Alps and customers can choose fresh products to travelers to order the piadina of Cervia, a delicacy from the Emilia- who must wait one hour or Romagna region. Vegetable dishes and French fries are more to access refrigeration. prepared and packaged on the spot. To accommodate this potential barrier to buying, The concept of restau-retail the store offers a large The retail area offers a selection of Eataly’s classic assortment, assortment of coolers. including ready-made dishes with seasonal vegetables, varieties of pasta, food products from various Italian regions and premium products, like parmigiano reggiano di vacche rosse, a cheese matured for 31 months. The formula of restau-retail allows
65 | Retail Innovations 12 Brand intensity
Telstra Discovery Store
Positioning Telecom retailer, transitioning to become tech-comm retailer.
What is it? Telstra’s flagship, The Discovery Store, in Sydney, features digital tablets, “Minority Report” tables (augmented reality), interactive screens, the connected home, touchscreens and zones for convergence and divergence.
Why is it innovative? On entering the store, you are, in Telstra’s words, in an “environment built around you.” The highly personalized store experience – from layout to zoning – features a unique combination of classic retail and digital technology. While many stores today utilize digital technology in-store for buzz or marketing purposes, this innovative environment exemplifies the power of technology to educate the customer throughout his or her in-store journey.
Key Data • Sector: Telecommunications • Year opened: 2014 • Store location: Sydney, Australia • Number of stores: 1 digital flagship in Sydney; 1 digital flagship in Melbourne • Number of countries: 1, Australia • Product mix: Mobile devices, tablets, home tech
Digital price tickets on stock. ‘Tap and Take’ cards.
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Highly personalized for all customers – from the monitor the rate of footfall in specific areas and assigns house staff early adopter to classic consumer where they are most needed at peak periods. The early adopter, familiar with sophisticated high-tech, is The walls within the store are built to be flexible and modular and mesmerized on entry by the floor-to-ceiling interactive digital can be moved and adjusted easily and quickly, as needed, whether display (known as “center stage”), which captures her or his it involves setting up a new display, reorganizing shelving, or other Ebeltoft attention and instantly immerses the customer in the store efforts. This arrangement is best suited for smaller accessories for Point of View | experience. sale around the store. The classic customer is served by two staffed POS desks, This store is a great example clearly visible on entry, or may be greeted by a member of the Educating through in-store tech on the omni- of flagship retailing and store staff, who will assign a personal sales assistant to the channel journey utilizing digital to actually customer based on expressed needs and requirements. The At the center of the store journey is a giant Play & Learn impact margin, sales and sales assistant guides the customer on her or his store journey table, also known as the Sandbox or Device Lab. This is a profitability, rather than just through point of purchase. large interactive multi-touch display, which responds to both generate buzz. The flagship is a chance for retailers to The zones throughout the store are designed to allow for touch and RFID tags. Around the table are dummy mobile truly engage customers with individualized experiences and can be as high-tech and/or as phone models with tags on the back. Dropping the phone on the brand and its values and high-touch as the customer prefers. the table brings up specific details about it (i.e., price, camera, battery, speed, etc.), in unbiased third-party reports. Much of immerse them in the brand, Digital Play & Learn tables and collaborative zones are strategically the information is provided by independent third parties, such as organically creating strong located for those who want to participate, and physical products GadgetGuy.com.au, to limit bias in the reports. brand loyalty. This store are available for those who prefer to touch, hold and experience does this while catering to You can save the information on your Tap and Take card, which items. Phone and device accessories are conveniently available a wide audience, innovating has a personalized code allowing the customer to log in and in a classic linear wall display, allowing the customer to take the in its use of technology and retrieve the information online outside the store. This is a great product off the shelf and bring it to a point of sale. utilizing technology to add example of omni-channel retailing. customer value, as well as Digital store design increases store management enhance store management Digital continuity inside and out and inventory efficiency and efficiency, all while The windows to the outside feature interactive displays, While the classic merchandise display is effective and familiar for maintaining back-to-basics designed to draw in passersby from the street, in addition to customers, the digital element in this case actually enhances staff retailing that will never fade. those for whom the store was a destination. The displays are efficiency and day-to-day store operations. The digitally controlled subtly interactive: above the displays, a camera tracks people price tickets enable the store staff to update displays in one click, walking by; the displays change in response to the customers. saving hours in inventory management, conserving paper and freeing up more time and energy to focus on customer service. In addition to the outside displays, there’s a giant, three-story screen inside the center stage. These show the same content, The store also uses back-of-house heat sensor technology to tailored for the various screen sizes.
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Level Kids
Positioning Luxury children’s clothing targeted to wealthy families.
What is it? Level Kids is a 10,000-square-meter, three-floor luxury department store for children between 0-12 years of age and their families. The department store comprises more than 200 brands, offering a selection of children’s wear, shoes, accessories, toys and specialized services.
Key Data • Sector: Children’s clothing • Format: 10,000 square meters, 3 floors • Year opened: 2016 • Store location: Dubai, UAE • Number of stores: 1, Dubai • Number of countries: 1, UAE • Product mix: Children’s wear, shoes, accessories, toys and specialized services
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Why is it innovative? Ebeltoft The department store provides a unique experience due to its Point of View | layout. The ground floor is underwater-themed, the first floor Level Kids’ unique fit-out sets is outdoor-themed and the second floor is sky-themed. The it apart from other children’s use of technology and unique design features help create an wear retailers. The different adventure-like experience for children and their parents. levels of the unit create a fun narrative that encourages Level Kids utilizes digital technology to create an children to explore each innovative store fit-out floor and experience the The design of each floor changes as customers travel upward. whole mall, rather than Large LCD screens show underwater scenes with fish on the sticking to the ground floor sea-themed ground floor, animals on the land-themed second or favorite brands. Crucially, floor and birds on the sky-themed top floor. this is achieved in a manner that befits the luxury brands Feel of the experience is high-end it stocks. Rather than lapse While the fit-out is inherently aimed at appealing to children, into kitsch, Level Kids the feel of the experience is still high-end, as is expected created an environment at a luxury Dubai mall. The space works as a place where and experience that is children are happy to play and explore, yet also houses both fun for children and leading international luxury brands. The successful execution sophisticated enough for of this concept creates a space that is appealing to all their high-spending parents. generations of a visiting family.
