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What Happened to Retail Storytelling?
What Happened to Retail Storytelling? 1440 428 ASG

“Stories are not indicators; they ARE the organization.”
– David Boje, storytelling researcher

Automation? Frictionless? Impersonal.

It seems that new tech being used in the retail industry removes the human touch from the shopping experience. Why get in a checkout line when you can just scan your items as you put them in the cart? Why wander through the store when you can place the order from an app and pick it up from a locker? Why even bother going at all when you can just order it online and have it delivered?

Certainly, transactional retail has its place. There’s no need to go to the store to order toilet paper or mouthwash. But for most shopping and dining experiences, customers crave personal interaction; it’s why they come in rather than order online in the first place.

“Emotion is what really drives the purchasing behaviors, and also, decision-making in general.” -Logan Chierotti, CEO of Physician’s Choice

Frictionless, Not Sanitized

When did we decide that the retail journey should be so linear? Perhaps as a result of covid, the retail journey now comes with fewer human interactions, but does it have to be so cold and despondent? Sure, customers want a “frictionless” experience in terms of complications, delays, and frustrations. But do they want the shopping experience to be devoid of human contact so there is no emotional involvement in the process at all?

We don’t think so, and science says it’s not possible. Yet retailers from restaurants to department stores are rushing to make their operations more frictionless: “Here’s your purchase; we already have your money—don’t let the door hit you on the way out.”

An exception is IKEA, but they’ve created their own version of impersonal—a retail cattle drive through a labyrinth. The Goal: Get the herd from Point A to Point B without turning around. Keep them moving forward until they’re dumped out into an open pasture (warehouse) and then funneled through the corral (checkout line).

So how do retailers create more human connections in the retail journey? Through retail storytelling.

“Story, as it turns out, was crucial to our evolution—more so than opposable thumbs. Opposable thumbs let us hang on; story told us what to hang on to.” -Lisa Cron, author of Wired for Story: The Writer’s Guide to Using Brain Science to Hook Readers from the Very First Sentence

What Is Retail Storytelling?

Retail storytelling is the use of narratives to create an emotional connection between a brand and its customers. While retail storytelling can be educational and entertaining, the goal is to help create a lasting and memorable impression of the brand on the customer.

Human brains connect to the emotions behind the stories, creating emotional connections between the customer and the brand that help customers build trust and loyalty.

“Good stories surprise us. They make us think and feel. They stick in our minds and help us remember ideas and concepts in a way that a PowerPoint crammed with bar graphs never can.” – from Joe Lazauskas and Shane Snow’s book The Storytelling Edge: How to Transform Your Business, Stop Screaming into the Void, and Make People Love You

Why Is Retail Storytelling Important?

The retail industry is incredibly competitive, and shoppers are fickle. They follow budgets more than brands, and convenience more than company names. They research before they shop. They need a reason to connect with your company and brand and they are looking for brands that are aligned morally and socially with their own beliefs and desires. Retail storytelling is one of the most powerful ways to connect with consumers in meaningful, impactful, and most of all, memorable ways.

“People don’t buy what you do; they buy why you do it and what you do simply proves what you believe.” -Simon Sinek, author of Start with Why

How to Make Retail Storytelling Work for Brands

For brands, the key to storytelling that connects with their target audience is about leveraging technology innovatively. Brands should use data–about their customers, sales, and products–to help inform the stories they tell.  Ad agency FIG Founder Mark Figliulo explains, “I think a new approach to data could unlock a new era of creativity. The reason is simple; when clients understand and can track what kind of stories work, they will be begging for very simple messages and very surprising executions because that’s what the data shows.”

“Every business has a story to tell.” -Jay Baer, author of Hug Your Haters: How to Embrace Complaints and Keep your Customers

Brands Killing It with Retail Storytelling

Retail storytelling isn’t new. Coca-Cola was teaching us to sing in perfect harmony in the early ‘70s. They were selling Coca-Cola as an avenue to friendship, world peace, harmony, and love. AT&T did it in the ‘80s by sharing the story of connection during the holidays. And who didn’t shed a tear over the countless Hallmark commercials in the ‘90s?

The delivery method has changed, but the messaging remains. Brands need to connect—emotionally—with their customers. Here are five brands getting it right in today’s times:

Nike – Using words, images, and people to tell their story, the Nike brand connects (again) to the idea of equality with their, “Until We All Win” equality” campaign. “Nike believes in the power of sport to unite and inspire people to take action in their communities. Equality isn’t a game. But achieving it will be our greatest victory. Until we all win.”

Warby Parker – This DTC original disrupted an entire industry and gained a loyal customer base by telling the personal story of their founder, who lost his glasses. “Every idea starts with a problem. Ours was simple: Glasses are too expensive.”

Learn more about storytelling at retail in our DTC guide >

Airbnb – Master storytellers with a compelling founder story, their evolving story centers around inclusion, trust, and experience—and most recently resulted in the CEO acknowledging problems and making changes to the platform because of guest concerns over hidden pricing. They rely heavily on user-generated content, which is featured on their Instagram page.

Land Rover/Range Rover – They help their customers see what it would be like to be in the driver’s seat of one of their vehicles by sharing adventure stories.

Woolrich – One of the featured brands inspiring our team, Woolrich demonstrates their commitment to sustainability in everything they do, including a partnership with 1% for the Planet.

”The most powerful person in the world is the storyteller. The storyteller sets the vision, values, and agenda of an entire generation that is to come.” -Steve Jobs, Apple co-founder

The Keys to Successful Retail Storytelling

Retail storytelling must be authentic, engaging, and thoughtful. Brands are more likely to connect with honesty and a behind-the-scenes look than with a manufactured story that doesn’t have the ring of truth.

Storytelling should be incorporated into everything a retailer does. Brands should build it into the store design and visual presentations, bake it into the ways the company sources materials, and every employee—from those on the retail floor to the brand leaders in the C-Suite—should understand and tell it. It’s about connection. Stories can create empathy and connection, elicit emotions, and forge connections that build loyalty. What’s the retail story your brand is telling?

Big Brands See Return from Small-Box Formats
Big Brands See Return from Small-Box Formats 1440 428 ASG

What goes around, comes around—karma, boomerangs, design, and fashion trends. Retail experience is no exception. Small-format shopping has been on the decline since the dawn of big-box shopping, but could we be returning to our old ways?

