‘We wanted to create a space where our customers can spend time relaxing and enjoying the world of Burberry in a more social environment.’
Former Burberry CEO Christopher Bailey8
Department stores are also upping their game in this area. Saks Fifth Avenue is planning to open a version of French eatery and celebrity magnet L’Avenue in its renovated flagship store, while competitor Neiman Marcus partnered with celebrity chef Matthew Kenney to open a vegan café in 2016. ‘In the past, the restaurants were developed to keep customers in the store longer and spend more’, said Marc Metrick, president of Saks Fifth Avenue. ‘Now restaurants are a way to attract people into store.’9
Looking beyond fashion now, we believe that incorporating food and drink experiences will also be a powerful tool (and logical extension) for supermarkets. Grocery retailers around the world should be taking inspiration from the likes of Eataly and Whole Foods Market, flexing their fresh credentials with food emporiums, cookery classes and grow-your-own initiatives. In China, online giants are redefining the physical supermarket for today’s modern shopper with tech-infused stores that place a strong emphasis on freshness and experience. For example, Alibaba’s Hema chain allows customers to select their own live seafood and have it prepared by instore chefs, while instore dining accounts for around half of rival JD.com’s 7Fresh supermarket’s sales.10
Meanwhile, in Italy, Co-op’s ‘store of the future’ features a restaurant that cooks only with their own-label products, reinforcing both quality and provenance. More upmarket supermarkets like Waitrose and Publix have long capitalized on their higher-end positioning and reputation for instore experience with cookery classes. Meanwhile, Germany-based Metro became the first retailer in Europe to implement instore farming and Whole Foods Market has experimented with rooftop greenhouses.
The Markt Halle concept from Real, also owned by Metro, is a fantastic example of how large hypermarkets and superstores can distance themselves from both their online and discounter rivals through a greater focus on fresh foods and hospitality. The aim of the store is to convey the atmosphere of a traditional market hall and as such, the food/non-food split has gone from 60/40 per cent to 70/30 per cent. An internal dining area and winter garden can host nearly 200 people and customers can enjoy seasonal food that is freshly prepared in front of them. Some foods like pasta are made instore and shoppers can also take part in culinary-related activities like sushi workshops. USB-enabled device-charging points are also offered, encouraging shoppers to spend more time instore, whether that’s socializing, shopping or even working.
Retail isn’t the only sector being redefined by technology. The workplace is evolving rapidly as increased connectivity liberates employees from the traditional 9–5 office-based routine. By 2020, there are expected to be more than 26,000 shared office spaces in the US, hosting 3.8 million people – which is phenomenal considering the trend was virtually unheard of as recently as 2007.11