Thoughts Archives - RPA Group

How designers manage value engineering, without compromising on results

Commerciality of concept is paramount in the current landscape due to the mounting financial crisis. Value engineering should be hard baked into design from concept stage by good designers, and ‘good’ clients with clear aspirations and it should also be applied post-concept. This is due to the often rapidly changing financial circumstances during a project’s development and delivery. Post concept stage VE should be relatively straightforward, because the designer would already know and understand the ‘value’ of every piece of the design and can work with the client to ensure key touchpoints are maintained, and those with less impact are mitigated in cost.

But firstly, it helps to have a clear understanding of what Value engineering is, because it isn’t about making nonsensical shortcuts or sacrificing on quality, but rather about being smart and sustainable. The focus should be on what will work, while cutting out unnecessary costs and materials that do not contribute to quality or the experience. This is achieved through a systematic approach to improving the value of a project, by conducting a detailed analysis of its performance, function and cost and then finding the most effective solutions. Far from limiting the creative process, experienced designers know how to imaginatively solve problems and to optimise Value Engineering, through good design and clever use of materials at the outset.

Making Strategic Material Choices:

For Designers, when it comes to creating and delivering a brand experience in a physical environment, then making strategic choices about the use of materials is essential. Through experience of working with varied and cutting-edge materials , designers are adept at considering alternatives that offer comparable performances, sustainability and aesthetics that can be achieved at a lower cost. Similarly, matching materials with projected lifespan allows for appropriate durability and consideration of cradle-to-cradle use.

Ensuring Design Optimisation:

Streamlining layouts through optimised space planning will not only maximise efficiency and how elements are used, but will also minimise the use of unnecessary materials, creating less waste. This is where modularity can come into its own, as modular furniture and components not only simplify installation, but can offer a far more flexible configuration of a space, which also contributes to its longevity. Utilising pre site fabrication methods, such bathroom pods for hotels can also reduce costs. There is also scope for repurposing existing elements, which saves costs and offers a more sustainable solution. To maximise value in materials, designers can focus on the use of impactful elements and focal points. These could be eye-catching feature walls, distinctive graphics or unique light fixtures, so that the concept execution is more on quality than quantity.

Embracing Current Trends:

There has been an increasing trend for interiors that appear “authentic,” with exposed brickwork and ceilings and concrete finishes. Rather than a love of brick or steel – it’s a reticence to ‘guild the lily’, to accept that the core material of construction can in itself be appealing if considered from the outset. A good historic example of this is the shuttered concrete of the royal festival hall or the “guts-on-the-outside” Lloyd’s building. Aside from being visually striking, money can be saved by expressing certain elements and features in their raw state. This is something that we recently helped achieve for our client Alo Yoga in their new Covent Garden flagship store in London, which has large areas of brickwork that have been left exposed and a stripped back ceiling. These elements provide an eye-catching, textured contrast against the merchandise and new store fixtures and fittings, while also revealing the integrity and character of the historic building that the store is situated in. These features also advocate sustainability, due to the reuse and potentially upcycling of existing architectural elements and installations.

Collaboration and Communication:

Experienced designers tend to have longstanding and trusted relationships with various suppliers who they can consult with to explore cost-effective alternatives and to negotiate prices. However, communication with the client is also essential in this process, to ensure that they understand and buy into the options and the thought processes at all stages of the project.

Utilising the latest technology:

Technology plays a crucial role in value engineering by enabling efficient analysis, cost optimization, and innovative solutions through tools such as 3D modelling, BIM, and data analytics. We are increasingly providing surveys for clients utilising technology from Matterport. This technology enables us to meet with clients either face-to-face or virtually and walk the prospective sites prior to feasibility stage, and discuss their potential and their challenges with absolute clarity. This ability to easily share with the wider client team means quicker buy-in and efficiency in formalising the final brief, thus adding value to the collaborative process. Furthermore, it allows for the seamless integration into our architecture software such as BIM and CAD for total accuracy and efficiency. This information can then also be shared across other disciplines within our business, external consultants and contractors, to ensure synergy, save time and to negate costly risk of error.

To conclude, the best interiors feel authentic and enjoyable to be in. The design of these does not have to be overly decorative or try to be too clever. People appreciate sustainability, authenticity and brand storytelling above costly components that lack integrity, and this is something that should be the driving force of any value engineering going forward.

The Build to Rent Boom

According to research conducted by Knight Frank, one of the world’s leading independent real estate consultancies, investment in the UK’s Build to Rent (BTR) surpassed £5 billion for the first time in 2024, and is the fifth consecutive record year for investment. The full year figure stands at £5.2 billion, up 11% on 2023. What this demonstrates is the continued confidence from investors in the sector and that the UK remains an attractive market for global capital, with Knight Frank disclosing that there was a 51% year-on-year increase in cross-border spend in 2024. We look more closely at the factors contributing to this growth and any challenges to overcome.

What is driving the demand

This boom in the BTR sector has been sparked by various factors, but is being propelled largely by the changing attitudes of professionals, who now see renting as a more long-term solution to their housing needs, as affordability challenges make home ownership increasingly unattainable for many of them.

Then there is the fact that BTR projects are purpose-built for long-term renting, and are modern and energy-efficient and often feature desirable amenities such as on-site gyms, laundrettes and shared spaces for socialising. BTR developments also tend to offer on-site management and maintenance, to help provide peace of mind and a more seamless and community-driven living experience. These make them a very attractive and possibly more secure alternative to what is offered by some private landlords.

Diverse housing options

More than 22,300 new BTR homes were completed in 2024, and encompassed co-living, multi-family and single-family housing, which now stands at over 126,000 homes, and is up by 21% year-on-year. A further 57,400 homes are currently under construction and 106,500 have full planning permission granted, taking the total size of the sector to 290,000 homes.

Growth in regional markets

Importantly, the supply also continues to grow in regional markets, with 68% of completions in 2024 outside of London, and being led by Manchester and Birmingham. The North West region accounted for 16% of completions, followed by the South East and the West Midlands. Scotland accounted for 10% of delivery in 2024.

