FUTURE
OF
RETAIL
2020
Retail As Personal Utility
Overview of the PSFK report
with concepts by YourStudio

A RELENTLESS EXPLORATION
OF
THE POSSIBILITIES OF RETAIL
Today

Nike has rolled out a multi-store offering
across LA with localized product & services

Nordstrom has taken a similar approach in NYC, each
store featuring a mix of specialized product & services

Amazon has leveraged a distributed
department-store strategy across Seattle

CloudKitchens
Ghost kitchen models have changed the way we
think about inventory, production and delivery

Brands & retailers are now exploring
sustainable options like TerraCycle’s Loop

We’ve been publishing The Future of Retail report
for 10 years and each year the rules get rewritten

Shop-in-Shop
…and still impact it today:
40 Disney in-store pop-ups in
Target planned for 2020.
Story experiences in 36 Macy’s
locations.
11 Birchbox shop-in-shops, 500
pop ups for 2019 holiday season
Sources: “Big News, Disney Fans: You Can Shop the Disney
Store at Target Right Now.” Target, 2019, Macy’s, Birchbox
To Pop Up In 500 Walgreens Stores For The Holidays.
Retail Dive, 2019
What we saw impact retail over those 10 years…

Smartphone retail m-commerce sales
will reach $203.94 billion in 2019,
making up 34% of all US e-commerce
sales.
In 2021, 53.9% of all retail e-commerce
is expected to be generated via
m-commerce.
Mobile Commerce
Source: “Smartphones Will Account for More than One-Third
of Ecommerce Sales in 2019.” eMarketer, 2019, Statista.com
The 2010s in retail
2017 2018
0
40
60
20
%USEcommercesales

In 2017, 17% of North American retailers
had adopted social commerce. In 2018,
that number rose to 33%
Social Media
Source: Next-Gen Omnichannel Strategies Align Agility With
Innovation. Retail TouchPoints, 2019
The 2010s in retail
2017 2018
0
25
50
(then Social Commerce)

Omnichannel
Only four years ago less than half of
retailers were pursuing an omnichannel
approach. Today over 90% of retailers
and brands have an omnichannel
strategy or a plan to invest in one soon.
Source: The State of Omnichannel Retail. Brightpearl, 2019
2015 2019
>50% 90%
The 2010s in retail

0
100
50
Connected Store
A survey of retail professionals found
that new technology (61%), connectivity
(52%) and mobile technology (52%)
were the top areas for in-store budget
increases in 2018, compared to the
previous year.
Source: The State of Retail Tech. EMarketer, 2019
MobileTech
Connectivity
Technology
The 2010s in retail

Experiential
Marketers will spend 20.7% of their
overall marketing budgets on event and
experiential in 2018, which is up from
18.7% in 2017.
Source: Experiential Intelligence Report: 2018 Experiential
Marketing Spending Forecast. Event Marketer, 2018
2017 2018
0
15
20
5
10
25
The 2010s in retail

Estimates peg the number of D2C brands
at more than 400 today, while online
trends suggest web traffic has roughly
doubled in the past two years.
40% of US internet users expect D2C
brands to account for at least 40% of
their purchases within the next five years.
Direct-To-Consumer
Source: Direct-To-Consumer Brands 2019. EMarketer, 2019
2019 2024
0
100
50
The 2010s in retail

Mobile
A Decade of Change in Retail
Shop In Shop Social
Ominichannel Connected Store
Experiential
DTC
2010
2020

What Next?
psfk.com/report/future-of-retail-2020
Our new report outlines
the opportunities defining
a new decade of retail

FROM
HISTORICAL PROFILES
TO
REAL-TIME CONVERSATIONS
Shifts we will witness in 2020

TARGETED ADS
TO
PERSONAL PORTALS
Shifts in 2020

DATA PERSONALIZATION
TO
DATA PARTNERSHIPS
Shifts in 2020

RESPONSIVE STOREFRONTS
TO
ANYWHERE STORES
Shifts in 2020

RETAIL EXPERIENCES
TO
SHOPPER UTILITY
Shifts in 2020

So…
What’s Next?

THE FUTURE OF RETAIL
=
PERSONAL UTILITY

Advanced computing, delivery
logistics & connected tech
power a hyper-personalized
retail experience with the
objective of anticipating
shopper need and providing
exceptional service
PERSONAL UTILITY
63% of consumers
surveyed are
interested in
personalized
recommendations,
and the majority
of them are
willing to share
their data in
exchange for
benefits.
Source: Delivering For The
New Consumer. RILA and
Accenture, 2018

HOW DO WE DELIVER
PERSONAL UTILITY?

