Outterside, laurel de0929 final document

The Future of High Street Retail: How will the attitudes of Millennials, and the development of online retail, impact the role of the mass market brick and mortar store.

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Laurel Outterside Project Research DE0929 125011625 BA(Hons) Fashion Communication Northumbria University

Contents Introduction............................................................. 4 Methodology............................................................ 5 Chapter 1 - How Millennial attitudes are driving the demand for a reconsidered retail store ........... 6-7 Chapter 2 - The need for physical stores ...............8-9 Chapter 3 - What is next for mass market, high street brands? ....................................................... 10 -

3.a The Showroom Concept .................................10-13 3.b Social Shopping ........................................... 14-15 3.c Shopper-tainment .........................................16-17 3.d The Art of Experience ................................... 18-19 3.e Pay to Participate ..........................................20-21

Chapter 4 - Key considerations in understanding which future concepts may be viable ..................... 22 - 4.a Personal Variables ............................................ 22 - 4.b Price of Purchase ...............................................23 - 4.c The Rise of Omnichannel Retail ........................... 23 Conclusion ........................................................ 24-25 References ........................................................ 26-29 Image References .................................................. 30 Bibliography ...........................................................31 Figure 2

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“The best stores in the future may not even sell anything: stores can be educational, experiential, social or simply a form of advertising, but above all, they should be engaging.�

David Dalziel, 2016

Methodology Primary research was conducted through qualitative interviews with industry experts, Joanna Feeley, Trend Bible Managing Director, and Owen Wright, Trend Bible Researcher, investigates the changes in consumer attitudes impacting the retail environment. An interview with Tim Newman, Executive Director at the retail consultancy, Harper Dennis Hobbs, has also contributed to a well-informed output.

Two focus groups were devised, each consisting of 6 adults including both genders.

Group 1, age range 19-24 years and Group 2, range 45-55, allowing for specific insights into consumer opinions and a comparison of attitudes between age groups. Additionally, a quantitative online survey consisting of 151 participants was performed, developing a broader understanding of shopping behaviours.

Secondary research was undertaken using a more interpretive approach, examining and applying theory and arguments from academic authors including Pine and Gilmore, and Kim, Ahn and Forney. Data has been analysed from insight platforms and trend forecasting agencies such as Mintel and Protein. Further insight was gathered from reputable internet publications, including The Business of Fashion (BoF).

Introduction The Retail Apocalypse The physical retail landscape is in the midst of an apocalypse. During 2017 mass store closures have been announced on a global scale, (Green and Pelisson, Peterson, 2017) and within the UK, footfall in bricks and mortar destinations has declined by an average of 1.3% each year between 2008 and 2016 (Springboard and The NPD Group, 2017).

All research has been carried out with ethical and data privacy elements fully considered, ensuring that no participant is exposed to any harm, with informed consent given (See Appendices).

Some theorise that this is a reflection of the current retail offering becoming stagnant in the eyes of Millennial consumers who are increasingly demanding enhanced experiences (Floor, 2016; Soloman, 2015). Others (KPMG, 2017) express that the around-the-clock convenience, growing personalisation, and competitive pricing of the digital age, has impacted consumer attitudes, culminating in a favoured appreciation for online shopping. While these elements highlight a shift in consumer attitudes, it is unlikely that they will lead to the death of physical retail. A recent report for Bain & Company forecasts that although online interactions strongly influence purchases, 75% of sales will still occur in physical locations by 2025 (D’Arpizio and Levato, 2017).

While brick and mortar stores are here to stay, will they need to adapt to attract a tech-savvy generation of Millennial consumers?

It is the growing demand for an experience that is beginning to carve out a differentiation between online and offline platforms (Dalziel, 2017). This notion fuels a curiosity to investigate the future of retail landscapes and how physical stores can change their offering to regain popularity and compete with e-tailers.

This research project will explore the factors reshaping the retail landscape and changing the role of the physical high street store. Attitudes of Millennial consumers and the impact of digital media on shopping behaviours will be investigated. The demand for experiential retail will be discussed, and a critical evaluation of new retail strategies and in-store experience undertaken, ultimately informing the question: How will the attitudes of Millennials and the development of online retail impact the role of mass market brick & mortar stores?