Challenges to overcome

For those not in a specific middle- and higher-income bracket, affordability is likely to be an issue, which might deter them from considering BTR living. However, an increase in options for middle- and low-income renters, such as providing more limited amenities and making the accommodation more basic could be a solution to make it more affordable.

While planning restrictions might also have been an issue in the past, the new government is looking to prioritise tackling the current housing shortage and planning reforms are underway to potentially unlock opportunities.

What the future holds

BTR is transforming the UK rental market and is redefining what renting can look like in today’s housing landscape. If the current growth trend continues, it will become an essential element of modern society in the UK, helping to respond to current housing demands and setting a foundation for future developments.

With investment potential estimated at £100 billion, BTR will expand beyond major cities to regional hubs and ‘commuter locations’ such as Milton Keynes, Bedford and others. This will maintain demand and opportunities for developers and construction service providers, as the appeal of BTR increases for a growing population in the UK.

We can also expect to see BTR developments integrate more and more sustainable practices, considered and energy-efficient designs and the incorporation of smart home technology. These are set to make them very attractive to the renters of the future.

At the rpa:group, we have been working with our retail clients to explore BTR housing above their stores or on unused land. This is an opportunity to utilise brownfield sites, by making better use of potentially dead space above stores and turning these into much needed affordable homes. Many of our clients’ sites are in prime locations with accessible transport links, reducing commuting times and reliance on cars and therefore making potential residential development attractive to professional renters from the onset. On a social and economic level, BTR not only eases the housing shortage, but would also bring people back into town and city centres, revitalising deteriorating high streets.

About the rpa:group

With over 40 years of experience in the built environment, our team of experienced Chartered Architects, CIAT Technicians, Quantity Surveyors and Specialists are best placed to help with your next BTR scheme. We will ensure that any proposal made meets stringent planning and building regulations, offering peace of mind at every stage of the project life cycle.

As a multi-disciplinary practice, we offer a range of services, including initial feasibility and viability studies, technical packages to completion, supported by our experienced Design, Architecture, Project Management team.

If you would like our help or would like to know more, please contact Christine Lee RIBA Senior Architect on c.lee@therpagroup.com.

value and values…

The speed at which retail theory evolves has meant that the language and terms we use quickly become overused, obsolete and obfusticated. This means goodbye to ‘experiences’, ‘omnichannel’ and ‘phygital’ and our associations with them. This also reduces our ability to clearly define our brief and brand expectations. However, there is some enduring retail language worth investigating further, to gain a more insightful view of how we might approach this evolution.

Let’s consider ‘value / values’ as a persistent term, associated with retail…

A brand’s value could be said to refer to its customer’s relationship to the product or service and the financial worth attributed to it. As this is calculated on investment in marketing versus uplift, and is exclusive of cost and margin it is sufficient to measure Return on Investment. However it begs the question: Where is the longevity in the relationship? In this sense, Value is subjective and reliant wholly on a brand’s marketing skills to establish and maintain this. The ‘storytelling’ is unilateral, non-interactive and lacks true engagement. We experience this historically in the cosmetics industry, witnessing a pot of cold-cream, increasingly miniaturized, slathered with impenetrable pseudo-scientific jargon and afforded an exorbitant price tag related to perception, but not necessarily performance. Brand loyalty in this case is garnered only by the psychology of limitation and the need for ‘the latest’, not necessarily ‘the best’.

A brand’s Values however, when carefully considered and delivered, can significantly alter this dynamic. Values are inherent components of the human individual that govern selection in most things. They are subconscious and can be subjective, but share commonality that is regardless of gender, race and social background. If you are able to appeal to the fundamental psychological level of shared human values, empathy is generated, inclusivity prevails and lasting engagement is the result. Let’s not forget that humans process their relationships with brands, with the same part of the brain that they use to generate and evaluate friendships and social bonds. If brands and designers engage with and stimulate this process in the same way, through generating genuine empathy and understanding, a lasting retention of the brand experience is created. It results in authentic engagement, and trust – friendship in other words.

So, the ultimate question no doubt is how do designers appeal to these values? Reflecting on the time-poor nature of many consumers, the brand message needs to be focused both on individual relevance and wider cultural inclusion. Generosity, inclusivity and wellbeing are just three arenas in which we to battle for the hearts and minds of customers. We see brand generosity increasingly reflected in conversion of prime retail space, into complimentary service areas. L’Occitane and Lululemon, both on London’s premium Regent Street estate, dedicate their first floors to a focused extension of the main brand. Make no mistake, these are conceptually indulgent, committed, beautifully designed environments, devoid of direct sales and suggesting a wider world beyond the brand. Inclusivity and empathy with alternative social and cultural sectors generates that fundamental feel-good factor, especially alongside the feelings of indulgence during purchasing. US online retailer Zappos understands this and parallel with their retail website has a compelling, but most importantly, easily realised methodology of donating used goods. The customer simply prints and attaches their own label to a box of donations and drops them in the post. Domestic and foreign charities benefit, and allow selection of specific destinations. Physical ease and altruism are a winning formula

Wellbeing and social conscience continue to be enduringly historic on the high street. Arguably, Anita Roddick began to extol the virtues of brand Values with the first UK Body Shops in the late ‘seventies, infusing the brand with ethical sourcing and moral leadership. That trend extended to physical health over a decade ago with Innocent Smoothies 5 for 5 cafes, aiming to serve 5,000 people their 5-a-day for a fiver. We now see slowly increasing focus on mental wellbeing, with active wear brand Ivy Park consulting mental health charity MIND, to help positively empower women by increasing self-esteem. Similarly Boots is focusing on positive engagement with teens regarding their mental and physical wellbeing.

How do designers initiate this process with clients? It all leads back to Values. We need to remember that our clients are human too. Engagement and empathy with their brand aspirations is just as important as translating it for their customer. Understanding the traditional ‘goods-for-money’ transaction is dead. We need to embrace the fact that information is the new currency and investing in understanding any customer or client, taking time to listen and empathise is going to give us a return on experience.

essential retail design trends for 2019 that can’t be ignored

01. UNDERSTANDING THE FREQUENCY OF CHANGE

The speed at which things change visually with shopping websites and the constant advancements in technology, mean that customers have come to expect the same frequency of change in physical stores. This means that with the exception of grocery stores, (where customers want and expect familiarity), “Bricks and mortar” retailers need to allow for the customer journey and experience to be refreshed regularly. Because, when it comes to retail environments, flexibility drives engagement so there is a very real need to create environments that are easily adaptable. This means that the displays, the spaces around them and how these are used, is more important than ever.

