Ask Melissa All Your Retail Questions

CI&T’s Retail Industry Lead, Melissa Minkow wants to take on your questions. She takes a look at how to solve issues affecting the retail industry, businesses, owners, and entrepreneurs

Is it the end of the shopping mall as we know it?

Dear Melissa,

Signed,
CEO of a commercial real estate company

Hi CEO of a commercial real estate company,

I’ll start this off by saying that despite the fact that “The Mall is Dead” was a common headline circulating pre-pandemic, I didn’t believe that it was actually dead then, and I don’t believe it will die, ever. Does that mean it was thriving pre-pandemic? Nope. Does that mean its purpose won’t drastically change? Absolutely not. But, does that mean it’s eternally irrelevant? Also no. 

For the foreseeable future, and even after a vaccine is widely available, shoppers have indicated that feeling safe in brick and mortar retail environments is a bit on the rare side. Combine that feeling with ecommerce dexterity, and it becomes clear that malls are due for a reinvention. But the value in having so many physical storefronts in one convenient location doesn’t just evaporate, especially when brick and mortar can provide certain capabilities that ecommerce simply can’t. Four critical and unique in-store capabilities suggest to me that malls just need to be re-thought, not demolished. 

Though virtual fit tools can and should get more accurate over time to facilitate online shopping, there’s a sense of identity and self-expression sourced from actually trialing certain categories. AR helps contextualize and visualize how we might use or wear products, but there is no replacement for actually doing so in real life. Whether it’s the certainty or recreation provided in this real trial experience, it will always appeal to some. 

The recreational aspect of product trial leads me to another key aspect of mall culture- the social side. While TikTok, Instagram, and other Social Media platforms have become the new mall in many ways, there’s still no replacement for meeting up in person. Retail can always learn from other industries, and the streaming space is a prime example of this. While it’s fun to stream your favorite flick simultaneously as some of your favorite people, nothing compares to actually experiencing that entertainment in the same room together. Mashable wrote a great article about this, and I feel strongly that although shopping livestreams are becoming more mainstream, they will fail to completely replace in-person group shopping. 

The logistical touch points along the path to purchase represent another way in which malls can play more conveniently than anyone else. The nextdoor locations malls occupy for so many satiate our needs for immediate acquisition and soothe some of the pain points presented by the returns process. Simon Property Group’s recent partnership with Navar is a prime example of capitalizing on the mall’s destination status to improve the returns process. 

Ultimately, malls can stand the test of time if they flex their value propositions. Becoming more selective when choosing tenants, creating more experiential moments, and leveraging key logistical benefits such as product trial and returns will ensure malls have something unique to offer.
Don’t give up!


-Melissa

How to handle shipping & logistical delays

Dear Melissa,

Signed,
COO of a specialty retailer

Hi COO of a specialty retailer,

First let me state the obvious yet important fact that you are certainly not alone in this. With extremely transparent and abundant communication, your brand can create explanatory messaging so that shoppers understand how you are not at fault for the slows in production and delivery. The earlier in the path to purchase you can make shoppers aware of the potential delays, the less likelihood there is of disappointing them right in the moment they were hoping to buy. Further, don’t hesitate to include every relevant detail causing the delay. Several retailers’ detailed pricing breakdowns justified higher ticket items and earned trust off the bat. 

That being said, unfortunately, as you acknowledged, even after doubling down on communication, it is inevitable that some consumers will seek alternative options to ensure their desired purchases exist and arrive according to their own timelines. If it’s too late for you to meet shoppers’ ideal timelines, there are still many ways you can win back their wish lists in the future. 

Beyond communication, there are technology-based, operational solutions and collaborative partnerships your brand could embrace to ensure you are exceeding consumers’ expectations during this era of extenuating circumstances. 

On the partnership side, many big retailers are seeking delivery services more traditionally linked to local shops. You don’t have to limit yourself to solely your usual delivery providers. If you do want to stick with your default UPS or FedEx, you could always offer intentionally slower shipping windows, like Amazon has been known to do, so that you can prioritize the urgent packages to those on expedited timelines. 

As far as tech-enabled supply chain solutions, we could go on for days here, but a couple quick-hitting ideas to get your wheels turning: together with our mapping partners, we could design a seamless BOPIS path, wherein the store would be alerted when the shopper is 10 minutes away from the store, heading for pickup. Alternatively, we could design a pre-order strategy and platform amendments so that demand is appropriately forecasted, and the time between ordering and delivery expectation is easily achievable. Lastly (for now), a revamped sourcing model would ensure a pandemic-proof production schedule. Despite how it may currently feel, the sky’s the limit when it comes to how creative we could get to over deliver on expectations during such a tricky time.
Keep the faith!

-Melissa

The next chapter for brick and mortar stores

Dear Melissa,

Signed,
CCO of a big box retailer

Hi CCO of a big box retailer,

This is a great question that, understandably, many retailers are wondering about now that store capacities are limited, shoppers are fearful of being surrounded by others, and in-store product trials can no longer happen as easily. There are a few benefits consumers can reap from a brick and mortar setting that are still differentiated from ecommerce.

Firstly, no matter how increasingly accurate digital product visuals become, it will be nearly impossible to replace the in-person experience of seeing an item. The physical product will always be easier to imagine incorporating into one’s life than the image of a product, especially given how multisensory we’ve become as a society. Secondly, while the abundant encouragement to cocoon has been welcomed in many ways, it is also undoubtedly driving a need for movement and a change of scenery from one’s home. Visiting a physical store, no matter how chaotic and unsafe it may feel, is still a chance to get out and indulge in a bit of discovery. I’d suggest taking a page out of the entertainment industry’s book and leaning into our nostalgic cravings by translating the recent success of drive-in movies to retail. Ask yourself, how can you still bring the in-store spirit, safely, to customers? Revive those window shopping display strategies, leverage the extra space the parking lot has to offer, or perhaps sell “tickets” for shopping reservations. Your digital platform can support an enhanced in-store experience by housing livestream video content of brick and mortar demonstrations and/or keeping shoppers up to date with a virtual queuing system. Nike’s invite-only NYC store is a prime example of getting consumers excited about more intimate shopping experiences. You could even change your in-store product offering to be limited to “fitting room required” items, such as apparel and accessories, so that the purpose of having a storefront is clear. These are just a few ideas, but the opportunities are endless, and we’d love to create more solutions together. 

Stay safe and stay strategic!

-Melissa

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