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Chapter 1 How Millennial attitudes are driving the demand for a reconsidered retail store

“78% of Millennials would choose to spend money on a desirable experience or event over buying something desirable” Eventbrite, 2016

The transformation of consumer attitudes is key to understanding emerging trends in the retail sector. Loosely defined as those born between the early 1980s to 2000s by a range of retailers, Millennials (also named Generation Y) will make up the majority of the workforce by 2020. (Hyder, 2017). As forthcoming holders of spending power, they are a cohort that retailers must consider when identifying future directions of their stores.

As theorised by Howe and Strauss (1991), generations who share a period in history, form a unified persona, collectively defined by the specific cultural, economic and social issues witnessed at the time. The first demographic born into the fullyfledged digital age, Millennial consumers are broadly accepted as more engrossed in online activities, such as social networks, blogs and text messaging, than any other generation (Lachman and Brett, 2013). In effect, the digital landscape has “transitioned traditional marketplaces into marketspaces where content, context, and infrastructure are recreating the concept of value” (Kim, Ahn and Forney, 2014).

These interpersonal online channels invite consumers to act as both creators and influencers, where they can capitalise on their social structures, relationships and knowledge, (Kim, Ahn and Forney, 2014). Social media has introduced new social meaning and values where experience becomes a new form of economic offering.

James Wallman, a trend forecaster and author of Stuffocation explains, “It used to be that our car or handbag or wallet showed our status. Now we post Facebook pictures from a chairlift in Chamonix or the latest music festival. Social media is supporting this change. Posting pictures of what you just bought is gauche; posting pictures of something you’re doing is fine,” (Wallman, 2017).

This notion of value being derived from experiences can be conceptualised as ‘experiential value’, (Mathwick, Malhotra and Rigdon, 2001). Contrasting older generations such as Baby Boomers, many Millennials appear less materialistic than previous generations and prioritise experiential value. Research from Eventbrite (2016) supports this, stating 78% of Millennials would choose to spend money on a desirable experience or event over buying something desirable. The Millennials demand for experiences over product poses a challenge for mass market retailers looking to capitalise on fashion goods. Joanna Feeley, Managing Director of Lifestyle and Consumer Goods forecasting agency, Trend Bible, questions, “As a fashion brand, what can you sell to a person who is not telling the world about what tribe they belong to through their clothes? For a lot of fashion retailers, the pound being spent by a Millennial is on lifestyle and experience, it’s not being spent on fashion.” (Appendix B).

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Chapter 2 The need for physical stores The growing popularity of online commerce is impacting physical stores. Tim Newman, Executive Director at retail consultant, Harper Dennis Hobbs, explains “From my personal experience, about 25% of shopping takes place online. In rudimentary terms that is 25% lost by the brick and mortar. Magnify that with the UK as a whole, and that is a huge shift.” (Appendix C). Additionally, data illustrates that the average length of time consumers spend shopping in stores has decreased (Blázquez, 2014), prompting the question, will physical outlets remain of value?

Interestingly, according to the online survey of 151 respondents, the majority of respondents are more inclined to shop in-store than online. (Appendix G).

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Reflecting their awareness of this, many online retailers are now investing in physical retail spaces. In 2016 Missguided opened their first physical store, (Retailthinktank, 2017), and more recently beauty brand Glossier launched their first pop-up in the UK (Degun, 2017). This suggests retailers are beginning to understand that the impact of digital experiences can only go so far and if trading on price alone, there will be another brand who can undercut prices and convenience online. Joanna Feeley explains, “Online retailers are realising that in order to really resonate with their audiences they’ve got have a physical space or have to have some sort of real-life experience for their consumer because that’s what they want.” (Appendix B).

Exploring further, a global survey of 13,000 of Generation Y participants, by real estate investment firm CBRE, supports this, highlighting that 70% prefer bricks and mortar retail and the study indicates this preference is unlikely to change dramatically in the future. (CBRE Group Inc. 2016) This implies that consumers value their time spent in-store. One Millennial respondent explains, “I like to see what the product looks like in the flesh. It means that you can feel the material, see the colour and get a sense straight away if it suits you rather than guess like online.” (Appendix E)

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Chapter 3 What is next for mass market, high street brands?