02. ENCOMPASSING THE RETAILER HIERARCHY

It is during the design process that the need for flexibility first needs to be considered, and it is both the designers and the manufactures who need to fully understand what the retailer motivations are. There is essentially a hierarchy of needs to be taken into account. These are: delivering engagement, experience, flexibility, convenience and using quality materials that are fit for purpose, all of which when implemented collaboratively, will generate well designed, flexible and engaging retail environments.

03. CREATING BOTH EXPERIENTIAL AND SENSORY ENVIRONMENTS

Store design must support experiential and personal environments, that resonate with each consumer on an individual level. We are sensory creatures and sight, sound, touch, taste and smell when utilised synchronistically, deliver an engaging sensory experience that naturally leads to empathy. This in turn creates longevity of a relationship with a brand. In other words, stores need to be created to “sell from the inside, as well as the outside”.

04. ADAPTING TO SHRINKING SELLING SPACES

With many physical retailers continuing to pay premium rents, stores need to be designed to allow for the maximum use of space and purpose. With customer perspectives of physical space in stores also changing, selling space is morphing into experiential space – and the proportions of purely sales versus engagement space, needs to be adapted as such.

05. ENABLING THE CHANGING FUNCTIONALITY OF STORES

We are seeing stores becoming show-rooms and distribution centres, as well as conventional purchasing platforms. Offering fulfilment services such as “click and collect” is increasingly important and innovative physical retailers are merging online and offline experiences with the offer of convenience and ease of access. Here, customers can choose how much they wish to engage with the store. They can obtain product information directly from knowledgeable staff members face-to-face, (something online shopping cannot provide), or simply pick up a pre-ordered online purchase from a locker, while passing by.

06. TRANSITIONING THE ONLINE TO PHYSICAL ENVIRONMENTS

An increasing number of online retailers are opening physical stores. The function of these are not necessarily to buy product, but to provide an all important physical interaction with the brand, offer customers product trials and the opportunity to acquire product knowledge from informed brand representatives. This strengthens the customer relationship with the brand but for this to truly work, the design and fixtures need to bridge the gap between the online and physical stores – creating an easily identifiable synchronicity of themes and colours that are inherently recognisable within both the online and the physical stores.

07. EMBRACING TECHNOLOGY TO DELIVER ENGAGEMENT

Technology used accurately, will continue to go a long way to deliver engagement. The use of touch screens, in-store tablets, virtual reality and devices such as smart mirrors, are all helping to deliver this. Mobile usage continues to grow and retailers are increasingly seeking to capture the attention of customers in-store by utilising tools such as iBeacon technology, to “push” information specific to them. Some brands are opting for portable tech, which continues to create opportunities for brand interaction, even when the customer is no longer in the store. Tommy Hilfiger, for example, is using smart tags in their clothing, that the customer chooses to activate. These then track how often and where the item is being worn, rewarding the wearer accordingly.

08. RECOGNISING THE IMPORTANCE OF SERVICE DESIGN

If anything, good service interactions are as critical as well-designed environments and also need to be “designed” to form part of the entire store experience. Training and support is becoming increasingly essential, to ensure that staff have the brand and product knowledge that allows them to be a key part of the delivery of the full sensory experience to shoppers.

evolving retail: why retail brands are moving from traditional retail spaces

We will see physical shopping undergo a dramatic transformation and in the next few years, it could morph into an activity that is driven almost entirely by experiences and interactive technology. Stores will become places where customers get to try things on, or test and interact with products in person but don’t actually buy anything at the time, opting instead for the convenience of delivery of their purchases at a time and place that suits them. So, if shopping is becoming all about the experience, then for some retailers, there is a need to adapt their stores, in some instances even extending their presence beyond them, in order to deliver a truly immersive and flexible experience to their customers.

Pop-ups have been around for a while now and won’t be going anywhere fast, because how better to offer flexible and immediate engagement with prospective customers? We see pop-ups within larger “host” stores and within shopping malls, but what about within transport hubs, gallery spaces, markets and at events? The beauty of the pop-up is that intrinsically the essence of it is temporary, providing intrigue and a sense of urgency that will entice customers, who by the very nature of being human, do not want to “miss out”. Benefit Cosmetics recently devised a novel way to boost brand experience, by opening the world’s first “Beauty and Brows Popup Shop” close to the Glastonbury festival. The drive-thru format enticed festival-goers stuck in crowds and traffic, to meet beauticians and shop assistants, who provided them with advice and goodie bags.

A step beyond a pop-up, is offering mobile shops, that actually take the brand to customers – something we think we will be seeing more of. An excellent example of this is Casper, a USA mattress firm, who has rolled out “napmobiles”, where potential customers can road-test foam mattresses inside a refurbished camper van, before electing to purchase online. However, retailers don’t all need to be mobile or have a pop-up to offer immersive retail experiences to their customers. As long as they can delight and engage and leave a lasting resonance, then brand loyalty will be formed and retained.

The Museum of Ice Cream is a great example of this. Being neither a museum nor a shop, it sells tickets to a series of garishly coloured installations in New York, Los Angeles and San Francisco. Once inside, the very essence of the joy associated with ice-cream is morphed into an experiential interaction, as visitors find themselves immersed in a theme-park type of experience, with engaging things to do rather than buy – such as a giant pool of sugar sprinkles to jump into, an ice-cream themed climbing wall and a giant banana swing.

In the UK, a pioneering social enterprise called Meanwhile Space has forged a series of ground breaking partnerships with local authorities, public bodies and companies to utilise vacant and unconventional spaces, such as disused office blocks and vacant railway arches, turning them into retail and hospitality spaces. Similar to Box Park, Blue House Yard is one such example, and is a redevelopment and re-imagining of an empty and underused site near Wood Green station, that today offers the local community a bustling mix of retail, hospitality and social spaces, creating local interest and breathing new life into a dying area.

The House of Vans in London is another thriving location and one where art, music, BMX, street culture and fashion converge. The 30,000 square feet building encompasses a cinema, café, live music venue and art gallery, while the bottom floor holds a concrete ramp, mini ramp and street course. Designed by skaters, the park is free to use and customers are encouraged to walk in on the day. What The House of Vans has very cleverly done, is create a space that epitomises its brand identity, by creating a fully interactive and experiential space where young people can shop and socialise.

Whatever the space, retailers need to ensure that they offer quality, as well as originality, creating a point of difference from competitors. In the same way, customers have also come to expect the unexpected, and providing this will help deliver a key point of difference and form an all important lasting impression.

Seismic changes can help secure retail’s future…

With so much happening, so quickly, in the world of retail we thought it was high time to delve deeper into the seismic changes affecting our industry, what they really mean for bricks and mortar retailers and how they can be leveraged to improve the future of retail, both for brands and customers. So, in October we held our first ‘Retail Indaba’, staged in Amsterdam, which met with a very positive response from some of the world’s leading retail brands.

Based on a Zulu word, literally describing a gathering for discussion, our ‘Indaba’ was designed to provide an opportunity for brand owners to put some tough questions to both rpa:group and its partners. To this end we selected an expert panel that included a retail psychologist, our own head of design James Breaks and a technology specialist, all under the watchfull eye of Matthew Valentine, the Editor of Retail Design World, who acted as Chairman.

Our overall aim for the Indaba was to stimulate discussion that could be taken back to boardrooms to inform strategies that would drive positive real life applications. It soon became clear that attendees were grappling with some big issues, ranging from ‘omnichannel’ to AI, and that for some these represented untold opportunities whilst for others they represented challenges that must be met head on. We were delighted not only with the willingness of attendees to share experiences and talk frankly about their business challenges, but also with the challenging questions this led to such as, ”How do we ACTUALLY make fundamental changes within big business?” I think we all agreed that change now typifies retail. In the last ten years the humble high street store, still the preferred destination for 85% of shoppers, has gone through more changes than in the past one hundred.

Now a union of online and bricks and mortar, the once simple store is now an immersive brand theatre, incorporating a glorious cocktail of showrooming, digital entertainment and ‘sharable’ experiences. To deal with this change however requires not just a new mind set from retailers but also a new skill set, one that goes far beyond the old transactional paradigm. There was a general feeling from attendees that the Indaba broke new ground for them and that working collaboratively with our expert panel provided the strategy and insight to help them come to terms with some of the tricky issues that can affect all aspects of their brand identity.

“Knowing the unknowns” has become a constituent part of 21st Century problem solving and our Indaba addressed plenty of unknowns presented by the audience. For many attendees, it signposted a way to investigate complex areas such as brand development, retail design and store function. Above all the event illustrated how a team of experts, all from different disciplines, can address retail challenges in real time, delivering insight and strategy into how brands can interface with their customers.

If you would like our help with your next project, please contact us on 01784 256 579 or send an email to s.cuff@therpagroup.com

What politicians could learn from retailers…

In sharp contrast, the fast-paced retail industry welcomes the competition that makes it focus on brand building and customer delivery. The old adage that customers vote with their feet is never far from mind, and every retailer knows their success depends on securing a ‘vote’ for their brand 365 days a year. If one compares the general management style of our politicians to the world of retail there are some interesting comparisons to be made. First of all, retailers are campaigning all the time. Their media and marketing machines, design, research and development departments and customer insight experts never stand down or drop their guard. They know that you are only as good as your last customer interaction.

By comparison, political parties market themselves every few years at local or general elections. Polls happen all the time of course, but they reach their apogee over a few weeks of electioneering. One could argue that the typical voter, is most receptive at those moments when they will either ‘buy’ one political brand or another. As a consequence politicians know their voters far less than retailers know their customers. As retail designers we make sure that customer insight lies at the bedrock of a retail brand’s existence. If you can’t deliver to consumers the products they want, in an environment where they want to shop, with a great customer experience, then you will fail. Brands have no mandate that will last them until the next election. Their values, their manifesto if you like, are based on an understanding of the desires and needs of customers.

I cannot think of an example in the retail industry where a CEO (Theresa May) and two managing directors (personal advisors) have conducted a strategy that ignores the company’s entire management team (the cabinet) and ultimately the company’s customer base (the electorate). Somebody pointed out that May had been too ‘presidential’ in her campaign and insufficiently ‘collegiate’. As all those who work in retail know, a ‘collegiate’ management style – working as a team, and putting the customer at the heart of all you do – is the template for success. We also saw social media, particularly Facebook, used by the Conservatives and Labour in very different ways. The Tories ran a campaign where hundreds of different messages could be delivered at a granular level, targeting people down to their postal code. Campaign content amounted to little more than blunt character assassination. On the other hand, Labour engaged with the battle weary electorate by using positive imagery and messaging.

Of course, the retail industry is no stranger to social media and spends millions on sophisticated personal profiling and targeting, but I cannot imagine a situation where one leading brand would run an ad telling you how bad a competitor’s products are. Sadly, in the UK we have almost arrived at a Hobson’s Choice and something is needed to sharpen and energise Westminster. Perhaps taking a closer look at the retail sector and how it engages with customers might improve the thinking of parties and what they deliver to all of us?

retailers need to be more “chameleon”

The answer appears to be no. Many retailers are embracing omni-channel in a token way. All too often the mindset is bricks and mortar + online + the brand, frequently the missing ingredient of ‘us’ the consumer. Retailers should act more like one of nature’s triumphs: the Chameleon. This fascinating animal is seamlessly and constantly responsive to its local environment and adapts to external factors in an incredibly agile way. It is one of nature’s most flexible and responsive creatures. Omni-channel requires a more flexible and Chameleon-like response to the consumer and the crucible for this interaction is the store space itself. The physical shop should be every bit as flexible as its digital counterpart and both should be mutually relevant to the consumer. Brands need to understand the relationship between physicaland digital experience better and allow themselves time to experiment, innovate and find what is right retailers need to be more “chameleon” In a world obsessed with separation it’s refreshing that retail at least supports an ecosystem fuelled by inclusivity and interaction.