<COMMERCIAL BREAK>

Includes 100 pages, 5 strategies, 20 Trends, 60 Best-In-Class
Examples, Original Consumer Research in PDF + editable PPT
The Future of Retail 2020 Report
psfk.com/report/future-of-retail-2020

One of 250 reports in our growing library
psfk.com/reports

Available to members of our
Business Intelligence service
psfk.com/membership
membership-sales@psfk.com

Inspires PSFK’s Future of Retail 2020 Conference
Highlighting the need-to-know ideas
and innovations driving successful
commerce today. Featuring insights
from experts both at emerging
start-ups and leading corporations,
this half-day program will explore
how the best retailers and brands
will play to, meet with, expect, serve
and reward each of their customers
in is the age of Personal Utility.
Jan 15, 2020 NYC
psfk.com/events

Informs New York Retail Innovation Week
Partnering with
brands like:
Curated for change-makers who
work in retail, at brands and their
partner companies, these executives
experience guided store tours, attend
expert talks and conferences, visit
demos, and conferences and connect
at networking events. NYRIW is a
calendar of independent and
innovative events that run alongside
the NRF 2020: Retail’s Big Show.
www.riw.nyc
Jan 12-18, 2020 NYC

</COMMERCIAL BREAK>

THE FUTURE OF RETAIL
=
PERSONAL UTILITY

HOW DO WE DELIVER
PERSONAL UTILITY?

Delivering Personal Utility
INSPIRE ME
MEET ME
SERVE ME
VALUE ME
KNOW ME

Provide me with personalized
recommendations and
curated content to help me
discover and choose the right
products for my needs.
INSPIRE ME
85% find a
personalized
experience where
retailers
automatically
suggest, order or
recommend
products that best
suit personal
preferences
appealing.
Source: The Loyalty
Divide. Oracle, 2018

Adidas LDN
The London flagship of sportswear and footwear brand
Adidas features a large digital display, called the Hype
Wall, on the ground floor that informs shoppers of
upcoming limited-edition drops and allows them to scan
a code using the Adidas app in order to have a shoe’s
drop date added to their calendars.

Adidas LDN

Adidas LDN

Integrate shopping into my
daily life, providing me with
access to the goods and
services I need in the manner
that’s most convenient for me.
MEET ME
Consumers are
increasingly open
to whatever gets
orders to their
door the fastest,
with more than
90% seeking free
one-day delivery
by whatever means
is fastest, including
drone, driverless
car or a messenger,
compared to 43%
in 2018.
Source: Setting The
Bar. Oracle, 2019

Kroger x Walgreens
Supermarket chain Kroger is rethinking its store
formats and supply chain in order to better serve
customers’ needs. It is piloting a collaboration
with pharmacy chain Walgreens to enable
shoppers to order groceries online and then pick
them up at select Walgreens locations.

Kroger x Walgreens

SERVE ME
Don’t just sell me a product
but provide me with a
solution, making my life
easier and ensuring I get the
most out of my purchase.
In order to feel like
they have a
meaningful
connection to a given
brand, 64% of
consumers say that it
is very or somewhat
important that the
brand provide
educational or
informational content
that helps them get
the most out of their
purchase.
Source: PSFK x Suzy
Brand Connection
Survey, 2019

Equal Parts
DTC cookware brand Equal Parts offers
customers 8 weeks’ worth of free access to a
cooking coach with the purchase of any Equal
Parts cookware kit to help them develop skills
and confidence in the kitchen.

Equal Parts

VALUE ME
Provide meaningful value that
rewards my loyalty and shows
me you’re there for
the long-haul.
80% of consumers
are more likely to do
business with a
company that offers
personalized
experiences. Their
top personalized
experience was a
reward program,
with 31% naming it
as their favorite.
Source: Power Of Me.
Epsilon, 2018

Ruti
Now, when customers walk into one of the
brand’s stores, a series of cameras scan and take
photos of customer faces. Those photos are
stored in the brand’s CRM, along with
information about each customer’s shopping
habits and style preferences.

KNOW ME
Empower me with digital
tools that allow me to
control my shopping
experience while continually
working to make my
experience even better.
79% of customers
are willing to share
relevant information
about themselves in
exchange for
contextualized
interactions in
which they’re
immediately known
and understood.
54% say a
commitment to
safeguarding their
data strengthens
their loyalty.
Source: State Of The
Connected Consumer.
Salesforce, 2018

Choosy
Fashion brand Choosy uses data to uncover
trends on social media then quickly designs its
own products based on the most popular styles
and produces the items on demand.

