With this new type of store, the company believes it can achieve 95% of sales in a store of only 12,000 square feet, which is half the size of its regular stores.
Omnichanneling Is Not Multi-ChannelingFor big retailers, creating the right "customer experience" is important because consumers can often buy the exact same product at a number of different retailers. Attempting to move products to Amazon is not the answer because a massive online catalog is usually only differentiated by price.
Omnichannel marketing is more than just using kiosks, emails and the Web, mobile and social networks. That would be nothing more than "multi-channel marketing." Omnichannel encompasses this, plus the entire customer experience.
This is something even small retailers can do. As an example, a food and beverage kiosk would allow customers to design their own sandwich. This technology can work in any size store where products can be "personalized," taking some of the work off the labor force and minimizing order confusion.
The "enjoyable customer experience" involves more than technology, it also involves proper employee training -- Apple proved this. Combining brick-and-mortar with Web and mobile, and training employees to engage customers in conversation, is all part of the experience. The size of the store becomes a non-factor. If consumers have a good experience when they visit a small retailer, they will likely return.In today's world, this is Omnichannel marketing. Not only does it involve convenience through proper display and technology, but it also involves educating and engaging the consumer in conversation to help them have the most enjoyable shopping experience possible. "Discount shopping" is not all there is anymore. Consumers are frugal, but they will spend a little more if they enjoy their shopping experience. At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV