design:retail - July/August 2019 - 57

The Future of Retail in a Post-Digital World
By JENNY S. REBHOLZ

oug Stephens, founder of The Retail
Prophet, kicked off RetailX with a
keynote address that focused on the
future of retail. He took the captivated
audience on a tour of the evolving
landscape with his perspective and insight on
the sheer magnitude of change happening.
He highlighted the impact, profitability and power of Amazon
and Alibaba, and the escalation of
e-commerce. These are companies
with a tremendous amount of data
and with each acquisition, they are
learning more about consumers.
In his mind, Amazon's entrance
into the tough grocery market was
about data collection and that they
have leap frogged omnichannel
into omnipresence. "Amazon is a
data and tech company, not a retailer," Stephens told the audience.
"They have access to homes, hotels
and operating systems in vehicles."
This data collection speaks to
the future of retail as Amazon is
investigating anticipatory shopping. "At some junction, Amazon
believes it will have enough data
to ship us things before we order,
before you even know you want
it," Stephens said.

Stephens further shared how Walmart applied
for a patent for a completely automated store that
they will build into your home with functions such
as sensory-driven sales, and replenishment and
predictive inventory selection.
Augmented reality (AR), mixed reality and
artificial intelligence (AI) will all play a role in
the evolution and growth of the offline economy
which, while smaller now, will change by 2033.
Still, he does not believe physical stores will be
abandoned. While there is disruption happening,
the plays of Alibaba and Amazon into physical retail proves there is something more compelling to
these spaces.
"Everything about where, why and how we shop
is changing" Stephens said.
So, what is the purpose of a store in 2019? For
Stephens, the word "omnichannel" does not describe it. He believes something more complex
hopeful and optimistic is going on. "What we are
witnessing for the first time in history is media
becoming the store," Stephens described.
He referenced a Steve Jobs quote about design
being more than about look, rather more deeply
about how something works. And just like Apple,

Stephens believes the future of physical retail is
about changing the mechanics of the experience.
In the pursuit of the experience, he said stores
need to be less about inventory and more about
inspiration. They need to focus on building a community. Rather than the masses, it has to be about
personalization and customization.
"It's about breaking the rules. It's about doing
things differently and having the courage to defy
and take risks," Stephens said.
He referenced the successful reinvention of
the physical experience with examples such as
Nordstrom Local, a 3,000-sq.-ft. version of the
department store, and Camp's reinvention of
the toy store, with a secret door that leads to
an actual camp where kids can play with all of
the toys.
For Stephens, the future of the physical store
is about building fewer stores and more stories.
Brands have an option to be "super high fidelity" with a focus on the experience, emotion and
bond with the customer or a "super high utility"
approach that is the ultimate in convenience and
price. Stephens believes the in between space is
where brands will not survive.

design:retail - July/August 2019

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