I am of course referring to omni-channel. Here, borders cannot be closed, evolution cannot be halted and output should signpost the desires of future generations. But I have to ask, do retailers really understand how to fully exploit this dynamic ecosystem? within their own ecosystem so they can be flexible and responsive. Apple demonstrated this in 2001. The brand introduced collaborative side-by-side selling with passionate, knowledgeable staff who could respond to customers’ needs, demands and preferences. In essence the brand had created its own customer laboratory, a test bed where customer experience could be placed under the microscope. Since then we’ve seen most other retail sectors adopt the same key concepts. In a word, to be more Chameleon-like. But how many retailers have a store that allows for speedy reconfiguration in response to what shoppers actually want in that particular country, city or specific locality? Some have used a kit of parts approach whereby a new look store can ‘pop up’ through clever used of graphics and modular elements.

Foot Locker’s Sidestep brand, for example, is agile, collaborative, and happy to bury its ego. At the same time, it is able to reflect its core message, react with authenticity and evolve naturally within a unique brand ecosystem. Sidestep has created an engaging environment using storytelling, an ancient and universal form of immersion, as a base concept. The ‘style editor’ staff form an integral part of the experience by garnering feedback. This has allowed Foot Locker to experiment with content, adding and subtracting collateral and gaining feedback from the fiercely loyal customer base before committing to permanent stores. True brand immersion relies on authentic storytelling, skillful editing and the sharing of brand essence. It can be used both to reinforce the brand and to evolve it.

If you get the formula right it can be just as powerful in a Pop-up as a flagship. The only caveat is that the message has to be genuine. Some are getting it right and have understood the Chameleon concept totally, while others’ lack of adaptability and customer sensitivity makes them stick out like a sore thumb. Wherever you find yourself, the end goal should be to use your store as a learning environment, to reflect your customer’s thinking and desires and, most importantly, to be flexible and responsive with the knowledge you have gained. Being a Chameleon doesn’t mean losing sight of your brand truths. It means being able to reflect the thinking of your customers in the appearance and functionality of your store.

the perfect store is the result of a ‘right’ brain ‘left’ brain balance…

Store design and brand thinking has gone astray for many retail brands and it seems that stores are either being too creative or too analytical and are missing out on a blend or balance of the two. The most successful stores achieve a balance of the two hemispheres.

Former Burberry CEO (now at Apple) Angela Arendhts rather tellingly pointed out that Burberry cherished both the right and left-brain, but more importantly relished thinking that was a union of both. Her current partnership with Apple’s design guru Jonathan Ive is already revitalising the look of its stores and taking the brand into new territory that fits a changing product base. The store in Belgium, for example, is filled with trees and boasts huge glass walls, doubtless very creative. However, it is bringing the outside world into the store, thereby underlining the unquestioned mobility and freedom of Apple’s products, which shows the logical left-brain at work.

It’s a big statement that is ‘on brand’ and the result of both hemispheres working together. Achieving this balance is easier than you may think. It simply requires designers to understand more about how consumers think and behave. This is easily achieved if designers work with retail marketers, psychologists and digital specialists to address a store’s ‘big picture’, thereby enabling the space to deliver everything the customer wants. Increasingly, this means understanding the basics of what makes shoppers ‘tick’. A retail psychologist, for example, will be able to tell you that your fate is sealed in just 1,000th of a second, as that is how long it takes for people to get their first impression of your store. And a digital expert will tell you that IT ‘bells and whistles’ should not be too prominently on display, but available and on demand and strategically placed. What will change the fortunes of flagging brands on the high street is the creation of a team where both left and right brains are given an equal shout, a team that decides the retail destiny of the brand. I think that more collaboration in this style will throw up some unexpected and enviably successful retail projects.

pop-up comes of age

The Telegraph revealed recently that almost a third of new businesses launched in the UK over the next two years will start life as a pop-up and reminded us that UK burger chain Meatliquor, now valued at £20m, started life in various car parks and vacant lots with just a van and a Twitter account. Like most successful brands, they happened to hit the zeitgeist but their success is not just inspiring a new generation of entrepreneurs, it is also putting some fire in the belly of more established brands who are also hoping to catch the wave.

The line between pop-ups and traditional retail has all but disappeared and yesterday’s transient and sassy retail concept has now become a central plank in the strategy of the biggest brand names. The benefits are obvious, pop-up stores, by their temporary nature, have a novelty value and are often seen as an edgy accompaniment to the main brand or as an attempt to ‘reach out’ to the customer. They also provide a good venue to break new ideas and products and remain flavour of the month with the press.
One established global brand that has used the concept to great effect is Foot Locker, which employed a pop-up strategy to evolve and define their Sidestep brand. Sidestep launched three pop-ups in Europe, made from a ‘kit of parts’ that could be re-jigged to suit customer preferences, a fine tuning strategy that allowed the store to act as a retail lab, in which design and presentation could be changed to suit customer behaviours and needs.

Foot Locker followed on from this activity by building the same flexibility into their new Runners Point stores across Europe. Pop-up is now a profitable vehicle for bringing innovative retail experiences to life, and the names we see popping up around us are getting bigger. With brands like Foot Locker, Marc Jacobs, Louis Vuitton and Nokia investing in the trend, we are perhaps only at the beginning of the pop-up revolution.

generation z – connecting with ‘Screenagers’ before its too late

And yet surprisingly, Gen Z is still seen as no more than a small blip on the radar for most high street brands, which seems crazy as they are the world’s fastest growing consumer group and currently make up 25% of the UK population. Gen Z has massive spending power, will soon represent 40% of consumers and by 2020 will make up 40% of the population in the world’s biggest markets, including the USA, Europe, China, India, Brazil and Russia.

