2. The business of retail changes as often as your
inventory does. New technology, new busi-
ness models, and even new retail channels can be
overwhelming to keep up with. How’s a retailer to
know which business trends will stay, and which
will simply fade away?
Our team of retail experts came together to iden-
tify the most important trends in retail today, how
some of the world’s hottest stores are deploying
them, and how independent retailers can apply
them for themselves.
These are the trends that matter. Inspire yourself to
try something new in your store by learning from
the world’s most innovative retailers.
TOSTEALFROMTHEWORLD’S
MOSTINNOVATIVERETAILERS
SECRETS
All trademarks remain the property of their respec-
tive owners. Unless otherwise specified, no association
between Lightspeed POS and any trademark holder
is expressed or implied. No endorsement of Lighspeed
POS is expressed or implied by the mention of such
trademarks.
3. TIP
#1
Play up your
difference
Case study: Uniqlo
Case study: Maison Kitsuné
Case study: Story
Case study: Tory Burch
Case study: Home Depot
Case study: Toys“R”Us
Case study: Costco
Case study: The Apple Store
4
8
12
16
20
24
28
32
TIP
#2
Capture the
imagination
TIP
#3
Grow faster by
cultivating partnerships
TIP
#4
Provide legendary
customer service
TIP
#5
Reach out, both
in-store and online
TIP
#6
Have a planned turnover
and markdown strategy
TIP
#7
When showing off merchan-
dise, less is often more
TIP
#8
Empower your
sales staff
4. 8 Secrets to Steal from the
World’s Most Innovative Retailers
4 Tip #1: Play up your difference
YOUR
DIFFE
RENCE
There’s nothing new about
making sure you have a
“unique selling proposition” to
offer your customers. It’s the
number one rule of creating a
powerful, compelling brand.
The most successful retailers play
up their difference: they define
themselves by their uniqueness,
even as they enter marketplaces
teeming with competition.
TIP
#1
5. CASE STUDY:
UNIQLO
Take Uniqlo, a casual wear retailer from
Japan and the largest clothing retailer in Asia
today. When they arrived on the scene, there
were plenty of big casual-wear players firmly
established. Uniqlo made a name for itself by
approaching the market from a different angle.
5 Tip #1: Play up your difference
While fast fashion retailers like H&M and Zara
focus strictly on what’s trendy, Uniqlo goes the
other way by offering strong basics, consistent
products on the shelves, and an emphasis on
quality and durability.
Their main difference? Premium quality goods
at more affordable prices. Think 100% cashmere
sweaters for $60 and down parkas for under $100.
They offer a consistent range of products, but a
wide variety of colors and sizes. Customers can
buy basics that fit their own style, instead of
having it dictated to them.
They market their products in unique ways,
deploying luminescent “Cube” pop-up shops and
hiring the Internet’s most famous cat for videos
that go viral.
The company has grown from one suburban store
in 1984 to almost 1,500 around the world today.
1
2
3
4
5
6. 8 Secrets to Steal from the
World’s Most Innovative Retailers
PLAY UP YOUR DIFFERENCE
TIP
#1
6 Tip #1: Play up your difference
WHAT
INDEPENDENT
RETAILERS CAN Do:
7. “To be blunt, any retailer that doesn’t create a compelling, differentiated
experience for customers will not survive for very long.”
- Jerry Stritzke
CEO of REI
Don’t try to compete just on price. There are many
ways you can emphasize your unique place in the
retail world, be it quality, unique items, or something
else. Get in the habit of thinking outside the box.
What is everyone else doing that you can do
differently or better? Don’t be shy to shake up a
category.
Carry products that large retailers can’t — Walmart &
Costco likely won’t bother to buy from vendors that
produce in small amounts, it costs them too much to
manage small vendors. Plus, limited-run items give
you an edge: you’ll have exclusive products in your
store.
7 Tip #1: Play up your difference
1 3
2
8. 8 Secrets to Steal from the
World’s Most Innovative Retailers
TIP
#2
8 Tip #2: Capture the imagination
Shopping is a form of
entertainment. And if you
want to entertain, you have
to first spark the imagination.
Department stores such as
Selfridges and FAO Schwarz have
done this successfully for over
100 years, and other retailers are
catching on.
CAP-
TURE
9. The ultra-hip, Paris-based Maison Kitsuné formed
over ten years ago when the two founders met while
working for Daft Punk. The retail outfit/record label
combines music, art, and retail to create an art gallery-
like shopping experience that is half retail, half all-
night dance party.
CASE STUDY:
MAISON KITSUNÉ
The retailer regularly hosts music shows that generate
a lot of buzz and reinforce their brand as
purveyors of cool.
