Enhancing In-Store Experience with Curated, Rotating Products and RFID Tech
Pro Tip: Experiential retail isn’t a new concept, but many major brands are finally figuring out how to work immersive stores into their fleet. H&M’s new location in Brooklyn, New York, follows the model so brilliantly started by Story during the last decade. Retail storytelling is sector agnostic, but helps to build excitement amongst consumers who come to visit and browse. While these efforts might be seen as loss leaders, telling a brand’s narrative in creative ways has lasting impacts on consumers.
Last month, H&M opened a tech-focused, community-based store experience in the Williamsburg neighborhood of Brooklyn, New York. Featuring a rotating assortment of fashion, the new concept is currently slated for a year-long run.
The in-store design pays homage to the iconic neighborhood, and showcases a curated collection of the brand’s top styles rotating every four to 12 weeks. The retail tech component includes expansive RFID use across the more than 7,000-square-foot store experience.
“We’re constantly trying to engage and reach our customers in new and exciting ways, and this new space shows how we’re moving forward with a customer-centric vs. product-centric mindset,” Linda Li, H&M Americas’ head of customer activation and marketing, told Retail Leader Pro.
The experimental H&M store is part of Stockholm, Sweden- based H&M Group, which owns several brands — including its namesake H&M, Cos, Arket, Weekday and Monki — and operates in 77 markets with its U.S. offices in New York. Last week, the retailer announced plans to cut around 1,500 jobs as part of its broader efforts to reduce costs. Included in those efforts, H&M would test charging customers to return purchased items. H&M’s net sales (in Swedish krona) grew 13% year over year in the first nine months of its fiscal year (Dec. 1, 2021 to Aug. 31, 2022). In local currencies, the increase was 8%.
H&M’s latest results were largely impacted by the closure of stores in Russia, and the retailer’s store count has gone from operating more than 4,856 stores globally in Aug. 2021 to 4,664 stores Aug. 2022. In North and South America similar declines were seen with the retailer’s store count dropping from 754 stores in Aug. 2021 to 733 in Aug. 2022.
Experiential Retailing
Experimenting with innovative ways for consumers to shop, H&M is pushing forward transforming its business and physical stores. Every four to 12 weeks, H&M Williamsburg will unveil a new “chapter,” or activation with updated fashion, visuals and experiential events, including those with recognized, local neighborhood partners. The retailer also plans to host exclusive programming and “brand moments” in a space designed to evolve throughout the year. The first store concept of this kind for the retailer, H&M aims to rotate at the “speed of style.”
“We want to offer the most inspirational store experience by focusing on our fashion and enabling the customer journey as much as possible by featuring convenience-driving technology,” Li said.
Retail Tech Forward
Shoppers visiting H&M Williamsburg also will benefit from the latest in retail technology for an easy shopping experience.
“Thanks to widespread RFID, store employees will be able to have full visibility of inventory and size options in real time,” Li said. “Along with the option for mobile payment from anywhere in the store, customers can enjoy smart mirrors in fitting rooms that identify customers’ products, including the size and color, and provide personalized product or styling recommendations. The smart mirrors use the same RFID technology to gather information about what items a customer has brought into the fitting room.”
Style & Community
The non-traditional H&M format aims to be a destination for shoppers to explore style in the trendy Williamsburg setting. The retailer collaborated with Williamsburg-based creative agency, The Gathery, to bring the new store experience to life.
H&M Williamsburg will begin offering unique consumer activations starting in 2023 to elevate the experience — occurring two times a week and focusing on culture and community. These events will center around art, fashion and music, as well as local businesses and personalities. A neighborhood partner will curate new weekly entertainment for events each Friday, including DJs, artists and style makers who will contextualize their “chapter” for both the general public and VIP guests.
The first “chapter” showcases H&M’s holiday campaign: “Brasserie Hennes,” the brand’s fictional fashion destination that evokes a wintry French brasserie. The collection includes sequined and fringed cocktail dresses, footwear, accessories and jewelry. From Dec. 1-30, the store is merchandising the fashion from H&M’s holiday collection as well as a highly curated market of local Williamsburg merchants promoting their seasonal products, such as fragrance, home goods, vintage pieces, gourmet foods, beauty products and accessories, aiding consumers’ gifting missions.
No matter the time of year or campaign being presented, certain elements of H&M Williamsburg will remain consistent. Additionally, beginning in 2023, ever-green partner activations from three local Brooklyn-based brands will be showcased in their own dedicated space in the store — including a coffee station, a magazine rack and music. H&M Williamsburg will remain open until January 2024.