Retail Doom & Gloom: Crisis or Opportunity?

Mid Year State of the Market: Maurisa Potts, in a mid year “state of the market” presentation sponsored by the Alexandria SBDC featured a headline stating, “Soft economy hitting big retailers hard.” There are, I might add, some small ones not doing too well either. Potts went on to note that online shopping is not the only reason for this, siting over built retail real estate, escalating rents, and shifts in consumer spending from goods to services. Whatever the reasons, there are few retailers not feeling the current uncertainty. This, according to Potts, begs the questions what is it, crisis or opportunity?

Clearly Unclear: I like this mindset. It presuppose important changes in the business model by which most retailers operate. Savvy retailers need little schooling on this topic, and outside of a reference list here, my interest is about how a physical store might be impacted. According to Potts the action takes place in three areas. The first two, customer focused retail and the resultant deep market analytics are technology driven. The third is the technology. Clearly the lines between the physical and digital store are becoming unclear. A retailer must decide which options to embrace:

mobile apps/enhanced mobile apps/personal concierge
smart navigation
mobile checkout
on demand customer service.
virtual fitting rooms
flexible fulfillment options
enhanced product information
community connections
target walk by shoppers
holographic product displays
delivery service
drones

Augmented Retail: Each of these items taken individually involves some type of electronic technology which must be both accommodated and invisible, a subject covered in previous posts so not detailed again here. Together, though, they define what is referred to as augmented retail, a situation with substance and influence on how a physical store will look. Rachel Shechtman, the founder of Story, a cutting edge store in Manhattan, described the design concept as a physical magazine. This is so telling. Store planners and designers have probably not seen such a revolutionary design idea since the emergence of big box retail. In the marketing world I would compare the trend to the early days of Martha Stewart Omnimedia which eventually consolidated her various publishing and media outlets into a single brand. It seems to have come full circle as omnimedia has finally found expression in bricks n mortar.

Design by Collaboration: Pick up a copy of your favorite magazine and flip it open to the index page. What do you see? I see an implied program for a store design, an outline of ways to engage the customer, often a recipe for co-creation where the customer participates in the outcome of his/her shopping trip. What combination of media, mobile apps, interactive displays, technology, and hard store design options a retailer chooses to bring into his/her store is a collaborative decision best made between the store designer, the retailer, the marketing team, and the all important technology consultants. When these things work together a really successful store can be the outcome.

The Positive Case for Bricks N Mortar: Barbara Thau, writing for Forbes, lists, “Five Signs That Stores (Not E-Commerce) Are the Future of Retail.” Worried retailers might do themselves a favor by considering the following:

“All But One Of The Top Ten U.S. Retailers Are Physical Chains

Stores Are More Profitable Than E-Commerce

Amazon Purchased Whole Foods

Millennials And Generation Z Prefer Real-Life Stores

Online Retailers Are Being Eaten By Legacy Retailers

Bridget Gaddis, is a Licensed Architect and LEED-accredited Professional practicing nationally, and locally in the Washington DC area. She holds professional degrees in both Architecture and Interior Design, and with a comprehensive background in commercial retail design, planning and construction has completed projects for such for such well known brands as Chloe, Zegna, and Bvlgari. Her career began in tenant coordination and site planning for two well-known Cleveland developers, followed by six years in store planning for a national retailer. After a move to New York City in 1997, she spent the next years working for architecture firms specializing in retail projects. In 2011 she started her own practice in Alexandria, VA. Ms. Gaddis is the author of two blogs dealing with architectural subjects.

Save

Bring your toughest design problems!

will be showcasing many projects and explaining our services at the BL Business Expo on Friday June 2nd. Please Join us.

The BL Business Expo Event, in its 13 year, showcases the products and services of over 100 Northern Virginia exhibitors and sponsors. Please contact Gaddis Architect, at [email protected], 9730701-8800, for a complimentary entry voucher. Please stop by our booth to see our projects showcased and learn about how we can help solve many tough design problems and create high performing spaces. We look forward to meeting you there.

AGENDA

8:00 am : Doors open for Guests.