Music features prominently at Maison Kitsuné, who
produce music and manage a record label featuring
emerging electronic musical artists, on top of design-
ing and selling their own label.
They also sponsor events such as Le Cabinet de Cu-
riosites of Thomas Erber, a curated selection of art,
fashion, and design pieces from independent artists
and labels around the world.
9 Tip #2: Capture the imagination
1
2
3
10. 8 Secrets to Steal from the
World’s Most Innovative Retailers
WHAT
INDEPENDENT
RETAILERS
CAN Do:
CAPTURE THE IMAGINATION
With some creative thinking, you can create
entertainment in your store on a limited budget.
Here’s some inspiration:
TIP
#2
10 Tip #2: Capture the imagination
11. Trader Joe’s hides a stuffed animal somewhere
in the store; kids who find it get a free lollipop.
Selfridges “Word-A-Coaster” gives out printed
fortunes to customers.
Crate & Barrel hosts free “Wedding Party Events”
for couples to set up a wedding registry at their
store.
Family-owned Vermont Country Store hosts free
beer tastings with local brewers.
Mango provides wifi and comfy chairs next to the
dressing rooms. Happy shopping companions
means more time for trying and buying items.
11 Tip #2: Capture the imagination
“Once the imagination is moved, the hand goes naturally to the pocket. But
if the first appeal is to the purse, the imagination is apt to revolt and raise
barriers against buying.”
- Harry Selfridge
founder, Selfridges
1 4
2 5
3
12. 8 Secrets to Steal from the
World’s Most Innovative Retailers
TIP
#3
GROW
FASTERBY
CULTIVATING
12 Tip #3: Grow faster by cultivating partnerships
Too many independent
retailers drive themselves to
do it all on their own, forgetting
that there are many ways they
can form mutually beneficial
partnerships with other
businesses.
Some possibilities include
working with complementary
organizations to run joint
promotions, promote each other’s
products, or host events such as a
shared pop-up shop.
13. Consider Story, a Manhattan boutique that has invented a whole new
way to think about retail: their store is a living, breathing advertising
venue, and less expensive than traditional TV or print advertising.
Story receives anywhere from $75,000 to $300,000 from “sponsors” to
place products in their store.
CASE STUDY: STORY
Story features a new theme every 4-6 weeks, with unique items from
artists and designers. The boutique shuts down every cycle for one
week to redesign the store for the next theme.
The boutique generates considerable foot traffic, which is appealing
to large companies wanting to show off their products in new and
creative ways. Heat mapping technology shows where customers
spend the most time.
American Express, General Electric, and Target have all been sponsors.
13 Tip #3: Grow faster by cultivating partnerships
1
2
3
14. 8 Secrets to Steal from the
World’s Most Innovative Retailers
WHAT
INDEPENDENT
RETAILERS
CAN Do:
GROW FASTER BY
CULTIVATING PARTNERSHIPS
Think about how you can partner with other people in
your network. These can be revenue partners, product
partners, or other retailers.
TIP
#3
14 Tip #3: Grow faster by cultivating partnerships
15. Lululemon teams up with local volunteer
instructors to provide free yoga classes.
Portland’s Powell City of Books holds free readings
by authors every day and “Kids’ Storytime” on
Saturday mornings.
Bass Pro Shops, Cabela’s, and Dick’s Sporting
Goods partner with the Recreational Boating &
Fishing Foundation to promote Anglers’ Legacy,
where experienced anglers introduce newcomers to
the sport.
Small businesses in and around Iowa State
University receive free graphic design from senior
students at the College of Design in exchange for
small business training and knowledge.
15 Tip #3: Grow faster by cultivating partnerships
1
2
3
4
“When independent clothes stores, book shops, pet stores and other
independents come together, with their collective expertise, experience,
customers, connections and staff, they become a powerful force.”
- Tim Aldred
The Guardian
16. 8 Secrets to Steal from the
World’s Most Innovative Retailers
TIP
#4
16 Tip #4: Provide legendary customer service
Shoppers are tired of being
considered as simply faceless
numbers in a crowd, and they’re
willing to pay for a better expe-
rience. A recent survey showed
over two-thirds of Americans will
spend 14% more with a company
they believe delivers excellent
service.1
PROVIDE
CUSTOMER
SERVICE
17. Tory Burch knows this, and makes sure you feel welcome
whenever you turn up at one of their stores.
CASE STUDY:
TORY BURCH
The retailer wants you to feel you’ve had a truly pleasurable
experience in their boutique, whether you’re browsing jackets,
returning something you bought online, or waiting for someone while
they try on shoes. In the case of the latter, you can expect a glass of
wine or beer to appear in your hand while you wait.
