DEATH OF PUREPLAY RETAIL

INTELLIGENCE REPORT DEATH OF PUREPLAY RETAIL CONSUMER EXPERIENCE

Taking Back “Showrooming” As evolved retailers allocate capital to the retail channel, many have sought to build out nontraditional stores that minimize expenditures while providing customers with a new kind of shopping experience. Forty percent of the evolved retailers analyzed do not hold buyable inventory in store. Rather, retail formats act as showrooms; store associates place orders online, and the customer leaves empty- handed while their items are shipped home. Some evolved retailers contend that this creates a better shopping experience, including Bonobos founder Andy Dunn, who argues that men love to shop, but don’t want to carry a shopping bag for the rest of the day. 22 Bonobos bills all 20 of its stores as “guideshops,” where customers can try on clothing to finalize fit, but leave without their purchases. The showroom strategy has also worked well for customized clothing brands such as Proper Cloth, Indochino, and J.Hilburn, all of which operate showrooms that allow customers to receive personal fittings before their purchases are custom-tailored. While showroom-type formats can reduce capital outlays (including the amount of physical store space required to operate), they also prevent retailers from tapping into many of the omnichannel benefits that stores can offer. In August 2015, Macy’s announced plans to offer a showroom experience while maintaining its omnichannel capabilities. 23 Macy’s reorganized the swimsuit and workout sections of a California location to include only one of every product style, but shoppers used an app to alert Macy’s associates when they wanted a style and size to try on from nearby stock rooms. The retailer was able to display a larger assortment via the endless aisle strategy, but still allowed customers to take their products home upon purchase. The long-term viability of these showroom-type formats has yet to be proven out, unlike the omnichannel benefits that accompany traditional store formats.

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1. Bonobos customers leave the company’s guideshops “hands-free” after the purchase, and receive their clothing at a destination of their choice via mail.

2. Customers at Blue Nile’s first store can try on jewelry and place an order with a store associate, but receive their purchase at home via mail.

22. “ For Bonobos, a Good Fit in Stores as Well as Online ,” New York Times, July 2, 2014. 23. “ Web Retailers, Now With Stores, Teach New Tricks ,” Wall Street Journal, August 11, 2015.

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January 12, 2016