Insights Update CPM Australia

By Mariluz Restrepo Mariluz.restrepo@cpm-aus.com.au

Retail Today and Tomorrow... retail without boundaries

What has changed... How people shop... shoppers are changing the way they spend their
money, what they spend it on and where they make their purchases. Consumer expectations of physical stores are changing dramatically. People are no longer distinguishing between physical and virtual channels... However, the store is the intersection of all channels... Customers experience expectations... from purely TRANSACTIONAL to HIGH-TOUCH EXPERIENTIAL. ... most of these changes have been driven by technology.
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011, The future of retail the destination is you, Retail Prophet, Oct. 2011, The next evolution: Store 3.0, Deloitte 2011

Retail Today and Tomorrow... retail without boundaries

Value is...

Its about an EXPERIENCE

Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011 & Global retail trends, Noesis, Aug, 2011

Retail trends today... and a look at the future.

Consumers will increasingly choose businesses that offer either anywhere convenience or only-here experiences. Everything in the middle may as well be invisible. More and more consumers will expect these destinations to deliver unique and memorable experiences that they simply cant get anywhere else digitally or otherwise. The store is evolving into a fluid idea that fits the mobile, global customer in search of new experiences to share.

Brick-and-mortar stores are expected to shift from a transactional model to an

experiential one in which the virtual world enhances the customer and brand experiences. A retailer must think of itself as a moveable feast an engaging entity with values, moods and emotions as well as commercial, social and educational aspects
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011, The future of retail the destination is you, Retail Prophet, Oct. 2011, The next evolution: Store 3.0, Deloitte 2011

Retail Today and Tomorrow... and a look at the future.

Rapid and ongoing acceptance of Smartphone technology, and tablets, is changing the way people shop. Its reported that 70% of smart phone owners user their devices in the store to help with their shopping. The results of consumer research set their expectations, eliminating surprise. And yet part of retail is an art, the art of delight and surprise, two powerful attractors that keep customers attached. Despite the prevalence of so much product data, creativity and design have an enormous role to play in retail to keep shopping fresh and exciting. ... The art of SHOPPING is a communal experience where shoppers can share experiences, get news and ideas, hear gossip, receive an education, escape from their daily life, find lovers, haggle for a bargain and feels a sense of community
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011, Smartphone user study show mobile movement under way, Google, April 2011, The future of retail, PSFK 2011

Retail trends today... and a look at the future.

Retail Today and Tomorrow...

Provocative designs, Unexpected offerings, Digital magic and Fresh experiences.

Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011

Retail Today and Tomorrow... what about destination retail

Homeplus, South Korea

Cencosud, Chile

Mobile Shopping Walls / Pop-Up Poster Stores

With the new initiatives being pursued by Tesco (Homeplus) and Cencosud, consumers no longer need to enter a supermarket! On their way home from work, subway riders in Chile and South Korea can scan QR codes of product images in virtual supermarkets. Product images and QR codes allow consumers to place orders and pay via their Smartphone, the orders are delivered the same day.
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011, & QR Codes Enable Virtual Shopping From Metro Stations in Chile and South Korea, Instoretrends, Sep.2011

Retail Today and Tomorrow... what about destination retail

Mobile Shopping Walls for Toys

Sears and Kmart are using QR codes to extend beyond their stores and allow consumers the opportunity to buy goods through "mobile shopping walls" in high-traffic places such as airports, bus shelters, malls and movie theatres around the U.S. Our goal is to make holiday shopping so simple that customers can find the perfect gift while they are traveling or going about their daily lives, and have them waiting at their doorstep when they arrive home."
Source: Virtual Shopping Destinations Allow Customers to Make Toy Purchases On-the-Go, Sears website, Nov. 2011 http://www.searsholdings.com/pubrel/pressOne.jsp?id=s16310_item78809

Retail Today and Tomorrow... what about destination retail

P&G First Virtual Drugstore

P&G, has set up virtual stores in four of the busiest subway stations in Prague, where busy consumers can purchase essentials such as razors, shampoo and diapers via their mobile phones. By year-end, more products small electro, pet food, tea, coffee, and toys will be added in the coming months to facilitate consumers' needs before Christmas time.

