1.
retail
industry
propanestudio.com
san francisco
newbusiness@propanestudio.com
415.550.8692
private & confidential
september 19th 2013
Monday, September 23, 13

2.
agenda
• industry overview
• types of retailers
• channel expansion
• omni-channel trends
• strategic retail partners
• future of retail
Monday, September 23, 13

3.
statistics
retail industry
Online retail
has a growth
rate of 28%
YOY1
Online
shoppers
projected to
spend $1,738/
person by
20163
By 2016 online
sales will make
up half of total
retail sales2
Mobile
purchases are
at 5% of total
online sales4
1-4. Weithas, Rick. Engaging Online Shoppers With Custom In-the-Moment Digital Experiences. Webtrends. N.p., n.d. Web.
Monday, September 23, 13

4.
departmentstores
retail industry
The sector has experienced decline over the past nine years. In 2008
there were 138 independent department stores, by 2009 only 57
remained.5
Out of the remaining department stores the major players
include: Nordstrom, Macy’s, Saks Fifth Ave, Neiman Marcus and Marks &
Spencer (UK). In order to remain profitable department stores need to
extend the personalization and customer service they are known for
across their digital channels.
5. Galloway, Scott. "L2 Digital IQ Index: Department Stores." L2 Think Tank. N.p., n.d. Web.
Monday, September 23, 13

5.
specialtyretailers
retail industry
Specialty retailers are small stores that tend to specialize in a specific
range of merchandise and related items. These retail stores are able to
provide customer with a high level of service and expertise on the
products they carry. Specialty retailers have been synonymous with
digital often leveraging in store technology to better serve customers.6
There is an opportunity for these retailers to collect customer data and
leverage it across all channels to further personalize the customer
experience.
6. Galloway, Scott. "L2 Digital IQ Index: Specialty Retail." L2 Think Tank. N.p., n.d. Web.
Monday, September 23, 13

6.
bigboxretailers
retail industry
Big box retailers can be broken into two categories. The first is made
up of supercenters and warehouse clubs that offer an extensive
amount of merchandise across all categories. The second is category
killers, or places like Best Buy, Home Depot and Bed Bath & Beyond
who cater to all types of merchandise under one category. The era of
big box dominance is coming to an end, in order to remain competitive
big box retailers will need to leverage in store technology and shift
towards smaller pop up stores in convenient locations.7
7. Dishman, Lydia. "Why Walmart Is Betting Big On Small Stores." Forbes. Forbes Magazine, 06 Mar. 2013. Web.
Monday, September 23, 13

7.
discountretailers
retail industry
Discount retailers sell designer and brand name merchandise at deeply
discounted prices. The stores often get deliveries of new items every
two weeks meaning there is always new merchandise for customers to
discover. They carry items across all categories including apparel,
footwear, accessories and items for the home. Discount retailers have
experienced strong profits in recent years and are looking to expand by
opening eCommerce sites to give customers online access to products
that as of now are only available in stores.8
8. Dishman, Lydia. "Why Walmart Is Betting Big On Small Stores." Forbes. Forbes Magazine, 06 Mar. 2013. Web.
Monday, September 23, 13

8.
channelexpansion
retail industry
Every retailer, whether traditional or online only is realizing the
importance and value of being able to access customers and
drive sales across every channel. Traditional brick & mortar
retailers are expanding across digital channels. Many are
redesigning their websites, creating custom apps and
implementing in store technologies. Additionally, online only
retailers are beginning to open brick & mortar stores to give
customers a more tangible way to interact with merchandise.
Monday, September 23, 13

9.
traditional
retailers
{expanddigitalpresence}
Monday, September 23, 13

10.
timberland
in-store
• transformed the traditional
shopping experience into a
dialog between the brand and
the customer through in store
interactive touch screens
• the system is designed to
adapt, capture and learn from
each store globally providing
unique location specific
content to individual stores
• also invites customers to
provide feedback about
products
9. “Digital Signage Universe” N.p., n.d. Web. <http://digitalsignageuniverse.typepad.com/digital_signage_universe/2012/02/timberland-launches-new-
interactive-retail-concept-using-digital-signage-touchscreens.html>.
Monday, September 23, 13

