We’ve been hearing about this for a while now, how retail is facing an “end of days” moment. While the current landscape of seemingly endless store closings and once thriving retail districts becoming virtual ghost blocks essentially overnight has sounded the alarms for brands and property owners alike, I believe that there’s a hidden upside in the madness.

Pulling from our work in experiential retail and drawing from research we’ve compiled, at Isenberg Projects we’ve identified a number of indicators that hint at opportunities beyond the surface and suggest that the apocalypse isn’t necessarily coming for everyone.

When looking at the current retail landscape, we’re seeing the most successful brick-and-mortar retailers evolving, partnering and collaborating in ways that make every customer visit, be it their first or 50th, feels like a fresh discovery. Primarily digital brands like Bonobos and MM LaFleur, for example, have established uniquely personal off-line shopping experiences in their retail showrooms. Both of these brands have successfully found ways to build long term loyalty in-person with their customers through intentional interactions, focused customization and relationship building with personal stylists onsite.

Another great example of retail evolution we’re seeing is J. Crew’s sister brand Madewell. With a calculated and constant influx of limited edition collaborations, as well as the brand’s “it girl” style social campaigns, Madewell’s omnichannel approach and brand messaging hit on an authentic “California cool” that invites shoppers to feel like part of a laid-back girl gang.

 

Sephora Succeeds With ‘Try on What You Want’

Examples of retail innovation aren’t just limited to primarily digital or Millennial-focused brands, though. Case and point: the big box Sephora, which is killing it when it comes to giving shoppers an engaging experience in a market segment where hands-on trials of products are often a deciding factor in purchasing. By inviting consumers into candy-colored painted playlands offering up a treasure trove of samples, treats and experiments, Sephora cements a “try on what you want” mentality that online purchases can’t effectively mimic. As a result, this has driven up their customer loyalty.

Now that we’ve seen how some in retail are evolving in the face of an ever-changing landscape, what can be learned from these brand outliers about evolving tired shopping centers into dynamic retail districts?

 

Looks Matter

Whether looking for dinner and a night out after work, plotting a weekend shopping adventure, or planning a much-needed vacation, people tend to frequent beautiful, aesthetically unique places. Recent data shows that this influence isn’t just limited to major decisions like picking a faraway geographic location to experience first-hand, but instead plays a major role in everyday consumer decisions like where they choose where to shop and eat.

With studies finding that 72 percent of Instagram users have made fashion or style-related purchases after seeing something on Instagram, and that half of respondents cited Instagram as the social media platform that most influenced their shopping habits, spaces need to be designed both to look incredible in photos and highlight the products within them. Seating areas, art opportunities, and incorporating elements of play (such as the “Box O’ Suds” ball pit we produced using a dumpster for a recent project in Boston) are all ways that have proven to effectively engage visitors to stay longer and, importantly, show off the time they had after their visit through organic social posts.

Experiences cultivate positive associations with places. People have always shared great, authentic experiences and places with those close to them. While traditionally this was done through word of mouth or around the water cooler at the office, consumers now do this on a far broader reaching and instantaneous scale through social media.

Think of it this way: everyone wants to say they’ve discovered a new, special artisan Italian place but, on the flipside, no one wants to brag about or actively be seen at the big Italian chain if it is not perceived as “cool.” Add to this the fact that, according to Eventbrite research, 69 percent of Millennials experience “FOMO” (aka “fear of missing out”), customers sharing their positive experiences on social media is crucial in getting their peers and followers to show up and engage themselves.

 

Embrace Your Surroundings

For brands of all sizes, knowing your customer and how to speak to them has always been key to success. As we see more brands moving from the digital space into omnichannel retail offerings, localization of the in-person experience has proven to be a major differentiator. No longer can a brand or property proclaim, “We’re here and THIS is what you want – You’re welcome!”

Instead, researching the surrounding communities, their demographics and talking one-on-one to existing and potential consumers alike needs to guide one’s entry into a new market in a way that feels inviting and authentic. The modern consumer is smart, engaged, knows their options and, most importantly, knows when experiences and/or messaging feels faked. By inviting consumers and the community into the conversation and hearing what consumers want in their own words, you’re able to tailor both your offer and message from one of isolationist to that of community member/builder.

We realize that there’s no magic formula to creating spaces which will appeal to everyone, and have seen how a “one-size-fits-all” approach does nothing but set brands and properties up for failure. However, by digging in and understanding what people truly want and expect from a retail district area, and by considering the individual characteristics of each place when setting engagement and development strategy, brands and retail property managers alike can create more popular, attention grabbing and vibrant shopping experiences for consumers (and zombies) alike.

 

Emily Isenberg is founder and creative director of Isenberg Projects, a Boston-based creative strategy and experiential marketing firm.

Refining Retail Strategies in the Age of Instagram

by Banker & Tradesman time to read: 4 min
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