Sources: P&G and Mall.cz introduced First Virtual Drugstore in Czech Republic, P&Gs website, Oct.2011 http://news.pg.com/blog/innovation/pg-and-mallcz-introduced-first-virtual-drugstore-czech-republic

Retail Today and Tomorrow... what about destination retail

Homeplus Smart Virtual Store

Homeplus, South Koreas second largest discount retail chain (owned by Samsung and Tesco) open in March at Seolleung subway station in Seoul, Korea the Smart Virtual Store. This virtual shopping store is now dubbed as the fourth generation retail store because customers can now use their smartphones and scan QR codes via a mobile app to purchase daily items on-the-go. They chose Seolleung station for their trial store because over 200,000 commuters use it every day. In addition, according to the Korea Communications Commission, the number of smartphone users is expected to skyrocket in the latter half of this year and smartphones are usually used at subway and bus stations.

Retail Today and Tomorrow... what about destination retail

At Stockholm Central Station Jetshop set up a 130-square-meter concept superstore featuring 20 individual departments with each presenting a selection of items available to purchase from one of Jetshop's e-commerce platform, including a supermarket chain, a fashion retailer and a camping equipment specialist. Other pop-up poster stores, wrapped around 16 pedestals in the area leading from the main station concourse to the metro station, were also available. According to preliminary results, however, the products with the highest sales were those that traditionally work the best in impulse buying, such as T-shirts, books, DVDs and cosmetics.
Source: Will poster shopping change the face of retail?, RetailCustomerExperience, March 2012

Retail Today and Tomorrow... what about destination retail

ShopBox
ShopBox store at Brooklyns Dekalb market. The store, a recycled, retrofitted and completely unmanned steel shipping container, allows shoppers to browse products through storefront-like windows and then using an order-by-text system to complete a purchase. All items are then shipped directly to their home. While being highly experimental, ShopBox nonetheless challenges conventional thinking around what a store is.

Source: The future of retail the destination is you, Retail Prophet, Oct. 2011

Retail Today and Tomorrow... what about destination retail

TV Adver-Buying
If you like the shoes that Tina Fey is wearing on 30 Rock, pause the show, select the shoes in the size you need and buy them by waving at your television. Then hit play to continue watching the show. Internet TV will blur the lines between surfing and viewing and allow for contextual product placement within taped and even live programming. Furthermore, companies like MasterCard are playing with motion and sound driven TV payment based on their QkR payment platform, making checkingout instant and easy.

Source: The future of retail the destination is you, Retail Prophet, Oct. 2011

Retail Today and Tomorrow... as an experience

According to Echochamber, Retail brands are clever clubs that curate our style,

give us somewhere to stay and play, get us involved and make us truly feel we belong no matter what age we are. The proof is out there. Fabulous
stores, temporary restaurants, mobile stores, pop-up shops, flash sales, branded events, Facebook storefronts, online sharing designing something thats

intensely engaging is really the key.

Brands have learned to give consumers things to do and enjoy. The design of things shapes peoples experiences of them. A brand must stake its claim boldly amidst the totality of ideas, perspectives, attitudes and images that permeate people lives.

Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011

Retail Today and Tomorrow... as an experience

The necessity for passion, daring and breaking with the past.

