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Apple's New 'Town Square' Store May Be A Blueprint For Winning Millennials Back To Retail

This article is more than 6 years old.

Traditional retail is struggling. Giants like Walmart are in a never-ending battle with online behemoths like Amazon. Retailers of all sizes are struggling to survive in this digital era. The latest reports indicate 2018 will be a rough year for many companies.

Amazon is perhaps the number one reason why brick and mortar retailers are disappearing. When they first made their presence online in 1996, they quickly became a rival to bookstores all over the country. Soon people began seeing their favorite local bookshop, as well as chains like Borders and Books-A-Million, pack up and leave. Now that Amazon offers services like Prime Fresh for groceries and Prime Now for one-hour deliveries, they are winning a new war against different competitors.

Apple, with nearly 500 retail stores around the world generating over $42 billion in revenue, isn’t sitting by idly while other brick and mortar retailers decline. That’s why Angela Ahrendts, senior vice president of retail at Apple, announced a major shift in the retail experience during the September keynote event. New Apple Stores will be called “Town Squares,” named after the long-standing public gathering places in cities all over the world. The first store to showcase this new approach opened in Chicago on October 20.

These new store layouts are designed to enhance the shopping experience. Some features include a conference room area for local businesses, a redesigned Genius Bar space that’s more inviting, and even more green space. By treating the store as a product, Apple is setting the standard for making retail stores thrive in the digital age.

As companies try to survive and thrive in this new reality, they often create strategies that target millennial consumers. Being the largest generation in the country, this group of 85 million ages 18-37 carries tremendous buying power and influence for the future of many companies. The “Town Square” concept may be a winning formula for Apple, and there are four things other companies can learn from the next iteration of the Apple Store:

Focus on experience.

As with everything designed by Apple, they focus on the overall experience of the end user. When they design the iPhone, they integrate the hardware and software in order to make the phone a great experience for the user. They don’t give you endless details on the camera; they show how it can take great pictures.  

This is the same mindset Apple brings to their newest retail design. Instead of focusing on traditional ways to maximize revenue, Apple is hyper-focused on creating an experience people enjoy. Millennials place a high value on experiences. Retailers that will win this generation must design their spaces and integrate technology in such a way that elevates the end-user experience. Customer expectations are high, and brands have an opportunity to exceed those expectations.

Create a space for community.

When people have a place they want to gather, they will quickly spend money there. Starbucks isn’t the largest coffee chain in the world because it is the only place to get a latte or overpriced cup of joe. Since the beginning, Starbucks focused on the environment of its stores. When Howard Schultz bought Starbucks in the 1980s, he wanted the stores to be a “third place” for people: a location other than work and home where people gathered. This focus on an experience beyond the product helped make Starbucks so popular.

Millennials, as defined by William Strauss and Neil Howe in their book Generations, are a group that deeply values community. Social media and online forums are so popular among this generation because it gives them a place to join a group of people with similar values and ideals. As is the case with focusing on experience, creating an opportunity for community interaction and belonging is a powerful way to engage this generation.

Develop a seamless mobile integration. 

Several months ago I walked into a crowded Apple Store to get an iPad cover. None of the employees were available, and my kids were getting antsy in the stroller. Then I remember I could pay for an item using the Apple Store app and Apple Pay. So I opened the app, scanned the barcode, paid with TouchID, and left the store. It was unbelievably easy.

I had a similar experience last week at an Amazon bookstore. I paid using the Amazon app and got a 25% discount as an Amazon Prime member. Traditional retailers that merge a great physical experience with the mobile experience will win the future. One Google report says 82 percent of customers use their smartphone to make a purchase decision in-store. Easily connecting the mobile experience to the retail experience helps retailers capture more sales in-store.

Have a place for kids.

My family and I recently went to a traditional retailer to get new shoes for our two toddler boys. The store wasn’t set up for a stroller, and it quickly became difficult to get anything done. That, combined with a lack of help from sales staff, caused us to leave. Had the area been better designed for kids, especially younger ones, our trip would have been much easier, and we probably would have purchased several items from that store.

The new Apple Stores will continue offering coding classes for kids, and they also have computers available on smaller desks for the kids to try out while their parents get help with their Apple devices or purchase something new.

Over 50 million millennials are already over 27, and millions of millennial women already have kids. Retailers that want to engage this generation successfully must solve the problems presented by trying to shop with children , particularly young ones. Those who provide great solutions will be rewarded with loyal millennial customers.  

This move by Apple is certainly a calculated one. Since they are treating the stores like a product, their team brings the focus on user experience found in its devices. Whether the Town Square approach will work remains to be seen, but the principles behind it reveal a glimmer of hope for other retailers looking to revive physical stores.

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