Level Kids has a wealth of extra facilities Alongside its core retail offer, Level Kids has a wealth of extra facilities, including a spa, photo studio, birthday room, concierge and children’s play area. By providing a range of services, the space ensures that its appeal broadens beyond pure retail and caters to a wide range of family members.
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Tally Weijl Flagship store
Positioning A multifunctional store with fast fashion and a beauty salon.
What is it? The fast-fashion retailer Tally Weijl goes beauty shop with its new flagship store in Zürich, which features a beauty salon on the third floor. Whereas Tally Weijl primarily has focused on 12-20-year-old females, the new flagship also serves young women older than age 20. In contrast to a traditional Tally Weijl store, the earth-tone colors are neutral. Additionally, the assortment is presented in a more minimalist display to draw the attention of the new target group. In other words, Tally Weijl has both reinvented itself in terms of concept mashup and redefined its target customer.
Key Data • Sector: Clothing, shoes, accessories • Format: 450 square meters • Year opened: 2015 • Store location: Zürich, Switzerland • Number of stores: 1 flagship store with the new concept in Zürich, Switzerland, part of Tally Weijl (800 stores) • Number of countries: 38, including Switzerland, Germany, Austria, Italy • Product mix: Fast fashion Fashionable clothes, shoes and accessories for Beauty salon on the third floor. girls and young women.
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Why is it innovative? Ebeltoft Tally Weijl flagship is an innovative store because it combines Unique appearance Point of View | fast fashion with a beauty salon. The redesign of the The flagship store is designed like a boutique, offering The rather low-priced store is innovative, aimed at targeting an untapped group abundant accessories, jewelry and stylish clothing. The interior fashion is no longer of consumers. The beauty salon completes the shopping is modern and bright. The higher the floor, the higher the presented in an ordinary experience. Tally Weijl strives to provide: a space where quality of products and the more individualized the shopping display, as in conventional customers can get a whole new look, complete with clothes, experience becomes, positioning the store to offer multiple stores, but as more exclusive makeup, hairdo and nail polish. layers of customer involvement. Fast fashion on the bottom, goods with boutique higher-quality fashion on the top floors. elements. To make the Fashion meets beauty experience complete, Tally The average price in the beauty salon is 59 CHF (60 USD). Weijl has integrated a beauty After finding the perfect outfit, the customer can go to the salon in the top floor of the third floor for further personal styling, including trendy hair store. Here, the customer and nails, without leaving the building. can have her nails polished, apply beautiful makeup or get a trendy hairdo for the evening, enhancing her new overall look. It is an innovative and new concept within the context of fast fashion. Tally Weijl’s new store taps into the currently flourishing trend of concept mashup.
Tally Weijl flagship store, 450 square meters Boutique-style appearance and high-quality fashion on four floors. of retail space, is spread over four floors.
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Lidl
Positioning Soft discount.
What is it? Lidl, historically the No. 2 hard discount in the world, has launched a thorough shift of positioning toward “smart discount.” The last generation of pilot stores to accelerate this bold renewal, Lidl has invented a modern format, midway between a discounter (e.g., Aldi, Biedronka) and a compact supermarket (e.g., Mercadona, Trader Joe’s).
Why is it innovative? Lidl has launched a vast transformation plan, which will cost several billion Euros, in order to exit the hard-discount model and dramatically change its image. In order to
Key Data • Sector: Food discounter • Format: 1,400 square meters • Year opened: 2016 • Store location: Montauban, France • Number of stores: 1,500 in France • Number of countries: 24, including France, Germany, Austria, Belgium, Czech Republic, Spain, Finland, Greece, Hungry, Ireland, Italy, The Netherlands, Poland, Portugal, Romania, UK, Slovakia, Sweden, Switzerland • Product mix: 1,621 food SKUs in the new concept; highlighting fresh A new concept, halfway between a discount and In the new concept, the emphasis is on the products and increasing non-food products; mainly private labels (90% of a compact supermarket fresh products range. the assortment)
72 | Retail Innovations 12 France achieve this plan, the retailer has upgraded its whole range image, offering products at low prices; however, they suffered Ebeltoft and concept. The Montauban store is the French pilot store from lack of choice, a difficult problem to overcome. Now, for this new generation, but the whole group will be similarly with wider aisles and more products visible and available, the Point of View | transformed in a spectacular and ambitious model shift. impression of plenty is conveyed for a number of unchanged food references. The retailer also mainly focuses its messaging Lidl’s strategic move is proof Concept modernization on choice to attract customers. To increase traffic, Lidl has that the next decade will be To break the hard-discount norms and improve its image, increased its non-food offer as well. dominated by “smart discount” Lidl has redesigned its concept to be more welcoming. concepts. These retailers The first major change is obvious, with an average area of Rebranding private labels refuse to choose between low To improve its image, Lidl has invested heavily in its own 1,400 square meters, compared to less than 1,000 for the prices and marketing intensity brands, moving clearly forward in the smart discount market. previous concept. The space is made lighter and airier by (seduction, pleasure, quality). Its private labels are treated as if they were national brands, high ceilings, a glass façade and widened aisles to ease Some striking examples of with TV campaigns, new product lines and redesigned traffic. The retailer has followed the conventions of a small those models have been merchandising, which account for 90% of the retailer’s range, supermarket, emphasising more fresh products than do successful for years in non- accommodating more than 50 different brands. hard discounters. food arenas (Ikea, Decathlon), This rebranding is particularly true for the cosmetics offer, and some newcomers have A more appealing range which aligns with the retailer’s goal to renovate its stores recently disrupted their Another change is the impression of abundance that the and communicate its new image. Lidl is betting on the beauty markets (Primark, Kiko). Now, new concept presents, though the offer has not changed. department to both recruit and retain customers. retail is adopting this trend. For years, hard discounters took advantage of a good price How can smart discount be profitable? Through simplicity, lean structure and standardized process, as well as intensive investment in private labels and quality control, branding and, now, more capex in the store concept.
Through the generalization of this new concept, Lidl aims to capture 8% of the market share in France by 2020, compared to 5% today. Lidl private labels account for 90% of the offer and have been rebranded to The cosmetic private label has been rebranding, aligning with better fit with the smart discount model. smart discount models.
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Beauty Sisters
Positioning Fashionable and modern, targeting millennials, 18-30 years old.