4010 Telecom Shop

Deutsche Telekoms second community store concept, 4010 Telekom Shop, is conceived as a brand experience rather than a place of commerce; the brand appeals to youth with readings, showcases and workshops. Products are secondary. Even from the curb its easy to see 4010 is not just another telecom store.
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011

Retail Today and Tomorrow... as an experience

Brands add excitement to routine transactions. Banks can refuse to be boring... new banking experience
BNP Paribas Concept Store in Paris: An Innovation Laboratory The goal of the design was to entice customers to discover, interact, experiment and enjoy while banking - a complete sensory experience. Features of the BNP Paribas branch include: Le Lounge Both existing clients and prospective customers can relax and surf the internet via their own smart phone or with an iPad provided free. Banking Boutique, Banking Boutique Plus, Financial Info Area A learning environment where people can access economic and financial information, check stock market prices, attend workshops and seminars, etc. Play Area Where children can have fun, draw on a tiled wall or watch childrens TV programs. and a Self Service Area.
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011 & BNP Paribas Concept Store: An Innovation Laboratory, The financial brand, Mar 2011

Retail Today and Tomorrow... as an experience

Source: The future of retail, PSFK 2011

Retail Today and Tomorrow... provocative designs

Tactile Retail Shelving Aesop

Aesop, believes unequivocally that good design can improve your life. The brand collaborates with designers to create stunning showcases for its specialty products with materials of local origin, including everything from cardboard to porcelain.
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011

Retail Today and Tomorrow... digital magic & experience

The store is the intersection of all channels... The store remains the principal
channel where customers can have compelling brand experiences. As the lines between the virtual store and the physical stores converge... retailers should consider opportunities that connect customers, extend the in-store brand experience through all channels and establish a lasting relationship. The virtual connection to costumers should be established while in the store. Some ways to connect /engage customers from the physical store are: social networks mobile devices Wi-Fi apps Gesture-like experiences. These are by nature highly personalised = an emotional
connection and engagement with consumers

Source: The next evolution: Store 3.0, Deloitte 2011 & The future of retail, PSFK 2011

Retail Today and Tomorrow... digital magic & experience

Interactive Nikefuel station
Nike has opened the worlds first NikeFuel Station at the Boxpark in Shoreditch, London. The retail space breaks new boundaries in digital displays and design, aiming to appeal to todays digitallyenabled athlete. It features a seamless mix of innovative digital services and physical consumer experiences including: Floor-to-ceiling motion sensing, interactive LED walls are designed to encourage consumers to move more, while an engaging motion sensitive installation displays a life-size digitized reflection of them on an LCD wall. This reacts to their movement to create a piece of digital art, which can be shared with friends via social networks. Motion sensitive mirrors, or Digital mannequins, play film footage of local runners wearing products from the store.

Source: PSFK 2011

Retail Today and Tomorrow... digital magic & experience

adiVerse Virtual Footwear Wall

adiVerse delivers a dynamic life-size interactive experience, allowing adidas to more readily communicate the purpose of each shoe and tell a more inspiring story through the shoe itself, the environment and the sounds. Creating the sense of wanting to go and play, or go for a run, creating an emotional connection with the shopper.
Source: In-store Marketing Institute Digital Signage Expo 2011 Overview, March 2011

Retail Today and Tomorrow... digital magic & experience

Are these pants singing to me?

In an imaginative use of technology, one retailer created an interactive installation in order to play music that matched the style/genre of the clothes tried on, whether indie, punk, rock or hip hop. Tagged RFID chips in the fashion apparel and readers in the fitting room trigger music from directional speakers. Proximity SMS also called the customers Smartphone to promote the clothes as well as the music. Retailer: U.K. Based Topshop/Topman.

Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011

Access to information in real-time = increase sales

Kiosk predicts favourite recipes based on consumers' looks

Source: In-store Marketing Institute Digital Signage Expo 2011 Overview, March 2011

Kiosk predicts favourite recipes based on consumers' looks

This solution increases basket size, visits, brand recognition and loyalty, while enhancing consumers shopping experiences . Can be used to learn more about a product, get a product informational video tour in real-time, obtain price comparisons, suggestions, promotional coupons as well as tie into consumers mobile smartphones. There are 2 unique aspects to this solution: Gestural controlled interactive screen: The main screen of the digital endcap previews all products featured on the physical display in an animated graphical fashion. As a consumer comes within ten feet of the display, the sensors pick up their presence, gender and approximate age through AVA technology to feature an appropriate and targeted product tour to help them with their product selection. Smart shelves are built with RFID technology: As products are picked up off the shelves, the digital signage magnifies the product on screen and then shows additional product information, through a product tour or video. Users have the option of saving info and videos to their synced mobile phones, or use the products barcode to add it to their shopping cart.
Source: In-store Marketing Institute Digital Signage Expo 2011 Overview, March 2011