(The Exhibit Hall is open NON-STOP until the end – Seminars will take place in a separate Room)
8:15 am – 9:15 am:
Making LinkedIn work for Your BusinessSeminar
Jennifer Dalton, LinkedIn Specialist
9:30 am – 10:00 am:
Opening Ceremony
National Anthem, welcome address,Sponsors recognition, with Emcee:
-Angel Livas, Media Specialist
10:15 am – 11:45 am:
Protecting Your Business, An IT perspective Seminar
-Fred Haggerty, IT Specialist
12: 00 pm – 12:30 pm:
Everything that You Ever Needed To Open A Business,
But Were Afraid To Ask
Seminar
Gerald Geddes, CPA
12:45pm – 1:30 pm:
Break the Rules & Make more SalesSeminar
Nema Semnani, Sandler Training
1:45 pm – 2:00 pm:
Door Prizes & Farewell Remarks
(We have some serious door prize for you. You would want to be there to take them home.)
Bridget Gaddis, is a Licensed Architect and LEED-accredited Professional practicing nationally, and locally in the Washington DC area. She holds professional degrees in both Architecture and Interior Design, and with a comprehensive background in commercial retail design, planning and construction has completed projects for such for such well known brands as Chloe, Zegna, and Bvlgari. Her career began in tenant coordination and site planning for two well-known Cleveland developers, followed by six years in store planning for a national retailer. After a move to New York City in 1997, she spent the next years working for architecture firms specializing in retail projects. In 2011 she started her own practice in Alexandria, VA. Ms. Gaddis is the author of two blogs dealing with architectural subjects.

Save

Wire Management is a Design Issue

The cash wrap in the photo above is in a medium high end fashion boutique in a trendy “New Urban” style shopping center with other similar competitors up and down the center. I noted the problem during a site visit I made to meet with the shop owner who was, at the time, planning a second store. Two years later, motivated by recent discussions in these “Insights” about the importance of integrating technology into a store design, I returned and took this photo. Needless to say, the problem was never addressed, neither did I ever work with this retailer.

I see mismanaged wires a lot, often in places that should, and do, know better. I listen to marketers go on about the importance of creating a shopping experience; of integrating technology into the store design; of carefully selecting technologies based on actual individual data driven market research, all the time wondering by what trickery retailers like those in the photos are able to make out that these much touted market strategies are somehow not germane to their particular retail environments. Further, I can only guess at the impact on sales – at least the place in the photo is still open – and I actually worry about the tripping hazards just waiting to happen. There is really no accounting for this when a solution is easily accomplished and not expensive.

Lest I be accused of “dis without fix,” I offer a solution here. First we are not talking store remodel or even new equipment. All that is required is some planning. Consider this cash wrap, a version of which was originally designed for a project, and which has since morphed into one of my “go to” opportunities to offer design variations on a functional theme. It is 5′ wide by 2′ deep by 3′ high at the work surface and 3’6″ high at the top of the display case. Close examination of the equipment housed in the unit will show that virtually every device housed in the badly wired cash wrap in first photo is accommodated in a compact cabinet. No wires show. The only connections are, as in the subject image above, power and data supplied by a floor outlet below the cabinet. Also, if necessary this fixture can be supplied with “knock outs” for power/data access from either side and it is on casters for mobility.

Clearly this is not a cheap piece of furniture, probably costing upwards of $1000 to build from scratch, yet when considered in terms of value added to the retail environment, it is not a lot to spend. Certainly, in terms of public safety and reduced liability it is a downright bargain. Neither is it necessary to build one of these from scratch. The rustic bench being used for the cash wrap above could easily and cheaply be remodeled by addition of an equally rustic back panel. We do this type of thing all the time.

Something else a retailer might want to consider when planning a store is that wireless technologies and newer devices are drastically reducing the amount of space needed. These are part of more than just cash wraps too. It is really important for a retailer to examine their options and choose their system(s) early. I cannot over emphasize the advantage of selecting and working with a qualified technology consultant who can help with system selection and provide a designer with device specifications including related sizes to be used in store planning and fixture design.

One more point worth noting, I see this problem show up in many showroom and public environments, not just retail stores. Because these are places where the public meets a business or organization they can, and do, impact a brand and may affect sales. I often work in these types of environments and likewise advise a client to carefully manage the wires.

