Designing Sustainable Retail Environments

A while ago, I downloaded this very interesting article by Steve Bishop and Dana Cho from IDEO, from which today I’m giving you big portions of their article along with some personal thoughts. I know I’m exceeding beyond “fair use” in posting, this, but feel it’s so important to share that I’m doing it anyway. Again, full credit to Rotman School of Management Magazine and IDEO.

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Considering a shopper’s context (purchasing/experience environment) is the key to understanding their motivations and making green products and services relevant to them.

If a brand is the relationship between a business and its customers, the retail space is its most visceral conversation. By better understanding what shoppers desire from green offerings and what matters in the context of their shopping experience – i.e. time and convenience – products and services can connect with people in a more relevant way. To date, there have been many supply-side accomplishments (design, supply chain, procurement decisions). The bulk of the untapped opportunities, however, lie in making sustainability desirable, on the demand-side– i.e. in the realm of consumers. Following are four latent opportunities for retailers and some provocative ideas they can inspire.

Consider “Shopping Modes”

Not all shopping is equal. When people shop, they do so in one of five different ‘modes’.

• Mission Mode: Specific desire, ‘get in, and get out.’ Anything distracting from their mission is ignored. Time is valued above all else. Offering new information is met with impatience and shut down.
• Restock Mode: Commodity experience with goal being to replenish the basics. Incredibly low emotional involvement. Shoppers are on autopilot and resort to habits rather than new ways of engaging.
• Background Mode: Shopping as means of accomplishing something more important. Shopping with friends is ‘background’ to conversation – the more valuable outcome. Purchases are incidental, yet these shoppers are open to new ideas. On-site coffee and food offerings enable this mode to flourish.
• Celebration Mode: Event-oriented experience; treat yourself because you feel you deserve it. Shopping is an opportunity for enrichment and exploration. This mode brings an openness to new ideas, and even new stores. Temporary store events and limited quantity items attract this mode.
• Beyond-the-Store Mode: Shopping is the physical activity, but the mind is elsewhere. The imagination is already making the leap to the occasion of use. Shopping fora specific event like a vacation or a formal party are examples. An immersive experience like the fitting room makes space for this mode.

ME: For an in-depth book on this line of thinking, please check out Stopwatch Marketing. I met one of the co-authors John Rosen in NYC last year. The premises are very similar, but the tone of the book is VERY business and advice oriented. One of the best business books relating to product mangement, marketing, and retail I’ve ever read. Period.

Needs and desires change with each mode, and the mode a shopper assumes depends entirely on context. By considering shopping modes, retailers can begin to explore latent and overlooked possibilities for sustainability. ME: Retail space and shelf design completely affect the visibility of a product, and the propensity of a shopper to consider picking it up. Things to consider are: location (aisle, endcap, floor display, checkstand area), related nearby products (category, functional activity), and store signage (large/small) that act as mental guides, i.e. “Energy-efficient”, “Organic”, “Fair Trade”.

Design Moments

When asked to describe memorable experiences, people rarely describe a specific thing, or even a space: instead, they talk about complex, full-bodied moments that take into account things, time, people, and actions. During research for one of our retail projects, a woman described a moment during lunch with her daughter at a hotel: she talked about the time of day, the way the light was shining, the conversation, the music, and the service they received – all contributing equally to a perfect, nuanced moment.

A ‘local’ sticker on an avocado may inform that it is local, but is that enough to make someone want to buy it? How might stores enable moments that inspire shoppers on the importance of buying local? ME: Set up shelf prominent signage using descriptive language (Napa Valley, Kern County, Name of City).

Creating possibilities for ‘moments’ allows shoppers to learn for themselves. Sustainability is a concept that is still (relatively) new to the retail space: engaging people on this topic will take moments ofunderstanding for shoppers and retailers alike.

Questions for further exploration:

1. How might we make small aisle sections dramatically stand out from the rest of the store, creating the possibility for ‘moments’?
2. How might that section inspire more sustainable lifestyle decisions? (ME: Product selection, visual design)
3. What kind of sensory experiences might reconnect shoppers with the natural world? (ME: visual, tactile [packaging/voids], olfactory)

Enable Community

Shopping is a social activity, even when we shop alone. In a connected world, opinions and last-minute requests are just a call or text message away. Having been marketed to constantly, today’s savvy shoppers seek trusted advice: opinions from friends, or even strangers, are often what matters most in decision-making. To build trust, many retailers pursue transparency. By telling their stories and making data about sustainability available in the store, the hope is that shoppers will be better able to make informed decisions that match their values. The intent is good, but these efforts can often overwhelm, even cripple decision-making.