3.a The Showroom Concept Some brand specialists suggest that physical retail stores will move in one of two directions, either optimising logistics or product showcasing, (Thomas, 2017). Trend Researcher Owen Wright explains this split, suggesting retailers will need to decide whether their approach will be convenience or experience driven. “Consumers who have become accustomed to on-demand products and services, influenced by the likes of Deliveroo and Uber Eats, expect brands to be on hand when and wherever they need them, so speeding convenience is crucial. On the other hand, with online retailing and product delivery proving the ultimate in convenience, the nature of bricks and mortar stores has to evolve. Stores no longer have to be designed as places where products can be stocked and transactions are made, but can now be all about providing experiences and building relationships. In a world where we will complete an Amazon purchase with a couple of verbal commands and the opportunity to create more meaningful experiences anywhere and at any time becomes more crucial.”

(Appendix D).

In March 2017 U.S. brand, Target, announced their ‘next generation of stores’ utilising two separate store entrances: a convenience entrance for time-starved shoppers with “easy access to grocery and wine shops, self-checkout and an Order Pickup desk”, and an experience entrance offering “displays of exclusive brands and inspiring seasonal moments,” (Target, 2017).

Alternatively, for brands looking to optimise both the logistics and showcasing of their products, a new store direction comes in the form of a showroom. Here consumers can see, touch and feel the products before purchasing items digitally, having them delivered the same day. This store offering could appeal to the 62% of shoppers who say they visit stores to “see, touch and feel products before buying them online”, as identified by research platform, Retail Dive (Skrovan, 2017). Here it is evident that the tactile and human elements retain a definitive role in physical retail spaces with potential for future optimisation.

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Nordstrom is a brand testing this theory. In its new series of ‘Nordstrom Local’ outlets, stores don’t stock products for purchase, instead offering products to try on, personal stylists, tailors, and a “central meeting space” equipped with a juice bar. The focus is helping customers in “finding their personal style, providing a sense of community - that will be harder for Amazon to replace”, (Chayka, 2017). Mid-market retailer, Bonobos offer a similar experience where shoppers can try on products and purchases are dispatched from offsite warehouses. Their chief of finance Antonio Nieves states, “Our model, where we have all the inventory sitting in one location, allows us to save and eliminate one of the most difficult parts of inventory management for retailers,” (Fernandez, C. 2017)

When describing a showroom store to 2,500 consumers, Global strategy and consulting firm A.T. Kearney found that amongst Millennials, showrooms scored 55% in ‘intent to purchase’ while older generations scored below 30%. Firm partner, Andres Mendoza-Pena explains that a score of 40% is considered to be worth testing (Retail Dive, 2017). This suggests that brands targeting the Millennial generation are likely to benefit most from showroom stores.

This highlights one advantage of the showroom concept, i.e. allowing physical stores to stock their entire product offering. According to survey statistic, 72% of Millennials confirmed a wide range of products to test and try on would persuade them to visit a high street store over shopping online. Another appealing element of showroom stores could be the enjoyable and relaxing in-store experience that the model facilitates.

One focus group respondent explains that crowded store environments are a key reason why they don’t enjoy shopping in-store, “I hate busy shops. I don’t like it when there are so many products out on the shop floor that it’s hard to navigate around” (Appendix E). Showrooms allow brands to utilise all available space, creating a more dynamic social environment, with less emphasis on displaying and storing merchandise (Jones, et al. 2010).

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Conversely, one concern regarding showrooms is that customers won’t receive immediate gratification from purchasing. In a survey by CBRE Inc., 49% of respondents state wanting the items “then and there” as a significant element in physical stores (CBRE Group Inc. 2016). This poses the question: under what circumstances will showrooms be successful and will they appeal to specific brands more than others?