11.
chanel
online
• remodeled their site to more
effectively intertwine product
browsing with content and
imagery so that visitors
become immersed in the
brand world
• largest change is the way
users navigate within each
section
• the new site features higher
resolution imagery, lots of
video content and an
exploratory feel
Monday, September 23, 13

12.
neimanmarcus
mobile
• NM service app helps entice
customers in stores
• targets set up around store
entrances that make the app
live
• customers can get updates
specific to that store like, info
on new arrivals and store
events
• customers can also see
availability and request their
preferred associates who
know their tastes and
preferences10
10. Indvik, Lauren. "In-Store App Smartly Syncs Shoppers and Sales Staff." Mashable. N.p., 06 July 2013. Web.
Monday, September 23, 13

13.
onlineonly
retailers
{openbrick&mortarstores}
Monday, September 23, 13

14.
piperlime
• opened its first brick and mortar
store in SoHo during the fall of
2012
• the store was opened in response
to customer feedback who
desired a four pronged omni-
channel experience
• the store focuses on
womenswear, shoes and
accessories
• for products unavailable in stores,
shoppers can purchase items via
in store touchscreens and receive
free overnight shipping11
11. Maheshwari, Sapna. "Gap's Piperlime Whips Web Into Reality With SoHo Store."Bloomberg.com. Bloomberg, 31 Aug. 2012. Web.
Monday, September 23, 13

15.
bonobos
• opening guide shops (8 so far)
which are a cross between in store
and online shopping experience
• shoppers book 45 minute window
private appointments and visit the
space to try on the brand’s
inventory
• trained staff known as guides offer
one-on-one assistance, fit advice
and styling suggestions
• when customers are ready to buy
guides place the order online and
the products are delivered for free
as quickly as next day12
12. St. John, Oliver. "Bonobos Opens Stores That Don't Sell Anything." USA Today. Gannett, 12 Mar. 2013. Web.
Monday, September 23, 13

16.
ebay+katespade
• new popup shop collaboration
between eBay and the Kate
Spade Saturday line
• shop features a touchscreen built
into the glass that allows
shoppers to digitally navigate
through the 30 products
displayed in the window
• when a customer wants to buy
he/she enters her cell phone
number and then receives a text
asking to schedule a delivery
time
• payments are made via PayPal
Here and the purchase is
dropped off to the customer
within the hour13
13. Brooke, Eliza. "EBay Gets Physical with a Street-Side Sales Kiosk for Kate Spade Saturday." TechCrunch RSS. N.p., 14 June 2013. Web.
Monday, September 23, 13

17.
omni-
channel
trends
Monday, September 23, 13

18.
twotrends
overview
The most successful omni-channel retailers will focus on two
trends shaping the industry. The first is engaging online and
mobile shoppers with custom predictive in-the-moment
experiences. The second is using in-store technology and the
power of data to remember individual customers, their
preferences and shopping habits to further personalize their
experiences.14
14. Buterbaugh, Alan. "Designing an Effective Omnichannel In-store Experience: 5 Key Considerations." Retail Customer Experience. Wireless Ronin
Technologies, Apr. 2013. Web.
Monday, September 23, 13

19.
trend1:
{personalizing
theonline
experience}
Monday, September 23, 13

20.
personalizingtheonlineexperience
trend 1
Consumers want customer service and a personalized shopping
experience to extend across all digital channels. In order to
accomplish this retailers need to focus on the following:
1. enable online ordering and pick up in stores
2. establish shopping car continuity so customers can
begin shopping on one device and continue on another
one
3. tailor product suggestions and recommendations on
home pages or in emails
4. create retail applications that add value to the in store
shopping experience
Monday, September 23, 13

21.
frank&oak
personalized recommendations
• StyleScape platform uses
information provided via a
customer questionnaire, style
preferences and past purchases
• frank & oak also monitors trending
styles in each shopper’s home
market and the present seasonal
climate to improve
recommendations
• recommended products
continually update in real time as
customers browse online
• the company uses insight gained
from its personalization platform to
drive the creation and design of
new products15
15. Etherington, Darrell. "Frank & Oak Debuts StyleScape, a New Personalization Platform with Pinboard-Style Collections." TechCrunch RSS. N.p., 15 Aug. 2013. Web.
Monday, September 23, 13