Sales associates track customer information closely, and follow-up
with periodic, personalized calls and emails. Tracked data includes
specific notes on what a customer has tried on, including size and
color.
Follow-up messages address the customer by name, and provide
information customers care about, such as inventory availability or
promotions.
Tory Burch started with a boutique and an e-commerce site in 2004.
Today, they have 125 stores around the world, and a strong online
presence.
17 Tip #4: Provide legendary customer service
1
2
3
4
18. 8 Secrets to Steal from the
World’s Most Innovative Retailers
WHAT
INDEPENDENT
RETAILERS
CAN Do:
PROVIDE LEGENDARY
CUSTOMER SERVICE
Customers like to talk about their customer service
experiences, and will tell three times as many people
about their bad ones than their good ones.2
TIP
#4
18 Tip #4: Provide legendary customer service
19. 19 Tip #4: Provide legendary customer service
Make returns easy. Something as simple as easy
product returns can make sure your customers are
saying the right things about you.
Track, track, track. Keep notes on your customers,
and not just for things like contact information.
Write down their preferences and their interests,
and engage with them based on what they love.
Centralize your note-keeping so that your entire
team participates in building great customer
profiles.
Meet with staff regularly to exchange information
about customer service. These shouldn’t be one-
way conversations — find out what’s happening at
ground level.
Make your customers feel valued. A genuine
greeting upon entry and farewell upon leaving can
go a long way.
1 3
2
4
“Whether it’s in our stores, online or through our customer loyalty program,
personally relevant connections lead to higher levels of customer engagement
and spend”
- David Lenhardt
CEO PetSmart
20. 8 Secrets to Steal from the
World’s Most Innovative Retailers
TIP
#5
20 Tip #5: Reach out, both in-store and online
Shoppers today research
before they buy. Most still
do their shopping in a brick-and-
mortar store, but they nonethe-
less expect to find a consistent
brand experience on the web.
Today’s top retailers are investing
in their systems to ensure a seam-
less shopping experience for cus-
tomers, whether they are online,
in the store, on a mobile device,
or browsing a catalog.
Reach out
in-store
and online
21. Home Depot recently invested $300 million to
upgrade its “omni-channel” strategy, betting
that customers would be willing to buy products
from mobile devices and kiosks, given the right
experience.
The company built new distribution centers,
which allowed them to offer 700,000 items
online, compared to 35,000 to 40,000 in the
physical stores.
Buy online, return in-store has been a
success for the company. So has buy
online, pick-up in-store, with 20% of those
customers purchasing additional items
when they pick up their order.
Interactive digital kiosks in-store make
appliance shopping easier, and show off
inventory the store isn’t able to keep on the
shop floor. Appliance sales increased 10%
after the new kiosks arrived.
By the end of the first quarter following the
upgrades, online sales had grown 50%.
CASE STUDY:
HOME DEPOT
21 Tip #5: Reach out, both in-store and online
1
2
3
4
22. 8 Secrets to Steal from the
World’s Most Innovative Retailers
WHAT
INDEPENDENT
RETAILERS
CAN Do:
REACH OUT, BOTH
IN-STORE AND ONLINE
73% of consumers research potential
purchases online first. Shopping is now
anytime, anywhere.
TIP
#5
22 Tip #5: Reach out, both in-store and online
23. 23 Tip #5: Reach out, both in-store and online
Open an online store. Keep it simple, but make sure
it reflects your brand.
Integrate eCommerce inventory with your store
inventory, to ensure you don’t run out of stock or
double-sell items.
Use social media, but only if you have the resources
to maintain it. The most popular platforms today
are Facebook and Instagram, but bear in mind that
social media changes quickly.
1 4
5
2
3
Recent research has shown that providing in-store
pickup for goods increases in-store traffic and sales.
Many retailers are responding by making in-store
pick-up free for customers, and adding shipping
costs for home delivery.3
While a large, expensive device such as a kiosk may
not be appropriate for your store, you can achieve
a similar effect with mobile devices such as iPads.
These can provide information on inventory levels
and products, and show large, crisp pictures of your
products.
“Your brand is your most cherished and valuable asset. What you do on the
web has to be augmenting what you’ve already established the brand can do.”
- Paul Miller
VP eCommerce, Williams-Sonoma
24. 8 Secrets to Steal from the
World’s Most Innovative Retailers
TURNOVER AND
MARKDOWN
STRATEGY
TIP
#6
24 Tip #6: Have a planned turnover and markdown strategy
Top retailers know they’ve got
to keep inventory moving to
keep customers coming back.