One focus group respondent confirms that they can only see this format working in some situations, “I don’t think it would work if you were in a rush for something that you wanted to get a hold of straight away, but it might be nice if you were spending the day out shopping.” (Appendix E) According to an online survey (Appendix H), when asked if they would visit a branded ‘showroom’ space, 29% of Millennials expressed they would be likely to however 71% stated they would be unsure or unlikely to attend, suggesting that consumers may not be ready to accept showrooms. Additional research into specific locations and target markets should be undertaken to establish a more accurate representation of the interest and benefits of showrooms.

As a specialist retail location strategy, Tim Newman explains, “most [clients] tell me that in the UK they need far fewer stores than they did ten years ago. For instance, to reach 90% of the UK’s shoppers ten years ago you needed stores in 120-130 locations. Today you only need 80 stores to reach 80%.”(Appendix C). For brands facing store closures, showrooms could offer a solution, possibly reducing real estate costs while maintaining tactile touch points. Tim Newman continues, “A range of accessible and showroom style stores in key market locations perfectly blended with e-tailing etc. is the way forward.”

“Stores no longer have to be designed as places where products can be stocked and transactions are made but can now be all about providing experiences and building relationships.”

Owen Wright, 2017

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“Experiential leisure is replacing eating out as the next big thing – watch this space.”

Tim Newman, 2017

3.b Social Shopping

April 2017 figures from Barclaycard, suggest a further opportunity for crosssector collaboration by recording a 20% increase in spending in pubs compared with the same month last year, a 16% rise in spending in restaurants and a 13% rise in theatres and cinemas. Meanwhile, department stores suffered a 1% drop (Barclaycard, 2017). This highlights opportunities that brands could leverage in-store, as attitudes shift from materialism to experiential value. Intriguingly 50% of Millennial survey respondents confirmed that relaxing communal spaces, i.e. lounge areas and eateries would persuade them to visit a high street store over shopping online, (Appendix H).

The notion of shopping as a leisure activity is not new. In 1999, a BusinessWeek cover trumpeted the term Xtreme Retailing, with Ginsburg and Morris (1999, quoted in Kozinets, 2008.) writing, “in the new world of Xtreme Retailing, stores are combining the speed, convenience and immediacy of e-commerce technology with the thrills of an amusement park. How? Essentially, by taking their core product or image and turning it into an experience. Thus, Vans becomes a skate park and not just a place to buy sneakers, while Bass Pro Shops becomes a fishing pond and archery range and not just a sporting-goods store”. This concept is re-gaining traction with young adults today as leisure becomes a prioritised element of a Millennial’s life, with 50% of their income going towards dining out, shopping, movies, and live events. (CBRE Group Inc. 2016). A report from Mintel (2015) investigating Millennial Leisure Habits supports this, explaining, “taking time out from their working lives is a key need for this group and leisure services can be the facilitators of this.” This promises multiple avenues for exploration for mass market retailers. Topshop’s in-store beauty bars are one example of how mass market retailer could exploit such offerings (Appendix I).

Tim Newman promotes, “Experiential leisure is replacing eating out as the next big thing – watch this space.” (Appendix C)

Other socio-economic factors are influencing the future of retail due to their impact on Millennial attitudes. In 2016 trend forecasting agency Protein, found in their Community Report that “54% of young adults felt that political instability made them value the cost of community more.” Additionally, “62% of respondents said they believe that physical spaces help foster community spirit.” (Protein, 2016). Herein lies an opportunity for retail brands to tap into the desire for communal spaces and create ‘Central Hubs’.

Examples of this are presented by forward-thinking brand COS, who collaborated with Seoul-based publishing project, The Book Society in 2016 launching a ‘reading room’ as a means of “engaging with the local creative community,” according to Creative Director, Karin Gustafson, as quoted by Protein (2016). Similarly, L’Occitane en Provence has hosted in-store events such as “Friends Night Out,” where visitors can air opinions at this open mic night.