22.
nastygal
cart continuity
• online only retailer that offers
both new and vintage clothing,
shoes and accessories for
women
• recent site redesign that is now
mobile optimized
• new site also features shopping
cart continuity across platforms
• this allows customer to begin
shopping on one device and
continue that experience on
another (meanwhile all products
are stored in the cart without
having to login)
Monday, September 23, 13

23.
gilt
personalized sales
• Gilt has already adopted
tailored emails, now they are
adding user specific sales to
their site
• these completely unique
personalized sales are
determined by factors like
purchase history, geographic
location and browsing
behavior
• the flash sale site hopes that
personalized sales will help
customers access relevant
options quickly so they never
miss out on an item they
want16
16. Brooke, Eliza. "Gilt Launches Personalized Sales, Because Personalization Is Where It’s at." TechCrunch RSS. N.p., 26 Aug. 2013. Web.
Monday, September 23, 13

24.
men’swearhouse
personalized emails
• Men’s Wearhouse will
leverage CQuotient’s
technology to tailor emails to
individual shoppers
• the system will capture data
from every customer touch
point, mine behavioral
signals and use advanced
predictive algorithms to
deliver relevant and tailored
email messaging
• customer satisfaction is the
company’s highest priority,
Men’s Wearhouse believes
that personalization goes a
long way17
17."Men's Wearhouse Delivers In-store Experience via Email." RetailingToday. N.p., 20 May 2013. Web.
Monday, September 23, 13

25.
bloomingdales
in-store app
• mobile app allows customers
to use certain functions
depending on whether they
are shopping in stores or at
home
• features - store locator to find
in store events and special
offers, wedding registry
management tool, bar code
scanner that lets customers
view additional product details
and read customer reviews
• customers can also manage
rewards points and pay via the
app18
18. Kats, Rimma. "Bloomingdale's Enhances Consumer Shopping Experience via Mobile App." Mobile Commerce Daily RSS. N.p., 21 May 2012. Web.
Monday, September 23, 13

26.
trend2:
{personalizing
thein-store
experience}
Monday, September 23, 13

27.
personalizingthein-storeexperience
trend 2
Customers want to engage with technology in stores and on the
go, and as a result are demanding more tailored experiences. In
order to do that retailers should focus on the following:
• leverage in store kiosks that allow customers to locate
pre-selected products in stores
• use interactive touch screens to deliver brand stories
and store customer preferences
• deploy iPads in stores to give sales associates access to
detailed customer information
• develop apps that allow customers to add products to
fitting rooms and schedule times to try on merchandise
Monday, September 23, 13

28.
hointer
in-store app
• offering a new tech savvy way to try on jeans in
Seattle and Palo Alto
• all of the denim is merchandised hanging up so
shoppers can easily view the details of the
denim
• shoppers download an app, tap the NFC
enabled tag attached to each pair of jeans,
select their size, then choose try on
• the denim is automatically sent to the
customer’s fitting rooms
• buying jeans is easy customers tap their phone
to an in store pay station and swipe their credit
card
• the Palo Alto Store has a partnership with
Google Shopping allowing customers to receive
same day delivery
• pricing of all merchandise is set to either match
or beat Amazon’s listed prices19
19.Soper, Taylor. "Amazon Vet's Robot-powered Apparel Startup Now Beating Amazon Prices, Partners with Google Shopping." GeekWire. N.p., 16 July 2013. Web.
Monday, September 23, 13

29.
burberry
in-store ipads/interactive screens
• digitizing the in store experience and placing
mobile at the center of their customer 360
model
• associates are armed with iPads that contain info
on customer purchase history and preferences
• the data is so powerful that employees at any
store can identify a previous customer the
moment they walk in
• instead of greeting them by name they can
engage with customers via specifics of their
shopping history “how did your wife like the
trench coat you bought her?”
• the London flagship store contains over 500
speakers and 100 mirrors/screens to engage
customers
• every product is equipped with an RFID tag that
enables customer to hold up merchandise to the
interactive screens and watch videos on the
product, see how its made or view coordinating
items20
20. Gaudoin, Tina. "Burberry Opens an Innovative London Flagship." Architectural Digest. N.p., Dec. 2012. Web.
Monday, September 23, 13