Retail Today and Tomorrow... digital magic & experience

Source: The future of retail, PSFK 2011

Retail Today and Tomorrow... digital magic & experience

Source: The future of retail, PSFK 2011

Retail Today and Tomorrow... digital magic & experience

An Interactive T-Shirt? Popcode Brings Augmented Reality Everywhere Researchers at Cambridge University have developed a cool augmented reality app called Popcode. An update to the app recently made it available for iPhone 4 and Android.
As an augmented reality application, Popcode's central innovation is that it's "markerless"; after unlocking the content by scanning the Popcode logo, additional content can be added onto just about anything. T-shirts seems to be a favourite of the team.

Click for video

Retail Today and Tomorrow... digital magic & experience

Source: The future of retail, PSFK 2011

Purex Interactive Shelf Display

Henkel Ties Online Message with Shelf Screens

Key Insight: Providing education at the shelf can influence shoppers to buy new products. Activation: Complement a digital display at the shelf with online elements and unique packaging. Description: Henkel is educating shoppers along the entire path to purchase - from its website to digital displays at shelf. A small LCD screen on this display plays a "World of Crystals" commercial when shoppers press the red button
Source: In-store Marketing Institute Henkel Ties Online Message with Shelf Screens, March 2011

Faux Hi-Tech Superstardom

Interactive Oscar display make people feel like a celeb.

SIDEWALK OSCAR WINNERS Theres a interactive Oscar display in New York that allows passers-by to take a digital photo yielding the golden statue. Its real-life red carpet moment for anyone looking to achieve the coveted award (even if it is just for pretend).
Regular folk can have their glam picture sent to their own personal email account to display and share the fun. This interactive Oscar display is a great way to get pumped up for the awards show!

http://www.trendhunter.com/trends/interactivesidewalk-oscar-winners#!/photos/101723/1

Interactive display window

Interactive Window Concept made for the module Advanced Interface Design at Hyper Island hosted by North Kingdom.

Click for video

Source: http://www.youtube.com/watch?v=xFgvNMN2DiQ

Interactive Ballet Storefronts

Gesture interactive window display at Repetto, France The display allows passers-by the ability to interact with the content in the display through arm gestures via motion sensors.

By the looks of the Repetto Window Display, stores are warming to the idea of interactive marketing. This storefront in particular projects a beautiful ballet dancer whose movements are pretty much controlled by passersby. As they wave their arms, they change the image that appears on the screen.

Click for video

Source: http://interactivemultimediatechnology.blogspot.com/2011/03/video-gesture-interactive-window.html http://www.trendhunter.com/trends/repetto-window-display Video: http://www.youtube.com/watch?v=zD1HjjxJL6I

Interactive Shop-Window Display

Hi-tech Interactive Window Displays Will Change the Future of Retail

The proposed interactive shop window differs from existing touch screen technology by using a series of cameras to generate two stereo or 3D images that are processed by visualization software to control the display.
The display allows customers to purchase and collect items via hand gestures. It also memorizes whats been purchased, shopping trends and much more. The interactive window display will give a whole meaning to window shopping.

Sources: http://www.gizmag.com/3d-interactive-shop-window-displays-in-the-works/17617/ http://www.trendhunter.com/trends/interactive-window-display#!/photos/99230/1

Massive Tweeting Walls

The Great Wall is a wall filled with touch screens designed to bring eventgoers together through the magic of social media. The wall is designed to display tweets and photos from the current venue. The Great Wall is comprised of six MultiTouch Cell 46 advanced displays. Having one of these at an event like Comic Con would help bring thousands of people together through something as simple as a tweet.