Bridget Gaddis, is a Licensed Architect and LEED-accredited Professional practicing nationally, and locally in the Washington DC area. She holds professional degrees in both Architecture and Interior Design, and with a comprehensive background in commercial retail design, planning and construction has completed projects for such for such well known brands as Chloe, Zegna, and Bvlgari. Her career began in tenant coordination and site planning for two well-known Cleveland developers, followed by six years in store planning for a national retailer. After a move to New York City in 1997, she spent the next years working for architecture firms specializing in retail projects. In 2011 she started her own practice in Alexandria, VA. Ms. Gaddis is the author of two blogs dealing with architectural subjects.

Seamless integration of technology is part and parcel of 2017 market trends

Playing with an interactive light display.

Marketing Trends for 2017 – There is always a flurry of activity from marketing and PR firms at this time of year. The event put on by the Alexandria Small Business Development Center is always well attended, and this year is no different. Maurisa Potts, Fouder & CEO of Spotted MP, talking about 2017 market trends, discussed the increasing importance of interactive and visual content; digital as in media being the unstated but nevertheless operative word. Commenting in Forbes on similar trends, AJ Agrawal listed seventeen trends for 2017, twelve of which were likewise to do with digital content. The impact of technology has of course been growing every year, leading me to wonder if/when it will finally peak. Not, it would appear, anytime soon as almost all of the topics in Pott’s presentation, i.e., Interactive Content, Visual Content, Influencer Marketing, Virtual Reality, Mobile Video, Live Broadcasts, Short Form Content, Mobile First, Personalization, and Native Content, presumed digital content.

Shopping in Walmart

Data Driven Marketing – That said, it may be that the saturation point is approaching, as Potts also talked about the necessity for “Data Driven Marketing” and Lee Peterson of WD Partners talking about digital integration in VMSD Forecast for 2017 pointed out that when surveyed, for 3 years in a row the digital device most wanted by customers was BOPIS, the ability to buy online and pick up in the store. If, it would seem, last year’s omnichannel marketing was about integrating the message into the larger stream, then this year is about flushing out the individual retailers best path to success. A bike shop owner might, in 2016, have been compelled to have a presence in every possible outlet, i.e, blogs, competitions, associations, civic events, publications, website, e-commerce, indeed anything having to do with bikes or bicycling. In 2017 this bike shop owner might look closely at the data accumulated from past marketing activities and then focus on what has worked, even if the answer is unexpected. For example Kathleen Jordan writing for VMSD tells us, ” Retailers must develop new ways to reach their audience and find new sources to expand their consumer base… it must be recognized that online is not always the answer.” Did you notice she called them an audience rather than customers or shoppers.

Microsoft Surface at Hard Rock Cafe, Hollywood

Integrated Shopping Experience – Considering that almost 92 percent of all retail sales are still being transacted in physical environments and further that many online retailers end up with physical stores, I am lead to inquire, what does all this say to those of us involved with the bricks and mortar part of retail, presuming of course that it is not going away? Clearly, creating a shopping experience is still important. Eric Feigenbaum subtitled his article in VMSD, “…Retail’s divining rod no longer moves at p-o-s, but rather at p-o-e – point of experience.”

Prioritize – From my perspective, after many years working in retail design, the answer must be about priorities. The seamless integration of technology is part and parcel of the all important shopping experience and it can only be accomplished by assimilating a clients carefully worked out digital marketing plan into a store design by partnering with the technical experts. The devices of digital marketing are, after all, physical elements and as such work better when addressed in “pre” as apposed to post design.

Virtual Book at “Librovision”

If there is any doubt that this is an often neglected fact, just look around at piles of wire shoved under cabinets, dangling from display cases, hap hazardously placed equipment closets, and my personal favorite, the back side of monitors at POS stations. Certainly newer wireless technologies are available but there are always performance issues to consider, many requiring additional equipment in other areas. Most clients have enough understanding of Building mechanical systems like HVAC and plumbing to expect and allow for their accommodation, but somehow the lexicon of electronic equipment has remained a mystery, not a little, I should add, because it is in a constant state of flux. Ryan Ruud, founder and CEO of Lake One, writing for “Smart Insights” identifies Random Acts Of Technology (RAT) as marketing flops resulting from the application of technology without strategy. I would argue that this applies, as well, to the physical store design whenever non integrated electronics are treated as project add ons – and okay, I liked the buzzword too!