30.
nordstrom
in-Store integrated touchpoints
• discussion around placing iPads in
dressing rooms to elevate the
customer experience
• iPads would enable customers to
easily look up information to see if
products are available in another size,
color department or store
• iPads would also sync with customer’s
selections from home to have
products waiting at the dressing
room upon arrival
• they would also sync with customer’s
previously purchased products to
suggest other complementary items21
21. Shea, Erin. "Nordstrom Contemplates Dressing Room IPads to Elevate Customer Experience." Luxury Daily RSS. N.p., 28 Aug. 2013. Web.
Monday, September 23, 13

31.
strategic
retail
partners
Monday, September 23, 13

32.
technologypartnerships
In order for retailers to activate these omni-channel trends in
stores and across their digital channels many are seeking the
help of 3rd party technology partners. These partners have
experience working with a variety of retail clients and understand
how to leverage data and technology to achieve greater
customer personalization.
Monday, September 23, 13

33.
simply42
• their system relies on collecting
data from retailer’s POS system
and shoppers emails at checkout
• retailers can see purchase
patterns, identify customers and
understand them individually. (ie.
who shops sales, who visits the
store most often)
• they also have access to a social
page that provides sentiment
analysis from twitter and instagram
to quantify how customers feel
about individual brands22
22. Perez, Sarah. "42 Is The Answer To Everything…In Personalized Analytics For Retail."TechCrunch RSS. N.p., 29 Apr. 2013. Web.
Monday, September 23, 13

34.
bloomreach
• BloomReach uses data to
personalize the shopping
experience for customers
• the platform provides
smart product
recommendations, has a
predictive search function,
a trending section and
cross device
personalization
• all benefits are available to
shoppers without having to
log in and they extend
across all platforms web,
tablet and mobile23
23."Give Them a Mobile Experience That Delights." Bloomreach. N.p., n.d. Web. <http://bloomreach.com/mobile/>.
Monday, September 23, 13

35.
demandware
• provides retailers with a set of
solutions to power omni-channel
experiences
• central customer record management
to measure performance of cross
channel shoppers
• tailored content that is optimized for
specific channels
• responsive web design that allows
retailers to deploy content on any
device
• improved inventory visibility that
gives customers the flexibility to buy
products through any channel and
pick them up anywhere24
24."Digital Commerce for the Changing Face of Retail." Demandware. N.p., n.d. Web. <http://www.demandware.com/product/the-big-picture>.
Monday, September 23, 13

36.
future
of
retail
Monday, September 23, 13

37.
summary
The retail industry is not dependent on one channel alone. Every
type of retailer, whether traditional or online is realizing that in
order to be the most successful they need to have some
presence in every channel. By doing so they are ensuring
customers have access to the best shopping experience that fits
their needs. In addition to cross channel operation, retailers will
need to focus incorporating technology into the in-store and
online experiences to further personalize the shopping process.
Monday, September 23, 13

38.
opportunitiesforretailers
• apps that push relevant updates to customers when they walk
through the doors of a retailer (coupons/sales & suggested
products)
• apps that allow customers to shop and schedule times to try items
on in stores
• easy mobile payments and scheduling of deliveries via retailer apps
• interactive touch points (smart tvs, iPads) that allow customers to
locate merchandise in stores or order out of stock items online
• a platform that tailors the shopping experiences to each customer
(remembering purchases, saving items in their shopping carts,
sending customized emails with smart recommendations)
• in store platform for associates access to customer shopping
history, preferences & feedback
Monday, September 23, 13

39.
propane studio | 1160 battery street, suite 350 san francisco, ca 94111 | 415.550.8692 | www.propanestudio.com
propanestudioisafull-service
digitalagencyfocusedon
developingexperiencesand
solutionsthatfuelthewaypeople
connectwithbrandsandeachother.
Monday, September 23, 13