Each year IRDCers are treated to a whirlwind tour of new and interesting retail trends in Europe, courtesy of VMSD’s European editor, John Ryan.
Based in London, Ryan covers store design for several publications and says the story this year is format experimentation—thanks to an economy that, in many European countries, remains difficult. Here’s a preview of his September 8 session, European Retail: In With the New.
IRDC: Is European retail seeing a similar rebound to that of the U.S.? Which sectors fared best when the European economy declined?
JR: Luxury remains strong, as does food (to an extent, due to food inflation), but apparel and general merchandise continue to suffer. It’s probably worth noting that Europe is far from being a homogenous whole and that while Germany, for instance, is performing strongly, the southern reaches of the continent are still feeling the pinch.
IRDC: What's the most interesting or surprising retail trend you've observed in Europe over the past year?
JR: I suppose one of the more surprising elements in the U.K. has been that while the economy falters, U.S. retailers keep reaching out across the pond to establish a European foothold – predominantly in London – the very recent arrival of the biggest M&M’s store to date and the astonishingly rapid expansion of the Hollister format both being cases in point.
IRDC: Give us some examples or case studies of European retailers who've found smart, new ways to draw customers into stores.
JR: The Nespresso flagship in Barcelona, located in the city’s former bullring, is certainly interesting. Here, a concierge greets shoppers and books them in for a free tasting session at the coffee bar and also controls entry to the glass-sided club where members can benefit from advice given by a coffee sommelier. There are also kiosks in the club, where capsules can be ordered and then delivered to your home. It’s a very effective linking of the online and terrestrial retail worlds, showing that there is life in both.
At the other end of the scale, in the same city, Happy Pills is a shop selling jelly beans from medical style bottles where you choose the bottle size and the “pills” that go into it. The whole thing is decked out to look like a pharmacy and has proved popular, as well as yielding amazing margins.
IRDC: You've been reporting on European retail for VMSD (and at IRDC) for many years. What do you think are the biggest differences in designing stores for those shoppers vs. consumers in the U.S.?
JR: Stores in the U.S. tend to be rather more themed and lifestyled than here in Europe. Don’t really know why this is the case, but it is evident. There is also a stronger element of storytelling and information about product provenance in the U.S., although this is on the increase in Europe.