Bring in an Expert – Finally, I would advise any retailer aiming in 2017 for “…effective in-store digital retail experiences” to introduce a suitable technology consultant into the schematic stage of a project and then keep him or her involved up through and even after store opening. Sometimes independent and small retailers assume that these services are beyond their reach. On the contrary, I have found that most electronic designers are also providers and as such their services are often included when they supply and install equipment. It is money well spent, almost – but not quite – as good as that spent on the Architect.

Bridget Gaddis, is a Licensed Architect and LEED-accredited Professional practicing nationally, and locally in the Washington DC area. She holds professional degrees in both Architecture and Interior Design, and with a comprehensive background in commercial retail design, planning and construction has completed projects for such for such well known brands as Chloe, Zegna, and Bvlgari. Her career began in tenant coordination and site planning for two well-known Cleveland developers, followed by six years in store planning for a national retailer. After a move to New York City in 1997, she spent the next years working for architecture firms specializing in retail projects. In 2011 she started her own practice in Alexandria, VA. Ms. Gaddis is the author of two blogs dealing with architectural subjects.

Voted One of Americas Finest Optical Retailers

Storefront Store Fixture DesignWE ARE VERY PROUD to announce that eye2eye Optometry Corner, a project that we completed in late 2015, and located in Hilltop Village Center here in Alexandria, has won Honorable Mention in the 2016 America’s Finest Optical Retailers competition put on by Invision Magazine, an important optical industry publication. We wish to extend our thanks to Dora Adamopoulos, OD for bringing such a great project. Likewise thanks to the following team members and all who participated in this project.

BC Engineers Inc.
Mesen Associates Structural Engineers
Independence Construction
Ambiance Lighting
Hermin Ohanian “Artoholic”
Ennco Display Systems
Miller Creative Solutions

Bridget Gaddis, is a Licensed Architect and LEED-accredited Professional practicing nationally, and locally in the Washington DC area. She holds professional degrees in both Architecture and Interior Design, and with a comprehensive background in commercial retail design, planning and construction has completed projects for such for such well known brands as Chloe, Zegna, and Bvlgari. Her career began in tenant coordination and site planning for two well-known Cleveland developers, followed by six years in store planning for a national retailer. After a move to New York City in 1997, she spent the next years working for architecture firms specializing in retail projects. In 2011 she started her own practice in Alexandria, VA. Ms. Gaddis is the author of two blogs dealing with architectural subjects.

What do you mean by “Feasibility Assessment?”

Now What?
Now What? How do I turn this in to a new store?

Contemplation – Imagine you are a retailer contemplating this tenant space. Clearly, you might be asking yourself; “now what?” Suppose a few of the questions below move from unconscious reflection to conscious contemplation without ensuing answers, then assessing a project to see what is actually required could facilitate the decision making process and provide many benefits.

Resources – Landlord provided documents, previous project cost summaries, consultations with building departments, contractors, engineers and sometimes professional construction estimators are all resources informing project feasibility. The intent is to simplify, consolidate and summarize the probable scope of work, professional fees, construction costs and time that might be anticipated for a project. It is the purpose of a feasibility assessment and a highly recommended means of beginning most retail projects.

  • Do I need to build the walls?
  • Do I need to build the bathroom(s)
  • Why do I need 2 bathrooms?
  • Why do I need 2 entries?
  • Do I need to install the storefront system?
  • Can I use my own storefront design?
  • Do I need to have my own electric meter installed?
  • Do I need to install my own Air Conditioning and heating system?
  • What is the best mechanical system to use?
  • Is there water in the space?
  • What about hot water?
  • What about gas?
  • Where is the sewer?
  • How do I connect to it?
  • Will my store fit in this space?
  • Must I supply my own storefront sign?
  • Who will design it?
  • Can I design the store myself?
  • Can I turn a logo into a store design?
  • Where do I get the store fixtures?
  • What if I can’t find the exact fixtures that I need to display my products?
  • Are custom store fixtures required, if so who will design them?
  • What about lighting?
  • Who sets up the Point of Sale (POS) system and how do I hide the wires?
  • How do I accommodate the cabling and hard wiring for my computers?
  • How much can I expect to spend for all this?
  • A contractor told me he could build my store for $45/sq. ft. Should I believe him?
  • Do I need a building permit?
  • What does an architect charge?
  • Can I get this done in time to open before I must begin paying rent?
  • How do a pick a contractor?
  • Is the construction allowance from the landlord enough to build the store?
  • Does the location have enough parking?
  • What is the visibility from walk and drive by traffic?
  • Is this space a good choice for my project?
  • If I don’t take this space do I need to start all over with a new feasibility for a different location?