Choosy

Personal Utility
INSPIRE ME
MEET ME
SERVE ME
KNOW ME
VALUE ME

HOW MIGHT
RETAIL EVOLVE
WITH PERSONAL UTILITY?

2020 VISION:
THE FUTURE OF RETAIL
The next few pages situate the wider thinking on retail trends into speculative scenarios that envision
the brave new world of retail. The explorations use real-life emerging trends to reinvent the future
typologies of shopping malls, of grocery stores and of luxury retail. All of these explorations are
responding to consumer desires for increased personalized experiences.
The future consumer will be constantly immersed in a curated, flexible and seamless brand
experience. The future customer is the centre of a Community of One: their needs will be anticipated,
the products and services will be curated and data driven. They will be able to generate a full retail
experience anytime, anywhere: from a bank anywhere to a store anywhere. Consumers ARE the
accounts.
The streamlining of the retail experience will lead to modular store infrastructures: from mega
fulfillment centers to data-driven, instant retail experiences: in effect, the customers ARE the stores.
X

THE FULFILLMENT CAMPUS
The Westfield Fulfillment Campus reinvents the mall landscape and establishes itself as a
whole-life destination.
By removing the transaction infrastructure, the Campus blurs the boundaries between retailers, F&B,
culture and entertainment, offering a new emotional landscape that is ripe for creating emotional
connections between brand and customer.
• The new modular mall is split into two distinct modular areas:
• The infrastructure of the Fulfillment Core, rooted in transparency and AI-informed efficiency
• The Living Magazine, a new mall landscape where brands support the whole-life development of
their customers in a boarderless environment.
X

THE ANATOMY
OF FULFILLMENT
Understanding the two sides of fulfillment making
up the Westfield Fulfillment Campus.
1
FULFILLMENT
INFRASTRUCTURE
The AI-embedded Fulfillment Core stores,
sorts and delivers in real time.
2
EMOTIONAL FULFILLMENT
The Living Magazine is the new format of the mall, a cross-
service, cross-brand landscape that customers navigate
according to lifestyle with the aid of real time data.
3
THE MEASURE OF
FULFILLMENT
Quantifying levels of fulfillment and understanding how
brands are delivering on their customer promise.
4
X
FULFILLMENT CAMPUS

THE ANATOMY
OF FULFILLMENT
FULFILLMENT
INFRASTRUCTURE
Key components:
1
EMOTIONAL
FULFILLMENT
Key measures:
Efficiency
Transparency
Intelligence
Connection
Loyalty
Happiness
X
FULFILLMENT CAMPUS

2
The Fulfillment Campus is
sustained by a 360 transparency
delivery core, an AI-controlled
storage, packaging and delivery
system. Centralizing the fulfillment
core allows new to market brands
to benefit from this inbuilt
infrastructure and frees up all
brands to deliver further on
creating spaces for customers to
belong.
X
THE DELIVERY CORE
Fulfillment Infrastructure
FULFILLMENT CAMPUS

THE LIVING MAGAZINE3
Fulfillment Infrastructure
The Living Magazine is the ultimate
form of lifestyle cross-
merchandizing, bypassing
individual retailers or brands.
Allowing cross pollination of
sectors to create a blended
environment where brands can
focus on creating relevant stories
and experiences for their
customers to engage with.
X
FULFILLMENT CAMPUS

MOMENTS THAT ARE
ABLE TO CRAFT
MEMORIES ENSURE
HIGH LEVELS OF
EMOTIONAL
CONNECTION, WHICH
LEADS TO A FEELING
OF BELONGING IN
VISITORS.
X
FULFILLMENT CAMPUS

THE MEASURE
OF FULFILLMENT
FULFILLMENT
INFRASTRUCTURE
Key components:
4
EMOTIONAL
FULFILLMENT
Key measures:
Efficiency
Transparency
Intelligence
Connection
Loyalty
Happiness
Quantifying fulfillment on the Campus using embedded digital markers and
wearable’s. Data is instantly collected and used to change the display
algorithms and create tweaks in the personalized journeys.
Mood trackers signal the level of contentedness in real time within a certain
area, motion sensors track how long a customer pauses
in certain spaces. The tracked data becomes
a communication tool between brand and customer - a way for shoppers to
understand their brand engagement.
Innovation tech meets behavioral tech to allow brands and retailers to
quantify fulfillment and deliver on the ultimate promise to the customer.
X
FULFILLMENT CAMPUS

