global innovation award Wolfgang Gruschwitz 2011 “Greening Your Retail Design” RRR your shop! Reuse, Repurpose, Recycle Retailers have to face a new challenge: the integration of the three green R’s - Recycle, Reuse and Repurpose - in their shop concepts. Today’s “LOHAS” (Lifestyle of Health and Sustainability) consumers represent a particular market segment related to sustainable living and "green" ecological initiatives. As these consumers are generally composed of a relatively upscale and well-educated population segment, their market power is considerable and should not be neglected. Unlike the green eco’s from the 70’s, these consumers like to spend money! However, for valuable things only. Recycle Using recycled or recyclable materials when designing new shops has already been realized by some trendsetting companies in the past and will become even more important in the future. Reuse The good old times represent for many of us a more easy-going and therefore adorable way of life. This explains a lot the rediscovery of e.g. flea markets and also the hype of vintage or retro-style products and stores. Repurpose To repurpose means to reinvent the purpose of a certain thing. The success of the fancy shops in Chelsea Market or in Meatpacking District in New York illustrate that this strategy even works for old real estates. Function and Emotion as a major challenge When coming to ‘greening’, it is essential to consider the retail design holistically, including materials, light and visual merchandising. The balance between function and emotion is decisive. Green materials are characterized by: • High quality, durable • Round, organic shapes • Earth colors • Clear, elegant design • Examples: stone, glass, natural wood, steel, iron, leather, cork, felt, linen, wool These sustainable materials create feelings of security and a convenient atmosphere (e.g. smell of wood, oval shapes, natural colors) Green lights are characterized by: • High efficiency, durable • Intelligent light controllings • Interdiction of light bulbs (in the EU since 2009) • Positive side effects, e.g. concerning air conditioning The trend is clearly towards color-identical and powerful LEDs. Digital addressable lighting interfaces are able to adapt the store lighting permanently and dynamically with respect to the current day light situation. Modern lightings have to protect our resources, by meeting the challenges regarding costs and emotional lighting. Light creates atmosphere and thus essentially forms the Corporate Identity and the Corporate Design. Green Visual Merchandising is characterized by: Picture, text, light, scent, music – the whole is more than the sum of its parts. Visual Merchandising doesn’t just come down to pure decoration; it is more a temporary statement at the point of sale. A statement that evokes desire for discovery and that creates an emotional bond between the product, the brand and the consumer. Getting green in this field is a real challenge: The emotional scenery of the store has to be maintained when saving energy and resources. Finally, be careful as ‘greening’ is more than a trend - it is a promise and once you decide to take this route, you have to fulfill your promises to the customer. If you disappoint them, you can lose them forever. Photos: Kemner Home Company Case study: Kemner Home Company, www.kemner.de (traditional furniture store Bad Bederkesa/Germany) Design & Realisation: Gruschwitz GmbH STORE RE-DESIGN ENTICES CUSTOMERS TO BUY MORE What is the secret of increasing sales even in difficult economy times? One proven technique is to enhance the effectiveness of your store design by embracing experiential shopping. That’s exactly what furniture retailer Kemner Home Company did in the small town of Bad Bederkesa, Germany. Since the retailer re-opened in October 2008 after a storewide renovation, sales have risen by 39% compared to the previous year, based on a 25% increase in available sales area. How was this accomplished? The strategy was to create an atmosphere that is conducive to increasing sales while saving costs. It included these strategic goals: • Reduce shopping barriers • Increase shopping frequency and duration • Awaken emotions and purchasing desire • Create a feel-good atmosphere conducive to shopping, relaxing and lingering The entrance area was re-built Italianate style around a center-fountain. The Mediterranean flair is emphasized by an event-kitchen and a special emphasis is placed on locally grown, organic foods. The aroma and cooking demos make this area an inviting focal point. The fountain has an important environmental function as well as it helps moderate the store’s temperature year-round (cool in summer/humid in winter). This also helps create the optimal climate condition for solid wood furniture. Special zones were added for a Lifestyle Boutique, a Kid’s Corner, a Premier Lounge for men and a relaxation zone with reading materials. In the bedroom furniture department and the ‘stress-less’ massage chair area ‘green’ islands were created to convey the feelings of nature and relaxation. Special display vignettes, including a center-stage whirlpool and forest scenery on the walls, create curiosity and interest. The ambiance of the massage chairs is contrasted with a cool and refreshing winter landscape on the walls. This innovative approach has brought impressive results. In the stress-less area alone, sales of massage chairs grew from 8-10 to 13-15 per week, representing a sales increase of 39%. Furthermore, only energy-saving lighting sources were utilized, which has reduced the store’s energy consumption by 25%. The entire floor plan has been created for customers to easily navigate the store without any floor treatments directing traffic flow. The visual merchandising is full of surprises, with duplicate product displays and cross-selling and impulse products integrated into customers’ paths. Even the toilets provide a fun effect: the walls and doors are covered with photos of cows! About the author gia Expert Juror Wolfgang Gruschwitz is the owner and managing director of the Gruschwitz GmbH – based in Munich with another office in Moscow – offering full-service visual merchandising expertise to retailers. He serves high profile clients such as FC Bayern, Red Bull, Mango and the Inditex group (with its most popular brand ZARA). In 2005 Gruschwitz gained first international recognition by realizing the brand world within Munich’s soccer stadium Allianz Arena. www.gruschwitz.de .