May 2, 2014
Furniture retail is one of the last consumer products categories to reinvent and modernize the guest experience, which includes not only the exterior and interior of a store, but the transaction and the way we do business. Beyond our industry, retail has been transformed—from online shopping to ordering meals via iPad at our favorite restaurants, to all the ways that consumers will in-take information about the products they buy.
Fast food is a prime example of an industry that has focused on reinvention and innovation, and in so doing, has created the new category known as fast casual dining (Panera Bread, Moe’s Southwest Grill) which offers consumers a higher quality of food and atmosphere. Anyone who has visited a McDonald’s or Wendy’s recently knows that these companies are reinventing their dining experiences as well. Wendy’s is leading the charge with five regional formats that speak to a restaurant’s location, whether a contemporary metro market, or a countryside location complete with fireplaces, flat-screen televisions and leather chairs. Each of the five formats includes the basic elements of the Wendy’s guest experience, while extending regional style elements throughout the restaurant.
C.S. Wo, Honolulu
Why this comparison to the fast food industry? Because it forms the basis of consumer expectations and the furniture industry has been slow to follow suit. The bar has been raised at retail to the point that consumers today enjoy a much more inviting and modern, consumer-centric experience buying a $1 hamburger, than they do purchasing a big-ticket item for their home. The fact is our industry is rife with stores that are ten to 15 years old that look and feel very much the same way they did the day they opened their doors. There is very little update, much less modernizing of retail brands. We must reinvent our stores and innovate the guest experience to evoke emotional responses from consumers. This is not just a matter of remaining competitive; it’s a matter of survival.
There are, of course, exceptions to the rule. Pier 1 and Arhaus are two chains that immediately come to mind. Pier I has done a great job of reinventing its stores, with a presentation that invites exploration and discovery. When a consumer walks into a Pier 1 store, they feel a sense of “want” when they walk through the front door. They don’t know what they want, they just want something. The Arhaus store experience also evokes this immediate and compelling “buy-me!” reaction in shoppers. Both Pier I and Arhaus make great first impressions on shoppers with marketplace presentations that are very different from traditional furniture stores that bombard customers with living room groups at the entrance (the number-one reason so many stores look the same).
Positive Demographic Shifts
Our economy, and especially the home furnishings business, has long been based on the rising tide of Baby Boomers. When 30 million less Generation X-rs hit their prime buying years of 30 to 40, most blamed the resulting dip in furniture sales on the Internet, China and, of course, the recession. Yet we are now beginning a new phase with the advent of the Echo Boomers, the largest generational cohort since the Baby Boomers at 80 million strong. While many Echo Boomers are at the “IKEA” age right now, just out of college and staying home longer, the first wave born in the early ‘80s is turning 30 this year. We will be facing a bigger buying cohort over the next five to eight years than our industry has seen in a long time. The difference, of course, is that we are also competing with multiple selling channels today.
Simply put, there is great opportunity to reposition independent retailers that are well-grounded in their marketplaces to meet the needs of this new generation of shoppers, as well as to attract consumers in their ‘50s and ‘60s who no longer want “same-old, same-old,” and who don’t want to buy from stores that they perceive as “old.” We’re talking about consumers with money, whose kids are out of college, who have the ability to change, and who are looking for new experiences; an aging demographic that doesn’t want to age, that is spending and doing everything in their power to stay young and healthy and to create a youthful home environment. Again and again we talk to so many consumers today who say, “Oh, I don’t want that old traditional stuff; I’ve had that.” They are looking for new: The new, clean-lined, fashionable, and modern furnishings they see in shelter magazines, as well as new shopping experiences.
Our challenge as an industry is to create a shopping experience that is more modern and youthful, that speaks to both ends of these demographic groups, the people with money who can afford change and the younger consumers who may be making the first real furniture purchase of their lives. This is the time for creating relationships, to talk with them about what they dream about and help them realize those dreams in a way that Internet retailers cannot. We need to move beyond static rows of furniture into an experience that is fun and emotionally engaging, and taps into all of the senses.
What’s Their First Impression?
Decor Secrets, Dania Beach, Fla.
Decor Secrets, Dania Beach, Fla.
According to America’s Research Group (ARG), a grand opening is the most believable sale or event in customers’ minds. They believe they will see something truly special and different and that they will benefit from great prices and this holds true not just for new stores openings, but reinventions as well.
Britt Beemer, chairman of ARG, also reminds us that 57 percent of a store’s marketing brand identity is based on its exterior. Since store exteriors enjoy a seven-year-lifespan in today’s competitive marketplace, where change is the only constant, our goal must be to create an exterior design with elements that can be easily and cost-effectively updated over time.
ARG, as well as many other retail experts, has also found that a customer makes a decision whether or not they will shop your store within seven seconds of walking through the front door. This makes the first 1,000 to 2,000 square feet of your store the most important real estate you own. The first 1,000 to 2,000 square feet is where the customer first experiences your brand, and where you make a statement that you are interesting and different (or not) in the marketplace. This is the area that forms customers’ first impression of your brand, and their initial fascination is reinforced when they leave.
The first 1,000 to 2,000 square feet presents great opportunity to wow them. This is where we can take a page from retailers like Pier 1 and Arhaus and create that sense of want in consumers when they walk through the front door. One way is to create a marketplace presentation with piles of things to explore and experience—accent furniture, accessories, decorative chairs and ottomans—that add a sense of fashion, but aren’t a major commitment in terms of price. This can be accomplished using items the merchandising team is already buying and presenting them in a different way. Create a sense of seasonality, and a sense of urgency in shoppers who have been trained by other retailers to know if they don’t buy today, the items they want may not be available the next time they come in. When I walk into a Pottery Barn for example, the tables all reflect the season and are decorated to the hilt. This will put some pressure on your visual merchandising team and buyers, but it is well worth the effort in terms of elevating store presentation and experience.
Retail design strategist, trend expert, author, and idea merchant Connie Post has nearly 30 years of experience in the home furnishings industry and is responsible for the look of more than 18 million square feet of retail and wholesale space around the globe. Connie is also a speaker, columnist, and a founding member of WithIt (Women in the Home Industries Today).