Click for video

Sources:http://www.trendhunter.com/trends/great-wall-of-multitouch http://www.youtube.com/watch?v=H4_pupFR10Q&feature=related http://walyou.com/twitter-touch-wall/

Full-Body Scan Kiosks Create Custom Shopping Lists

MyBestFit are kiosk located in shopping malls offering a free 20-second full-body scan to shoppers who get frustrated about the varying clothes sizes in different stores. You step into the booth, fully dressed, and then a vertical wand rotates around you, sending and receiving low power radio waves. The stores pay a fee when their products appear in the results but they cant pay to be included in the results as these are based solely on fit. Some of the brands already signed up include Lee, Levis, DKNY Jeans, Eddie Bauer, Old Navy and Gap. There is currently a kiosk in the King of Prussia Mall outside Philadelphia, with plans for 13 more in malls along the East Coast and California .

Source: PSFK 2011

Changing QR Codes Keep Shoppers Coming Back For More

Mall of America debuts its unique QR codes this past Black Friday giving shoppers an incentive to return to the stores time and time again. The mall delivered time-changing offers within each of the QR Codes placed throughout the malls property. The technology, Timeboxing, enables companies to create new messages using the same QR code based on date, time, and click. Users who scan the code get up-to-the-minute content, seconds after companies save the update. The feature allows shopping malls to easily integrate offers from their many retail stores and entices shoppers to return to the property to get more deals from the QR codes

Source: PSFK 2011

The Lynx Augmented Reality Angels

Londoners making their way through Victoria Station were surprised by a sign on the floor that told them to look up. Up above them was an enormous screen that showed an image of the pedestrian and an angel. People were amazed at how they could interact with the angel on the screen. As soon as word got out about the Lynx augmented reality angels, people couldnt wait to try the illusion out themselves. The campaign was created by British ad agency BBH, who also created a social media campaign called Lynx Excite Fallen Angel, where visitors to the Facebook page had a chance to see if they were the one chosen person who had the ability to release the archangel.

Source: http://www.youtube.com/watch?v=rFuUFeQIdpk

Retail Today and Tomorrow... rethinking shops and shopping

Store-within-a-store model (SWAS) + bridging the digital and physical landscape and shopping experience
Apple stores, Amazon, Gillette, Google and eBay are some examples. Amazon is experimenting with in-store pickup lockers at selected 7-Eleven in the USA.

Source: Google opens first physical store, In-storetrends, Oct. 2011 & Amazon testing 7-eleven package pickup lockers, Mashable, Sep.2011

Retail Today and Tomorrow... rethinking shops and shopping

Store-within-a-store model + bridging the digital and physical landscape and shopping experience

Google Chrome Store in PC World Google first physical store Called Chromezone, Google opted to partner with PC World to create a store-within-a-store (SWAS) concept in London, occupying 285 square feet featuring its new Chromebook laptops & accessories.

Googles foray into store-based retail can be seen as another step in Googles strategy to drive consumer awareness, learn about physical and digital tie-ins (i.e., consumers research online and buy in-store; they look at products in-store and buy online) and further re-enforce Googles positioning.
Source: Google opens first physical store, In-storetrends, Oct. 2011

Retail Today and Tomorrow... SWAS model

Source: The future of retail, PSFK 2011

Retail Today and Tomorrow... SWAS model

Source: The future of retail, PSFK 2011

Retail Today and Tomorrow... SWAS model + shopping experience

The Gillette Mens zone

To make it clear where to find male grooming products, Procter & Gamble worked with H-E-B to create a "Men's Zone" store-within-a-store with P&G's and other brands' products, from shaving cream to shampoo are merchandised in one aisle. Arched endcaps, blue floor lighting and photos of guys make it clearly visible. Flat-screen TVs can show sporting events or other content while small touch screens offer product advice and grooming tips. "The in-store environment is a key location to reaching the male shopper."