EMOTIONAL FULFILMENT
MARKERS
Brands get live feeds and quantified
data of how emotionally connected
customers are in their environment or
with their stories, this allows brands to
be agile and test innovations in a live
destination.
Emotional markers
above customers and
fulfillment
infrastructure
X
FULFILLMENT CAMPUS

CONNECTED GREENHOUSE
Trader Joe’s is offering the gift of time freedom and
a tailored shopping experience. It is a complete 180
transformation of your weekly grocery shop, in an
intuitive and connected space that allows customers
the pleasure of experience - instead of a chore, it
gives back your time as leisure activity.
X

CONNECTED CUSTOMER
JOURNEY
The grocery store of the future will exist amongst the Internet
of Things: from health app, to smart kitchen, to grocery list, to
your local store, all seamless linked.
FROM AISLES TO ISLANDS
Using integrated tech allows for a new display hierarchy
in the grocery store, where pleasurable shopping experiences
expand (such as fruit, cheeses or cosmetics) while mundane
refills happen automatically and out of sight.
SEAMLESS INTEGRATION
AR navigation allows you to customize your time in-store by
being your friend behind the scenes completing the mundane so
you can spend time learning, playing and connecting.
X
CONNECTED GREENHOUSE
3
1 2

CONNECTED
CUSTOMER JOURNEY
1
Illustration of 360 connected
customer journey
X
CONNECTED GREENHOUSE

FROM AISLE TO ISLANDS2
By mixing automatic refills (like in a traditional
online grocery shop) with the pleasurable aspects
of in- person shopping, a new hierarchy of
supermarket displays is created: from aisles to
experience islands.
AI uses the streams of data to create the
streamlined shopping experience: mundane or
favorite items such as bleach or rice refills are
automatically added to your basket and ready for
pick up or delivered direct to home. While the items
that customers enjoy picking, such as fresh
produce, cheeses, bread etc are inbuilt into the
curated, multi- sensory journey.
X
CONNECTED GREENHOUSE

SEAMLESS INTEGRATION3
Customers use their phone or wearable to log
desired items in a virtual basket. The aisles are
scaled down to only display a single item per SKU -
an RFID enhanced package that offers various
degrees of information about each product from
provenance, to health benefits, to recipes.
X
CONNECTED GREENHOUSE

THE GIFT OF TIME
The new display hierarchy allows for
pleasurable multi-sensory experiences to be
curated throughout the physical store. Touch,
feel, taste, smell and listen to the stories of
the products you are buying.
The transformation of the grocery
shopping experience from chore to
leisure
X
CONNECTED GREENHOUSE

MINI MAISONThe LVMH Salon is creating an aspirational, interest
based digital “inner circle” social platform that
democratizes luxury and the art of the
connoisseur.
The Salon uses a digital platform, the Curator app,
together with a Mini Maison piece of luxury home
tech, which becomes a portal into real store
experiences.
“EXCLUSIVENESS, NEAR UNIQUENESS,
AND NOT BECAUSE IT IS ADDRESSED TO
FEW PEOPLE BUT BECAUSE IT IS
SPECIAL. LUXURY IS RESEARCH, THE
CHANCE TO EXPLORE NEW ROUTES.
CRAFTSMANSHIP IS LUXURY.”
- Vogue Italia, Francesca Sozzani - Mini Maison situated in a
home environment
X

THE CURATOR APP
Download the app and create a profile where you
tailor your interests around four LVMH pillars:
Fashion, Cosmetics, Jewellery, Spirits.
CUSTOM MINI MAISON
A Mini Maison is a piece of luxury home
tech crafted specifically with your profile in
mind: from materials to
ACTIVATION
Sync your Mini Maison to your app and location to get tailored
content that you ordinarily wouldn’t have access to.
GROWTH AND LEARNING
The Mini Maison learns from you: your purchases, your online
searches, your app interactions. New personalized content is
constantly updated, developing with the individual.
STEPS TO JOINING
X
MINI MAISON
1 2
3 4

THE CURATOR APP1
The LVMH Salon offers different tiers of engagement.
The digital interface is the first platform, where each member
creates their profile and explores their interests based on the
four main pillars
of the LVMH Group - Wine & Spirits, Fashion & Leather
Goods, Perfumes & Cosmetics, Watches & Jewelry.
The digital profile results in the ultimate subscription box,
which is comprised of a couture wearable that is paired with an
own-able home device - the Mini Maison. The wearable and
the tabletop device curate content based on the ever-
developing profile and taste of the member.
X
MINI MAISON