Please feel free start a discussion here and maybe even see some answers.

Bridget Gaddis, is a Licensed Architect and LEED-accredited Professional practicing nationally, and locally in the Washington DC area. She holds professional degrees in both Architecture and Interior Design, and with a comprehensive background in commercial retail design, planning and construction has completed projects for such for such well known brands as Chloe, Zegna, and Bvlgari. Her career began in tenant coordination and site planning for two well-known Cleveland developers, followed by six years in store planning for a national retailer. After a move to New York City in 1997, she spent the next years working for architecture firms specializing in retail projects. In 2011 she started her own practice in Alexandria, VA. Ms. Gaddis is the author of two blogs dealing with architectural subjects.

Owning It

Owning a small business is like starting a family but often I feel like a single parent with quintuplets.

When I first began my business in 2012 I filed out all of the correct paperwork. As it would seem, I did so in the most backwards order I could imagine. This was not by my poor planning as much as it was my overall lack of knowledge about the entire process, which between you and I is not incredibly obvious even after having gone through it. I do have to give credit where it is due and I owe a lot to the Small Business Development Center as I may not be where I am today without their guidance.

As a small business owner I have had to wear many hats and to keep my costs low I have had to wear all of those hats on my own.Meghan

The Photographer As a lead photographer I have enjoyed the ability to be as structured or organic as I like and have been able to be creative with on the spot changes due to weather, venue and wardrobe mishaps. I feel that this is my strongest role and one that I am constantly improving and honing. A big thanks to friend and fellow photographer Sam Dingley for my stunning headshots. That comes off like I am bragging about me, but I promise I am bragging about his photography skills.

The Website Designer In all fairness the bare bones of my website was originally created by a friend Kendall Totten Design who is an incredible developer but is now ran almost entirely by me. I try to check in with her once or twice a year to do an overall update to my site when I need assistance with code or say, I accidently delete a section of content. Oops. But other then that, all content, now comes from me in all of my glorious grammatical errors.

The Ad Executive I do my best to funnel all social media traffic back to my website but at this time do not use any paid advertisements to gain clients. My social media presence is crucial to my image so I do my best to keep my brand consistent. My logo was again created by a dear friend Mindy McPeak Illustration and my business cards and header by another Graphic Designer friend Danielle Webb who I think I traded the designs of for wine and cheese. Overall my business is driven by word of mouth. My clients return year after year and tell their friends about their experience with me and in turn become new clients.

The Attorney I cannot afford one at this time and so I am my own legal counsel. I have done my best to be upstanding and have tried to protect myself by using contracts and holding a Limited Liability Corporation (LLC). I even keep my business bank account separate from my personal account. I figure there is no excuse for being careless so I might as well be prepared.

The Salesman I like to pride myself on my ability to sell. I used to sell for J.Crew and could sell corduroys and chino’s like it was my job. And at Cheesetique I used to sell cheese and wine like it was my job, because at one time it was my job. But now, I am in the business of selling myself. Gasp. And this is not easy for me. I believe I am an incredible artist and yet it takes everything in me, to sell me. It is not like I bathe in confidence but I do have to overcome myself sometimes and sell my experience, skill and artistry.

The Accountant I file my own taxes. I create my own budget. I try to keep my advertising costs and business expenses low. I pay sales tax in three states and currently for an LLC in one. I file everything on my own that I need to keep my business running and upstanding with the law.

The Balance I am a full time wife and mother and so it is essential that I maintain a balance with my work. I tend to work nights (editing) and weekends (photographing) when my partner can be with our little one. The lifestyle of a Wedding and Portrait Photographer lends itself well to my available schedule.