Source: Marketing to Men, In-store Marketing Institute, April 2011

Retail Today and Tomorrow... rethinking shops and shopping

Interest in male consumer rises
Gentlemans Arcade
The first men-centric shopping centre is set to open in Prague. Pnsk Pas (English translation: Gentlemans Arcade) will house 19 luxury mens boutiques in 800-plus square meters of purely masculine mall. In addition to clothing, the Metrostav-developed shopping centre will be home to a tailor (famed Austrian tailor Knize), a mens perfumerie, and a traditional barbershop, making it a one-stop shop for gentlemen of style.

Furthermore, a survey of 1,000 UK men aged between 18 and 64, conducted by SPA Future Thinking, shows there is a latent demand for products and new ways for men to be marketed to: Men want to shop and do take pride in their appearance 47% said they would be interested in a dedicated manshop an outlet selling only male grooming products.
Source: Trendcentral July 2011 & Interest rate in male beauty brands rises, MarketingWeek, Sep.2011

Retail Today and Tomorrow... Pop-Up Retail

Reebok pop-up store

From Novelty to Strategy

The concept of pop-up retail has been around for more than a decade and are here to stay longer than expected...

Today, pop-up has become a legitimate channel strategy. Everyone has turned to these temporary formats to reach consumers wherever they are. From pop-up bars, cinemas, galleries, insurance, restaurants and shops at airports, shopping centres, parks, anywhere...

Retail Today and Tomorrow... bridging the digital and physical landscape
Virtual Shopping Windows that create a physical touchpoint for brands...
eBay comes out of cyberspace to open pop-up stores in the UK & USA
EBay has opened holiday pop-up locations in New York, San Francisco and London that let consumers scan a barcode and buy products on the spot, using mobile phones. EBays London pop-up store - the "eBay boutique - open from Dec. 1 to Dec. 5, will feature physical products -- examples of whats available online -- with so-called QR codes consumers can scan with mobile devices to buy through EBays marketplace, the worlds largest.

Source: Google opens first physical store, In-storetrends, Oct. 2011

Retail Today and Tomorrow... bridging the digital and physical landscape
eBay comes out of cyberspace to open pop-up stores in the UK & USA
In New York and San Francisco, the company is letting consumers buy items online through storefronts that feature digital screens with scannable price tags. The displays also let users simultaneously make a donation to the Marine Toys for Tots Foundation, an organization that gives toys to kids in need.

Source: http://www.youtube.com/watch?v=TAO0wDQZSXY

Retail Today and Tomorrow... bridging the digital and physical landscape
Net-A-Porter Window Shops Net-A-Porter has celebrated the launch of its latest collection with Karl Lagerfeld by creating five augmentedreality enhanced events/pop-up Window Shops in New York, London, Berlin, Paris and Sydney.
It also used this concept to celebrate Fashion's Night Out back in September 2011. Video: http://www.youtube.com/watch?v=uvH2YMquZxI&featur e=endscreen&NR=1

Pop-Up Stores - Portable Coffee Shops

The Nescafe Nomadic Cafe Centre is a concept created in hopes to attract new coffee drinkers to unusual locations, this pop-up and portable Nescafe Nomadic Cafe Centre may be perfect for any special event like SXSW or even fashion shows. With natural timbers with glossy smooth surfaces, the mobile cafe features glass on both sides, allowing for a brighter and cleaner outlook.
Source: http://www.trendhunter.com/trends/nescafe-popup-coffee-concept#!/photos/106599/5

Retail Today and Tomorrow... rethinking shops and shopping

Rethinking square footage & going to the city
One of the biggest population trends today is the migration to urban centres, which springs from peoples desire for authenticity, shorter commutes, greater diversity of experiences and an escape from mass culture. Today, 50% of the worlds population lives and shops in urban centres, and by 2050 it will likely be two-thirds. The move from big box stores to smaller store layouts is becoming an increasingly prominent trend. Although the big-box retailers wont be going away, consumers desire for easier shopping, inviting environments and closer locations is changing the shape of the store. Walmart, Target, Best Buy, Staples, JC Penny and Gap, among others, have small concepts in the works or are adapting existing formats. Best Buy, Aldi, and Stop & Shop are all examples of retailers going a step further by incorporating kiosk-based retailing into their repertoire
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011 & A comparison in Kiosk based retailing,, Instoretrends, Aug. 2011