What is it? A store/blog concept, Beauty Sisters is a compact store designed to attract young women, 18-30 years old. Its physical design is based on a blog. All the virtual elements of the blog universe have been recreated: beauty tutorials, animations, makeup ateliers, screens and free wifi access.
Why is it innovative? Being connected via screens and digital devices is not, in itself, innovative, and is present in other retail locations, such as Sephora. What is remarkable about Beauty Sisters is that
Key Data • Sector: Beauty • Format: 70 square meters • Year opened: 2016 • Store location: Near Bordeaux (in the E. Leclerc commercial center at Sainte-Eulalie) • Number of stores: 1 Beauty Sisters, part of Beauty Success chain (293 stores) • Number of countries: 2 for Beauty Success, France (metropolitan, Guadeloupe, Tahiti, New Calédonia, Guadeloupe) and Morocco Clients can test products at a table in the center of the store. Beauty tutorials from the Beauty • Product mix: Curated range tailored to attract young adults, mainly Sisters blog are posted. makeup-oriented, as well as perfumes, accessories ; 90% under Beauty Success’ own brands
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Ebeltoft the retail location’s products and design have been adapted to feel at home in a modern apartment enhanced by moulding, Point of View | appeal to the limited target audience of the Beauty Sisters blog. mirrors, chests and imitation parquet flooring. The store and blog are designed to be a coherent reflection of This concept is obviously an The product offer each other and were launched simultanously. answer to Kiko, the Italian 90% of the offer comprises private-label makeup (seven or makeup fast-fashion retailer The physical location is a new way for Beauty Success to reach eight brands), as well as perfumes and other related products, disrupting the market. Beyond the 18-30-year-old female target by leveraging the original including fashion accessories, such as mobile phone casings. this defensive posture, Beauty attraction: beauty blogs. The store, its furnishings and its The blog’s spirit is sustained via “crush products” and novelties Sisters is an interesting products mirror the blog, offering beauty tutorials on screens, that are refreshed every two weeks. concept, new for the market professional advice, videos and the opportunity to discover and absolutely revolutionary new products. This is an innovative and original concept and a The digital coherence for the company. Many long- departure from the traditional beauty products store. Beauty Sisters launched its online blog and brick-and-morter store simultaneously. The blog offers tips and information about standing retailers are testing The design: A young, Parisian woman’s apartment beauty trends and lifestyle, but there is no mention of price and new concepts, but Beauty Entering Beauty Sisters evokes the experience of entering the blog does not offer products for sale. Instead, a link bridges Sisters appears to be more the apartment of a Parisian bloggeuse or a friend’s private the real and virtual worlds, pointing at new products and brands radical (targeting a specific place, where you join her to try beauty products. Customers to be discovered and purchased in the store. niche), more compact (thanks to digital extension tools), more private-label focused, more omni-channel and behaves more like brands than like retailers. Beauty Sisters is a synthesis of those trends. The choice not to sell online is bold and we wonder if it is a good one. Online sales are becoming an important aspect of the beauty business and can address diverse targets and different occasions for buying.
All the enchanting details of a Parisian apartment have been recreated. Beauty Sisters’ private-label makeup and beauty products, as well as guest brands and “crush products,” are highlighted, mirroring a beauty blog.
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Carrefour Street Market
Positioning The new formats aim to regain customers by attracting urbanites to the hypermarkets, or find a new competition-free niche for groceries (gourmet convenience).
What is it? Carrefour demonstrates a continuous effort to adapt to customers’ needs and desires by trying new formats, as well as to find new ways of attracting customers to existing hypermarkets, by modernizing them as they evolve. Carrefour Spain’s most outstanding innovations in 2016 include: 1. Carrefour street market: 950 square meters of a trendy gourmet food court and market as a new area in one of its hypermarkets 2. Carrefour pop-up stores: Seasonal spaces in city centers showcasing Carrefour’s inexpensive lines of apparel and home products, innovatively displayed
Key Data • Sector: General stores and grocery stores • Format: Hypermarkets and supermarkets • Year opened: 2015, Carrefour Express Premium; 2016, street market and pop-up stores. Carrefour has been operating in Spain since 1973 • Store locations: Carrefour Express Premium in Madrid; street market in Alcobendas (Madrid); pop-up store in Valencia • Number of stores: 3 Carrefour Express Premium convenience markets; 1 street market; 173 hypermarkets; 500 supermarkets in Spain. More than 12,000 outlets in the world • Number of countries: 30+ countries, owned and franchised Street market: Industrial décor for a gourmet food court Carrefour Home products at the pop-up store and market located next to an outskirts hypermarket. bear no resemblance to the hypermarket shelf. • Product mix: Groceries, personal care, apparel, electronics, home furnishings
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3. Carrefour Express Premium: An upgraded model located design and cultural events center. Three spaces were Ebeltoft of its convenience store to appeal to high-income created in which to showcase its apparel line (Tex), home line Point of View | neighborhoods by offering a gourmet and eco-friendly (Carrefour Home) and eco-friendly line (Bio) in an appealing range of products in a more upscale environment modern presentation, a departure from hypermarket style. We are used to seeing Carrefour The pop-up store model was also used for a seasonal develop new formats and adapt Why is it innovative? Christmas store in Madrid. existing ones to counteract customers’ decreasing interest Street Market at Carrefour Alcobendas (Madrid) Carrefour Express Premium in driving to the outskirts of their A hot trend in Spain is the transformation of traditional fresh Carrefour Express is a convenience store chain, usually neighborhood to a hypermarket. food markets into a foodie paradise, where modern urbanites occupying 100-500 square meters, with a product range These formats differ from the enjoy their leisure time eating tapas in various stalls on site, adapted to the location. While there are 419 Express stores in traditional hypermarket model, are or take home prepared or semi-prepared food. Carrefour Spain, one opened in 2015 is distinguished by 60% of its offer closer to the target customers and/or has opened its own gourmet market with a shop-in-shop being gourmet products, a wider wine selection than is available require a lower level of investment: model, annexed to one of its hypermarkets in the suburbs. in a 2,000-square-meter supermarket, 80 varieties of foreign • Street market: Hot urban trend It features cool industrial décor and access to some of the cheese and a definitely upscale look and feel, featuring wood taken to the outskirts that should most innovative food propositions in Madrid — from excellent floors and special lighting. It is not a luxury store, but a daily appeal to modern customers. fusion sushi to French patisserie — in order to draw a grocery, where the customer can treat herself or himself, and it The shop-in-shop model requires contemporary and younger public to a hypermarket. adheres to the Carrefour value promise of fair prices. lower investment and operational costs for Carrefour. Carrefour Pop-up Store (Valencia) The Express Premium is a niche market with competition only • Pop-up stores: Carrefour exclusive As a way to bring its products closer to a new audience, from independent specialty shops, and is unique among grocery products are shown closer to target Carrefour opened a pop-up store in Valencia in a centrally chains in Spain. customers and both traditional and online businesses are promoted. • Carrefour Express Premium: Not a good fit everywhere, but there is definitely space for more, proven by the launch of two additional stores in Madrid after only a few months of operations at the Ortega y Gasset Street store. Carrefour announced plans for expansion of both owned and franchised stores. One of the street market stalls, featuring food to take home and cook, Excellent wine selection and eco-friendly fruit and vegetables in the or meals prepared to eat on site or to take out. local convenience store at reasonable prices.