Questions for further exploration:

1. How might we enable people to find out more and share with others? (ME: Packaging design, Coupons with tell-a-friend means)
2. What benefit does community offer local suppliers over chains? (ME: Uhm, loyalty apart from the obvious)
3. ME: Look at retailers like Whole Foods and Trader Joe’s where the staff are generally knowledgeable (and sometimes passionate about products). Perhaps employees can be trained in this? This comes down to company culture more than anything else. Even if employee turnover is high, as it is in retail, a little bit of training and company favorability toward green/sustainable/high quality products can go a distance.

Help “Make it Mine”

Shoppers are not always ‘at’ the store: with a specific occasion in mind, they may physically be there, but mentally they are at the occasion itself. Assuming a ‘Beyond-the-Store’ mode, shoppers frequently add a healthy dose of imagination and envision how their lives might be different with the potential purchase.

IKEA brings the fitting room to the showroom floor, illustrating how different products fit in mom and dad’s office or in junior’s room. Providing ‘fitting-room abilities’ for sustainability would go a along way in bridging the disconnect with shoppers. It is often difficult to imagine what a more sustainable lifestyle would be like. By making space for shoppers to explore possibilities and seek relevance, retailers can help can shoppers aspire to new positive behaviors.

ME: Agreed a sustainable lifestyle scenario is likely hard to create. I say holistic SKU selection and company DNA matter most. However, let’s consider endcaps and floor displays which are physically & visually separated from other merchandise. With a little creative copywriting, graphic, and display design, the sustainable/healthy/local (what have you) comes across powerfully. Think of appealing to the senses, and standing out from the other merchandise. Now normally endcaps are reserved for bargain merchandise, but perhaps a retailer might be able to devote more space in these areas for sustainable products.

Questions for further exploration:

1. What if we merchandised sustainability the way IKEA merchandises furniture? (ME: Neat idea, but difficult for supermarket, drug, and hypermarket environments. Retail sales per sq. foot is an important performance metric that would be impacted.)
2. What does a sustainable lifestyle look like, and how do we express it?
3. How might we help shoppers imagine living more sustainably? (ME: Pictures of Daisies, Babies, and Priuses )

19 Ideas

1. Shopper Recommendations: What if shoppers could recommend green products to each other right at the shelf? Handwritten messages at the moment of selection could provide both confidence in shopper’s decisions and feedback for retailers (ME: Neat idea, though beware of kids/teens/and radical activists leaving “inappropriate” messages. Sorry for being a critic, but it’s true.)
2. Third-Party Picks: What if retailers worked with third-party green certification labels to create a ‘top picks’ shelf? Highlighting FairTrade one month and USDA Organic the next would raise awareness of both the products and ways to evaluate choices. (ME: Yes, excellent idea! Make a floor display with multiple categories. Have a section of the fish section dedicated to Marine Stewardship Council certified fish.)
3. Aisle Arrangements: What if aisles were organized by:
   * Environmental Impact: Making green products easy to reach would make it easier for time-crunched shoppers to make more sustainable choices and more likely for supportive social interactions with like-minded shoppers. (ME: Novel idea at best; LCA data for that many SKUs and the subjective ranking thereof makes the process near impossible. In theory though, it’s interesting. Unsustainable products [example with 0% recycled materials, styrofoam, other] although cheaper, would be segregated out from more sustainable options.)
   * Location of the Source: Tying the actual distance a product has traveled to its placement in the store would give shoppers a more tangible idea of the benefits of local products. (ME: Neat, just don’t kill the beneficial function that categorized sections have on shoppers: convenience.)
   * Day-to-day Tasks: Mapping green products to a journey in the day-to-day lives of people would increase understanding of the context of their use. (ME: A bit subjective; ideas?)
4. Editing Space: What if there was a dedicated area for‘editing’ your cart? In the same way online retailers make recommendations based on purchases, checkout could be a place to recommend green products and allow shoppers to swap their items for green alternatives. Shoppers might also put back what they don’t truly need. (ME: Nobody wants to lose their place in line, especially in 5-7pm rush traffic. Dropping out items also creates new personnel activity: shelf restocking. No store manager wants to see an restock pile, nor have associates do this when understaffed.)
5. Impact Receipt: What if consumers could receive feedback on the environmental impact of purchase in printed on the back of their receipt? Figures might be compared with their last trip, the store average, or people in their zip code. Feedback inspires goals and competition. Can we create a goal of impact that customers can strive for?
6. Showoff: What if you could broadcast your impact score? Bowling alleys often display high scores for their lanes. Imagine putting high positive impact scores above checkout aisles to celebrate green champions. (ME: In eco-conscious retail stores, that could be very cool.)
7. Green Lane: What if green champions were given access to an instant checkout lane? Rather than offer incentives to people with‘16 items or less, offer them to shoppers with a proven record of buying green, bringing their own bags, or riding a bike to the store. (ME: Nice try, but priority to a small percentage of shoppers is impractical. Sure, I like the idea but if the criteria are too subjective, disqualified shoppers in other checkout lanes will feel resent.)
   