You may have that one produce manager, cashier, or bagger you say hi to every time you stop at the grocery store. You might chat it up for a quick minute, but it’s hard to catch up when there are 50 people behind you waiting to ring out their thanksgiving turkeys.

Instead, if the store were smaller with multiple locations as opposed to a major central post, employees could give more time and attention to individual guests. The focus could shift from maintaining store operations to connecting with every person. This model allows brands to mold their shopping experiences specific to their neighborhood audiences and make a positive impact to strengthen brand loyalty. In this instance, shoppers no longer feel just like a cog in the machine of a running corporation; they feel like truly valued patrons.

People like to be acknowledged, appreciated, and made to feel special. We’re currently facing a brand renaissance in which consumers expect brands to interact with them personally. Brands represent human qualities, values, beliefs, and actions—all of which are now part of a brand’s messaging, shared with the public alongside their products or services.

Smaller-format stores that prioritize connection with the individual make us feel seen while humanizing the brand. More time to connect meaningfully with guests means more time to authentically sell the brand.

Retail with a Local Lens

Getting consumers to leave their houses these days has become quite the exercise. There better be a good reason to spend extended time at a business, whether it’s a unique offer, sensory engagement, or just a great shopping experience. Nordstrom local offers the typical nordstrom store features, with options for tailoring, alterations, gift packaging, and even a way to give clothing donations. Smaller floor plans and less space to fill allow brands to save money on fixtures and square feet and rather invest in valuable differentiators and experiences.

It might sound like common sense, but smaller stores mean less cost. Brands can use these savings to open more stores in an area, upgrade the finishes and features of a smaller store, or simply bolster the bottom line. Having smaller-format stores allows for the flexibility to enter very specific markets. Smaller locations also give brands a less risky way to enter new markets. Less space and investment keep brands from getting backed into corners, trying to make store models work where they don’t.

Locations specialized for the population fulfill the true mission of any retail business— providing a community with what it needs. Daily life isn’t quite the same in San Diego, CA, as it is in Portsmouth, OH— that’s obvious, and we’re watching our big-box brands evolve their business models and stores to bridge the gap.

In New York, Rent-a-Center has recently opened a small-format store to better serve a dense, urban population. By downsizing, customers in the city now have easier access to the showroom without having to travel out of the city to peruse a massive warehouse. Saving money on square feet, rent-a-center can invest in endless aisle technology for shoppers to browse the entire store selection with help from the in-store associates.

In the United States, Target has been unveiling small-format stores that serve smaller, walkable communities, such as college campuses. These smaller locations consolidate the communities’ shopping habits and needs into a convenient store location without wasting space on unnecessary product that doesn’t resonate with local shoppers.

Data-Driven Local Insights

Smaller stores mean less room for merchandise, but that isn’t necessarily a bad thing. We use countless tools and technology to curate our advertising, sales forecasting, locations, and more, so why don’t we apply revelations from the data we collect to specialize our product offerings? Sure, it might be used from time to time to sort in-store vs. online supply or create a few specially merchandized displays, but what if we truly listen to our consumers at a smaller scale? Trends vary and evolve across communities, so what resonates to one group might fall short for another. Rather than attempting to cater to a large swath of varying personalities and communities, we can use data to truly speak to our local consumer in the store.

Small-format shopping lets companies and store employees have easier control over store details and the ability to make the store their own. Bringing in local culture and personalities gives a human voice and touch to the brand.

Guided or option-based programs for stores to pick and choose branded assets provide structure while adding a customized look to the smaller space. Nike’s new concept, Nike Style, embraces local collections and unique environments to create intriguing customer experiences with different offerings at each store. The boutique-styled stores aim to provide customers with premium experiences over traditional wholesale.

Aesop has even taken the initiative to utilize local materials to imbue its spaces with the culture and history of the area. These stores that marry local culture and history with the brand and products intrigue customers and acknowledge shoppers’ roots.

With big-box stores going small format, shopping at every store has become its own experience. Our big brands are embracing this to encourage education, connection, loyalty, and reinforcement of the brand mission. Creating unique, localized experiences in smaller-format stores opens the door to a brand’s evolution of personality and substance.

How Landlords Can Help Form the Retail Future
How Landlords Can Help Form the Retail Future 1440 428 ASG

The way we all live, work, and shop is changing. The owners of the spaces in which we do all of that living, working, and shopping contribute to creating the future—with new experiences and spaces that attract new and innovative tenants.

With the retail landscape, culture, technology, and customer expectations in an apparent state of change, it’s time to create the retail future customers want, retailers need, and landlords benefit from. It’s no longer business as usual. How can landlords adopt a growth mindset and change with the tides?

Flexible Lease Terms Help Attract New Tenants

New retailers are coming to the neighborhood, and landlords have a great opportunity to attract them to their spaces. It requires a change in mindset because landlords must rethink lease terms to attract these new and innovative brands.

Right now, landlords can change the nature of their relationships with their tenants by not only demonstrating a willingness to be more flexible with terms but also increasing investments in infrastructure and safety. Landlords will also benefit from supporting the success of their tenants. For example, accommodating retailers with a reduction in lease length in exchange for a percentage of the retailer’s online sales could benefit all involved.

Sure, it involves a shift in thinking for everyone, but this is how we will begin creating the retail future that we want. Here are some of the ways landlords can adapt:

Shorter lease terms. Landlords are enticing tenants to spaces by providing shorter-term leases that include a variety of renewal options.

Contract flexibility. Retailers are skittish coming out of the pandemic experience and need more flexibility in terms of force majeure definitions and lease adjustments based on situations beyond their control.

In addition to offering shorter lease terms, offering certain concessions can help attract tenants, including:
• Rent deferrals
• Sublet allowances
• Rent abatement
• Options for renegotiating lease terms

At the same time, landlords can ensure that they are protecting their own interests by:
• Requiring approval of any sublet
• Adjusting percentage rent to include online sales
• Increasing pass-through costs for climate and safety related updates
• Delineating specific recourse should the tenant fail to pay or abandon the lease

Help Tenants Meet Consumer Expectations and Deliver Better Experiences

Consumers have higher-than-ever expectations of the brands from whom they purchase, and retailers are looking for spaces that support the promises they are making to their customers. Landlords who are open to a changing relationship with their tenants will have the opportunity to help reshape the future of retail to be more resilient and sustainable. To successfully do this, the process must become less adversarial and more open; landlords and tenants must learn to work together, or they all suffer. Landlords can help by:

Offering improved safety and infrastructure. Many landlords are investing in improved HVAC, redesigns to enhance BOPIS, and technology infrastructure to make tenancy more inviting for retailers who are also having to adjust how they serve their clients.