77 | Retail Innovations 12 Brand intensity
Siam Discovery
Positioning Appealing to wealthy families and tourists.
What is it? A shopping mall-department store hybrid designed by Nendo, Siam Discovery is a “lifestyle laboratory” that departs from the traditional categorization of products by brand. Instead, a revolutionary open-plan Exploratorium offers themed, differentiated retail experiences on each floor (“lab”), designed to create the comforting, emotional experience lacking in contemporary e-commerce. Each lab features a unique interior décor reflecting its specific retail adventure.
Key Data • Sector: Renovation of an 18-year-old shopping mall • Format: 40,000 square meters • Year opened: 2016 • Store location: Bangkok’s Ram 1 thoroughfare • Number of stores: 4 • Number of countries: 1, Thailand • Product mix: General products for urbanites and wealthy families. Many products at Siam Discovery are available exclusively in Thailand
78 | Retail Innovations 12 Thailand
Why is it innovative? Ebeltoft All shops are in open spaces, without physical The modern museum feel and touch Point of View | Responding to the design’s modernity, unconventional use of boundaries The launch of Siam Discovery space and omnipresent 202 digital screens, shoppers feel Shoppers navigate unique retail journeys. The originality of sets a new gold standard in transported to a modern museum of innovation. the product displays pique curiosity and intensify the desire luxury shopping malls. It is so to explore each area. unconventional that shoppers, including both wealthy locals Lifestyle laboratories have an identity of their own and tourists, may need time The displays are designed and organized around product types, to develop a comfort level with i.e., a column for glasses, stairs for shoes and accessories and the concept and experience to Plexiglas microscope-style rounded columns for electronics. be enticed to shop. Cashiers are “hidden” to create an inviting and encouraging environment for retail exploration, without pressure. The museum-style physical space might be an obstacle to purchase, and the absence of food outlets shortens the visit. Siam Discovery is an untested, but daring, innovation in both design and shopper experience. It might take some time to catch on as a shopping destination and profitable cash machine.
79 | Retail Innovations 12 Brand intensity
Crayola Experience
Positioning Crayola brand experience store targeted to families with small children.
What is it? The store offers customers an opportunity to discover the magic of color through a multisensory experience, where they are encouraged to get creative, play, explore and learn by combining the Crayola color crayons offer with the latest technology, digital screens and unique child’s imagination.
Why is it innovative? The store provides a unique creative experience for guests by combining Crayola’s traditional wax crayon with technology. Through the store’s use of innovative digital technology, kids
Key Data • Sector: Kids’ crafting • Format: 5,600 square meters • Year opened: 2016 • Store location: Mall of America, Minneapolis, Minnesota • Number of stores: 3, in Minneapolis, Minnesota; Easton, Pennsylvania; Orlando, Florida • Number of countries: 1, USA • Product mix: Crayola line of products, including crayons, pencils and drawing boards
80 | Retail Innovations 12 United States of America
can see their custom creations come to life by engaging with coloring page to 4-D life, animate it with touch technology Ebeltoft 25 one-of-a-kind attractions inspired by Crayola products. It’s all with Color Magic, or see how crayons are made in the live about brand experience and retail entertainment for families. Factory Show. Point of View | The Crayola Experience Family destination place Technology and fun at 25 attractions store at Mall of America The store offers Café Crayola, where customers can refuel At the Color Magic attraction, customers can bring their 2-D helps to elevate and after a long day of fun, and a Crayola Store, with a large creations to 4-D life. reinvigorate the brand. The selection of colorful souvenirs, bringing the customer At Art Alive!, customers can create digital works of art and concept emphasizes the experience full circle and making it a great family destination. see them projected on the big screen and, by touching them, unique mind of each child by Families typically spend four hours at the store and leave with see their drawing come to life. providing countless outlets a bag full of handmade keepsakes. where they can create and Brand experience be creative. Through its use Customers can name and wrap their own Crayola crayon at of digital technology and the Wrap It Up! station, star in their own coloring page at Be color, Crayola encourages A Star, paint with melted wax at Meltdown, bring their own innovation and provides a truly customized experience, from entry to exit.
81 | Retail Innovations 12 Brand intensity
Dielmar
Positioning Dielmar’s traditional tailoring in distinctly contemporary men’s clothing.
What is it? It’s a new generation of stores, in an evolving concept of a “living showcase.” This format builds on a significant, traditional focus on tailoring, adding a visible on-site tailor. The tailor is in direct contact with each customer, planning their unique, personalized clothing. Focused on strengthening the company’s globalization process, the brand is preparing, together with its international partners, to head to new markets, making the opening of this new concept a step toward moving abroad.