Starting Your Own Business? Ask for Help The Small Business Development Center of Alexandria was an excellent resource for me when I began my business and they helped to point me in the right direction and showed me where to file my LLC, Business License, Trade Name and Sales Tax. I also had to set up an Employer Identification Number (EIN) with the IRS and I would not have known this had it not been for their assistance. I also took advantage of their social media counseling which has proven to be priceless.

You can reach me at:

 

(202) 681-9848

[email protected]

http://www.shotinthedarkphoto.com/

 

Follow me on Facebook

Follow me on Twitter

Follow me on Google+

Store Design: Materials

I was researching another project when I ran across these book stores. I was looking for examples of how different building finish materials can change the perception of merchandise quality in a store design, and as these views are void of brand signs, they allow for a fairly objective comparison on a store planning level as well. The examples were good enough to turn into an article as follows:

Store 1
Store 1

Store 1 – This first store reminds me of Strand Bookstore in New York City, locally famous for used books, which should not come as a surprise as the plastic on the windows, mismatched fixtures, cheap but effective fluorescent lighting and existing brick walls and wood floors all suggest, not only extreme economy, but also sustainability. The chairs and wide aisles suggest a comfortable and possibly entertaining shopping experience. In NYC this equals “shabby chic.” Anywhere else it risks being just shabby.

Store 2
Store 2

Store 2 – The actual fixtures used in this store, likely high quality painted wood, display the merchandise for maximum advantage and provide storage as well. Nevertheless, carpet and acoustic tile floors and ceilings are strictly utilitarian, as is the lighting, which is adequate but stylistically dated as it is used here. The monotone, high foot candle light level removes the possibility of any particular focus or feature areas, as does the “many evenly spaced rows” type of layout. This ambiance is all about volume and possibly crosses over to discount.

Store 3
Store 3

Store 3 – This appears to be a high profile, historic, urban environment that is possibly a destination unto itself. Efforts have been made to help the store fixtures disappear into the location. Wood shelving and display tables match existing architectural trim and carefully placed invisible light sources outline perimeter merchandise walls artfully tucked under the balcony. Like dancers in a grand ballroom, table top displays nicely present the merchandise to main floor shoppers. A polite, public mood prevails.

Store 4
Store 4

Store 4 – This is another example of how existing buildings can drive the retail ambiance of a space. Exposed structure, skylights, stone walls, and distressed concrete floors identify an industrial loft type environment made relevant by the addition of colorful art lights, and a bit of modern ceiling material. Tall store fixtures made of construction grade wood emphasize the soaring ceiling height and merge into the prevailing aesthetic. One might be surprised to find that this trendy store, like store 1, is also selling used books.

Store 5
Store 5

Store 5 – Perhaps the most unique of the stores, this is defined first by the the top to bottom wood finishes and then by the contemporary parkitecture, including the shelving units carefully incorporated therin. Visions of everything from Hoss Cartwright’s Ponderosa to Bilbo Baggin’s Hobbit Hole are conjured. The place practically invites the shopper to enter a mysterious world of fantasy.

Store 6
Store 6

Store 6 – Finally we have the shop of no finishes, except of course the books, representing the weighty world of gold bound illuminated manuscripts and classic volumes read and reread over time in days when they had more than just historic value. This is the revered library showing up in Patrick Rothfuss’, The Name of the Wind.

Finally, it is of interest that, in spite of differing book sizes, the shelf heights have been maintained to form continuous horizontally aligned rows of books in all of these stores.

All photos on this site belong to the author, are used under Creative Commons or with permission from the photographer. The source may normally be found by following the link attached to the photo.

Bridget Gaddis, of Gaddis Architect, is a Licensed Architect and LEED-accredited Professional practicing nationally, and locally in the Washington DC area. She holds professional degrees in both Architecture and Interior Design, and with a comprehensive background in commercial retail design, planning and construction has completed projects for such for such well known brands as Chloe, Zegna, and Bvlgari. Her career began in tenant coordination and site planning for two well-known Cleveland developers, followed by six years in store planning for a national retailer. After a move to New York City in 1997, she spent the next years working for architecture firms specializing in retail projects. In 2011 she started her own practice in Alexandria, VA. Ms. Gaddis is the author of two blogs dealing with architectural subjects.