These examples encompass a new form of retailing that has grown over recent years; the cross-collaboration of market sectors creating an overall more considered in-store experience. Allan (2008, quoted in Jones et al,.2010), suggests that as working and family lives become more complicated people face “the paradox of increasing time pressures and expanding choices” and that they are looking for “shopping that’s more like entertainment and places to hang out with their family and friends”. This is encouraged by the nine-to-five working day declining as working hours become more fluid and less structured, resulting in consumers’ social lives becoming more spontaneous (Jones et al., 2010). Social media and group messaging, mean impulsive plans are made instantly. Fashion brands who offer multiple experiences and services at the same venue could stand out amongst the crowded marketplace.

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3.c Shopper-tainment An interest in leisure also contributes to the overall desire for multi-sensory store experiences, accompanied by the demand for bricks and mortar stores to distinguish themselves from online retailing. In turn, this is contributing to the transformation of retail stores whereby brands seek to curate more memorable and immersive multi-sensory experiences. This can be defined as ‘experiential retailing’ where intangible, hedonic, and symbolic aspects, known as ‘shoppertainment’ and ‘retail-tainment’ become key motivators of product purchases (Holbrook and Hirschman,1982). Trend Forecaster Joanna Feeley explains where some mass-market fashion retailers are missing the mark, “I worry about the likes of H&M who just cram a store full of stock and there is no other offer there of anything else. If they can only be about cheap clothes, it’s not going to work.

Anyone who is just looking to stock their products full of clothes is missing the point really of why people go shopping.” (Appendix B)

These retail spaces demonstrate consideration of the Education and Entertainment elements of the ‘Four Realms of Experience’: theorised by Pine and Gilmore (1998). Here they name these four factors essential to providing an efficient and impactful brand experience, as shown in Figure 7 below:

Apple’s new retail outlets named ‘Town Squares’ (Figure 6, below) are an example where fashion retailers can look for inspiration. Designed as gathering places rather than stores, where customers are encouraged to “relax, meet up with friends, or just listen to a local artist on the weekends” according to, Angela Ahrendts (2017, quoted in Bhattarai, 2017). Here she explains Apples’ stores include quiet areas where start-ups are trained in using products and children are taught coding. Apple’s Chief Executive, Tim Cook, explains, “It’s about learning, inspiring and connecting with people. Our stores are also the best place to go discover, explore and experience our new products.” (Bhattarai, 2017).

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When analysing in detail, it is essential for fashion retailers to consider relevance for their stores. Only 16% of the 107 Millennial consumers (Appendix H) confirmed they would be persuaded by an informative event to visit a high street store. This could suggest that not all consumers are ready to embrace an educational in-store experience, but stores should consider subject matter and select event theme carefully. However, within the Westfield - How We Shop Now: What’s Next report, a survey of respondents aged 18+, totalling over 13,000 answers, found that 35% of UK shoppers said they “want to learn new lifestyle and creative skills at their favourite store.” (Westfield, 2016). This establishes that there is a market for informative events not necessarily limited to the Millennial consumer and could be better adopted by brands targeting older demographics.

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Figure 6

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3.d The art of experience This increasing demand for leisure activities could prompt retail models to lean towards one resembling more of an art gallery. Mintel reports that “Museums and art galleries enjoyed more visits in 2017 year on year, with 14% of consumers having visited these attractions more than once in the month to July 2017. Younger Millennials aged 18-27 and those in full-time education are most likely to visit museums and art galleries.”(Mintel, 2017).

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Here lies an opportunity for stores to embrace the experience of exhibitions, “people visit an exhibition, gallery or museum to evoke the senses; to feel, to think, to experience something new... If brands can harness the essence of the exhibition to inspire similar emotional connectivity in their customers, then they are curating the perfect human experience.” (Marsh, 2017). Additionally, social media is contributing to the rise of the artfully curated store. As explained by Joanna Feeley, “If a store can provide a consumer with an environment that allows them to take really amazing Instagram pictures then that has more value in the modern world because not only does the brand gain the exposure, but the individual has a stronger association to that brand.” (Appendix B) Examples of brands tapping into the exhibition experience were seen previously at Louis Vuitton where the luxury brand collaborated with Japanese artist Yayoi Kusama, to transform their Selfridges store in 2012 (Kalyvides, 2012). More recently, footwear brand, Galeria Melissa, enlisted artist Muti Randolph to redesign their London store and have played host to a rotating series of art exhibitions (Resident, 2017). This idea of retail spaces transforming into exhibition spaces offers “a flexible environment of changing and dynamic content; the curation of a sensorial, aesthetically immersive cultural experience,” (Marsh, 2017).

