The Consumer Reformation by Brooke Kamins

The Consumer Re f o r m a t i o n :

Tech as the Staple Item, Not an Accessory

The Consumer Reformation Tech as the Staple Item, Not an Accessory Brooke M Kamins Senior Interior Design Thesis University of Kentucky, College of Design, School of Interiors Spring 2018

Table of Contents

06 10 38 46 52

Project Overview Research & Programming Schematic Design Design Development Final Presentation

THE CONSUMER REFORMATION

Project Overview Summary, Background, & Description

PROJECT OVERVIEW

The Consumer Reformation Project Overview Location : Chicago, Illinois, the Wicker Park community Client : Reformation Users : Reformation shoppers and employees Size : 4,770 SF

Project Summary The Consumer Reformation is a part of the drastic movement occuring in the retail industry that, like many other industries, is adapting is marketing strategies to the digital age. Consumers more than ever are demanding a seamless shopping experience at the touch of their fingers, and for brick-and-mortar stores to remain relevant in the eyes of the tech-savvy Millennial, brands must design their environments to implement technology. The clothing they sell may have seams, however, the experience should not.

Project Background Created in 2009 by Yael Aflalo, Reformation designs modern apparel and manufactures the majority of their limited-edition collections in their factory headquarters in downtown Los Angeles. All other garments are produced by responsible manufacturing partners here in the U.S. or abroad using sustainable methods and materials. Because the brand was created by a Millennial, significant steps have already been taken to implement technology into the efficiency of the company, and there is only room to grow.

Project Summary The retail industry is undergoing an identity crisis, especially with the rapid closing of brick-and-mortar stores and the responding demographic shift towards online retail channels. However, the relevance of brick-and-mortar stores may not actually be declining, they could just need to change their form. Reformation, a store that avidly uses both retail channels, has already begun to recognize this demand for change within their Millennial market, and the brand basis presents ample opportunity for strategic change. The catalyst for these changes lies in the possibilities that our current technology provides, especially with its ability to connect us to each other. Design that implements this technology in a new and innovative way can not only increase store efficiency, but it can bring consumers back to brick-and-mortar. The structure of this new strategy can otherwise be known as â&#x20AC;&#x153;bricks-and-clicks,â&#x20AC;? and design must be a mediator in creating successful and seamless user experiences. Technology is seamless, clean, and simplistic, which coordinates to the flow and circulation of a plan and the materiality of the elements within the space. However, the continued relevance of brick-and-mortar gives light to our prevailing humanity, so the design, while it implements technology, also considers the human factor in scale, materiality, and in function.

THE CONSUMER REFORMATION

Marketing Material : Proposal Cover

PROJECT OVERVIEW

THE CONSUMER REFORMATION

Research & Programming Concept Narrative, Site Analysis, Market Research, Precedent Studies, Adjacency Analysis, & Inspiration

RESEARCH & PROGRAMMING

Research Process Who, What, and Where

Who : Research Team Anne Kong Associate Professor Visual Presentation & Exhibition Design School of Art and Design Anne Kong is an educator and a designer specializing in Visual Presentation, Exhibition and Special Events with more than 20 years of experience developing design concepts and solutions for retail, showrooms, trade shows and promotional events. As a Professor and former Chairperson of the Visual Presentation and Exhibition Design Department at New York’s Fashion Institute of Technology, she is best known for innovating professional collaborations between retailers and brands to enhance the classroom experience for her students.

Jennifer Acevedo Editor-in-Chief Visual Merchandising & Store Design Magazine As a Retail Leader, Jennifer delivers analysis and perspective on those industry trends and strategies of critical interest to retailers. As an Editor-in-Chief, she is responsible for setting the editorial direction of the publication as well as representing the magazine at various conferences and events. Her special skills include survey design and development, and extensive experience developing and moderating webcasts.

