From interactive displays, mobile clienteling apps, new retail formats and even the re-emergence of catalogues, the store of future is the intersection of experience and technology, physical and virtual, where retailers have merged the ability to see, touch, feel & smell with the same speed, convenience and variety shopping online has conditioned us to expect.

1. Omni-Channel Retail Series
The Store of the Future
Happening Now:
Part 1: Interactive Digital Displays

2. The Store of the Future combines the best eCommerce has
to offer - where consumers are in the driver’s seat and the
possibilities are limitless - with the sensory experience that
you can only get in-store.
Introduction
According to the estimates by McKinsey & Company, about 85% of retail
value is still expected to be generated in bricks-and-mortar in 2025. But that
doesn’t mean retail formats aren’t changing for traditional and online retailers
alike.
From interactive displays, mobile clienteling apps, new
retail formats and even the re-emergence of
catalogues, the store of future is the intersection
of experience and technology, physical and
virtual, where retailers have merged the
ability to see, touch, feel & smell with the
same speed, convenience and variety
shopping online has conditioned us
to expect.

3. Part One: Interactive digital displays are
redefining the shopping experience
Digital storefronts, magic mirrors and virtual dressing rooms are transforming how
consumers interact with physical retail. Three reasons why you should take notice:
1 Personalized experiences drive loyalty. Without it, customers will leave.
A recent Infosys survey reported that 78% of consumers are more likely to be a repeat customer if a
retailer provides them with targeted, personalized offers. While the CMO Council reports that more than
50% of U.S. and Canadian consumers consider abandoning their loyalties to retailers who don’t deliver
relevant offers. Do it right and 86% of consumers will pay up to 25% more for a better experience.
(Source: RightNow Customer Impact Report)
2 Consumers still prefer in-store.
While eCommerce sales grew 15.4% from 2013 and now represents 6.5% of total sales, and
Goldman Sachs projects mobile commerce to drive nearly half of all e-Commerce sales in 2018,
consumers still prefer shopping in-store.
69% of consumers indicated they search online before buying in-store compared to 46% of
consumers who browse in-store before buying online. While a study from A.T. Kearney shows that 2/3
of customers purchasing online use a physical store before or after the transaction indicating that even
in the case of online sales, retail interactions influence online commerce.
3 Digital leaves data breadcrumbs that pave the way to unprecedented retail insights.
Despite the fact that retailers own the transaction, many lack real insights into their customers at
an individual level. Loyalty programs have attempted to bridge the gap but continue to be a topic of
major debate and financial liability. Marry that with increasing consumer privacy regulations and the
mounting number of data breaches (43% of companies had some form of data breach in 2014 alone),
and it’s easy to understand growing concerns among consumers and retailers alike. But according to a
study by Aimia, consumers are still willing to share their data in exchange for better offers or better
experiences.

4. Rebecca Minkoff’s Digital Pop-up Store
Converts Mall Shoppers to Mobile Sales
Rebecca Minkoff teamed up with Westfield Labs and eBay to make Holiday shopping a
breeze. Consumers browse products, select their items and proceed to checkout by
pushing the order to their mobile phone delivered via text message or accessed via a short
code URL. Checkout is simple with PayPal or debit and credit card options available via
guest checkout.
Launched just in time for the 2013 Holiday Shopping Season, the Rebecca Minkoff digital storefront is a
modern approach to pop-up stores designed to bring the ease and variety of digital eCommerce to mall
shoppers.

5. Magic Mirrors Transform In-Store Shopping
Retailers like Rebecca Minkoff seek to elevate the retail experience
through connected stores that combine RFID, mobile apps and
interactive displays.
“We see a woman who either wants to shop as efficient as
possible on the one-hand, or wants to truly have VIP experience
on the other. This store has been built with technological
efficiencies to help her achieve either of those goals. We wanted to
create the ideal shopping experience for this generation of
women, and to connect with the customer in a way that fits in to
her busy lifestyle, while also maintaining the hands-on gratification
that only brick and mortar stores can offer.”
– Uri Minkoff
Order a drink, browse products and select items to send to your
dressing room through the “Connected Glass”. Enter your mobile
phone number and get a text message when your drink or dressing
room is ready. Checkout options include PayPal, mobile wallets and
traditional credit card, debit card or cash options.
Mobile
convenience
also means
mobile tracking.
In-store cameras
track individual
shoppers
through their
mobile device
allowing
retailers to
optimize store
layouts, pricing
and displays
providing event
tracking and
analytics similar
to what retailers
can get from
eCommerce.
Shoppers can call their stylist, adjust the lighting and even save the
items they’ve tried on to their profile.
Creepy or
Convenient?

6. Augmented Reality Delivers The
Virtual Dressing Room
Where next generation magic mirrors, like the sophisticated
interactive dressing rooms Rebecca Minkoff launched late 2014,
seek to improve the dressing room experience, augmented reality
seeks to replace all (or most) of it. Augmented reality isn’t a new
concept, but until recently, it hasn’t garnered much more than the
fleeting excitement from Google Glass. Designed to allow
consumers to experience products in 3D, many brands have been
using some form of augmented reality since 2010.
In 2011, UK department store TopShop launched their first Virtual
Fitting Room, AR Door, in Moscow. Customers could select a
garment off the rack and see themselves onscreen. Microsoft
Kinect technology allowed the Microsoft Kinect technology allowed
the user to control the program by pushing virtual buttons in the air.
Augmented Reality at the Makeup Counter
Sephora has partnered with ModiFace to allow
customers to apply virtual makeup with a 3D
augmented reality mirror currently only available at
Sephora’s Milan store.
Which augmented reality use cases do consumers believe will impact their likelihood to purchase?
Uniqlo first introduced Magic Mirror
technology when they launched their San
Francisco store in 2012. Consumers can try
on an item and use the touch panel to see it
in other colors through the mirror display.
Source: Accenture 2014 Augmented Retail Survey

7. Join us for Part Two: Mobile Clienteling
Delivers The Endless Aisle
The Store of the Future doesn’t end with magic mirrors or virtual dressing rooms. Mobile
has a larger role to play in the consumer journey than mobile commerce, wallets
or consumer apps. Stay tuned for part two of this four part series, “Mobile Clienteling
Delivers The Endless Aisle,” in which we’ll explore how retailers are improving in-store
experiences by taking a page from Amazon and Apple’s playbooks.
Sources Cited and Additional Resources:
• US Census: “Quarterly Retail eCommerce Sales 4th Quarter 2014.”
• RightNow: “Annual Customer Experience Impact Report.”
• The Atlantic: “Goldman: There Will Be as Much Mobile Commerce in 2018 as E-Commerce in 2013.”
• Business Insider: “Reverse Showrooming: Bricks-And-Mortar Retailers Fight Back.”
• A.T. Kearney: “Omnichannel Shopper Preferences.”
• Accenture Interactive: “Shoppers Prefer Personalization Over Privacy.”
• UPS: “Pulse of the Online Shopper.”
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