8. Back Story Access: What if you could dig deeper and find the sustainability back-story for every product on the shelf? Instead of cluttering the aisle with volumes of data, shoppers could access the green story as desired. (ME: Every product, no. Some brands are already doing this through concise packaging copy, with the availability for further information online.)
9. Green Zone: What if prime shelf space were reserved for products with low carbon footprint? Suppliers would make their bids for prime placement by creating greener products. (ME: I think Wal-Mart will influence the drive toward lower carbon footprints than anything else.)
10. Fitting Room: What if you could ‘try on’ all sustainable products in-store? Testing helps shoppers answer the first question they often have about green products: ‘Is it as good?’ (ME: Depends on the category, proof of concept in results.)
11. Lose the Aisle: What if retailers presented only one of each product, which shoppers would scan and pick up at the door? The need for shopping carts, maintenance, and replacement would be negated and packaging could be minimized. (ME: You (authors) just really want to push my process-engineering buttons don’t you? I’m sure there’s a case somewhere, but the advice as it stands leaves too many holes.)
12. Experience Moments: What if ‘green’ was presented as an experience rather than hard-to-understand instructions or specs? A ‘how to wake up to a green world’ experience might feature coffee, exercise and other activities supported through sustainable products.
13. Microclimates: What if store environments were controlled by a dynamic biosphere rather than a conventional HVAC system? Temperatures controlled by plants, airflow and sunlight connect the shoppers to natural systems that support them.
14. Parking Privileges: What if priority parking were offered to carpoolers or shoppers who were green in other ways? There’s nothing better than rewarding green action with time-saving perks.
15. Village Model: What if the produce section were a community garden or greenhouse? Providing fresh produce and composting waste celebrates local and provides shoppers with a sense of pride and ownership.
16. Staple Delivery: What if weekly staples were mailed (ME: ahem, van delivery is better) to your door? Fitting regular items like eggs, laundry detergent, and toothpaste into a regular delivery stream might reduce trips to the store and make visits more engaging.
17. Status Flag: What if the storefront projected its green status? Displaying figures on energy generated, CO2saved, and local produce sold would communicate values people could connect with before they even enter the store.
18. Learning Events: What if the store hosted workshops and events just outside of its doors? A composting workshop, for example, might inspire shoppers to buy more produce and adopt a healthier diet.
19. Store v. Depot: What if the store was also a materials depot? Stores could double as central collection centers for recycled items.

Summary

We have presented a new perspective on the retail space – one that puts people first and engages them in new ways. Building a relationship with shoppers based on values such as sustainabilityhas impact beyond the storefront. Values go home with them: they are there when they read about climate change, and they’re there when they decide where to go shopping. Down the road, when a brand becomes known for the values ithas defined for itself, the relationship evolves to fill an important role as a trusted advisor. When dealing with complex issues like sustainability, we need as many trusted advisors as we can find.

ME: Okay, I really enjoyed the thought provocation going on here. Despite some utopian ideas presented, the exercise’s aforementioned premise is worthy: “one that puts people first and engages them in new ways.” Many ideas are actionable depending on the type of store and categories. I hope Steve and Dana’s thoughts, including my own additions, helped you re-think the role of retail design. I really want you to consider human factors though in terms of familiarity and usability when thinking about change. The one person that would really add the absolute best insight on this would be Paco Underhill - a retail ethnographer and design consultant. Maybe I should interview him?

Tagged as: customer, experience design, retail, shopper