THE MINI MAISON: THE
ULTIMATE
SUBSCRIPTION BOX
2
STEP 1
Each Mini Maison is a piece of hand-crafted
luxury home tech embedded with the
content tailored to your own personal
tastes. The materials and components of
the Mini Maison can be tailored to your
profile.
X
MINI MAISON

STEP 2
The Mini Maison is custom to every
member and features a personalized
activation plate, engraved with the
name and taste markers of the person.
The plate can be updated remotely
with the customer informed when new
updates are available.
STEP 3
You can activate the experience by
unlocking the experience pillars when
the activation plate is removed.
Inserting the activation plate into a slot
automatically links your Mini Maison to
tailored content.
Four pillars of LVMH at the
center of the Mini Maison
X
MINI MAISON

MIXED REALITY PERFUME ACTIVATION
USING LIGHTING, SOUND AND SCENT
3
Activated Mini Maison showing
engaging personalized cosmetics
content, delivered through scent
atomizers and AR overlays
PLAY VI
D
X
MINI MAISON

THE MINI MAISON IS A PORTAL
INTO SHOPPABLE EDITORIALS OR
EXCLUSIVE EVENTS
Activated Mini Maison showing
engaging personalized fashion content,
delivered through integrated speakers
and AR overlays
PLAY VI
D
X
4
MINI MAISON

Personal Utility
INSPIRE ME
MEET ME
SERVE ME
KNOW ME
VALUE ME
Advanced computing, delivery logistics &
connected tech power a hyper-personalized
retail experience with the objective of
anticipating shopper need and providing
exceptional service

About PSFK
PSFK is a business innovation platform for creative professionals. Since 2004,
we’ve provided insights, research tools, advice and immersive experiences to help
our members as they build better products, services, marketing and retail.
• Full access to a library of 250+ Trends
Research Reports
• Access to Analyst Engagement services
with ability to request bespoke reports
• Full access to a database of 150,000
creative business ideas (updated daily)
• Full access to industry-focused
newsletters and keyword alerts
PSFK MEMBERSHIP INCLUDES:
PSFK leverages its research findings,
strategic recommendations and other
conceptual work to develop 1-day
workshop sessions. These sessions are
structured as a collaborative discussion
to present the team with research and
encourage new and broader thinking.
By the end of the session, the goal is to
have identified at least 3 blue sky
strategies and 8-12 quick win initiatives.
OUR WORKSHOPS:
PSFK analysts combine analysis from
trends research, competitive review,
client data and expert opinion to
identify higher-level brand engagement
strategies and tactical initiatives.
Deliverables include strategy playbooks,
product and service concepts,
consumer scenarios and prototypes
BESPOKE RESEARCH:
CONTACT
Jeff Weiner | jeff.weiner@psfk.com | 460-520-5672

The PSFK x Suzy Future of Retail 2020 Survey
Quantitative research
featured in this report was
taken from the PSFK x
Suzy Future Of Retail
2020 Survey, a bespoke,
original survey of 500 US
consumers age 18-55,
conducted in partnership
Suzy, the real-time
consumer polling
platform.
Key findings:
•78% are interested in receiving personalized recommendations
or coupons/offers that are relevant to their current needs while
they are shopping in a store
•76% will shop locally at different branches of the same retail
chain if they provide different products and services
•63% are interested in purchasing a product that comes with
related services to help them get the most out of their
purchase
•90% are interested in being able to choose the types of
rewards that they receive from a brand or retailer’s loyalty
program
•70% expect a retailer to offer them the same level of personal
service across destinations whether they are shopping in a
physical store, online or on their mobile device

Suzy is a consumer intelligence platform
that helps brands and retailers make
better, more informed decisions faster.
Powered by an on-demand network of
more than a million consumers, Suzy lets
you target and retarget any consumer
segment to ask questions and get
insights from shoppers in minutes. Some
of the biggest retailers in the world use
Suzy to validate critical decisions, better
understand their customers, increase
conversions and drive growth.
ABOUT SUZY
For more information about Suzy services:
suzy.com/psfk
Jeff Weiner, Head of PSFK Membership -
Jeff.Weiner@psfk.com

About YourStudio
YourStudio creates pioneering experiences that connect people to brands. By continually
driving fresh thinking across strategy, brand communications & experience design; we help
brands define what’s now and what’s next.
Continue the conversation:
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Your Studio
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UK + 44 (0) 207 033 2809 AUS +61 451 161 087 weareyourstudio.com
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