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Retailers have turned on the charm, with free snacks and ‘experiences’ designed to win us back

THESE are the sneaky tricks retailers are using to seduce us — and they’re just getting started. Experts call it “the next dimension” of shopping.

Jo Horgan's tips for surviving the changing face of retail

AFTER years of struggling to revive flagging sales, retailers have finally clued onto what customers want: a fun and interactive shopping trip.

It’s not that hard, or it shouldn’t be. But many of our biggest retailers just can’t seem to get it right.

There’s good news, though; a change is in the wind.

Companies like Blackmores, Telstra and Microsoft are tapping into what Apple has known all along is the key to earning our dollars.

All three have just launched flagship stores, and with finely tuned gimmicks like free smoothies, health assessments and in-store baristas, they are turning on the charm in a serious way.

If industry experts are to be believed, we can expect even more outlandish offerings as retailers try to outdo each other in the retail destination stakes.

Olympic swimming gold medallist Leisel Jones made an appearance. Picture: John Appleyard
Olympic swimming gold medallist Leisel Jones made an appearance. Picture: John Appleyard
Healthy treats from the “wellbeing bar”. Picture: John Appleyard
Healthy treats from the “wellbeing bar”. Picture: John Appleyard

The latest to jump on the bandwagon is Blackmores, which opened its new flagship store at Sydney’s Bondi Junction Westfield on Tuesday to an enthusiastic reception.

With a “wellbeing bar” serving up green juices, raw cacao smoothies and protein balls, an on-site naturopath and a brain scanning device dubbed the “mindful ocean system”, it was a health and wellness devotee’s paradise.

A bevy of bloggers and enthusiasts could be seen snapping away at the launch, posting images of the crowd (and the treats) on social media with Blackmores’ hashtag #beawellbeing.

Blackmores Managing Director David Fenlon said the store was a prototype that aimed to provide “a personalised experience” for customers to take control of their health.

Featuring “human, digital and tactile experiences”, he said, the store was an example of “next-gen” interactive retailing.

The “mindful ocean” device, a collaboration with scientists at Swinburne University of Technology, allows shoppers to watch their brain waves on a screen and observe how they change after a short meditation exercise.

And the store has been specially designed to accommodate health seminars, workshops and small yoga classes.

The “mindful ocean” device teaches how to calm the mind.
The “mindful ocean” device teaches how to calm the mind.

The Blackmores launch came on the back of Telstra’s $112 million flagship store opening in Sydney’s CBD in October, billed as a “discovery hub” as opposed to a humble shop.

Also described as a prototype — to be rolled out across the country next year — it aims to take a bite of Apple’s retail mastery.

It’s here that you’ll find an in-store barista to caffeinate your shopping mission, and a chance to test-drive drones, smartphone and tablets.

Hundreds of thousands of customers are expected to walk through the doors by Christmas, to check out gimmicks like its “touch-and-take” technology.

High resolution, multi-touch display tables allow customers to compare all the information about each product, simply by placing them onto the table, with the data then printed for future reference.

Telstra’s hi-tech “touch and take” technology is the centrepoint of its flagship store.
Telstra’s hi-tech “touch and take” technology is the centrepoint of its flagship store.

Microsoft followed with a 557 square-metre flagship store of its own, launched in Sydney last month on the back of its New York City prototype.

With free Wi-Fi, a community theatre and meeting spaces, and plans to host hackathons and coding workshops, it’s no surprise that the company has poached former Apple’s senior store manager Nick Wells to run the new outlet.

There’s even a tech bar where you can bring — gasp — your Apple MacBook to fix Windows installations like Word, free of charge.

And Microsoft’s full range of products can be purchased, debugged or repaired in store, including removing that pesky bloatware that Windows runs on its notepads.

Is it a bird? Is it a plane? No — it’s a Microsoft store. Picture: Dan Himbrechts
Is it a bird? Is it a plane? No — it’s a Microsoft store. Picture: Dan Himbrechts

While the model may be on trend, Blackmores Chairman Marcus Blackmore said his new store format was more a case of back to the future.

“In 1936, my father had a naturopathic health food store in Brisbane, and we’ve recreated a similar concept here,” Mr Blackmore said.

“This aims to recreate that — it’s not just a retail store to sell products. Health and nutrition can often be complex and confusing and this store is designed to do away with some of that confusion.”

Blackmores chief executive Christine Holgate said while she was excited to be opening its first store in Australia, “we are not proposing to be retailers”.

The company distributes its products through a network of pharmacists and supermarkets, but the addition of a flagship store aimed to cement Blackmores’ reputation as a trusted brand.

“We wanted to provide one more opportunity for consumers, to come in and get information and advice,” Ms Holgate said.

And being able to hear from customers directly would be a valuable resource, she said, helping shape Blackmores’ product development.

Not that they have been having any trouble lately — the company has had a stellar year, with its share price hitting $200, market capitalisation tripling to almost $1.5 billion and profits up more than 70 per cent.

Sip, taste, touch: it’s all about the tactile shopping experience. Picture: John Appleyard
Sip, taste, touch: it’s all about the tactile shopping experience. Picture: John Appleyard

Brand expert and Holla Agency chief executive Alex Allwood said Blackmores’ approach hit the mark, and that the company would have drawn on extensive market research in crafting its new offer.

“I think it’s the next dimension,” said Ms Allwood, who has published a new book on the topic.

“It raises the bar of customer expectations.”

She said companies were starting to lift the bar in response to mounting dissatisfaction, which has seen customers vote with their feet — and that we could expect retailers to start competing with each other to offer increasingly dazzling and compelling “experiences”.

When the big department stores discuss their strategies, the catchcry of the day is “omni-channel”, marketing speak for reaching out to customers on both online and in real life.

However, the most successful execution of this strategy has come from digital leaders like Amazon, which recently opened its first bricks-and-mortar store in the United States.

Ms Allwood said this was a logical next move for the online behemoth, as a way to forge a deeper connection with customers.

“Amazon’s online channel is saturated with their brand,” she said.

“A shopfront is going to drive awareness in a different channel.”

The key was to add an “element of surprise and delight”, she said, by orchestrating an experience that pushed the limits of what we expect from shopping.

“We’re human, after all,” Ms Allwood said. “We like to use all our senses, and they can create a physical signature experience for their customers that’s different from their online experience.”

dana.mccauley@news.com.au

Jo Horgan's tips for surviving the changing face of retail

Original URL: https://www.news.com.au/finance/business/retail/retailers-have-turned-on-the-charm-with-free-snacks-and-experiences-designed-to-win-us-back/news-story/59a7abb5ec8e4a0eb2cea28b485c25bf