Key Data • Sector: Clothing • Format: 135 square meters • Year opened: 1965 (new concept store opened in 2016) • Store location: Lisbon, Portugal • Number of stores: 7, Portugal • Number of countries: 1, Portugal • Product mix: Contemporary men’s clothing and personalized premium service; a traditional tailoring experience enabling customers to buy custom clothes
82 | Retail Innovations 12 Portugal
Why is it innovative? Ebeltoft The new concept, introduced by architect Joana Rafaela, is “a Like a shopping scene set Point of View | living showcase of tailoring,” spotlighting a “stage” on the second With the new store concept focusing on the tailor, Dielmar can floor of the mall. The brand is a hybrid of Dielmar’s signature provide a novel experience in shopping, with customers being The quality of the Portuguese traditional tailoring and a modern, current concept, where the part of the tailoring process, almost like being on a theater set. clothing industry is world- tailor is also the host. The new store combines the glamour of modern design with the renowned, but, at the tradition of a hands-on tailor, revolutionizing the role of the tailor same time, it is viewed as as a host. very traditional. Dielmar’s Updating the traditional concept of tailor innovative approach will Updating the traditional concept of a tailor, Dielmar’s vision of change that perspective the future is to project a more modern image, while retaining The third generation by integrating glamour and the focus on traditional tailoring. This store positions Dielmar Dielmar’s third generation wants to introduce a new and innovation within the store. as a traditional store, but with the tailor front and center innovative face to the traditional image of the company as The new international to satisfy the unique needs of individual customers. The “just” a tailor. The new concept store is the first step toward partnerships set to open concept also feels like an art gallery or studio, with the tailor achieving that goal. The next one is to expand the brand to additional concept stores in “performing live” in the space. new markets with the help of international partners. other markets will enhance Dielmar’s brand and profile abroad, as well as expand appreciation of its unique, artistic approach to clothing, while maintaining the excellent quality that is the hallmark of the Portuguese clothing industry.
83 | Retail Innovations 12 Brand intensity De Dames van Hurkmans
Positioning Garage operated by and for women. The most female-friendly garage in The Netherlands.
What is it? A full-service garage focused specifically on creating a female-friendly environment and experience, De Dames van Hurkmans provides automotive repair services, as well as a selection of used cars for sale. The garage offers a comfortable and appealing experience for women, in an environment inspired by a fashion boutique. Men also are welcome customers.
Why is it innovative? The garage is not inherently unusual; what makes De Dames van Hurkmans unique is
Key Data • Sector: Garage (car boutique) • Format: 1,800 square meters • Year opened: 2016 • Store location: Hertogenbosch, The Netherlands • Number of stores: 1 • Number of countries: 1, The Netherlands • Product mix: Repairs, maintenance, used cars, accessories
84 | Retail Innovations 12 The Netherlands
its focus on a specific target group that historically has been Surprising range of products and services poorly served in this market. The business offers typical basic In addition to the standard services and products typically Ebeltoft services, which are enhanced by innovative products and offered in a garage, De Dames van Hurkmans has added some Point of View | special flourishes to create an exceptional environment and surprising elements to the assortment, such as a manicure for experience. women waiting for their car to be serviced on Female Friday, Car maintenance has been a fancy bike for rent, a kids’ playground, and equipment like a relatively female-unfriendly market for a long time. De The garage serves the female customer journey strollers to try and buy. Dames van Hurkmans provides De Dames van Hurkmans understands the female customer Innovative service an accessible experience for journey and responds to the needs of women going through Repairing a windshield chip? Scratch repair? The cosmetic female customers. They know the search, shop and share phases when buying a car. The repair service can fix minor damage in just one day. By doing how to combine a smart garage’s message and offer are female-friendly, creating a all the work at a single location and using infrared light when strategy with a strong visual unique physical environment and unique services. For example, painting, De Dames van Hurkmans’ approach is both efficient identity. By really understanding at the counter, customers are offered lip gloss instead of mints. and sustainable. the female customer and A visit to the garage becomes a fun, non-threatening experience focusing on her, the unique for women. garage ensures a quality experience, as well as both standard and niche services and products.
Focusing on the female customer journey in a pink environment. Surprising range of products and services.
85 | Retail Innovations 12 86 | Retail Innovations 12 Commit fully Responsibility
87 | Retail Innovations 12 RESPONSIBILITY
Peerby
Positioning Peerby is an online product-sharing platform, enabling customers to borrow or rent products from their neighbors, including pick-up and delivery.
What is it? Peerby enables individuals to borrow or rent a wide range of products from their neighbors, such as drills for home-improvement work, or event tents and beer taps for private entertaining. Users submit a request to the site, which then distributes it to the community. The site claims an 85% fulfilment rate using smart technology to match supply and demand.
Key Data • Sector: Sharing economy • Format: Online platform • Year opened: 2012 • Number of stores: Online only • Number of countries: Peerby operates in many parts of The Netherlands and Belgium, in big European cities, including Berlin, London and Prague, and in some cities in the United States. • Product mix: Non-food (categories include home improvement, holidays, gardening and at-home entertaining)
88 | Retail Innovations 12 The Netherlands
Why is it innovative? Ebeltoft Sustainability Commercial Point of View | Peerby’s goal is to offer an alternative to the cultural norm Peerby started as a service enabling users to simply borrow This is another example of the to throw things away by connecting people and encouraging goods, but this approach carries risk, because products break growth of the sharing economy. collaborative consumption. The average electric drill is used for down or get damaged. To reduce this risk, Peerby introduced the Research suggests that as 13 minutes during its lifespan. Peerby boosts and extends its Peerby Warranty. This insurance policy allows Peerby to offer many as 80% of the products value by finding new uses and users for products that would members who need it more security and confidence, as well as in our homes have not been otherwise gather dust. One-eighth of all carbon emissions guarantees and supports the relationship among neighbors. This used in the last month. Peerby in the world result from the production and consumption is Peerby’s primary source of revenue: 25% of the policy cost seeks to reduce consumption of products. Peerby reduces that number by encouraging goes to Peerby, 75% goes to the owner of the product. by increasing the utilization of members to use products more efficiently. the products we have, thus Social saving consumers money By establishing contact with their and space and reducing our neighbors, users not only save time, impact on the environment. The money and storage space, but also platform also aims to promote can explore their neighborhood. community relationships and Many people report feeling an social cohesion, and may attachment to the place where offer just the push we need they live, but not always to the to introduce ourselves to the people who live nearby. By using people next door. Peerby, users can get to know their neighbors better, while sharing products.
89 | Retail Innovations 12 RESPONSIBILITY
Retuna Återbruksgalleria
Positioning “Your junk can be somebody else’s treasure.”