Investing in Sustainability. Retailers whose brands have made promises of sustainability will expect landlords to invest in solar panels and make other necessary changes to their buildings to better meet consumer expectations.

Remaining Spaces

Landlords are redefining the mix of businesses in their spaces by reevaluating how the space is used. For example, some landlords are converting space for retail health clinics, mixed-use spaces, and warehouse space for last-mile delivery.

“One direction for some malls is turning underpopulated sections into ‘digital districts,’ where ecommerce pure plays can try their hand at brick-and-mortar retailing in small-format spaces. The digital natives benefit from a curated location tailored to their audience, while the mall can advertise a slate of cutting-edge concepts.” – Retail Touchpoints

This is also a suitable time to reevaluate what kind of tenants are used to anchor your spaces. We’ve learned that retail spaces that are anchored by necessity shops – grocery, DIY – are more likely to remain solvent than ones anchored by outdated department stores.

The Pop-In Shop

Landlords with the willingness to be open-minded about what kind of shops occupy their spaces are also finding tremendous success with pop-ins, family entertainment, and co-working spaces. For example, empty spaces in neighborhood shopping centers lend themselves well to holiday-themed pop-in stores for Halloween and Christmas. These short-term, high-profit shops can be an ideal way to fill an empty space for the short-term. Start-up retailers are also enticed by the pop-in opportunities that let them test the waters before making a longer-term commitment.

Entertainment

From theaters and arcades to indoor paintball and laser tag, landlords that are welcoming tenants who offer entertainment value that keep consumers coming back have seen enormous success. These retail venues benefit other tenants as well, as once the customer is there, they may also want to shop, eat, and otherwise spend the day nearby.

Co-Working Spaces, Fitness Centers, and Ghost Kitchens

With more people working from home at least part of the time or working for themselves, co-working spaces are an easy way to fill empty retail space. Fitness centers are also becoming a popular way to fill empty spaces that attract consumers. And if the space has a kitchen, soup kitchens, shared kitchen spaces, ghost kitchens, pop-in food services, and other food-based organizations are jumping at the opportunity to leverage available retail spaces for innovative purposes.

Creating the Future of Retail, Together

As retailers grapple with the changing retail landscape, the way forward will require innovation, collaboration, and negotiation. The opportunities that come from all this change can be exciting, but it does make lease negotiations more complex than ever.

“Landlords and tenants must forge viable partnerships. Landlords need stores and associated rents to meet their obligations and, right now, many retailers need financial accommodation to survive. Even so, the tenant has a contractual obligation to pay rent. Once adversarial, the landlord/tenant relationship is becoming more symbiotic.” – Chain Store Age

Both landlords and their retail tenants require appropriate protections and guarantees. However, if both sides approach the negotiations from a collaborative standpoint rather than an adversarial one, both with an eye toward future successes, they can both thrive.

Brands Inspiring Our Team Right Now
Brands Inspiring Our Team Right Now 1440 428 ASG

We love working with brands, and we’re constantly inspired by the brand landscape around us. We gathered some team members to share their insight into the brands that are moving them today and why.

Andrew Miller – Woolrich

Established in 1830: Born in Woolrich Pennsylvania- the brand equipped those with a passion for outdoors. “The Original Outdoor Clothing Company” is what they call themselves.

Woolrich has produced high-quality garments for over 190 years. Crafting fine and warm wool is their calling, and their mills have lent a helping hand during major historical moments. Woolrich made a big contribution by supplying socks, blankets, and coats to the US soldiers providing them warmth, comfort and quality during American civil war and WW1.

Being a native from PA and Woolrich within 20 minutes to my hometown – Woolrich was a brand growing up that I was educated on by my family. My great grandparents/ and grandparents always sporting their product. I’m grateful that I was gifted by my grandparents, jackets, socks, shirts growing up for holidays and birthdays which grew my interest and introducing me even closer to the brand. To this day and understanding the Woolrich brand given the history, quality, plus their mission makes a difference even more valuable when you understand what you are wearing. – to this day these are high quality pieces that I enjoy wearing time to time when the elements are right.

VALUES
American Heritage: Keeping true to their products and quality- mirroring the American dream: wear Woolrich to pursue your goals, regardless of the elements.

Iconic brand elements: The Buffalo Check, whose name was inspired by a herd of buffalo owned by the Woolrich designer who developed its distinctive red and black pattern, has been a symbol for Americana and workwear since its inception, and remains one of Woolrich’s most powerful visual codes from season to season.

Purposeful design: Their Product character is pure, considered, consistent. Woolrich collections embody a design sensibility of stylish durability. They unlock the privilege of a life lived outdoors- in nature and urban environments, and anything in-between.

Brand Mission/ Values:
Woolrich is committed to putting social responsibility at the forefront of everything they do. As a brand and company, they are committed to making a positive impact on the world around us, including by taking a respectful approach to their stakeholder relationships, encouraging environmental awareness, and promoting ethical business practices.

  • Sustainability
  • Diversity and inclusion
  • Charities
  • Responsible sourcing
  • Woolrich outdoor foundation
  • Code of ethics

Morecia – Linkedin

When I think of a brand that inspires me, I instantly think of something I use daily. In our society, social media presents us not only as a form of entertainment, but a great way to connect with people and keep up with hot topics and trends. Millions of people can connect with their relatives, lifelong friends, and even business professionals through social media. So, if you’re looking to network, LinkedIn is a great platform! Their mission is simple; to connect the world’s professionals to make them more productive and successful. I have personally connected with hundreds of people from different professions, from business to even healthcare. LinkedIn also is great for creating a space where professionals can reach out to you with job offers in fields that you may be qualified for. Having this social media presents on LinkedIn gave me the opportunity to meet with several hiring managers and that’s how I landed a job with Asset Strategies Group. I would highly recommend using LinkedIn, it’s a leading social media brand, it’s easily accessible, and you can make great connections with many different people.

