The news is full of major retailing chains closing stores – or closing their doors completely. Just here in El Paso, the Sunland Park Macy’s was one of more than a hundred marked for closure and across the street, the long-time Sports Authority store closed when the whole chain was liquidated. Yet unemployment has been down and salaries have been creeping up the last couple of years. So what is going on?
A piece posted on TheAtlantic.com in April – “What in the World Is Causing the Retail Meltdown of 2017?” – garnered a lot of attention in our industry. “The reality is that overall retail spending continues to grow steadily, if a little meagerly,” wrote Derek Thompson, one of The Atlantic’s senior editors. “But several trends—including the rise of e-commerce, the over-supply of malls, and the surprising effects of a restaurant renaissance—have conspired to change the face of American shopping.”
If spending hasn’t come to a halt, what do customers want outside of e-commerce? With all of today’s technology, people do not want to become simply robotic consumers. We still need to recognize the “human element.” One takeaway: Since it is easy to get so many needs taken care of at the click of the cursor, consumers have developed into more discerning shoppers.
In many ways, the act of purchasing is an expression of identity. According to Boston Consulting Group, BCG Perspectives, “millennials are changing the face of marketing forever.” In the U.S., 50% of 18- to 34-year-olds believe that the brands they endorse “reflect their personal character and values.” When they do shop in person and not online, they want a unique experience and unique products appropriate to their lifestyle.
My friend and retail guru Doug Fleener says shoppers want three things;
- A “curated” product mix. Today’s inventories should reflect a point of view and a lifestyle. For instance, my store has recently changed its product mix to reflect a new take on fashion. We see that women want relaxed fashion that is still put-together with an element of luxury. More than ever, today’s consumer puts together her own look to express her unique personality.
Women in particular like products with historical and emotional connections. Take for instance jewelry by Temple St. Clair, who designs with an artist’s eye and explorer’s heart. She uses gold and rare colored gems to illustrate universal narratives of the earth and cosmos. Unique and authentic resonates with today’s consumer who can be overloaded with tech.
Customers also seek out items that are interesting and one-of-a kind for their home. In our new home and gift area, for instance, we have onyx items that came from a mine where intense heat from an adjacent volcano created unusual variations. Rich colors and patterns in the onyx pieces ooze a sense of earthy beauty that only Mother Nature can create.
- A more personal store brand. Fleener says that stores that are succeeding today “are much more than simply a storefront with a name.” He notes that they’re a very personal brand in their community. Customers feel a real affinity for the business and its staff, and shop there to support c the local community. El Paso is a distinctive, unique city where people embrace its special culture and support its businesses.
- A personal shopping experience.Successful store have highly engaged customers and a staff of associates who see their primary responsibility as building relationships. Associates get to know their customers’ tastes and become their personal shoppers.
Temple St. Claire “tolomeo” pendant
Encircled by a stunning array of multicolored sapphire and tsavorite stones, a sapphire cabochon gleams at the center of this magnificent 18-karat-gold pendant finished with petite diamonds