Interestingly, few mass-market brands have shown an interest in this retail model.

While Urban Outfitters and Dr Martens showcase local artist works in-store (Appendix I), they are yet to incorporate exhibitions into their seasonal in-store offerings. This prompts the question: to what extent does the market in which brands sit, and the price of purchases, determine the success of specific store models?

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3.e Pay To Participate Some theorists have suggested that retailers could capitalise on the overall concept of Experiential Value by considering charging for experiential opportunities. Taking inspiration from marketing events and subscription services, researchers Pine II and Gilmore believe developing enhanced experiences that consumers are willing to pay for is more valuable to brands than goods or service innovation. “Requiring customers to explicitly pay for the time they spend in places or events not only makes an experience a distinct economic offering, but provides new sources of competitive advantage.” (Pine II and Gilmore, 2014).

Pay to Participate models such as Amazon Prime and ASOS Premium are examples of online brands who are capitalising on ‘Experiential Value’. They indicate that consumers are willing to spend money on an enhanced experiential offerings that provide personalised and highly convenient services as opposed to competitive physical goods. There is an opportunity for physical retailers to explore this further.

Some luxury retailers are acknowledging this direction. For example menswear retailer, Wingtip has introduced ‘The Wingtip Club’, two floors above their San Francisco Store where members pay to spend time. The space aims offer a Bar & Lounge, Game Room, Whisky Corner, Golf Simulator, Parlour Rooms and Wine Cellar (The Wingtip Club, 2017).

High street retailers do not appear to have fully embraced this idea. Topshop recently announced that they are hosting a ticketed in-store cinema event, screening back to back showings of Netflix’s Stranger Things (Topshop, 2017). However, this represents a small-scale example of a high street retailer charging for an experience.

Looking forward, mass-market fashion stores could trial further admission-fee concepts, to ensure that they can stage an experience really worth paying for (Pine II, 2017).

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4.b Price of Purchase When looking at whether mass-market retailers will adopt the aforementioned retail strategies, the type and price of product investment is another contributing factor.

A recent survey shows 68% of Millennial respondents believe in-store experience is ‘quite’ to ‘very’ important when purchasing mass market goods. A more significant percentage (89%) think this is true for luxury products (Appendix I). This is important when considering how far the retail experience will develop.

Chapter 4 Key considerations in understanding which future concepts may be viable.

Revisiting the showroom concept, Participant 3 in Focus group 2 (Appendix F) expresses, “I think the showroom concept will work for designer and luxury products, because you would be more inclined to take your time and enjoy the process of buying something nice, but I can’t see it working for cheaper products, e.g. Primark.

It could work for flagship stores in main cities where you might visit for the weekend, e.g. Manchester or London.” Although statistics show a preference for Luxury goods, it is possible that in-store experiences could be employed to create a higher excitement and illusion of value around less expensive high street retailers. Participant 6 of Focus Group 2 contributes, “I also think if I knew it was a store that I liked that regularly held educational events, I might go more, for example, if Warehouse brought in more styling services and I could learn how to piece clothing together.” (Appendix F) This challenges the idea that market sector should inhibit the use of all in-store experiences.

4.c The Rise of Omnichannel Retail.

4.a Personal Variables When analysing which models are most attractive to consumers, a range of factors can affect the nature and success of retail offerings. Personal preference will ultimately determine how far the role of retailers will change.

It is essential to consider the context in which consumers are visiting bricks and mortar retailers. In the online survey, 68% of Millennial respondents viewed the notion of visiting in-store fashion retailers as a leisure activity compared to the 32% who claim it is function based (Appendix H). This raises the possibility that retail models which are experience-focused may resonate with more store visitors. Kim, Ahn and Forney (2014) support this, “consumers are more likely to select a physical store when they shop for hedonic fashion goods because strong physical environments elevate the mood through opportunities for social interaction, product evaluation, and sensory stimulation”.