How can retail connect with this important, marketing aware group that literally represents its future? Firstly, there are a few things that need to be understood and challenges that must be faced. Gen Z has been targeted by advertising from birth and has an aversion to being treated as just another another ‘sale’? JWT’s research stresses the point that any brand producing even a hint of self-interest or cynical behavior will be quickly found out, and for that reason we will have to design stores that not only fulfill their desires, but also meet their expectations. Retail destinations will not only have to provide ‘theatre’ but also a welcoming and honest interaction with the brand. Above all, we must remember that Gen Z wants to enjoy the retail stage but isn’t in the market for huge amounts of brand ‘fiction’ or storytelling. Obviously, retail needs to get on the wavelength of this age group right now and evolve stores accordingly.

Perhaps it’s a matter of evolution rather than revolution? For example, we should possibly be seeing the tired old free phone charging point and low end computer for customer use, currently tucked away at the back of the store, become genuine ‘Dialogue points’, where conversations with the brand can be initiated Maybe, shops should have chill zones where Gen Z can sign in with a thumb-print, the ultimate unique identity badge, to get personalized bargains and enjoy the kudos of being part of a brand fraternity.

Gen Z’ers would be happy to work with designers on what tomorrow’s stores should look like, they are natural ‘collaborators’ and ‘doers’, so why not enlist their help? Retailers should be exploiting that collaborative characteristic right now, so they can build shops that Gen Z will truly value.

if you’re not paying for the product, you are the product

Personalisation is now widely regarded as a way for “bricks” retailers to offer customers a seamless experience between the digital and physical worlds. However, brands need to be aware that we need to feel comfortable with how things are marketed to us.

Recent research illustrates that British shoppers are embracing technology: 14% of us would use cameras in fitting rooms to share with friends via apps or social media, 22% are interested in on screen offers in fitting rooms and 40% of us want to check if a products is available in-store via an app. But all of these things are baby steps and as easy for the average shopper to accept, as contactless payments or click and collect.

The really big stuff is just around the corner with brands planning to get ‘closer’ to us through improved personalisation. Some developments currently being mooted have the ring of science fiction about them, for example fashion and accessories that can ‘read’ emotions as we journey around a store, enabling the shop to suggest purchases or activities in line with our moods. Perhaps a calming massage on the fifth floor or a hot beverage in the basement?

This makes me question whether the store is coming too far into our personal space. Is it all a bit creepy? After all, what we all want, is to feel that our relationship with a brand is on tap – a conversation that we can start if we want to and more importantly switch off when we feel like being alone.

Accenture’s Technology Lab has a word for the creepiness that many of us feel, it’s ‘hyper-personalisation’, a devastatingly accurate data cocktail leading to a level of consumer understanding that would shock most of us. It seems as if personalisation is about to cross a marketing Rubicon into territory where progress is not answering consumer demand but is progress for its own sake. Maybe it’s time to let the consumer catch up?

britishness…

For millions across the globe ‘Britishness’ is a significant part of the authenticity of the brand they choose to buy. It can mean everything from the heritage and cut of a Savile Row suit, to the embossed Connelly leather of an Aston Martin. Fundamentally, ‘Britishness’ has become an iconic, hard to define quality, and those brands that embody it, and succeed in turning it to their best advantage, truly stand out in the international marketplace.

We asked a straw poll of consumers what exactly ‘Britishness’ meant to them. Many said that it meant craft and quality; a sense of understated sophistication. Others expressed the fact that it is traditional, yet modern. A surprising number highlighted practicality, something well made that can be depended upon, and others said it was a creative ‘spark’ that made something unique. Asked to define the quality of ‘Britishness’ through their own choice of products, manufacturers or designers, responses ranged from The Mini, to the Rolls Royce, from Burberry raincoats to Alexander McQueen’s skull prints, and from Stella McCartney’s fashion brand to Oliver Sweeney’s funky yet traditional shoes.

All have managed to infuse their brands with a ‘Britishness’ requiring not only marketing expertise, but a ‘brand story’ that is rich in association. For Aston Martin it is the 50 year link to James Bond, whilst for Savile Row it is the sartorial image of English gentlemen ranging from Prime Ministers to Princes. Whether the brand story is rooted in nostalgia or a unique vision of the future, if it is authentic and can amplify the right elements it will succeed; but only if it’s delivered in the right way. This type of storytelling is how brands need to connect with the hearts and minds of today’s consumer.

adapt or become obsolete…

British Land has made a statement recently, to coincide with the announcement of its yearly results, that acknowledges that retailers, and therefore landlords, must adapt to the rise of digital shopping or become obsolete.

The company owns and manages over £16.4 billion of UK properties making it one of the largest listed managers of property in Europe with a portfolio focused primarily on high quality UK retail locations. It sees that stores will remain central to UK retail in a world increasingly dominated by online shopping, but warns that physical and digital shopping must be integrated, with stores becoming showrooms, as well as pick-up and return points.

Reporting a fall in full-year profits, British Land said its UK retail business had been hit by the “twin challenges” of lower consumer spending and the growth of online sales and that it was now key for both retailers and landlords to adapt to the changing way that people shop: rational (purpose-led) and emotional (experience-led). We all know that the internet lies at the heart of these changes, not only because of the immediacy of being able to buy online, but also because of the way it enables consumers to compare prices and quality, share their opinions and shape the development of new products and services. The line between online and physical sales is getting increasingly blurred with the majority of sales more likely to have some sort of digital aspect.

From now on British Land will be expanding its digital platform and exploiting technological innovations for the benefit of both retailer tenants and consumers. The company cites a recently-struck long-term partnership with BT to introduce free Wi-Fi to all its shopping centres and extend Wi-Fi across retail parks as a first step. It’s good to see that enlightened landlords are coming to accept that it is vitally important to have the right assets, the right approach and an ability to adapt to a fast-changing retail environment and all the challenges that it brings.

all change at apple

After all, every so often, a company changes our lives, not just with its products, but with its ethos and there’s no doubt that Apple is very much the poster child of the marketing community right now. It’s worth taking a moment to consider the revolution that the brand has brought about in customer service and store design. After all, brands like this change our behaviour: how we buy, how we communicate with each other, even whether we speak with each other. Currently the biggest brand in the world, Apple has reinvented stores and created a genuinely new experience for shoppers, attracting more than a billion shoppers since the stores launched in 2001 and driving US profits of $3million per store, per quarter. Apple’s stores are designed in a very specific way, featuring large, “kitchen style” tables, which allow customers to trial as many products as they like and get to know how they work. So successful has the design been that it has been copied (illegally) in China with fake Apple stores and also adapted by Samsung in Canada.

