05 | Against the gloom | Learning from Nordstrom | McKinsey's retail incubator | HMV's last roll of the dice?
Just before sending this out, I saw the news that 85k retail jobs have been lost in the UK this year. The press are quick to convey a dark future for the sector, but, in this newsletter, and in my work, I see lots of opportunities for those with bright ideas and the willingness to consider new approaches (or simply doing some of the 'old things' very well indeed - see Mr. B's bookstore in Bath).
Hopefully, you'll find some positives within, maybe even some inspiration. Let me know what works for you, heck, if you really like it, share it with a pal.
Have a great weekend,
Adam
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The simple dynamics of failing retail, by Seth Godin:
“The answer isn’t to figure out how to be as cheap as Amazon… you can’t. The answer is to figure out how to find the people (and the products and services they demand) so you can eagerly and comfortably charge a fair price.”
https://seths.blog/2019/10/the-simple-dynamics-of-failing-retail/
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Nordstrom Local and omnichannel: are they nailing it?
‘There’s a Venn diagram of life online and offline, and retailers are starting to understand that monopolizing its center is good for making money. This is exemplified in a new type of store called a Nordstrom Local, where no clothes are sold. They are strange little places that offer, along with the free shipping and returns the company is known for, the chance for customers to do errands that are best accomplished in person.
Such as: tailoring, styling and, at the Nordstrom Local on the Upper East Side, stroller and car-seat cleaning by something called a “tot squad.”
Nice, pithy read as Nordstrom opens its new NYC flagship:
https://www.nytimes.com/2019/10/23/style/nordstrom-family-department-stores.html
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Peter Marino loves stores
Peter Marino on his new store for Louis Vuitton (FT). I wandered past the other day and it has some kind of art work applied to the exterior and generally looks immense.
“The fashion show comes and goes. There’s so many of them, so much fashion being thrown at you that the only thing you can retain is the store. It’s still the thing that best reflects the total values of the brand.”
http://archive.is/f13wy#selection-2281.43-2281.53
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Colette as a pop-up in second cities: now there's a thought
“If she were to open Colette today, Andelman said it would be digital-only, supported with physical pop-ups around the world. Those pop-ups wouldn’t necessarily be in the usual big-city shopping destinations, but, for example, in Antwerp, Chicago or Madrid.”
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McKinsey’s future of retail incubator sounds like v smart business
“Modern Retail Collective will provide insights to retailers exploring opportunities to re-imagine the store through new in-store experiences and technologies that will enhance customer experience and overall store performance.”
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Doing it for the kids
A couple of kids' retail stories that indicate some interesting thinking:
'Also coming soon to the second floor is a space for kids called CAMP, which in addition to selling kids toys offers daily activities for kids such as crafts and storytelling, and plenty of room to run and play.' - at Hudson Yards, NYC.
https://www.cnbc.com/2019/10/15/hudson-yards-occupancy-rates-top-estimates-less-than-a-year-in.html
US kids' retailer FAO Schwarz opens at Selfridges:
https://www.standard.co.uk/lifestyle/london-life/inside-fao-schwarz-london-selfridges-a4267571.html
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HMV Vault - life in the old dog yet?
Sounds like a slightly bonkers business, but maybe, just maybe it will work. I hope so.
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Stat-watch: shock as 80% of Gen Z-ers say they like to shop at physical stores
More than 80% of Gen Z said they like to shop at brick-and-mortar stores, with 58% saying visiting stores lets them disconnect from social media and the digital world, more than any other generation.
A.T. Kearney surveyed 1,500 U.S. and Canadian consumers among four generations.
https://www.retaildive.com/news/gen-zs-worries-about-emotional-health-affect-shopping-habits/563095/
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Out there in the world
Eslite heads to Tokyo
Love that, despite the fierce competition, Eslite is adding to Tokyo’s book retail offering. Also, check those little cutaway book nooks. Kawaii!
https://www.moshimoshi-nippon.jp/257691
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Loosely related reading: The Rimowa reboot under Arnault jnr
“Ultimately, the dream is to sell the experience of not having a suitcase; that you go to Tokyo and your suitcase will be there, with everything you need inside. But this is a bit utopian,” he said. “Right now, the brand is only linked to the terrible parts of travelling: to the airport and from the airport. When it comes to the enjoyable parts, there is zero interaction. I want the customer to interact with the brand a bit more on a day-to-day basis.”
Redefining the Rimowa experience would be a fantasy project.
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Oddity
Feeling confused by the sheer proliferation of new DTC brands? Me too, and even more so after looking at this rather fun site: https://www.cpgd.xyz/
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Thanks for reading. Please tell me what you'd like to see more of — I love a brief.