They also know that relying too
much on deep discounts to move
old inventory can hurt profits and
“train” customers to wait for the
sale.
25. Toys R Us recently underwent a major transformation to
improve inventory turn in their stores. Stale inventory had
been accumulating for years, and a new executive took
bold steps to change how they ran their business. “We
would rather take small hits every day, than a big hit one
day,” says CEO Antonio Urcelay.
CASE STUDY:
TOYS "R" US
The toy retailer cleared out old inventory with
aggressive markdowns during the first half of
2014.
They cleaned up their brick-and-mortar stores,
improving product displays and making
navigation easier.
They negotiated exclusive products with
manufacturers.
Now when items are purchased, a date is entered
into their inventory management system that
dictates when the item must be marked down.
25 Tip #6: Have a planned turnover and markdown strategy
1
2
3
4
26. 8 Secrets to Steal from the
World’s Most Innovative Retailers
WHAT
INDEPENDENT
RETAILERS
CAN Do:
HAVE A PLANNED TURNOVER
AND MARKDOWN STRATEGY
Good inventory management keeps stock moving
efficiently, without overstocking and tying up all-
important cash.
TIP
#6
26 Tip #6: Have a planned turnover and markdown strategy
27. Plan ahead to prevent over- or under-buying. Don’t
meet with buyers or make purchases before having
planned for the season ahead.
Monitor inventory levels and sell-through rates
regularly to ensure inventory is moving through your
store at a smooth rate. You should check at least
monthly, ideally weekly.
Be disciplined about when and how much you mark
down inventory.
For detailed instructions on how you can more
effectively plan and manage inventory, check out
the free guide Managing Your Inventory: Retail Best
Practices for Maximizing Profits.
27 Tip #6: Have a planned turnover and markdown strategy
1
2
3
4
“People love new much more than they love the stuff they saw last time now
discounted.”
— Paul Sweetenham
former President of T.K. Maxx Europe
28. 8 Secrets to Steal from the
World’s Most Innovative Retailers
TIP
#7
MERCHANDISE,
LESS IS
OFTEN MORE
28 Tip #7: When showing off merchandise, less is often more
While it’s tempting to put
everything out and see
what will stick, studies have
shown that too much choice
causes customers to walk away.4
Costco has built their business
on this discovery, making an art
of curating products. The fast-
growing retailer seeks out the
very best products available
within certain price ranges, and
offers them in bulk.
29. As anyone who shops at Costco on the weekend knows,
their formula works. The company was the first ever to
grow from zero to $3 billion in sales in less than six years.
CASE STUDY:
COSTCO
While retailers such as Walmart offer a selection as
large as 100,000 items, Costco only offers 4,000.
The store creates a sense of discovery, forcing you
to wander the aisles, inviting you to stay, with items
you can touch and taste.
The retailer offers four or fewer choices on items,
and always includes their home label if available.
Occasional temporary specials on high-ticket items
like designer bags and plasma screen TVs create a
“treasure hunt” for customers.
29 Tip #7: When showing off merchandise, less is often more
1
3
2
4
30. 8 Secrets to Steal from the
World’s Most Innovative Retailers
WHAT
INDEPENDENT
RETAILERS
CAN Do:
WHEN SHOWING OFF
MERCHANDISE, LESS IS OFTEN MORE
Combine the power of your instinct with simple data
analysis to help perfect your store inventory levels.
TIP
#7
30 Tip #7: When showing off merchandise, less is often more
31. 31 Tip #7: When showing off merchandise, less is often more
Create a curated experience in your store; a selection
of the very best in your area or specialty.
Analyze sales data to understand your most popular
items, as well as your most profitable ones —
which aren’t necessarily the same. Be sure to keep
inventory levels topped up on popular items, so you
don’t run out and lose potential sales. Know your
most profitable items so you know what’s making
your business successful.
Keep inventory turnover as high as possible, while
also maintaining your margins. For helpful tips
on how you can do this, see the The Independent
Retailer’s Guide to Buying Inventory.
Focus more on the shopper’s experience — don’t
treat your store like an inventory storage space.
1
2
4
“We think the profusion of possibilities must make it that much easier to find that perfect
gift for a friend’s birthday, only to find ourselves paralyzed in the face of row upon row of
potential presents. We exhaust ourselves in the search, and something that should have
been a joy — celebrating a loved one — becomes a chore.”
- From The Art of Choosing by Sheena Iyengar
3
32. 8 Secrets to Steal from the
World’s Most Innovative Retailers
TIP
#8
32 Tip #8: Empower your sales staff
Research has shown that even
after researching online,
comparing prices, and reading
reviews, as many as 40 percent of
customers remain open to per-
suasion once they enter a store.5
A well-trained, empowered sales
staff determines your level of
sales. Without them, your store
cannot perform.