What is it? Retuna Återbruksgalleria is the first upcycling shopping center in Europe, possibly in the world. Just like a regular shopping center, the stores within are different; some sell furniture, others sell clothes. Located next to Retuna Recycling Center, the shopping center features 15 stores selling quality used products. The goal is to encourage an increasing number of stores to participate in upcycling. The philosophy of the movement is, “One person’s junk is another person’s treasure.”
Key Data • Sector: Upcycling shopping center • Year opened: 2012 • Store location: Eskilstuna, Sweden • Number of stores: 1 • Number of countries: 1, Sweden • Product mix: Everything recycled, from apparel to bicycles Easy drive-thru, whether you are in a car, on a bicycle or walking.
90 | Retail Innovations 12 Sweden
Why is it innovative? Ebeltoft Old things can shine again Valuable knowledge Point of View | Retuna Återbruksgalleria infuses discarded objects with life, Retuna Återbruksgalleria is not just selling products, it is The concept taps into multiple whether they just need polish or require serious repairs. also educating consumers. In the same building as the store, consumer trends currently The consumer delivers the product via a drive-thru, where Eskilstuna Folkhögskola teaches its one-year program, Design influencing the market. First it is either prepared for sale or recycled at Retuna Recycling Recycling. The overall goal is for Retuna to become a location is the rising recycling trend, Center. If the product is suitable for upcycling, it is sold in one where the consumer both is educated in recycling, upcycling which appeals to consumers’ of the center’s 15 stores. Retuna Återbruksgalleria effectively and design, as well as enjoys an unusual and satisfying strong focus on conscious taps into the current upcycling trend across cultures, shopping experience. consumption and sustainability. especially among young people. Second is the trend for individual and personalized products, where a consumer can find one-of-a-kind objects. Finally, it is an opportunity to co-create with and educate consumers. Combining these factors create an inspiring shopping environment.
A store decorated as a comfy living room. All items are for sale, The students at Design Recycling learn how to make trendy all are upcycled. products from recycled materials.
91 | Retail Innovations 12 RESPONSIBILITY
WeFood
Positioning WeFood is for everyone; whether you want to support the fight against famine, stop food waste, or simply want to save money on your groceries.
What is it? WeFood is Denmark’s first nonprofit food-waste supermarket. WeFood was founded by the nonprofit organization DanChurchAid as a step toward dealing with the issue of food waste and hunger. WeFood is fully financed by crowdfunding. The organization’s dual purposes are to reduce food waste and to raise money for DanChuchAid’s work in developing countries. All employees in the store are volunteers. In the first two months, WeFood served more than 10,000 customers and sold goods for a total amount of 250,000 DKK.
Key Data • Sector: Nonprofit food-waste supermarket • Format: 245 square meters • Year opened: 2016 • Store location: Copenhagen, Denmark • Number of stores: 1 (2 more planned in 2016-17) • Number of countries: 1, Denmark • Product mix: Expiring products, products with incorrect labels and damaged packaging sourced from supermarkets. The assortment changes every day and can accommodate anything from soap to meat. Donations raise the highest possible amount of money to help the world’s poorest countries.
92 | Retail Innovations 12 Denmark
Why is it innovative? Ebeltoft Unique crowdfunding Point of View | WeFood is financed 100% through crowdfunding, allowing milk to vegetables, which changes every day, based on what More than 500,000 Danes Danes to purchase WeFood stocks at DKK 100 per stock. is available. The goods at WeFood are sold at prices 30-50% (8.33% of the population) have Before its opening in February 2016, WeFood had raised more lower than in regular supermarkets. declared that they are against than DKK 1 million (134.000). In order to raise money for A low-cost model food waste. The movement opening a second store in fall 2016, WeFood has issued 10,000 The concept of WeFood is built on a low-cost model; the started a few years ago and numbered unique stocks. typical costs for staff and products are nonexistent. This was driven primarily by the A concept built fully on donations allows DanChurchAid to raise as much money as possible nonprofit organization Stop WeFood is 100% built on donations, in terms of both for its work in developing countries, which is why WeFood is Wasting Food. The Danish crowdfunding and product assortment. WeFood collaborates called the first “social supermarket.” government has plans to with supermarkets and suppliers, receiving damaged goods at launch an institute to focus no cost. Customers can find a broad variety of products, from on reducing food waste and the United Nations is online to follow suit, which will promote the growth of this trend. Supermarkets are picking up on this trend by selling “soon to expire” products at reduced prices. WeFood has proven to be a success, and two additional stores are opening within the next year, one in Copenhagen and one in Aarhus.
The combination of crowdfunding, volunteer staff and product donations makes the low-cost model possible.
93 | Retail Innovations 12 RESPONSIBILITY
TOMS Shoes
Positioning A shoe company that donates a pair of shoes for each pair it sells.
What is it? TOMS was founded in 2006 as a shoe line with a socially conscious mission based on the company’s highly esteemed and widely recognized “one for one” model. For every pair of shoes TOMS sells, a pair is given to an impoverished child. Chicago’s TOMS store serves as a brand storefront, carrying 100 styles of shoes, eyewear and branded apparel, as well as a coffee shop. TOMS continues to expand from its pure-play heritage to its entry into brick and mortar. The brand continues opening new stores both to showcase the products and to create a community space that supports the “one for one” mantra.
Key Data • Sector: Apparel • Format: 600 square meters • Year opened: 2014 • Store location: Chicago, Illinois, USA • Number of stores: 13 official TOMS store locations • Number of countries: 9 (USA, UK, UAE, Kuwait, Saudi Arabia, Greece, The Netherlands, Singapore, Amsterdam) • Product mix: Shoes, eyewear, bags and coffee
94 | Retail Innovations 12 United States of America
Why is it innovative? Social conscience and sustainability Ebeltoft Shoes are tailored for recipients based on terrain and TOMS began selling shoes using a “one for one” approach, Point of View | season, and local jobs are created by producing shoes in but since the company has expanded the brand to include countries where they are donated. In 2013, TOMS committed TOMS is a self-sustaining eyewear, coffee and bags, TOMS donates eyewear and water to producing one third of its Giving Shoes in regions where company which is “doing the and supports safe birthing services for mothers each time they are distributed. Local production helps to build industry, right thing.” It has a clearly one of those items is purchased. creating jobs and sustainable futures. defined purpose, which trans- After initially distributing its products through online and Brand experience and product trial cends creating shareholder multi-brand distributors, TOMS started opening flagship In addition to shoes and eyewear for sale, there is a coffee value or maximizing profits. stores to express its brand’s strong values and to offer its full counter at the front of the store, where shoppers can enjoy This attribute often creates range of products, as it does in the Chicago store. a cup of coffee, work, or just kick back and relax. The store intense loyalty among both also has free wifi. Nestled in the back is a full-service coffee customers and employees. bar, brewing TOMS Roasting Co. coffee creations and serving And, by providing people with an assortment of fresh pastries and pressed juices. a place to hang out, drink coffee and see what TOMS is all about, it’s bringing a new audience into the store to buy the products and share the mission.
