DO YOU NEED A PHYSICAL STORE?

PHYSICALdo we need

STORES?

our illustrious speakers

Dave FinneganCIO and VP, Information and InteractionORVIS(previously CIO, Build-a-Bear)

Emily CulpSVP, eCommerce, Marketing, and RetailRebecca Minkoff

Alan WizemannVP, Target.com and Mobile ProductTarget

retail innovation

INFUSE THE BEST OF ONLINEINTO THE PHYSICAL WORLD.

so, the answer is yes.

DIGITALSTOREFRONTS

consumer expectation is changing.

Online “Offline”

5634

%SMARTPHONE

%TABLET

Mobile phones & tabletsare becomingubiquitous.

Sources: Pew Research, 2013

+ Global smartphone sales

exceeded feature-phone sales for

the first time in history, in Q2 2013

Global Internet Device Sales

2012 2013 2014

8-10am66% wake up withtheir phone.

12-5pmphones peak

6-10pmtablets peak

75%use their phoneson the toilet.

www.nrf.com/annual14

150x per day

Snacking behavior.On average, consumers use their smartphones

Consumers are Changing Their Behavior

your store

72%of consumers have “showroomed”apparently even eggs

Sources: Accenture: “Seamless Retailing Research Study 2014”

78%of consumers have “”web-roomed”pre-store research

Sources: Accenture: “Seamless Retailing Research Study 2014”

pre-visit digital in-store digital conversion lift

61%

73% 20%

78% 27%

86% 40%

Sources: Deloitte Digital: “The New Digital Divide: Retailers, shoppers, and the digital influence factor” 2014

digital’s impact on the path to purchase

%

the future of retail is going to be different.

1. Digital Signage

2. Empowered Associates

of in-store purchases via mobile in U.S.

3. Tools for Consumers

3. Tools for Consumers

people want to interact in a different way in stores…

59%52% 51% 48% 47%

24%

28% 27% 28%

33%

17% 20% 22% 24%20%

Sources: Deloitte Digital: “The New Digital Divide: Retailers, shoppers, and the digital influence factor” 2014Motorola “Holiday Shopping Study” 2014

people want to interact in a different way in stores…

Sources: Deloitte Digital: “The New Digital Divide: Retailers, shoppers, and the digital influence factor” 2014Motorola “Holiday Shopping Study” 2014

59%52% 51% 48% 47%

24%

28% 27% 28%

33%

17% 20% 22% 24%20%

50% of consumers think they are better informed than store associates

5%of in-store purchases influencedby mobile in 2012

19%of in-store purchases influenced

by mobile in 2013

Sources: Deloitte Digital: “The New Digital Divide: Retailers, shoppers, and the digital influence factor” 2014

4. Digital Interactivity

54%of consumers would like to use digital touch-screens while shopping…Sources: Cisco, 2013

5. The Smarter Store.

LOCATION. WIFI, SONIC, LED PULSING, BLE, MAGNETIC TRACKING…

MERCHANDISING. VIDEO ANALYTICS, RFID, INFRARED

AUTHENTICATION. IBEACON? NFC? BIO? VOICE?

INVENTORY INTELLIGENCE.UNIQUE ID TAGS, SMART SHELVES

5. The Smarter Store.

Online Sessionvs.

“Offline” Sessionweb-grade thinking to the physical world

Online “Session” Behavior

LANDING PAGE

LANDING PAGE

SEARCH/BROWSESEARCH/BROWSE

SEARCH RESULTSSEARCH RESULTS

ADD TO CART

ADD TO CART

PURCHASEPURCHASE

PRODUCT DISPLAY

PAGE

PRODUCT DISPLAY

PAGE

In Store “Session” Behavior

ENTERENTER

SEARCH/BROWSESEARCH/BROWSE

LOCATELOCATE

ADD TO BASKETADD TO BASKET

BUYBUY

GATHER INFO

GATHER INFO

In Store “Session” Behavior

ENTERENTER

SEARCH/BROWSESEARCH/BROWSE

LOCATELOCATE

ADD TO BASKETADD TO BASKET

BUYBUY

GATHER INFO

GATHER INFO

mobile. geo-notifications to pull you in; fulfillment features like ISPU, ROTIS appointments, to bring you in

associate. pre-visit email, MMS, SMS, deals/campaigns to top clients, traffic-shaping opportunities…

physical. Activated store windows (high brightness), interactive storefront (TouchFoil, IR Frame, Laser-Sweep, IR web), directional speakers

data collection. Infrared tech (KINECT) Webcam parsing (AIM Suite), 3D Sensors (Panasonic D Imager, discont.)