SALES STAFF
33. When Steve Jobs designed the first Apple retail
store, he asked, “how do we enrich people’s
lives?” This thinking was the driving force behind
store design and customer service strategy.
Apple sales “specialists” are trained extensively —
sometimes for weeks — before ever engaging with
customers.
Specialists receive regular training on products,
and are sworn to secrecy on new products until
the day of release.
Handheld devices allow specialists to research
inventory information and availability, without
leaving the customer’s side. They also let
associates check out customers on the spot.
Apple redefined customer service when they
introduced the Apple Store in 2001. Employees were
taught to solve customer problems, not sell goods.
They were given handheld devices, to get them out
from behind the counter. Today, they are one of
the top performing retailers in the world, averaging
$4,551 in sales per square foot, higher than jeweler
Tiffany’s and luxury retailer Coach.
CASE STUDY:
THE APPLE
STORE
33 Tip #8: Empower your sales staff
1 3
4
2
34. 8 Secrets to Steal from the
World’s Most Innovative Retailers
TIP
#8
WHAT
INDEPENDENT
RETAILERS
CAN Do:
EMPOWER YOUR SALES STAFF
You can’t script every possible customer interaction,
but you can give your staff the tools they need to deal
with them.
34 Tip #8: Empower your sales staff
35. 34 Tip #8: Empower your sales staff
Emphasize service above all else. When good
service is the goal, increased sales are the end
result.
Provide regular training to staff. Teach them
how to address customer needs, how to handle
difficult situations, and how to create the right
environment in your store. Provide product
training, so they understand each brand’s
direction as well as materials used for products.
Sales associates report two times higher job
satisfaction if they can meet a customer’s needs.6
Empower sales associates to make decisions.
Mobile solutions can put important product
information in the hands of sales associates. A
recent survey showed customers valued product
knowledge above all other services from a sales
associate7
, so make sure they can deliver.
Mobile checkout can help sales staff close the sale,
regardless of where they are in the store.
1 3
4
5
2
“People will work hard when they are given the freedom to do the job the way
they think it should be done, when they treat customers the way they like to
be treated. When you take away their incentive and start giving them rules,
boom, you’ve killed their creativity.”
- Jim Nordstrom
former co-president, Nordstrom
36. These retailers have emerged as some of the
leading innovators in the world of retail, and
with good reason. They combined creativity
with sound business principles, making them
stand out in a field crowded with players. Use
these eight tried-and-true practices to capture
the best of what modern retail has to offer,
and carve out your own space in the market —
and in the hearts of shoppers.
CON
CLUSION
37. At Lightspeed, we build end-to-end commerce
solutions that retailers can use to build, manage and
grow their businesses by creating better shopping
experiences. Lightspeed unifies point of sale, inventory
management, customer management, and analytics
across all channels, in-store and online.
More than 21,000 businesses use Lightspeed’s tools to
sell over $8.2 billion a year.
Questions? Call us at
1-866-932-1801 or 1-514-907-1801
ABOUT
LIGHTSPEED
Start your free trial
38. 1
American Express, (2014). Customers reward
outstanding service by spending more and spreading the
word to friends and family [Press release].
3
Gallino, S. and Moreno, A. (2014). Integration of Online
and Offline Channels in Retail: The Impact of Sharing
Reliable Inventory Availability Information. Management
Science, 60(6), pp.1434-1451.
4
Fasolo, Barbara, Ralph Hertwig, Michaela Huber,
and Mark Ludwig, 2008, Assortment Size and Variety
“in the Wild”: Insights From an Ecological Analysis and
Simulations, Working paper, London School of Economics
and Political Science: 3.
5
Leibowitz, Josh. (2010). Rediscovering the Art of Selling.
McKinsey Quarterly.
6
2013 Experticity Retail Buying Experience Survey. ReRez
Research.
2
Ibid
7
Ibid
RESOURCES
39. Retail Tech Forecast
Find out what technology independent retailers are using in their
stores – and how they‘re using it to sell more.
Download the PDF →
The Independent Retailer’s
Guide to Buying Inventory
Intuition meets data in this free guide to making the best buying
decisions for your business.
Download the PDF →
The Inventory Guide
Best practices for inventory management. Increase profits, keep the
right goods in stock, and run a better business.
Download the PDF →
Shopping for a new POS? Here are 9 questions to ask to be sure you
choose the best one for you and your business.
Download the PDF →
POS Buyer’s Guide
OTHER RETAIL
RESOURCES