Max – Gibson

I’m really digging Gibson Guitars right now. They already pull on my heartstrings as a musician… but they’ve taken their brand to another level. Gibson recently opened up a best-in-class retail experience, the Gibson Garage, loaded with exclusive products, events and even a chance to build your dream guitar. So they’re totally winning the retail thing. Not to mention they’ve really invested in their content production team, and they’re telling these amazing stories that guitar junkies (like myself) salivate over. Like all great brands, there’s a story to know and tell, and I feel that same sentiment with my guitars. I remember sinking every penny I had into my first Gibson, and it’s paid it’s worth back in priceless fashion ever since.

Zach – Homer

Homer is a luxury jewelry and accessory brand founded by Frank Ocean in 2018, starting commercially in 2021. The brand is constantly on the front end of avant-garde design, from catalogs to social media marketing, utilizing unconventional techniques and art to market the line. Homer also has a unique way of launching their collections: each collection is unannounced and launched randomly alongside pop-up stores appearing in big cities for an in-person experience. Homer’s products are very expensive, but having unannounced launches with limited product lends the brand a more curated touch rather than being strictly exclusive. The beautiful design behind the brand, combined with the sporadic launches that tend to be few and far between, give a one-of-a-kind, curated feel to the products provided.

Olivia – Dr. Martens

I’m not really brand loyal to anything and just don’t buy corporate speak, so there are few brands I really “connect” to. But my one ride-or-die brand is Dr. Martens. It’s been that way since I got my first pair when I was 14, which is wild that it was 10 years ago! I fell in love with the brand and the product when I put that first pair on. I love everything about them, honestly—the attitude they bring, authenticity, durability, and how they are still that classic work boot that they started off as. They’re still that same work boot that was designed in the 60s, but they have history and ties with the music industry and counterculture, and they’re inherently cool. The brand always does its own thing and has always been authentic to themselves. They know who they are and take pride in the product and history that they have. And I really connect with that because I have always done my own thing, authentic to myself. Dr. Martens were the first thing that I found that felt like it “fit” my style, that and my winged eyeliner, of course, so the brand is pretty special to me. Dr. Martens is an icon for a reason, and I’m sure it means something different to everyone, but those are just a handful of reasons why I admire it!

Also! It is so true how awful they are to break in! But they are so worth it because they are the most comfortable and dependable pair of shoes you’ll own. 😊 Another fun fact, I still have my first pair, and they are beat to hell, but are still perfect work boots, lol.

Steve Morris – Abercrombie & Fitch

Abercrombie & Fitch – a brand that was built on a cult of exclusivity to a total transformation to a brand that embraces inclusivity. Over the past decade, we’ve seen the brand change dramatically, from its image to its product and, ultimately, the store experience. That’s a lot of change, and for them to find success across each channel deserves some credit!

Louis So – Lego

Lego is my brand of choice. I got my 1st set of Legos from my parents when I was in kindergarten back in the 70s. Flash forward to modern times, where I can give my daughter her 1st Lego set years later. And, of course, it was nice, given that this was the 1st Lego set I bought for one of my own.

Lego continues to give us opportunities to build and foster our own imagination. Every block we touch is special, and we continue to build & tear them down repeatedly. Each Lego block allows our memories of imagination in the past, present, and future to visit us again. Lego brings us together, and it doesn’t matter where we tend to use them. Whether we build on the family dining table, on a car trip, on the living room carpet, a hospital bed with our kids, parents, grandparents, or friends, there will always be a place for Legos. Legos give us a way to heal, to love, to share, to collaborate, and most importantly, imagine.

The brand doesn’t stop at home either, as Lego continues to evolve into tons of activations. Legoland theme Park, Lego House, Lego Discover Center, Lego Retail Store, Lego Clothing, Lego life, Lego Education etc.. you get the point.

Got a brand you’d love to share with us?

Send us a message and share some insight into your inspirations.

Reach out

Pop-Ups as a Retail Experience Lab
Pop-Ups as a Retail Experience Lab 1440 428 ASG

Pop-up shops have become a cure-all in retail business strategy over the past few decades. If done right, pop-ups benefit everyone involved, making them a no-brainer for many brands. Since they began popping up, we have watched them evolve as retail hubs, bolster marketing strategies, and even improve landlord-tenant relationships.

Revolutionizing Retail Hubs

Pop-ups started out as experimental, unique spaces for brands to test specialized customer experiences. Today, they’re revolutionizing street location shopping. Retail hubs have become modular and ever-changing; new, exciting businesses are constantly opening and revolving through these areas—making for a fun, fresh visit every time. Cities big and small have seen pop-ups appear in their suburbs or smaller neighborhoods, not just prime shopping districts.

Landlords and rental agencies have become open to shorter lease terms than have been traditionally available in retail spaces. These leases can be prepared quickly and are less-burdensome for the tenants.

Some spaces and agreements can be shared, cohabitated stores that rotate out regularly. These businesses can plan weeks or months to occupy the given space, execute their pop-up, then clear out for the next business. These shared environments work great for small business coalitions and artists especially, as they can offer lower rates with longer lease terms (offering the chance for multiple pop-ups over the lease term). This creates a win-win situation for landlords and tenants alike.

Striking Marketing Gold

Pop-ups are a goldmine for meaningful, interactive marketing for a brand or product experience that people want to share on social media. The idea is for shared content around the pop-up to create brand awareness and drive traffic to the pop-up location. Everyone wants to see fun, different shopping experiences, and consumers are apt to share. Executing a good pop-up is guaranteed to result in a wealth of valuable word-of-mouth marketing. A pop-up introduces the brand to people who otherwise might not have had it on their radar. The “exclusivity,” or more so the limited time aspect of a pop-up, amplifies consumer interest. Add this to the social media buzz, and you have created the perfect recipe for increasing brand awareness—the main goal of a pop-up.

Pop-ups are also a great way to experiment and test markets, consumer targets, specific locations, product, experience, and more. They offer total brand control and maximum brand exposure. Watching the ways in which consumers shop in a pop-up or how they respond to different experiences can give great insight into what works best for the brand in a given market. Working on the ground of a pop-up, employees interact directly with the customer base. These physical interactions with the brand are beneficial to a new retail business, making pop-ups an ideal business strategy for small businesses or new businesses entering the retail space perhaps after solely operating online.

Good for All Involved

We have seen all the ways pop-ups can benefit the businesses who execute them, but how do they benefit landlords and consumers? A pop-up could bring awareness to surrounding businesses, driving in-bound traffic. Say a shorter lease is about to expire, the landlord could openly advertise the space for rent at a pop-up event and receive far more exposure than if they were to run ads elsewhere. Pop-ups also assist landlords by filling vacant spaces quickly. Businesses might be able to get good deals on rent while the landlord fills their properties. These new businesses bring in money to the area and the public benefits from these ever-changing, interesting pop-up experiences.