In Store “Session” Behavior

GATHER INFO

GATHER INFO

SEARCH/BROWSESEARCH/BROWSE

ADD TO BASKETADD TO BASKET

BUYBUY

LOCATELOCATE

ENTERENTER mobile. virtual welcome via mobile, inspiration, curated deals/offers/events

associate. top customer identification + VIP treatment… at least save Pareto’s #1! (or know they don’t want to be bothered)

physical. interactive directory, “look-book”” touch screen or digital signage. RFID infrastructure to optimize merchandising?

data collection. infrared tech (Ava Retail), video parsing + analytics (e.g. Prism Skylab), bio-authentication (face, voice, feet, gait) – can you capture session information?

hyperlocation

In Store “Session” Behavior

GATHER INFO

GATHER INFO

SEARCH/BROWSESEARCH/BROWSE

ADD TO BASKETADD TO BASKET

BUYBUY

LOCATELOCATE

mobile. in-store experience native app using hyper-local geofence (beacon, audio barcoding, LED encryption), pushed mobile web location (magentic fingerprinting via IndoorAtlas)

associate. inventory lookup app (hint: customers don’t like shoulder browsing), AOS for S2S or S2H

physical. in-store way-finding and/or directory – perhaps a digital lookbook which directs customers to items..

data collection. eye-tracking – intent vs. conversion per product? – in addition to the items from before

| touch wall.

In Store “Session” Behavior

GATHER INFO

GATHER INFO

ADD TO BASKETADD TO BASKET

BUYBUY

LOCATELOCATE

mobile. add to virtual “wish-list” or persistent cart, facilitate social share/voting for verification

associate. CRM database w/ previous fit/interests, algorithmic suggestions re: cross-sell, merchandising, 1:1 deals specific to consumer

physical. digital descriptors (price/reviews on e-paper tags!), interactive fitting room (MemoMi – 360 pictures), rich-content, “magic mirror” (UNIQLO), pictures/recordings for later?

data collection. product movement vs. purchase, associate tracking, SKU velocity

FaceCake: Augmented Reality

In Store “Session” Behavior

BUYBUY

GATHER INFO

GATHER INFO

mobile. self checkout: semi-unregulated (Apple…), regulated (RFID deactivation for anti-theft sensors), hands-free checkout (PayPal… duuuh), bio-auth checkout (finger, voice, face, hand, eye, etc)

associate. mPOS…. + delivery options like S2H, one-hour delivery

physical. self checkout kiosks, queue distribution software (Kroeger example of lift, Whole Foods)

data collection. double-blind connection between online and in-store accounts… easy loyalty integration, mobile pay connection

tech for thesake of techsolve real problems

path to purchase.

EMILY CULPSVP, eCommerce, Marketing, and Retail

The Question is How Do You Play in an Omni-Channel World?

Because she is already there

She doesn’t focus on the evolving landscape (only we do)

PURE PLAY

MULTI-CHANNEL

MA

RK

ET

PLA

CE

VE

RT

ICA

L

Store SocialMobile/Tablet & Apps

Site

She wants to seamlessly engage with and buy from our brand

We all acknowledge this isn’t reality

RECEIVE A MAILER

SEE AN ADLOOK AT A CATALOG

CALL 1-800VISIT A STORE

CONSULT SALES REP

CONTACT CUSTOMER

SERVICE

SIGN UP FOR

LOYALTY CARD

Linear | Predictable | Brand Controlled

“TRADITIONAL” PURCHASE JOURNEY

$

So the points keeping me up at night are how do we flawlessly execute this story?

Global Communication

Product Development

Retail Stores

Creative

DATA/Consumer Insights

Events

Sales

eCommerce

Our Job is to tell an omni-story that unfolds

Content Publisher=

LEADERSHIP

EXPERTISE

LINKAGE

COMMUNICATION

1

2

3

4

LEADERSHIPInnovate & Experiment across platforms

1

EXPERTISEMarketing, Retail Store, eCommerce etc.

2

LINKAGEOrg. structure is key

3

COMMUNICATIONConstant, Clear & Cross-Functional

4

And this requires an Omni-view of customer (data = not the boring stuff)

DAVE FINNEGANCIO and VP, Information and Interaction

Established in 1856. Americas oldest catalog company (Send over 70 million catalogs a year)

Over 1,700 employees in US\UK

Hundreds of Orvis Endorsed Guides, Dealers and Lodges throughout the world

Hundreds of Millions of digital interactions with Blogs, Podcasts, How to Fishing adventures and social media

Orvis donates 5% of its pretax profits to Conservation

Stores, Ecommerce and Catalog

Retail is a Storytelling Experience

Fly Fishing 101 – over 40,000 students since we started

“Sometimes Fly Fishing isn’t about Fly Fishing at all…”

Smile Map Mapping the Emotional Connection

ALAN WIZEMANNVP of Product

Leads the technology product teams

Responsible for the Target.com platform and mobile application portfolio

Team Members worldwide

Quick facts about Target

1,795

130

37

3

361,000

Stores in the United States

Stores in Canada

Distribution Centers in the United States

Distribution Centers in Canada

Our stores are at the center of our guests’ lives

Mobile is helping shape our store’s future

Technology is helping us redefine how our stores operate

“Omni-channel” is the convergence of digital and stores

What the future holds

Digital driven stores

On-demand ordering and price matching on any product

Personalized guest journeys

“Opt-Out” personal commerce experiences

Service-based commerce and sharing-based fulfillment

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#digistore | #shoporg14

DO YOU NEED A PHYSICAL STORE?