Store employees are trained to be experts in the products, meaning that no question is too big or too small. Apple also employs roving sellers who allow customers to pay through their iTunes account on an iPad, anywhere in the store. This removes the potential for large queues and makes the overall experience more personal. In addition, it is another opportunity to showcase what the technology can do. Now Apple is hiring Angela Ahrendts, who was until today the CEO of Burberry. She is a ground-breaking thinker, having overseen a very successful revolution of the Burberry brand. At Apple she will lead the retail and online stores effort and be responsible for the strategic direction, expansion and operations, which will further enrich the consumer experience on and offline. So are we to expect a revolution at Apple?

Angela is the second fashion CEO Apple has poached in a matter of months. Paul Deneve, former CEO and President of Yves-Saint Laurent, was hired back in July. At the time, there was much speculation as to why Deneve, who led YSL’s retail expansion, was not joining to spearhead Apple’s retail efforts, but rather as a vice president in charge of “special projects.” Apple followed up Deneve with the August hire of Enrique Atienza, a senior vice president at Levi’s, who now leads Apple’s US retail efforts. Apple says it is thrilled that they have the ex-Burberry boss on board as she shares their passion for innovation and customer experience. It will be interesting to see what ideas the ex-fashion industry ‘big guns’ will graft onto the Apple tree.

Clearly there is a very clear agenda for how Apple conducts its business, so much so that books have even been written about ‘The Apple Way’. Maybe we are to see an expansion of the brand into related areas? Fashion? Accessories? With a brand this strong it could almost be all things to all men, thanks to the commonly held belief that what underpins most purchases are the twin concepts of trust and respect for a brand – Apple of course has these by the shedload. So, with huge monetary success and an almost evangelistic customer base, where will the triumvirate lead the brand? We predict product range extensions and a morphing of the physical Apple store into something hugely exciting and truly unique. Let’s wait and see…..

a load of old crystal balls?

Apparently, Argos shoppers are in for an in store treat soon when they will be offered the chance to shop via an interactive crystal glass ball.

The retailer claims that the ball will measure body temperature and moisture to assess stress levels and then using unique ‘destiny’ algorithms it will read the customer’s mind! Once the crystal ball has calculated what product the customer desires it sends an order to staff in the stockroom who will prepare the product. The plans follow Amazon’s move, revealed in January, to send packages to customers before they have ordered them using predictive demand analytics! The technology has been developed in its Future Purchasing Lightbulb Eureka lab, located in a converted warehouse off the Silicon Roundabout in Shoreditch.

Argos chief digital fortune teller and innovative innovator of technological solutions April Day said: “It’s going to transform the way retailers react to customer needs, customers won’t want to waste energy making up their minds on what type of ear phones or food processor they buy next, they can just use the crystal ball to tell them what they need.” Argos plans to trial the technology in a handful of stores before rolling it out. Spoof or not one thing in this story sounds really good – the Eureka Lab – more companies should have one!

brand new friend?

More than half of the respondents said they would be “devastated” if their favorite brand went away. Not just annoyed or disappointed, but actually devastated. It’s interesting to think about what a brand is doing to develop such a deep and meaningful relationship with its consumer. Results like these are obviously nectar to the brands that would be sorely missed, but for every cherished brand there is a host of others that would love to be our best friend, but just don’t know how to go about it.

Currently, the retail world is undergoing a fundamental transformation: consumers are hyper-connected, expectations are sky-high, marketing fatigue is just another pop up ad away. The connected consumer can be fickle, treats your store like a showroom, and, thanks to social media, pays more attention to a friend’s experiences than to your promotional gambits. It’s no surprise then that traditional business models are rapidly becoming extinct, and that the relationship between retailers and consumers is shifting dramatically not day by day, but minute by minute. So, how can retailers understand, let alone keep up with this pace? Simple, they are turning to experts in other fields to help them out. One thing that is being considered is Neurological Connectivity – creating an addictive, irresistible shopping experience, from pre-shopping anticipation to consumption. Experts have determined that a brand or store has a neurological connection with customers if they approach the store visit as they would a visit to the home of a good friend. The trip requires almost no perceivable effort, because they know it is going to be a fun and enjoyable experience.

Basically, using research in this way is all part of the Holy Grail of attracting and keeping customers and increasing brand loyalty. As the emotional connection stakes are raised I predict there will be even more talk in 2014 of retail brands as ‘friends’.

ASDA pull 3D bunny out of the retail hat!

Whilst it’s all well and good running a yoga studio, offering people the chance to have a cuppa and a pizza, have their blood pressure taken or book some winter sun; these are all a bit run of the mill when it comes to real customer attraction. What get’s people excited are the virtual changing rooms, the cat walk events, and of course the 3D printing! No it’s not a misprint…..ASDA has just pulled the bunny out of the in store entertainment hat and is trialling a 3D printing service in York, its biggest store. Customers can pop into a booth, have a 360 profile made of themselves, do their weekly shop and pop back later to collect their perfect 3D mini me – all for the princely sum of 40 quid.

Judging by feedback on the ASDA web site, customers are desperate for the service to roll-out into a store near them and ASDA is hinting that they intend the service to be nationwide. It would certainly save a lot of people a lot of money on petrol, as my kids are already pestering me to jump into the car and drive to York…250 miles away! Apparently anything can be scanned – including people, pets and even cars – and the models can be produced in full-colour, white or a bronze-style coating. The technology produces highly realistic ‘mini me’ figurines at whatever scale you like, but most people opt for the 8 inch version!

