Retailers: Sell the Tactile Experience

Though final numbers aren’t in, it’s estimated that online sales rose to 16% of the expected holiday revenue for the 2012 season. What can retailers do to continue to entice buyers to their brick-and-mortar stores? Sell the tactile experience, the one thing you can’t get in the cyberworld.

Of course there’s something to be said for feeling home goods and trying on clothes, but more retailers are adding culinary experiences to their list of offerings. Tommy Bahama’s flagship store on Fifth Avenue offers tropical print shirts as well as a restaurant in a cruise or resort style setting. 13 of its stores offer similar dining experiences. 97 stores do not. The 13 combination stores generate two and a half times the sales per square foot than the apparel only locations! The food is neither a loss leader nor marketing gimmick. Tommy Bahama’s dollars per square foot measurements rival Coach and Lululemon Athletica.

The food isn’t cheap, especially when compared to fast-food you’ll find at some big box retailers. Rather the food service is in line with the brand’s upscale lifestyle positioning.

Urban Outfitters offers lamb and striped bass at Terrain home and garden store in Westport, Connecticut. UO has found that offering food doubles the time shoppers spend browsing! Banana Republic offers cocktails at shopping events for its VIP customers. Ann Loft has occasional Friday happy hours. J.C. Penney plans to add juice bars and coffee shops. (Will this be too little too late for the struggling retailer?)

Is this a new idea? In the 1900s many department stores had restaurants or tearooms. Perhaps you’ve heard of the classic Chicago Walnut Room at Marshall Field’s (now Macy’s). What about the Zodiac restaurant at Neiman Marcus in Dallas. Nordstrom has offered food for many years with more than 200 eateries and coffee bars.

Today’s consumers are enticed by culinary experiences, evidenced by the popularity of shows like Top Chef, the growth of Farmer’s Markets around the country, and simply the fact that we can’t eat on the Internet. Food has become bigger and bigger in entertainment value. The warning? Don’t lose a guest over a poor meal. Remember that your customers view all your services and products on an average. One bad meal and they might not ever shop with you again even if the $98 polo shirts were their favorite.

Please share what you're doing to get people to visit you in-person.

Ecommerce on Facebook, the Latest Trends

Asos


Asos (As Seen on Screen) is the first retailer in Europe to set up shop on Facebook. The London-based clothing shop received this designation on January 27. Most retailers, including Asos competitors, use the social network to communicate with fans – what I usually recommend. Now Asos 465,000 fans can shop 150,000 produces without leaving Facebook. They can post photos for friends to see and comment on.

Asos CEO, Nick Robertson, says “Our [customers] are on Facebook all day, every day.” At present the store can only be accessed via PC or iPad, but the app for smart phones is in the works.

Moppers

Mobile shoppers or “Moppers” have been using smart phones, iPads, and other mobile devices to browse, comparison shop, and ask friends for advice. Making a purchase seemed the next natural step. Of Facebook’s 500 million users, 200 million access the network mobile. Mobile users are twice as active as PC users.

According to Verdict Research and Ovum, mobile commerce will double in the UK by 2013, reaching $440 million. Major names, J.C. Penney and Delta Air Lines, have already worked with developers to set up shop. Mike Fauscette of IDC in Framingham MA says that in three to five years 10-15% of consumer spending in developed countries will take place through social networking sites.

World’s largest ecommerce marketplace, EBay, predicts doubling of mobile sales this year. Fashion sees the biggest growth. Britain’s top retailer, Tesco, has had an app (since October) that allows shoppers to photograph a barcode and add the product to their virtual shopping basket. John Lewis will be launching a smart phone app that will offer fashion advice and buying guides early this year.

Gaming

Side Note: Zynga, Facebook’s number one game developer, is looking to go public. T. Rowe Price and Fidelity are rumored to be raising $250 million in funding. Valuation is estimated at $9 billion. There is a rush to invest in the company (before its IPO) by institutional fund managers.