It has finally happened! An established retailer has finally taken the step necessary to reinvent itself and seek to improve profitability. The idea of a store without inventory is not new, but the fact that Nordstrom has taken the steps to test it out deserves a round of applause.
This step is near and dear to my heart since back in 2012, I suggested the same thing to my employer at the time, Estee Lauder Companies. Working in brand marketing and strategy meant I would often visit retail locations so I could observe the customers behaviors first hand and also observe how store representatives were interacting with our guests. A number of observations led me to ask:
1. Why do people actually need to walk out with a bag? It is uncomfortable to hold and might weigh me down while walking around or running other errands
2. Why do employees need to dedicate time to restocking or checking for inventory in the back when they should be focused on delivering an experience that online cannot?
3. How much retail space is being dedicated to inventory? That storage space must be very expensive for stores that are in prime foot-traffic areas
This step is near and dear to my heart since back in 2012, I suggested the same thing to my employer at the time, Estee Lauder Companies. Working in brand marketing and strategy meant I would often visit retail locations so I could observe the customers behaviors first hand and also observe how store representatives were interacting with our guests. A number of observations led me to ask:
1. Why do people actually need to walk out with a bag? It is uncomfortable to hold and might weigh me down while walking around or running other errands
2. Why do employees need to dedicate time to restocking or checking for inventory in the back when they should be focused on delivering an experience that online cannot?
3. How much retail space is being dedicated to inventory? That storage space must be very expensive for stores that are in prime foot-traffic areas