Pop-Ups Actualized

Most brands have been taking full advantage of the benefits pop-ups offer, with countless remarkable experiences opening over the past few years, enticing the public to visit brand-curated spaces.

Lone Design Club works with independent brands to bring conscious consumerism-focused pop-ups to spaces around London. These pop-ups include layered experiences, such as vibrational sound meditation, professional panels on a variety of topics and industries, and community networking.

Ikea opened a “play cafe” in 2017 to rethink the way we use and view our kitchens. People could come in, enjoy some of their famous Swedish meatballs and play games with their friends and families.

Casablanca, a Paris-based luxury brand, held a travel/airport-themed pop-up within Selfridges, furnished with all the bells and whistles of an airport terminal gate. The popup let customers explore and discover merchandise set throughout the space while allowing Casablanca to test a physical retail store for the brand.

Many other luxury brands have been able to invest in the pop-up economy and are finding ways to evolve the landscape. In July 2022, Hermes held a gym-inspired pop-up in LA with live fitness classes, lifestyle-inspired merchandising, cocktails, live DJs, and more. These pop-up spaces give brands the endless freedom to curate specialized experiences to inspire, educate, entertain, or simply interact with guests. The L.A. experience is just one of several HermesFit popups around the world including Brooklyn, Tokyo, Paris, Bangkok, and more.

Here to Stay

Don’t expect to stop seeing them anytime soon, as modern pop-up culture has taken the retail world by storm and proven its value to retail strategy. Pop-ups are here to stay and are becoming more valuable as part of the retail ecosystem. They have revolutionized retail hubs and have benefitted all involved.

The Shifting Landscape of Retail Real Estate
The Shifting Landscape of Retail Real Estate 1440 428 ASG

It’s an exciting time to be part of the retail industry. For years, there have been hand-wringing warnings that brick-and-mortar was dying. 

There are still factors that keep the retail real estate market on edge – concerns about inflation, recession, the supply chain, rising material costs, and geo-political instability mean assessing risk must be part of the decision-making process. However, even with those concerns, the economy has remained stronger than expected, with retail sales growing moderately.

As it turns out, people still really love to shop in person – so much so that brick-and-mortar is seeing a revival. This revival is driven by a change in consumer behavior as well as a change in retail strategy, consumer demand, and the state of retail real estate.

Changes in Consumer Behavior Require Retailers to Adapt

Shoppers are becoming more sophisticated and selective, turning away from traditional department stores. Their expectations also are changing. While this was, in large part, accelerated by the pandemic, shoppers were already beginning to demand more from the shops they frequent. The focus for consumers is on the shopping experience.

When it’s so easy to get what you need delivered at the click of a button, physically going into a store needs to be about more than just acquiring stuff. Perhaps that is partly why shoppers are not patronizing traditional department stores, which have been steadily declining, while at the same time surging to the new, exciting experiences being offered by DTC brands that are opening physical stores. 

Rethinking The Store Experience

The U.S. leads the world in retail real estate market growth, so how do retailers take advantage of that growth and position themselves for ongoing success? How can they ensure they are choosing the right locations and putting themselves in the best position amid fierce competition? How are current trends in commercial retail shaping the retail landscape? 

Many retailers are rethinking their store experiences. They are experimenting with store design and location; they’re meeting consumers where they want to shop. This has resulted in innovations in retail, from pop-ups and temporary shops to adjusting where stores are placed, what product mix they carry, and the size of the store. It’s an exciting time for retail leaders who are open to discovering new ways to connect with consumers and reinvent themselves.

Let’s take a look at a few of the factors impacting the shifting landscape of retail real estate.

Fierce competition in top-tier centers and street locations has altered location strategy for many retailers, driving them elsewhere. This has been amplified by a mass exodus to the suburbs by consumers who can now work remotely and prefer to shop in their own neighborhoods. As consumers seek more community and connection, retailers are responding. In an interview on the Shopify blog, Vinny Martinelli, owner of Helios Sunglasses, a sunglasses and apparel store in Rehoboth Beach, Delaware, summed it up: “COVID changed everything, especially [the] shopping experience. More people [are] working from home and staying local.” 

A high number of retail vacancies is encouraging retailers, particularly DTCs, which embrace the entrepreneurial spirit of retail, to try new locations and store types. With some legacy brands exiting and a variety of DTCs moving in, the real estate market is red hot right now. Digital-first brands are gobbling up the hottest locations and bringing new retail experiences with them.

Branching out beyond physical retail, some retailers are experimenting with frictionless technology (BOPIS, tighter integration between online and in-store, and sophisticated apps), retail healthcare, and improving the user experience in order to deliver better experiences to consumers. 

Radical reductions to lease lengths have made initial lease negotiations much more critical. However, these changes also allow retailers to experiment without the six- to 10-year renewals that used to be required to secure the space. 

Lease complexities require expert tenant representation to ensure there are appropriate protections in place. Provisions that were introduced during the pandemic are now being baked into leases as a matter of course to ensure retailers have recourse for situations beyond their control.

Embrace Change To Find Success

In his book, Secrets of Retail Real Estate: How Successful Retailers Win, ASG founder Steve Morris explains: 

“Successful retailers are reinventing their customer-facing practices and technologies to create a unified customer experience. Real estate decisions and approvals can no longer be processed on a center by center, deal by deal basis, but must reflect broader market, portfolio, and customer engagement strategies. This is the new real estate world.”

Finding the Right Location in this Environment

To find the right location in this shifting landscape requires access and understanding. “It’s critical to understand how markets develop and how they’re changing,” explains Doug Tilson, who leads ASG’s Tenant Representation. “That can only happen when you have access to up-to-date, comprehensive data.” Using accurate data to drive decision-making and working with a trusted tenant rep partner can help you determine what’s possible in a retail real estate landscape that is constantly evolving. 

CBD Chic & Approachable Cannabis Retail
CBD Chic & Approachable Cannabis Retail 1440 428 ASG

Cannabidiol (CBD) is making its way into just about everything lately—lattes, cocktails, lotions, mists, supplements, oils, extracts, and so much more. The public is embracing CBD and its benefits as retailers are watching to see how the emerging industry will impact the future of shopping.