95 | Retail Innovations 12 RESPONSIBILITY
Reclaimed Jewels
Positioning Reclaimed Jewels collects the stories behind unique jewels, which are retold in the store to customers, encouraging them to add their own story to the assortment.
What is it? Reclaimed Jewels offers affordable and unique jewelry in an innovative environment. The company’s range is twice the size and more affordable than that of typical jewelers. Customers are welcome to touch the jewels. Truly unique to the customer experience is learning the history behind every piece in the store and being invited to tell his or her own story, which is added to the collection.
Key Data • Sector: Jewelry store • Format: 80 square meters • Year opened: 2016 • Store location: Almere, The Netherlands • Number of stores: 1, The Netherlands • Number of countries: 1, The Netherlands • Product mix: New and secondhand jewels
96 | Retail Innovations 12 The Netherlands
Why is it innovative? Ebeltoft Reclaimed Jewels differs from traditional stores in its product and hold, spotlighting each, individual piece. The other 30% Point of View | range, presentation and storytelling approach. In this omni-channel of the jewelry is displayed more traditionally. The collection is concept, all products are available both online and in-store. not classified according to type, but according to style. Reclaimed Jewels is a distinctive player in the jewelry sector. Unique products with a unique story Twice the size of the product range and low prices The open display and façade This store embraces and highlights storytelling. Every jewel has Reclaimed Jewels offers twice the product range of a invite customers to personally its own history. Some have been worn in association with love, traditional jewelry store, comprising both new and secondhand discover the unique product others have a unique origin or were produced by a special or jewels. The store offers only limited editions; every piece is range. Customers can touch unusual process. The store offers the opportunity for customers unique. The quality is as high as in a traditional jewelry store and try on the collection and see to continuously enhance and extend the narrative of each piece – the store carries only real gold and silver, but the prices are prices without the assistance by adding their own brief personal note to every jewel. about 60% lower. Reclaimed Jewels does not offer any brands. of an employee – a significant Another bonus is that customers can also sell and pawn Presentation: open and touchable shift from the traditional jewelry jewelry here, presenting another opportunity to add their own retail model. By making the There are few display cases or counters in this store. Instead, stories to the collection. product more accessible, both 70% of the jewelry is openly displayed for everyone to see physically and in terms of price, Reclaimed Jewels reduces the barriers to purchase and strives to drive conversion by engaging customers’ imaginations as they learn the unique stories surrounding each jewel.
97 | Retail Innovations 12 98 | Retail Innovations 12 ICSC GLOBAL SPONSOR OF RETAIL INNOVATIONS 12
99 | Retail Innovations 12 ICSC: Global sponsor of Retail Innovations 12
Founded in 1957, the International Council of Shopping Centers (ICSC) is the global trade association for the shopping center industry. Its more than 70,000 members in more than 100 countries include shopping center owners, developers, managers, investors, retailers, brokers, academics and public officials.
The shopping center industry plays an integral role in the social, civic and economic vibrancy of communities across the globe and is essential to economic development and opportunity. Shopping centers are significant job creators, drivers of GDP and critical revenue sources for communities they serve by generating sales taxes and paying property taxes. These taxes fund important municipal services like firefighters, police officers and school services, as well as infrastructure like roadways and parks.
Shopping centers are more than fiscal engines; they are integral to the social fabric of their communities as a central location for gathering with family and friends to discuss community matters and participate in and encourage philanthropic endeavors.
The year 2015 was one of the best for the retail real estate industry in recent history. Shopping centers saw occupancy rates reach the highest year-end reading since 2007, and base rents and NOI reach levels with a 20% increase from 2010. Shopping center construction reached more than $17 billion, the highest level since 2008. 2016 has seen much of the same growth and the industry is on track for continued optimism in these operating metrics.
100 | Retail Innovations 12 As society and technology evolve, so too has the and grocery stores, as well as office, residential, shopping center. Currently valued at $1.3 trillion, the hospitality and event spaces. shopping center real estate industry is thriving as it Centers have reevaluated their value proposition continues to adapt to and celebrate the convergence by placing experience and convenience at the of the physical and digital worlds. The rise of rapid forefront. This has resulted in the rise of tech-savvy technology and e-commerce presents an opportunity amenities, such as complimentary wifi; charging for the retail real estate industry to deliver an integrated stations; wayfinding technology in parking decks that experience across platforms – and it’s taking full allows users to find open spots or their parked car; advantage. navigation apps that deliver turn-by-turn directions Today’s shopping centers attract, entice and engage from store to store; and even loyalty and rewards epicenter of the omni-channel experience. In fact, customers by delivering on experience, convenience programs similar to those offered by retailers. according to research dubbed the “halo effect,” there and exceptional customer service. Retailers also are largely embracing innovation. is a clear synergy between a physical store and Retail’s move toward mixed use is creating a cultural Gone are the days of waiting in line to pay, stock online sales generated within that trade area. When a shift where signature dining and experiences rooms running out of inventory and needing cash physical store thrives, so too does the retailer’s online encourage foot traffic that stays longer, spends more to buy goods. There are a variety of new touch business in that region; when a store closes, digital and keeps it local. Developers are investing heavily points at retailers’ disposal, including RFID, beacons, sales in that region also wane. to elevate their current properties. One way they are interactive displays and big data, all being used to Today’s consumers are savvier and better informed than doing this is shifting toward mixed use, offering a digitize and personalize the consumer’s shopping ever before. Digital channels and the ability to conduct dynamic mix of tenants that include traditional retail experience. research prior to a purchase have positioned consumers Close to 93% of all retail sales occur at the physical further along the purchasing funnel, making them more store, so, while it seems that e-commerce is growing motivated when they arrive at a store. The rise of click- rapidly, online sales account for only about 7% of and-collect is a testament to how well consumers are retail sales — even less when omitting sales from the adapting to an omni-channel world. Nordstrom and Macy’s dot.coms of the world. A strategic alignment between technology and real Pureplay retail is a trend of the past, as omni-channel estate is allowing developers to close the gap between retailers like Bonobos, Warby Parker and even e-commerce and traditional distribution networks. The Amazon continue to expand their physical footprints, end result: minimized fulfillment costs with maximized realizing the value of providing a tangible experience customer satisfaction, with brick-and-mortar locations for customers. As physical and digital retail continue remaining at the epicenter of the omni-channel to collide, the physical store will remain at the shopping experience.