With this in mind, the models explored in chapter 3: Social Shopping, Shoppertainment and The Art of Experience, may prove popular with brands looking to target recreation consumers who have a penchant for interaction and not to only purchase.

To appeal to the many, when looking to provide experience-focused retail spaces, using an education-focus could prove popular. Findings deduced from an experiment with 786 consumers, conducted by academics Sands, Oppewal and Beverland, (2014) support this, “Task-oriented consumers derive more value and satisfaction from an education-focused event than from an entertainment-focused event, while recreation-oriented consumers appreciate either type of event.” Hence educational instore events can offer reduced risks for retailers, resonating with a broader range of customer predilection.

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While it is complicated to establish how far the attitudes of Millennials and the development of online retail impact the role of mass-market brick & mortar stores when crediting some judgements to theoretical discussion, it is probable that technology and omnichannel techniques will continue to influence the majority of retail spaces in the future. Tim Newman explains, “The key to success for established retailers, for now, is perfecting the blend of omnichannel retailing” (Appendix C). Not only is this evident in the showroom model and some interactive experiences, but it is also already prevalent when looking at consumer’s in-store habits. Researchers Donnelly and Scaff (2013)have found “68 percent of all Millennials demand an integrated, seamless experience regardless of the channel.”

The ability to transition between digital devices and retail environments is an important element of the shopping experience. In a Survey of 603 consumers, Retail Dive (2017) found, “roughly two-thirds of shoppers under age 35 research products on their smartphones while in a store compared with just about half of shoppers aged 45+”. The uses of mobile devices consisted of: looking up product information, checking/comparing prices, and downloading digital coupons. This is also expressed in Focus Group 1, with all six respondents claiming that they use their mobiles when shopping in-store. Participant 4 says, “I usually look online in-store to see if I can get a product cheaper elsewhere and if a product is out of stock I will sometimes check on my mobile first before asking a shop assistant.” (Appendix E) Facilitating this behaviour in-store could be a beneficial direction for the majority of mass-market brands.

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“Customer experience is the future of how physical retailers will generate revenue. Experiences won’t just sell products, experiences will be the products.”

Chapter 5 Conclusion To evaluate, ‘The future of high street retail: How will the attitudes of Millennials and the development of online retail, impact the role of the mass market brick and mortar store?’’, this body of research has investigated key attitudes and behaviours which impact physical stores prospects analysing the efforts of leading retailers currently ahead of the curve.

Doug Stephens, 2017

For brands looking to differentiate themselves from online competitors and satisfy the experience-hungry Millennial consumer, offerings employing heightened emotional and personal considerations could see success. These are evidenced in social shopping based central hubs and shoppertainment elements which show consideration of the Four Realms of Experience cited by Pine and Gilmore (1989). This is also prevalent in art-inspired experiences where luxury brands have successfully incorporated into their offerings, and mass-market brands should now explore further.

Alternatively, for brands looking to improve both in-store convenience and overall logistics, showrooms and enhanced omnichannel offerings have potential, as seen at Bonobos. Showrooms could hold added benefits to recreational shoppers when incorporating experiential elements such as personalised services and leisurely provisions, as seen at Nordstrom. Nevertheless, when looking at mass market, high street brands, research suggests that buying purposes will determine the appeal of this approach.

When considering future directions, pay to participate models could considerably change and expand the current retail offering. Additionally, factors such as price and personal variables will impact resonance with consumers. Overall, this research suggests that to capture and maintain the loyalty of consumers in-store, retailers need to adapt their offerings, in particular providing more experiential spaces.

To summarise, there is no question that the attitudes of Millennials, and development of online commerce, has demanded that the role of bricks and mortar store be reconsidered. Although many conversations surrounding Millennial attitudes are based on hypothetical discussions, as opposed to first-hand experiences, the research points towards retailers adopting experiential spaces that challenge the ideas of the traditional store environment. “Customer experience is the future of how physical retailers will generate revenue. Experiences won’t just sell products. Experiences will be the products.” (Stephens, 2017).

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