I visited the new Neiman Marcus store and my experience left much to be imagined. Modern luxury retailers have to adopt new practices in order to improve current experiences. Here are 5 things that went wrong and a few suggestions on improvements.
Returning from the Retail Value Chain Conference in AZ, I felt like I had a new perspective on some of the issues in the supply chain and available solutions. I was impressed with Newmine's ability to help companies reduce returns through data analysis and by asking the right questions... “Who owns returns in your company?” try asking members of your organization that question and watch them bounce the answer around like a hot potato. One of the companies I took an interest in was GS-1. GS1 is a not-for-profit organization that develops and maintains global standards for business communication. The potential for their use in fashion especially concerning fit and RFID is monumental. I was so excited about the future of omnichannel retailing that I decided to take a trip to the new Neiman Marcus store down at Hudson Yards with my friend.
“Who owns returns in your company?” try asking members of your organization that question and watch them bounce the answer around like a hot potato.
By now you may have read all the hype about the new Neiman Marcus being a "magical and immersive" experience. Certainly, with the looming retail apocalypse happening and with all of the improved technological advancements, the Neiman Marcus store was sure to be the pinnacle of luxury retail shopping. NYC has some of the best and most diverse shoppers in the world and I pictured luxury expanding beyond product offerings and into the experience. I couldn’t wait to experience what modern luxury retailing is all about.
My partner and I trucked our way from his apt to the store, which was only a few blocks away, in the pouring rain. This level of excitement and dedication is usually reserved for Fenty drops at Sephora or sales at wholefoods, but today it was in anticipation of a mind-blowing experience from Neiman Marcus.
Well…..
Perhaps it was the rain, or perhaps it was the fact that it was a Thursday night, but anticipation slowly turned into disappointment.
5 Things that Need Immediate Improvement
No Greetings: I met my friend in the store in the shoe department. Although there were several associates on the floor, not one person spoke to us. We walked through the entire department for approximately 8 mins and not one associate, even the ones who made eye contact, spoke to us. Not a great start but we moved on to the women’s floor to find an outfit.
Sales Associates Distracted: Every sales associate seemed to be entirely distracted by their phone. Perhaps they were checking inventory and making sure their top customers were informed of the newest items, but they also failed to speak, offer guidance or help us find what we were looking for. Slowly our desire to shop dwindled but we still wanted to find something great so we pushed on.
Merchandising: I’m not sure what data Neiman Marcus collects on their actual customers, but it was quite confusing to navigate the department floor. The setup was not intuitive and by the time I was done winding through all the various “boutiques”, I was overwhelmed and felt less inclined to purchase anything. Not to mention that during this entire time, not one person spoke to us or asked us if we needed help.
Directive Shopping: I found it very difficult to find what I needed. Without engaged sales associates or a clear understanding of how the floor was organized, it was almost impossible to shop. It seems like the store was set up to overwhelm the shopper with options. This method is great for the 1980’s shoppers but for busy New Yorkers…. It was a drag.
No Connectivity: My friend, who shops frequently, had already purchased several items that were on the sales floor. It would have been easy to sell him on additional items, had they only known. The store had no way of knowing who came in, or who came out, who has spent money online or in other places. It was such a disconnected experience, it made us not want to come back. This is why people prefer to shop online. If I wanted a solo experience, an overwhelming amount of items and no human interaction, I would rather do so on my couch with the comfort of takeout.
Leaving Neiman Marcus both my friend and I were puzzled about why our experience had been so awful. We moved on to two DTC stores to shop and see if the experiences would be better. First stop was the Fendi store. In direct contrast to Neiman Marcus, we were greeted immediately, our associate was helpful and knowledgeable of products and helped me put together an entire look. Most importantly he collected my information and sent me info on the items I wanted to follow up with.
Second stop was Kenzo, our sales associate was also prompt with greeting us, helped us discover products around the store, shared some personal tidbits then allowed us to shop at our own pace.
For both stores, there was a much more laid back feel that made it comfy to shop and discover products. Both associates took note of what items we like and tailored our experiences around that. I tried on items that would otherwise not prompt my interest. But with the direction of a knowledgeable sales associate I took time to try them and found that I like them a lot.
The best things about the DTC stores were the fitting rooms, although they were not equipped with any fancy digital screens, they were incredibly clean, plush and large. Kenzo’s fitting room was in the center of the store. In both times we were directed to the fitting room quickly because that is where the magic happens. The try-on actually prompted the purchase decisions.
4 Takeaways
Luxury is an experience: Luxury isn't just about high priced items, it has to be about world-class experiences. I am a Nordstrom veteran, having been trained at Nordy taught me so much about the value of the customer’s experience and the relationship to purchase confidence and satisfaction. Create an amazing experience for shoppers and guess what they will do… shop!
Personalization is an important part of shopping: Conversation helps to create directive shopping- in the DTC stores, the associates quickly learned and observed me, correctly directing me toward items that I wanted and liked. They were also more knowledgeable than me about what would work for me and I was pleasantly surprised. Online, this conversation can be done through copy and content. Anticipate questions people may have about items and use copy and content to answer them. Also, suggestive selling can be accomplished online through AI and visual search, a little data mining or brand comparisons can help to create personalized experiences for shoppers.
Data Matters: Collecting data is a brilliant idea because it keeps the brand and the experience top of mind. In contrast, Neiman Marcus missed out on a huge opportunity to match me and my friend to products. Clothing doesn’t sell itself, simply displaying it isn’t enough to get to the purchase decision.
Connected experiences are Priority: Luckily for Fendi and Kenzo, their stores are small enough that an associate can help to create a connected experience for you. However in Neiman Marcus, it’s so big and associates are so elusive, they actually would benefit from technology integration that helped people to navigate through the store with personal data. Equipping sales associates with mobile technology could also be helpful. Department stores have the opportunity to create tech-enabled experiences that can fill in the gaps.
Mindfulness and customer-centric practices can make a world of a difference in retail.
Without technology, good customer service can help generate sales, with technology integration, experiences that can be intuitive, helpful and directive. Don't neglect to think outside of the box when considering a retail experience. Consider the shoppers as the central focus in your retail design, experience and technology integration. Also never forget: some old fashioned things like good customer service still matter!
Jcouch@luxorandfinch.com