More Lessons From Doug Stephens

DPHA 2017 Conference keynote speaker Doug Stephens (The Retail Profit) wowed members in Phoenix.  Stephens told DPHA members to expect dramatic and significant changes in the retail landscape, explaining that online sales are compounding at a global rate between 12 and 35 percent, and that within 15 years he expects ecommerce sales will exceed purchases in brick-and-mortar stores.  Virtual reality and the Internet of almost everything will make common everyday purchases automatically.  Stephens explained, "The three quarters empty bag of dog food in your home will suddenly have the capability to re-order itself.  Using the third-to-last diaper in the carton will trigger the order of 40 new diapers delivered to your door.  The light bulb that's going to burn out will order its own replacement, taking into account shipping times from your online provider.  Sensors in your running shoes will measure tread depth and trigger a reorder when necessary.  By 2025, 30% of everything in the center aisle of a grocery store will be purchased automatically."

 

Stephens told DPHA members that physical retail will no longer be a channel for buying because the vast majority of daily and weekly needs will arrive automatically without purchaser involvement.  Physical stores will have to reinvent themselves and become places where consumers go to learn, be inspired and see and try new things.  These new "stores" will have to deliver more compelling physical and emotional shopping experiences, Stephens said. 

 

Apple founder Steve Jobs explained, "design is a funny word.  Some people think design means how something looks.  But, of course, if you dig deeper, it's really how it works."  Apple embodies the change in retail that Stephens believes is the key to continued brick-and-mortar success.  Apple recreated the retail experience.  Its stores are open and bright and enable customers to freely interact with products, receive expert advice and have problems solved.  There are no cashiers at Apple stores, a trend that will accelerate across all channels and another sign of the paradigm shift in brick-and-mortar retail operations.

 

Decorative plumbing and hardware showrooms have a leg up on most other retailers because DPH showrooms have the ability to engage customers on more than one sensory level.  Stephens advised DPHA members to change their focus from store to story and to stop thinking about products and start thinking about productions.  Shifting the focus of a brick-and-mortar store from selling products to selling experiences that involve products will enable the showroom of the future to differentiate itself and become the destination of choice for its market.