Today’s “canna big bang” is the beginning of a new era for product innovation, and it’s trailblazing a new narrative for the cannabis industry and cannabis retail. Pairing new uses for CBD with compelling brand experiences will shift how we approach more than cannabis, with the hospitality and retail industries watching intently.

Supplementing for Wellness

The vitamin, supplement, and personal care industries were some of the first to fully embrace the medicinal benefits of CBD. In 2018, 44% of the conversations around CBD were focused on using it for its medicinal qualities— and today, those conversations are becoming reality.

For example, the CBD Lounge in Covington, Ky., curates experiences fueled by CBD and offers one-on-one consultations to find the best personalized CBD personal care products for clients. This approach is about more than educating the community; it’s also helping rebuild the narrative around the medicinal benefits of cannabis. Similarly, modern skincare and supplement lines, such as MOOD, have integrated CBD into just about every product, professing its many benefits and applications. Brands like Mender have developed a full body care lineup of CBD-infused products including deodorant, lip balm, body cream, and more.

To accommodate different consumer preferences, brands are getting creative in how they use CBD. Recent research has found strong evidence that CBD can be used as a sleep aid and for stress and anxiety reduction. Pain relief lotions claim CBD is an anti-inflammatory, whereas pillow mists capitalize on its calming, anxiety-reducing qualities. Oils and oral supplements are said to combat issues with intimacy, and creams and lotions alleviate skin conditions such as psoriasis. Some CBD supplements are said even to slow aging!

CBD Collabs

Given that the cannabis industry is still relatively new, there’s a gap between hard evidence of its true effects and product claims. However, many CBD brands include complementary ingredients in their products that are proven to deliver a solution. For example, many CBD pillow mists include lavender and chamomile, which are known to have calming, sleep-inducing qualities. This approach has helped brands collaborate, ultimately creating a gateway for CBD products into retail spaces.

Looking into the future of supplements and skincare, we’re seeing a new take on products through self-mixing of independent CBD oils like Exhale, and individual CBD supplements such as Sunsoil vegan CBD capsules. Influencers are using it topically or mixing it into products to pursue positive results. This opens the door to more discoveries regarding the benefits of CBD and the growth of this deeply personalized approach to skincare and supplements.

CBD Culture

CBD lounges and bars are gaining popularity as places to relax or socialize. Entrepreneurs are finding ways to offer full CBD experiences through more than just stores.

In Cleveland, Tiger Lily at Electric Gardens entered the scene last year serving up CBD cocktails and organic wines in a beautiful atmosphere. Cocktails can be made virgin with CBD to provide a relaxing experience without the risk of a rough morning following. This concept is also engaging a growing market of alcohol-free guests.

Many CBD lounges are incorporating more into their spaces than a bar. The Summit Lounge in Worcester, Mass. hosts cannabis tastings, live music, and paint and video game nights giving people more reasons to visit these new destinations.

It’s only a matter of time until craft brews and alcohol-free spirits centered on CBD will dominate the market. Coffee shops, like CBD (Coffee Brewed Differently) in Phoenix, Ariz., is in on the fun, offering CBD-infused lattes and drinks, and even selling individual CBD capsules.

CBD culture is in its inception and yet we expect tourism surrounding it to explode as these destination experiences grow. International cannabis tourism is already starting to expand with residents in cannabis-restricted countries visiting green countries to partake in canna-culture. That same enthusiasm and interest, met with physical and cultural experiences, will move mountains for the cannabis industry, of which CBD is a part.

A New Kind of Retail Experience

CBD products are deserving of unique shopping and brand-interactive experiences. Having very few industry predecessors (aside from hemp) gives CBD and cannabis companies the chance to blow the top off the typical retail experience. There is a stigma and sense of distrust of cannabis products due to decades of marketing and campaigning against marijuana. However, the experiential factor the industry is bringing to consumers is breaking down barriers and changing hearts and minds surrounding cannabis.

We’re watching the cannabis industry embrace hyper-niche, localized branding and store environments that are changing how we expect our retail spaces to feel and operate. Toronto dispensaries, such as Superette and Alchemy, are winning the game with their detailed approach to brand that penetrates everything from packaging, store design, and even merchandising a diverse mix of unrelated products that speak to its soul. Both brands perfectly demonstrate the boundless freedom cannabis brands are willing to experiment with—from Superette’s whimsical, bold pop-art supermarket aisles to the opposite high-end, luxurious, avant-garde showrooms of Alchemy.

The cannabis industry is actively putting design at the forefront of their guest experience as it provides perfectly curated brand interactions. Consumers can wake up and choose a store based on how they want to feel or what they want to experience that day, knowing they’ll get great products at both. This hyper-niche, design-forward thinking will start to bleed into other industries as consumers expect personalization more than ever before.

The interesting, beautiful, and hyper-specific experiences these new stores offer give the chance for fun and playful interaction with their brands and products. If niche, aesthetic experiences are growing more important to consumers, think of the countless retail spaces we interact with that will change as a result. CBD and cannabis brands have opened the gateway to immersive retail experiences and interaction, and it’s only a matter of time before we see the ripples these companies will cause in other industries.

Retail Strategy: Scaling with Purpose
Retail Strategy: Scaling with Purpose 1440 428 ASG

Scaling: do it right and you win market share and brand equity; do it wrong and waste an enormous amount of resources and damage the brand. With such high stakes, it certainly would be nice to have a manual for this sort of thing. In the absence of a singular “right way” to scale, the retail strategy must come from the top.

As brands develop strategies for deliberate scaling, it is up to leaders to provide the vision and support to the scaling team. The strategy needs to be a living, breathing, evolving approach that is flexible enough to change in response to consumers and other industry shifts. Scaling is not – as evidenced by the struggles some brands have had with their approach – a one-and-done process.

Test, Learn, Adjust

Purposeful, deliberate scaling doesn’t just happen. It is the result of testing different markets, then adjusting the assortment, product mix, and operations based on what is learned. This method of expansion allows for customization without sacrificing brand integrity.

An openness to testing can lead to major successes and revelations. Home Depot has successfully and strategically scaled thanks to the leadership of its new CEO, Edward Decker. Decker has authorized testing of different store formats and different types of real estate to learn what works and how to scale effectively. His thoughtful approach has resulted in Home Depot being identified by Seeking Alpha as a “top-notch dividend growth idea.”

