Lateral Thinking with Withered Environments

and strong opinions, weakly held

Strong opinions, weakly held

We are constantly having to make predictions and apply them to decisions using incomplete information—and the post-pandemic retail landscape is no exception. Much emphasis is placed on the rise of ecommerce and what it means for the physical store. The idea that customers will want a digitized in-store experience simply because they’ve been shopping from their sofas for over a year is a prevalent one. After hearing about QR codes and touchscreens and VR and holograms (yes, for real) being part of the store of the future, I let my opinion be known in a recent tweet: 

Many agreed; many others did not. I’m here to say there is some nuance that is not conveyed in 280 characters. My (very) strong opinion is that customer service—from a human—will continue to be the most determinant element of a store’s success. And that technology will play a significant role in satisfying the customer’s desire to discover, interact with, and shop their favorite brands in whichever channel is most convenient for them. That technology will be largely invisible. 

My opinion—weakly held, of course—is that FOH will be personalized and BOH will be digitized. Nothing left to do now but wait and see. 

ICYMI 

Dropshipping is appealing to retailers that want to carry up-and-coming brands without the risk of owning the inventory. I spoke with Modern Retail about why dropshipping is suddenly very popular (again).

Store environments are being reimagined as more than just a place to transact merchandise. Brands are getting creative placing creator content studios right in the store. This seems like a good idea on its face, but the store environment might be mismatched with the needs of a studio.

Lateral thinking with withered (retail) environments 

Game designer and early Nintendo employee Gunpei Yokoi famously conceptualized the philosophy of “lateral thinking with withered technology.” Instead of chasing the cutting-edge tech that was untested and unproven, he opted to use what he had in front of him to create something new(ish).

Under Yokoi’s product development leadership, Nintendo was able to beat competitors by giving them exactly what they wanted—and often nothing extra. While its competitors were choosing color screens that drained battery life, Nintendo chose black and white calculator screens (withered technology) that allowed the user to play for hours, even days, longer than the color screen models. What the customer wanted was to play the games without having to charge the devices every few hours. 

The same philosophy holds true for existing retail environments. There is a notion that the next era of retail environments will be vastly different from the current ones. In order to even consider walking into a store, the environment has to be flashy, tech-enabled, and unique to the point of not resembling a store. The truth is that customers are comforted by familiarity—and wowed with incremental improvements.

Thinking laterally isn’t easy. To truly make something new(ish) out of something old, think first about the end goal. In the case of retail, this translates to thinking about what the customer ultimately wants. Yes they want a place to buy your product, but remember, they can do that online. What do they want from a physical experience with your brand and its products? Only your customers can truly answer this question, so I suggest you start asking them. 

A few examples of lateral thinking with withered environments to get the brain juices flowing:

Paradise Valley Mall. One of the most prevalent examples is that of the over-retailed failing mall transforming into a desirable lifestyle hub. Built in the 1970s, and ailing even before the pandemic, the property has been rezoned “to better reflect local demand.” The new site will include “a high-end grocery store, restaurants, multifamily residences, offices, and retail shops.” This mall, and other developments like it, address the customer’s desire for convenience, leisure, and entertainment all in one place.

Dick’s House of Sport. The sporting goods warehouse knows its niche—all things sports. Buoyed by the success of outdoor activities during the pandemic it is not resting on its laurels, but rather choosing to experiment further. Its newest concept, House of Sport, boasts a turf field, rock wall, golf simulators, and a winter ice rink. Some experiences are tech-enabled (golf simulator) while most are powered by the retailer’s expert employees. Importantly, Dick’s recognizes that not everything will resonate with its customers so it is using this initial concept to test what does. This will allow the retailer to focus on exactly what its customers want—and leave the rest.

Platform. A new type of development that is not quite a mall or department store or high street (but somewhat resembles all three) is the mixed-use development in Culver City. Though it’s existed for a little over five years, Platform was thrust into the spotlight for its quick-thinking drive through model when shops were closed during the pandemic. Instead of having customers do curbside pickup at each individual store, the development owners devised a single point of pickup where customers could collect their apparel purchases along with the pizza they ordered. This small tweak represents what can happen when the customer experience is considered first and foremost. 

None of the above examples are altogether new, or terribly innovative. The environments are familiar but adapted to fit a changing set of customer needs. Those who choose lateral thinking experience a greater freedom to fail—without worry of succumbing to the sunk cost fallacy. Successful retail needs fewer shiny objects and more small tweaks that enhance the customer experience. 

I work with brands to build, expand and run physical stores that drive revenue and customer acquisition. Want to explore how we can work together? Schedule a time to chat.