The Changing Retail Paradigm

We all know that online purchasing is changing retail forever. Amazon captures 60 cents out of every online purchasing dollar. As Doug Stephens told DPHA members in Phoenix last week, "Amazon is the quickest way from wanting to getting." Stephens also pointed out that no one takes a selfie of themselves ordering on Amazon. It's not fun. There's nothing exciting about it. In a blog post, Tom Goodwin put it best, "No person in modern times has ever been so bored that they went window shopping at amazon.com."

 

Online purchasing appeals to people who know exactly what they want. Additionally, there is a new breed of online etailers that limit options to make it easier for customers to determine what they want. Mattress specialist Caspar sells only one model. Stephens also pointed out that Amazon and others are making it easier to buy by not buying.  Alexa may note that a consumer has not ordered dishwasher liquid for a while and will ask, "would you like to reorder a bottle of Dawn or garbage bags" or other household necessities without being asked. There are also subscription services such as Dollar Shave Club that send products automatically.

 

One of the major points that Doug Stephens made in his keynote address at the conference is that eCommerce is all about acquiring. On the other hand, brick-and-mortar retail is about shopping. Brick-and-mortar success requires creating experiences that strike emotional chords with consumers. An example Stephens pointed to was Nordstrom's new concept store, Nordstrom Local. It is a clothing store without clothes. Instead of filling 140,000 square feet with everything from men's suits to perfume, Nordstrom Local comprises 3,000 square feet of space, offers wine, beer and espresso, and is staffed by stylists who help customers craft wardrobes that can be picked up at the traditional Nordstrom store. Story is another concept store in New York City that offers pop-up opportunities for established brands ranging from American Express to Clairol. The displays are interactive and the mirrors are smart, providing not only a reflection but the latest news, updates on product offerings or other information available from a blue-tooth connection.

 

The changing paradigm brings experiences to shoppers. That's why Lululemon offers yoga classes and why you can jog on an indoor track at a Nike Store. What are the lessons for DPHA showrooms? Have interactive displays and determine how you can bring the experience of having a new bath "alive".