Asda has been working with parent Walmart for the past 18 months to make 3D printing possible for UK shoppers. To build the digital model, the whole surface area of the subject is scanned with special cameras in two minutes. The shape is then recreated in 3D by spraying ceramic fluid in thin layers to build a solid object. Mark Ibbotson, retail director at Asda said: “We are thrilled to be the first supermarket and best value retailer to offer this new shopping experience in the UK. Our customers are always looking for the next big innovation and 3D printing is a guaranteed talking point amongst friends and family this season. With limitless printing options available, we’re very excited to see how our customers will take advantage of this groundbreaking piece of technology.”

airport retail is ready for take-off…

There’s no doubt that we are seeing a massive expansion of the non-aviation side of the increasingly profitable airport business. Airports such as Heathrow, where there are 5 applicants for every retail space, have become the most sought-after retail locations in the world.

However, the experience of our interior architects and designers has shown that retailers are often challenged with the ‘square peg in a round hole’ scenario. Whereas shopping centres are bespoke, airport terminals can throw up awkward spaces, which need to be carefully designed to allow retailers to express their individual character and brand values. Airports like Gatwick are redeveloping space to optimise their retail offering and at the same time elevating expectations of what retailers need to achieve. Spencer Sheen, Head of Gatwick Retail, sums it up, “Passengers expect more from airport shopping, especially with what’s on offer in some of the airports in the Middle East and Asia. They want more choice, availability and diversity. Competition is really key for us; we want to be right up there with the likes of Westfield and Bluewater.”

However, whilst an airport presence is immensely attractive to a retailer, the trading environment is nothing like the high street. Customers are in a more ‘affluent’ state of mind at the airport, with spare money to treat themselves and their family. Plus, each shopper, around for just 60 or 70 minutes on average, comes with the expectation of an easy to navigate, exciting shopping environment. Our experience of working on 5 UK airports shows that even though shoppers may be a captive audience they still expect the hotel experience to start in the terminal itself. This means that, “No frills” retail just won’t fly!

As Spencer points out, passengers are now demanding more choice, availability and diversity, all topped off with an engaging experience. Waiting for a flight, with time to kill and money to spend, they want to be entertained. Which calls for even greater contributions and innovation from retailers, not only in product mix, but also in store design. Airports once criticized for their interchangeable retail formats, are always looking to raise their game and recruit ‘A’ list brands like John Lewis, Harrods and Selfridges to add to their retail mix, brands that are not yet represented at other airports, or which underpin the airport’s unique profile.

For the retailer a coveted airside store means increased online business and enhanced brand recognition with an international audience. With so much to gain, there is little doubt that airport retail will increasingly become ‘best in class’ for retail store design and customer delivery over the coming years.

a brit of luxury….

Until now that it is.

Britishness is definitely hip again and companies like Burberry are steaming ahead with spectacular growth revenues up nearly 30% last year, Mulberry profits are up over 300 % and even huge ticket item like Rollers are seeing huge growth with the luxury car company reporting 40% growth thanks to high demand in the emerging BRIC economies. Some of the smarter old wave Brit luxury brands are reinventing themselves nicely on the back of this new wave of cash and popularity. Barbour for example has collaborated with a series of very “now” designers such as the Japanese Tokihito Yoshida, and is in such demand that Anne Pitcher, managing director of Selfridges, says she “can scarcely keep it in stock”, so fast is it selling.

Whilst over at Barbour’s headquarters, figures confirm another success story – turnover has risen 20 per cent. Everywhere one turns, one sees Britishness being celebrated: Meryl Streep playing Margaret Thatcher, the cast of Downton Abbey feted like rock stars in the US, then of course there was the Diamond Jubilee and the Olympics. It’s interesting that sometimes it takes a foreigner to see what’s so great about being British. Ed Burstell, an American who is now managing director of the London department store Liberty, which has always leveraged Britishness as one of its great themes, is convinced something new is in the air. “I see many customers who want to own a piece of something British, and they’re willing to pay a premium price for it.” Changing tastes certainly seem to be running in Britain’s favour.

Throw in a bit of heritage and genuine quality and 2013 could be a great one for all that we do best.

nirantarta!

M&S’s Plan A broke-even long before its projected date, and by 2009-10 had added £50m worth of net benefit to the company. Smart companies have expanded their CSR and sustainability on many diverse levels, looking towards the horizons they operate within. With their green message driven home through media saturation the consumer is preached to daily. However, beyond the process of promotion and sales of goods or services, businesses generally remain disconnected from the communities they operate in. Localism remains a mystical notion to big-business in Europe. It is seen as a challenge – whether in urban communities that rally against the latest incursion by a coffee or supermarket chain or a European state refusing meat imports. Where ‘safe’ standardisation drives profits, addressing individuality is perceived as an expensive pursuit.

The diverse nature, of urban communities in particular, confuses perception exponentially. The recent nationwide riots saw great numbers of people contributing to the clean-up and restoration of areas damaged by their disenfranchised ‘neighbours’. On the other side of the world, in the emerging Indian market, the approach to localism is simpler but so much more relevant to the whole of the society.

In a report produced for Mumbai’s ‘Forum for the Future’, sustainability company Futerra reports Indian attitudes to green issues as being “filed firmly in the box labelled “nice to have – but non-essential”. Bucking the trend however, is a young company by the name of Abellon, an energy provider that seems to have identified the missing link within business models worldwide. Where M&S have defined a sustainability approach within the European market, Abellon have pushed further. Firmly establishing its global responsibility, amongst its business model headings, alongside Agrisciences, Bio-energies and Waste Management Policy is an intriguing heading: ‘Poornakumbha’.

Poornakumbha symbolically represents an ‘empty pot’, “ready to receive and collect all that a community has to give after having enriched and enhanced its riches multifold”. Its roots are based in Ghandian philosophy, spirituality and entrepreneurialism – phrases you will be hard pressed to find in European business strategy. At its most basic, Poornakumbha promotes empowerment of communities by sharing of
inherent intellectual and financial wealth of big-business. Poornakumbha provides education and tools to drive local initiatives such as ‘wealth from waste’ – a cradle-to-cradle process that encourages re-use of waste energy products. In a society that acknowledges such obvious social divisions of class and caste, Poornakumba represents an inclusive notion of sustainability and corporate social responsibility. Maybe this innovative business model offers a form of
engagement and community healing that the West may benefit from?