Mike Berland

Jun 21, 2021

7 min read

5 Forces Driving the Retail Transformation 👜

Graphic by K8 Strassman

Net Net: The retail rebound is underway… but don’t call it a comeback. It is a transformation that was accelerated by COVID-19.

What’s Up: Retail.

Force #1: Brick and Mortar vs. E-commerce

  • From a place to buy products to a showroom model that acts as an opportunity for consumers to experience the brand in real life
  • From a necessity / chore to a high-touch hospitality, VIP, entertaining experience — the negative aspects of shopping turned into positives (e.g. less crowded, clean and sanitized, and employees with the time and motivation to provide them with great service)
  • From impulsive to a more mindful / strategic experience: Consumers are becoming more intentional with their in-person shopping — planning their purchase ahead and only going in-store for specific purposes
  1. CAMP: Experiential retail expert Ben Kaufman says retailers have to “event-ize” their stores. “It’s got to be something to do, it’s not a chore … [it’s an] activity, a way to … have fun with friends and family … a place to watch a show or let some energy out.” Kaufman says that retailers now have to answer the questions, “what should we do today?” It’s not about stuff, he says, it’s about activity.
Google Images

Force #2: Gen Z

Netflix Shop

Force #3: Sustainability

Google Images

Force #4: The Luxury Divide

Google Images

Force #5: Crypto & NFTs

RTFKT

What’s Down: