For many years retailers were full service – every product was behind a showcase and a sales clerk’s interaction was required to look at and purchase a product. In general people don’t like to waste other people’s time so for the most part only serious buyers looked at product. This discouraged many would be buyers from even considering the purchase.

Open Shelf

In the 60’s the more open shelf style began to expand and retailers were more of a combination service and self service environment. This new style was actually a win win for the retailers since they could fit more merchandise onto the selling floor and get customers to interact with the product easier. As soon as the consumer picked up a product the sales person would engage them, sort of locking in the sale. If you think about it, this new concept got more consumers engaged and therefore more consumers to purchase.

Shopping Malls

In the late 60’s and the early 70’s highways and shopping malls expanded retail out of the downtown areas and into the suburbs. Lower priced real estate added many more retailers to the mix with larger stores, new ideas and concepts.

Strip Centers & Discount Stores

As mall rents started to rise – strip centers started to crop up with Discount Department stores. These stores boasted large selections and low prices. In order to keep prices low along with the lower rents because of the secondary locations these retailers created the self service environments.In order to compete the Mall Stores needed an edge. They started with the merchandise which of course as a retailer is the most important element but then they realized there was more they could do. Working the displays and other tools to engage the consumer such as music, lighting and video – retail became theater.

Online Retail

Now let’s look at online retail – a roughly 10 year old industry still operating much the way it did when it began. No real service and certainly no theater.

I feel there is a huge opportunity to take online retail to the next level.

Anyone else think this way ? Let me know.

By Allan Levy| June 9th, 2007