Retail Today and Tomorrow... rethinking square footage & going to the city
Walmart small-format strategy
Walmart is currently targeting urban areas in major cities as a key component of its multi-format growth strategy. The small formats reflects the companys plan to enter untapped markets while also addressing changes in the economy and consumer behaviour that have made "onestop shopping" at a distant supercenter far less appealing than it used to be.

Source: Walmart Sets Aggressive Small-Format Strategy & Store Check: Walmart Express, In-Store Marketing Institute, March 2012 & Aug.2011

Retail Today and Tomorrow... rethinking square footage & going to the city
Walmart small-format strategy
Walmart's 3 small formats: 1. The new Walmart on Campus and the smallest of the formats with 3,000-squarefoot store. 2. Walmart Express is a roughly 15,000-squarefoot format. Sized somewhere between a convenience store and a drugstore, Walmart Express fits into dense urban areas, but is also formulated for rural areas too sparsely populated to support a supercenter.

3. The mid-sized Neighbourhood Market will be rebranded as Walmart Market stores range in size from 25,000 to 70,000 square feet.
Source: Walmart Sets Aggressive Small-Format Strategy & Store Check: Walmart Express, In-Store Marketing Institute, March 2012 & Aug.2011

Retail Today and Tomorrow... rethinking square footage & going to the city

Best Buy
Best Buy is aggressively expanding its store formats to small-footprint with Best Buy Mobile stores and Best Buy Express kiosks. Its also looking to downsize its bigbox stores by subleasing space to smaller retailers.
Considering that the average size of a traditional Best Buy store is 40,000 sq/ft, it is hard for the retailer to penetrate urban areas. These kiosks enable Best Buy to reach the on-the-go shopper in bustling urban areas.

Aldi
Aldi in Germany has included a fresh bakery kiosk in the rear of its stores that keeps bread and other baked goods warm and fresh for longer periods of time. When the customer decides on the product they wish to purchase, they simply press a button and the bread is dispensed. This kiosk increases the feeling of freshness while also filling the room with a fresh, pleasant aroma.
Source: Retail Without Boundaries: Innovation from around the world, Chain Store Age, InterbrandDesignForum, August/September 2011 & A comparison in Kiosk based retailing,, Instoretrends, Aug. 2011

Retail Today and Tomorrow... Kiosks

The key to success in a kiosk is: The placement guarantees high foot traffic from shoppers, offering opportunities for impulse sales The short leases allow larger retailers to test the market temporarily before committing to a location, and lower costs for new business owners Retailers also have the option of changing products with the season or to match trends

Greatest benefits are: Efficiency Cost savings (i.e., low start-up costs)

Retail Today and Tomorrow... Kiosks

Kiosks now account for $12 billion of malls' total sales in the USA As of 2010, the top industries using kiosks are entertainment, retail, travel and healthcare. According to Summit Research Agency's 2009 annual report on 'Kiosks and Interactive Technology , at the beginning of 2010, there were 1.85 million kiosks installed globally, with the number expected to rise to 2 million in 2011. - 53% of the kiosks deployed have been in the North American region. - Europe takes the second position, with 18%, and - The Asia-Pacific region is in the third place, with 15% of all kiosks installed worldwide. (4) Some retailers are taking the notion of a kiosk a step further by equipping their sales assistants with hand-held

PDAs that give access to information about a range of products, enable comparisons and provide information
about stock availability. In this case, the role of the sales assistant is enhanced by the technology so that they have a greater level of confidence and are better equipped to help the customer. (4) In terms of important technologies, touch screens had 76% of respondents ranking them as either 'extremely' or 'somewhat important', followed by Internet connection, printers and credit card readers. (3)