GlobalShop Experts Reveal Top 10 Trends in Retailing

Furniture World Magazine

Insightful Tips Provide A View of Shopping's Future Knowing how and why a customer shops is vital to retailing success in an ever-competitive consumer market. Experts from GlobalShop 1999 – the world's largest annual retail design exposition – have identified the Top 10 emerging consumer, marketing and technology trends to help retailers position themselves for the new millennium. 1. Interactive Technology. Consumers have accepted in-store interactive technology as a tool to make their shopping experience more convenient. Self-checkout systems provide faster and more secure transactions, and touch-screen kiosks allow customers to get the answers to product questions without having to seek out a hard-to-find sales representative. Even the automotive industry is turning to interactive technology to entertain and educate consumers. Mercedes-Benz enlisted the help of GlobalShop exhibitor Dennis Interactive in New York to create an interactive kiosk program that is linked to the corporate and dealer Web sites. The program allows customers to simulate test drives, build a dream car or get vehicle performance and financing information. "With the increased popularity of the Internet, consumers already are using interactive systems," says Doug Hope, creator of GlobalShop. "In-store Interactive Ideas, also known as i3, is a new GlobalShop pavilion that was created to help retailers keep pace with interactive-savvy customers." 2. New Lighting Techniques and Technology. Retailers are incorporating new lighting techniques that help draw the eye of the easily distracted consumer. "Lighting can make a major statement, be an art form, and offer color and visual personality to a store," says Greg Gorman, president of GMG Design, a company specializing in retail design and visual merchandising. For example, GlobalShop exhibitor Tech Lighting in Chicago offers a uniquely shaped, low-voltage pendant lamp that comes in five colors. And with the latest lighting technology, such as compact fluorescent units that provide sufficient illumination and optimal energy efficiency, dramatic lighting can be achieved without breaking the bank. 3. Integrated Marketing. Why is the Gap one of the most successful retailers in the world? Integrated marketing. From their Web site to the retail floor, the Gap's marketing message is consistent. Consumers know what to expect and are never confused by conflicting marketing messages. 4. Multi-Dimensional Store Fronts. As competition stiffens, retailers must look for ways to differentiate themselves in the eyes of consumers. Using multi-dimensional storefronts, retailers can create a unique identity and a distinctive look that stands out in the mall or a freestanding retail location. This technique has helped chains such as Warner Bros. attract attention and build sales in its retail stores nationwide. 5. Flexible and Cost-Effective Interior Graphics. By using lifestyle graphics, retailers build merchandise themes and create personalities for their stores. New signage and graphics technology allows retailers to quickly create images and change signage to meet seasonal or promotional needs. Emerging print technology is giving retailers the flexibility to create colorful, decorative graphics with shorter lead times and at much lower costs. Retailers are using plasma-screen technology, such as the 40" television-like units offered by GlobalShop exhibitor Pioneer, for video displays. This technology also can be used for in-store signage. It lets retailers display their brands, logos or messages in full-color, while giving them flexibility to change on the fly. 6. Accommodating the Shopper's Need for Convenience and Entertainment. Time and convenience are valuable commodities in this fast-paced era. Retailers must cater to time-challenged shoppers by creating convenience within the store and paying more attention to cross merchandising. As with cosmetics departments, open-sell techniques are convenient for busy shoppers. More cash wrap areas are being used, and they are more centrally located. Interactive kiosks also can play a major role, offering quick store directions and product information, speedy checkout and easy-to-prepare recipes (as seen in many Kroger stores). Many supermarket chains, such as Harris Teeter, also are offering prepared meals for customers who find they don't have time to cook. Shopping-as-entertainment has attracted families and created the "destination location" concept of retailing. With food, games, service and products all under one roof, families often choose shopping instead of a movie or fun center. Today, retailers are focusing attention on making that shopping experience as pleasant as possible for tired parents and energetic children. Keeping children happily involved within a retail setting gives families a reason to choose your store. 7. Flexibility in Fixtures and Complementary Designs. Retailers are discovering that changing merchandise displays more often will attract consumer attention. Flexible fixtures that can easily be reconfigured are in high demand. Built-in lighting and rollers are two features that augment flexibility. Fixtures not only serve to hold products, but also to complement them and draw attention. To add a more contemporary look to displays, retailers are buying fixtures made of contrasting materials, such as dark wood combined with a brushed metal finish. "Mixing a variety of finishes and colors adds to the overall ambiance and excitement," Gorman says. 8. Growth of Home and Lifestyle Products. Sociologists say the Baby Boomer generation is nesting, creating tremendous growth in the sales of home-related products. As the population ages, people are spending more time in the comfort of their homes – hence the need for more things to make the home comfortable. "As people cut back on entertainment costs, they want to buy the things that make them feel happier in the nest," said J'Amy Owens, president of The Retail Group, a Seattle-based design firm and a GlobalShop 1999 exhibitor. The explosion of lifestyle retailers such as The Pottery Barn, The Discovery Channel Store, Orvis and Cybersmith demonstrates how retailers are trying to plug into consumers' passions, interests and avocations. Lifestyle retailing concepts are showing up in clothing stores, supermarkets, furniture showrooms and even car dealerships. 9. Branding and Co-Branding. What's in a name? These days it's everything. Retailers are discovering that branding not only adds value to their products, but also helps to differentiate them from the competition. Disney leveraged its well-known name to create a successful branded line of retail products including clothing, toys, key chains, jewelry and videos. By partnering with manufacturers to offer co-branded products, retailers can create personality and value for their products, thus building equity for their nameplates. Companies such as Ford and Eddie Bauer and Benjamin Moore and Ralph Lauren have teamed together to create popular, co-branded products that are in high demand. 10. The Return of the Neighborhood Retailer. Some larger retailers are recognizing that shoppers do not have time to travel far to different stores. In response, many are creating smaller "neighborhood format" stores. Examples are springing up: Wal-Mart's Neighborhood Market supermarkets in Arkansas, Home Depot's soon-to-open Village Hardware stores, and Service Merchandise's Service Select stores are just a few. GlobalShop is sponsored by the National Association of Store Fixture Manufacturers (NASFM) and is produced by Shore-Varrone, Inc., publisher of Display & Design Ideas and Point Of Purchase Magazine. GlobalShop also includes The Store Fixturing Show, sponsored by NASFM; The Visual Merchandising Show, sponsored by the National Association of Display Industries (NADI); Retail Operations & Construction Expo, and In-store Interactive Ideas (i3), sponsored by NASFM and POPAI. For additional information on GlobalShop, call (800) 646-0091 or visit www.globalshop.org.