Design DrivesRetail

You’ll never walk into a store

the same way again

Why is Retail Design critical?

It attracts customersIt stands out from competition It adds value to merchandise

The best retailers develop a signature design that is consistent in all elements of

their retailing. It’s part of their identity.

Elements of Retail Design

Merchandise DesignDisplay Design Identity DesignService Design

Elements of Retail Design

Merchandise1. Early merchants sold to royalty and

developed their taste, e.g. Thomas Joachim Hebert who designed & sold furniture Louis XV

2. Great retailers are tastemakers3. Study customer buying patterns

and feedback to improve design4. Private Labels have best margins

Elements of Retail Design

Display1. Merchandise presentation

2. Store exterior presentation

3. Store interior presentation

Elements of Retail Design

Presentation

• Ist retail stores: open air markets

Elements of Retail Design

Identity: Selling away from the retail site

1. Sights on sidewalk: shopping bags, T shirts2. Print: billboards, magazine ads

3. Websites: social sites

Elements of Retail DesignService

Retail Design

How can it be planned?

The Shopper’s Story

Retail Design is a strategic tool: part ofRetail Strategic Plan:1. Consumer Targets2. Business Model 3. Merch-Services Mix 4. Touchpoints: Design

Touchpoints are every contact a customer has

with your store andyour brand

in the store or outside the store, whether bricks and mortar or on-line

Touchpoints = customer contact

pointsthat influence customer

thinking about the store and it’s offerings,that help make the sale

Influentials outside: conversations

w/friends, teachers, role models,

sights on the sidewalk,print media & online

sites, social media chat

Influentials inside: store environment (exterior, interior), store clerks, clerk

training (service, info), managers,

merchandise, services, partners, stockroom

How to plan Retail Design

Analyze the customer

What/why do they buy?

What would they buy?Store circulation

patternsLifestyle trendsFashion trends

Analyze the store

Plan the new store

Retail Design

Combination ofTwo Worlds:

Hi Tech

Hi Touch

Retail Design

Brick and Mortar stores are forever:

Entertainment

(merchantainment), Companionship,

Pampering

Bay Area Retail DesignBiggies

Let’s find A Good $ Job!• Gap

• Gymboree

• Levy’s

• Williams Sonoma – Pottery Barn

• Walmart.com

Retail Design Careers • Product design

• Merchandising

• Marketing – Branding

• Store Design

• Operations

• Web design: SF state grad Shahn 1st year: $60k w/ bonuses: builds traffic w/ FB. Now doing product development: sheets w/ athlete collar

• Salaries start low and go to $100,000+

• Sole proprietors: low to $100,000+

The Future of Retail Design

Retail design changes and it changes retail:Mass media culture, fashion influences

1.Seeks new culture icons for attractors

2.Always looking for tech/social innovation for competitive advantage

• New Retail Design Trends•

Brazil• Asia• Mall kiosks• Pop-ups• Mobile retail: carts, trucks, vend machines• Social retail• Gesture retail• Retail incubators• Branded vending machines

Retail Incubators

The Bay Area is generates new retail concepts for an adventuresome audience of buyers

Lower Haight/Fillmore area

Hayes Valley area

Valencia St area

4th St Berkeley area

businessweek.com

fastcompany.com

contractdesign.com  vmsd.com

Substance of Styleby Virgina Postrel

Why We Buyby Paco Underhill

Business Model Generationby Osterwalder & Pigneur