As we continue to explore retail strategy, it’s remarkable that no matter how much the retail industry changes, the need for strong leadership never does. Strong retail leadership is essential in developing a strategic approach to scaling a brand.

Take Smart Risks

The biggest lesson from Decker’s approach is that it includes implicit permission to fail. Experiment results are not guaranteed, so there must be an overarching message from retail leaders that it’s ok to test an idea, even if it doesn’t work out. Testing ideas allows retailers to see fallacies; sometimes, the outcome is far different than expected. That must be ok.

Deliberate scaling requires strong leaders who have a big vision for the brand—and can listen. Leaders who listen—to their teams, to their customers, to their colleagues—bring a level of open-mindedness about how, where, and when to enter a market. That open-minded approach lets them find the magic of retail; opening new locations comes with a variety of unanticipated challenges.

The Dos & Don’ts of Strategic Scaling

As we examine what works in today’s retail industry, there are good examples of what brands should do to scale deliberately, and examples of scaling fails that occur because of haphazard approaches.

The Dos

Vineyard Vines is a great case study of what brands can do to scale successfully. The leadership at Vineyard Vines is critical to its success. Brothers Shep and Ian Murray are hands-on founders, ensuring that when consumers walk into a store, they feel the EDSFTG (“Every Day Should Feel This Good”) lifestyle their brand embodies. The brothers have a clear vision of success for their brand, know exactly what their brand stands for and how to communicate it, and have a detailed understanding of their customer base.

The Murray brothers wanted to dominate their target market of suburban Boston market before expanding elsewhere. This start-small approach allowed them to expand thoughtfully while maintaining strict control of the brand. For Vineyard Vines, examining existing stores and lease agreements led to renegotiations that put money back in the company’s pockets to invest in smart expansion.

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The Don’ts

Even before the recent class-action suit against H&M, accusing them of misleading consumers about their sustainability practices, the company was struggling. H&M parent company CEO Karl-Johan Persson blames the retailer’s financial turmoil on “changes in customer behavior [in H&M’s physical stores], as well as “imbalances in certain aspects of the H&M brand’s assortment and composition (Forbes),” forcing it to close 170 stores. But that behavior change, along with the changes in the industry, offered indicators that, had H&M been more proactive and flexible it could have responded more quickly.

Photo of the outside of a Purple store location. Tenant representation support from ASG

What About DTCs and Strategic Scaling?

As DTC brands lean into the retail landscape, they also must consider carefully how to scale their brands strategically. Thoughtful consideration of the why and how, combined with the right data to know where and when, becomes even more critical when attempting to scale the brand regionally or nationally.

Purple, a leading DTC brand, first tested pop-up stores before investing in more than 100 retail locations with goals to continue to scale their brand both with their own stores and through partnerships with furniture companies like Raymour & Flanigan.

In an interview with BedTimes Magazine, it’s clear that leadership plays a strong role in the success of the scale. CEO Joe Megibow recognizes the magic of having a product no one else has but everyone loves. “Purple has made a meaningful difference in [customers’] lives,” says Megibow. “Our job now is to scale the heck out of our operation so that we can meet rising demand and satisfy even more customers.”

“Purple has made a meaningful difference in [customers’] lives…Our job now is to scale the heck out of our operation so that we can meet rising demand and satisfy even more customers.”

So What Does Thoughtful, Strategic Scaling Look Like?

In an interview with Inc. Magazine, co-author of Scaling Up Excellence: Getting to More Without Settling for Less Robert Sutton, explains, “Companies grow well and scale badly when they focus on running up the numbers, but not the quality. They get bigger and start to look like just any organization. And there goes the value.”

The author reminds brands that scaling is about more than growth, advising brands “to spread not just a ‘footprint’—their geographic and market presence—but also a ‘mindset’—the deeply ingrained beliefs and behaviors of their people.”

Thoughtful, strategic scaling may look different for each brand. What worked two years ago will not work today. Retailers need to meet customers where they want to be. Growth, without a strategic scaling strategy, can result in the dilution of the brand and a homogenous feel.

However, when done properly, strategic scaling starts with the right data—data that is relevant to the brand, its existing locations, its customers, and its goals. The market changes so much that up-to-date analysis, in-depth insight about customers by market, and flexibility are all crucial.

Connected Wellness: Healthcare as a Retail Opportunity
Connected Wellness: Healthcare as a Retail Opportunity 1440 428 ASG

The pandemic impacted the healthcare industry much the way it did education and retail; it helped accelerate technology out of necessity. Not only did the wearable device industry grow, but our idea of what health care can look like has changed considerably too. 

Now, we log in to our computers to talk to our doctors rather than spending time in waiting rooms; we upload our own health stats from our wearable devices rather than having a nurse take our blood pressure and pulse. In a world now reliant on self-service connected wellness, the healthcare industry is ripe for evolution. Here’s a look at how retailers can take part in the health revolution and what is driving changes in the industry.

What’s Reshaping Healthcare?

An aging population – According to SeniorLiving.org, “From now until 2030, 10,000 Baby Boomers each day will hit retirement age. Millions will begin to officially retire, collect social security checks and go on Medicare. Other Boomers will keep on working either out of financial necessity or out of some less tangible need like identity and self-worth.”

Telehealth convenience – Due to the pandemic, technology has advanced rapidly in the healthcare space out of necessity. 

“While the surge in telehealth has been driven by the immediate goal to avoid exposure to COVID-19, with more than 70 percent of in-person visits cancelled, 76 percent of survey respondents indicated they were highly or moderately likely to use telehealth going forward, and 74 percent of telehealth users reported high satisfaction,” according to McKinsey’s 2020 Healthcare Report.

The wearable trend – It isn’t so much about the wearables as the data. Consumers have access to their own medical data more than ever, which allows them to be more proactive in caring for themselves.

“With 76% of adults age 50 and older indicating a desire to age in place, voice-activated tools, such as home assistants and home health-care technology (emergency or virtual care) are relevant potential purchases for them. If offered a choice, over half (53%) would prefer to have their health-care needs managed by a mix of medical professionals and health-care technology,” according to AARP.

Creating New Health and Wellness Experiences

Today’s retail consumers want personalization and convenience, and health and wellness retailers have an incredible opportunity to deliver high-quality, personalized, and convenient care to consumers. Doctors’ offices can learn how to create a patient experience that earns loyalty and satisfaction by looking to retailers’ offerings. 