101 | Retail Innovations 12 ICSC VIVA Design and Development Award
Chengdu IFS
The International Council of Shopping Centers presented its highest global honor, the ICSC VIVA Design and Development 2016 Award, to Chengdu IFS Chengdu, China, for its outstanding achievement of delivering an innovative and creative shopping destination with world-class standards of design, construction, management and operation for customers, retailers and the City of Chengdu.
Key Data • Owner/Development company: The Wharf (Holdings) Limited • Production architects: LWK & Partners (HK) Ltd. • Design architects: Benoy Ltd. • Type of center: 760,000 square meters mixed-use development 210,000 sq. m. Shopping mall 260,000 sq. m. Office buildings 41,000 sq. m. Hotel 72,000 sq. m. Residential • Featured tenants Fashion Louis Vuitton 2,927 sq. m. Dior 1,215 sq. m. Valentino 921 sq. m. Chanel 897 sq. m. Department store Lane Crawford 7,597 sq. m. Cinema UA Cineplex (IMAX) 3,396 sq. m.
102 | Retail Innovations 12 Chengdu, China
Western China has been undergoing an exciting Designers faced interesting challenges. The north the environmentally friendly character of the site. and south boundaries of the project differed transformation and the City of Chengdu serves as Chengdu IFS – the first of the developer’s five significantly, with parkland at the north edge and the new gateway to the region. Widely regarded as proposed projects throughout China – has succeeded urban development at the south. To accommodate one of China’s first-tier cities, Chengdu rates high in its plan to become a “city within a city,” a world- the variation, the office buildings, with their strong international rankings for fashion and expenditures class destination for tourists, as well as satisfy retail, architectural detailing, were placed at the south side; in luxury goods. Among the city’s newest landmarks dining, leisure and other needs and desires in high the residential and hotel properties were built on the is Chengdu IFS, a multi-use project that combines style, for local residents, close to home. retail, hotel, residential, dining, business, leisure, more open northern edge, which also incorporates entertainment, culture and art uses. landscaped areas and terraces to complement the adjacent Daci Temple. Out of respect for the relics Chengdu IFS (International Finance Square) includes on the site, developers built a large Antiquities a 260,000 square-meter shopping mall, two premium Plaza, from which visitors look down on the historic grade A office buildings, a 230-room five-star hotel remnants through glass viewing decks. and high-end residential properties. The shopping mall (“retail podium”) houses nearly 300 top-tier designer Crowning the retail podium is the Sky Garden, at fashion stores, jewelry and watch brands, skin care and the seventh level, which offers a relaxing green cosmetics units. Major names include Chanel, Louis landscaped area to the complex’s office workers, Vuitton, Dior, Dolce & Gabbana, Valentino, Burberry residents, visitors and shoppers. The Sky Garden, and Salvatore Ferragamo. Other key tenants include a which also contains a sculpture yard and art Lane Crawford department store, international food and gallery, is one of the project’s many environmental beverage outlets, ice skating rink, fitness center, bowling enhancements. Also integral are natural ventilation alley, flagship bookstore, cineplex and events hall. and skylights to maximize natural daylight, reduce the need for artificial illumination and save energy. This one-stop destination serves the community’s The skylights use low-emissivity frit glass to reduce interests, as well as retailers’. The architects conceived heat gain, while ensuring maximum transparency. the project’s design to incorporate urban spaces, as well as spots for art and culture. The site preserves While the project provides 1,700 vehicle parking historic relics, such as remnants of a water supply spaces on three underground decks, it also system from the Tang Dynasty and horse-drawn connects seamlessly to mass transit systems, such carriage boulevards from the Song Dynasty, and makes as light rail and a bus network. Pedestrian-only them available for public view. streets surrounding the complex further enhance
103 | Retail Innovations 12 Tracking Retail Innovation trends around the world...
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104 | Retail Innovations 12 GRN-RI-PUB.pdf 1 15/11/2016 17:35
Retail 12 Innovations We are a global alliance of retail Innovating for Customers consulting companies with member companies in more than 25 mature and emerging retail markets. For the past 12 years, Ebeltoft Group has been tracking innovative retail concepts across the globe. Many Since 1990, we have been helping factors are pushing retailers to accelerate the rhythm of their reinvention: digitalization and retail-tech retailers and their suppliers remain creativity; new, more horizontal relationships between brands and customers; and the surge toward radical competitive and achieve their goals differentiation in stagnating markets. by blending global retail expertise with members´ local insight. In addition to new game-changing retailers developing disruptive formats, more traditional retailers have Ebeltoft Group serves 36 of the top 100 retailers and 29 of the top 50 launched reinvention as well. The 26 member companies of Ebeltoft Group witness this through consulting manufacturers worldwide. projects across all regions, formats and industries. Retailers are racing to create new formats, offer new added values and explore new frontiers. Retail Innovations highlights a selection of these bold initiatives. Ebeltoft Group´s global studies and publications include Global What Retail Innovations also does is demonstrate the intimate involvement of the customer in the innovation Cross Channel Report (2014), Retail Internationalization (2013), process. If technology remains a major driver for innovation, it must be applied usefully to serve consumer NeoConsumer (2011), The Trust needs. Most of the innovations showcased in this issue rely on a deep, intimate understanding of how people Factor (2011) and Environmental live, dream and shop. Sustainability (2010).
What if the next retail revolution is…the customer? For a personal presentation about current retail innovations, trends Vive le commerce! Global Sponsor and cases, or information about our latest global publications, research and services, please contact Ebeltoft Group or visit www.ebeltoftgroup.com