Like retail, medical providers must customize the entire experience—patients want to have access to information, manage their own care, choose whether they come in to see the doctor or have an online appointment.

Think of patients as customers who want to have a consistent experience no matter how they choose to engage. If they chat online with a nurse, they expect the nurse to have the same information the doctor would if they were in the room with the patient’s medical file. But more than just consistency, patients are looking for ways to be more proactive in managing their own health.

Retail Health Clinics

Since the early ‘90s, when retail health clinics began opening, consumers have benefited from—and come to expect—the ability to seek non-emergency medical care outside of business hours. It’s clear that consumers want the same kind of convenience with their medical care that they receive in other areas of their lives. Healthcare providers who offer convenient, local care are not only popular among consumers but also are expected to see major growth. 

Self-Service Healthcare

As a multitude of wellness wearables, connected health devices and apps are developed, there could be space for an Apple Store-like offering for a health-care device shopping experience akin to the Genius Bar. 

Empowering consumers to manage and monitor their own health could eventually mean they can use a wearable to obtain information, like an EKG on the go. That could free physicians to focus on treating patients in need while simultaneously giving more people the power to be proactive about their own health.

Health Meta—Taking Telemedicine to the Next Level

Industry watchers’ speculation about potential partnerships between retail and medicine is exciting. Think about existing retailers like CVS and Walgreens, who already provide vaccines, fill prescriptions, and offer blood pressure screenings. What if they were able to extend those medical partnerships to create a one-stop telehealth shop? The future could see patients who meet with telehealth doctors in Walgreens or CVS for proactive screenings, upload their data from their wearable devices and do a little shopping while their prescriptions are filled. 

Incorporating Health and Wellness into Retail Design

Incorporating health and wellness into retail spaces can also enhance the consumer experience. Healthcare retailers can win customers by offering wellness products in-store and providing wellness experiences, such as massage chairs, meditation rooms, or spaces to host conversations on wellness topics.

“It’s not just about a breadth of product options, it’s about continuous wellness support for the consumer’s home, workplace, workouts and lifestyle. Create dedicated sections for healthy morning rituals (smoothie makers, lunch boxes, yoga mats), daytime products (working, running errands, exercising) and evening needs (sleep aids, organic cotton sheets, dream journals),” according to Medallion Retail.

As innovation drives the health and wellness revolution, design will take center stage. Design impacts the patient experience, drives patient retention, and enables health providers to empower patients to be more proactive about their health. 

The possibilities are endless.

Layered Construction: The Challenges in Retail Design
Layered Construction: The Challenges in Retail Design 1440 428 ASG

Opening a new store is essential, whether a brand is opening their first or their hundredth. A new store builds excitement, embodies the relationship between the brand and their customer, and showcases what’s new.  Those brands that choose design-driven concepts have the advantage to ensure a unique experience that also performs in the marketplace. So imagine the frustration and expense, both in capital and sales, that occurs when store openings become stalled at every turn. 

The World Has Changed.  

The variables that drive retail design have changed dramatically. And it’s not just labor shortages and supply chain issues; every step, from location decisions, lease negotiation, early concept design, through to how one structures the build team can now be a challenge and needs to be considered more thoughtfully as a whole than ever before. 

“The complexity of the system eats itself alive if one part fails,

explains Ed Hofmann, Partner of Design and Strategy at ASG-Chute Gerdeman. “We find ourselves navigating decisions that spread across multiple layers and choices – literally as an extension of the Brand’s in-house group.  For instance, the ability to move with real ‘speed’ is now contingent on the ability to navigate thru 10 – 12 decisions at once, supported by only partial information.  You don’t know everything you need to know, so we are more and more relying on instinct, strong back up plans, and our relationships to move at pace.

Vendors are wanting more up front, work is taking longer, so we are value-adding where we can, for instance, helping clients on the tenant negotiation side to suspend leases or postpone payments due to uncontrollable delays. We place a lot more emphasis on streamlining the work leading up to the construction so that the build can go as efficiently as possible, such as separating the interior and exterior builds if we must – it creates 2 permitting tracks, but it allows work to continuously move forward, rather than being totally stalled.”  

Clients Crave Control

Clients know what they want for their store designs, but they are frustrated, simply by the lack of control. Delays are increasing due to factors out of the control of both the agency and the client. These delays don’t just add to frustration but increase spending on construction and payroll. Delays in opening lead to lost revenues. 

Neither clients nor agencies can defeat the supply chain, but the situation is causing clients to lose confidence not only in the agencies with whom they work but with their own internal teams and their vendors as well. And vendors, who are either protecting themselves or simply unable to move quickly enough due to the supply chain, are driving up wait times and increasing costs.

“It used to be you got to choose 2: good, fast, or cheap….but now it includes a 4th variable: just getting it done, and you’re allowed only one mistake,” says Hofmann.

Layered Construction in Design

On the execution side, layered construction is becoming more common to help overcome the challenges of supply chain and labor issues. But these challenges aren’t just happening with the storefront. A retailer may not be able to get the correct fixtures or all of the fixtures they need, so a layered approach is being used to help keep the client moving toward opening. 

Clients may be able to have some of the fixtures installed and use alternates for the rest while they wait for the remaining fixtures. They’re making do with what they can get – literally buying things off the shelf, at second-hand stores, or recycled from other locations as placeholders until the real elements arrive. 

For example, if the space has been designed with certain color-themed rugs that you can’t get right away, they find something that works, place it in the store, open the store, and then replace it when the actual items arrive. And it’s not just rugs – it’s light fixtures, window glass, paint colors, display tables, shelving – it could be anything. Now imagine the scale of that when it is multiple locations or multiple elements. Just to get the store open, the design team might have had to get fixtures at West Elm, Arhaus® Outlet, Wal-Mart, or even Amazon, as the first layer and then later, come back and add in the desired elements. 

Managing the Customer’s Experience 

This obviously isn’t the optimal approach, because the design is part of the experience for customers walking into a newly-opened location. In order to manage this “layered” experience will require finesse and transparency. So how the retailer positions the design choices they make will influence how it is received by consumers. 

The key to a successful layered construction approach comes down to closely following the brand intent, that powerful story, with thoughtful, perhaps temporary substitutions, back up plans and complete transparency with the client and often the end consumer.  The relationship between Brand and the people that love them is paramount – it’s our job to protect that and find a way to go above and beyond, delivering unique and powerful connections, sales, and memorable experiences. 

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