Anita Lee-Post Associate Professor Marketing & Supply Chain, Gatton College of Business and Economics Anita Lee-Post is an associate professor within the Gatton College of Business and Economics in the Marketing Department. She is published extensively in journals, which includes her notable article “Knowledge-Based FMS Scheduling: An Artificial Intelligence Perspective.” Her research interests include sustainability, supply chain management, e-learning, e-commerce, and knowledge management. 12

THE CONSUMER REFORMATION

What : Research Topics Brick and Mortar in the Modern Age Bricks for Clicks “Bricks and Clicks” Demographics of Wicker Park - Bucktown A Millennial Demographic Millennial Myths The Millennial Consumer Dichotomy Dynamic Shopping Journeys Six Dimensions of a Seamless Retail Experience Survey Analysis Three Top Reasons for Shopping Technology in Retail Modern Retail Marketing Strategy Sustainability in Retail Carbon Footprint Variables of the Supply Chain

Where : Wicker Park Zoning and Site Analysis Wicker Park - Bucktown Demographics

RESEARCH AND PROGRAMMING : RESEARCH PROCESS

Concept Narrative Design Objectives

Brick and mortar stores are losing traction. As the digital world adapts and evolves into every part of our daily lives, we as consumers expect our surroundings to do the same. It is now survival of the fittest for brands, and many have failed to meet the high demands of e-commerce in light of online stores like Amazon. Physical stores are closing, while online sales for many stores are actually increasing, on average, by over 30%. Brands that participate in e-commerce tend to have quick revenue because of the lack of overhead costs, however, those that fail are analyzed as unable to differentiate the market, unable to plan and forecast their business, but most importantly, they are not engaging their customers. The most genuine way to engage customers, many would agree, is through providing a unique experience. The experience of shopping online and shopping in the physical store are drastically different, however, it poses the opportunity to create a holistic design

THE CONSUMER REFORMATION

that further explores the experiential advantages of each. The tech-savvy Millennial generation engages and shares experiences through technology, so to design a space that fosters the merging of the online retail platform, technology must be an instaneous and fluid tool. Technology will be the cataylst of the success with this concept, but in the space specifically it will serve as a marketing tool, a source of data and information, a branding strategy, a source of inspiration, and a user engagment tool. The consumer will be able to navigate the space similar to how he or she navigates their online shopping platform, all with the advantages of shopping in a physical store. The creation of a custom Smart Mirror, holographic runway, and other products will bring these ideas into reality. Consumers will start shopping for the experience, not necessarily the product. As technology fully integrates itself into retail, consumerism will change as we know it.

Have retailers and consumers traded in bricks for clicks? 9 out of the 10 top U.S. retailers are traditional brick and mortar stores. -STORES Magazine Top 100 Retailers List

Online channels are growing faster than bricks, but there is a higher conversion rate of store visitors who actually make a purchase than site visitors.

“Walk-in traffic doesn’t exist online.” “In spite of retail bankruptcies, store closings, and liquidations, consumers have not traded in bricks for clicks,” says Barbara Thau, a Forbes Contributor. There are many factors that contribute to failing retail, including having a retail landscape that is still sized for a “pre e-commerce/ pre Great Recession shopping” mindset. According to The STORES Magazine Top 100 Retailers list, the nine of the top ten U.S. retailers are traditional brick and mortar stores. While retailers’ online channels may be growing predominately faster that bricks, bricks have a higher conversion rate than clicks. This higher conversion rate means that there is a higher percentage of store visitors who actually make a purchase than site visitors.

-L2, Brand Performance Analysts

In addition, a store purchase is generally more profitable than an online purchase, since shipping and handling costs with both the delivery and possible return can eat into the retailer’s profit margins. It is notable that the nation’s biggest e-tailer, Amazon, bought one of the nation’s largest brick and mortar retailers with more than 460 stores. Amazon has recognized that an omnichannel view of the market is limiting to the possibilities that exist. “Walk in traffic doesn’t exist online,” says L2, a company that analyzes the digital performance of brands. The value in the brick and mortar presence is being recognized widely by retailers based on the demands of consumers. Brick and mortar does not seem to be going anywhere.

Bricks and Clicks: Offline Tangibility and Online Convenience Bricks and clicks, a new buzzword in the retail industry, is the “seamless meshing of offline tangibility and online convience in retail stores,” according to Forbes. Retail is being reinvented, but these new retail models must take into consideration the growth of online tools that have been quickly able to change the way consumers search, shop and buy. Also, these

new technologies need to provide the employees with the online convenience to handle changing logistic systems. Harvard Business Review says, “Creative retailers are {currently} using new technologies to innovate just about everything stores do from managing inventory, to marketing, to getting paid.”

RESEARCH & PROGRAMMING : CONCEPT NARRATIVE

Demographics Wicker Park - Bucktown Median Household Income : $97, 757 (National Median : $53,889)

Population : 23,390 Diversity : A-rating based on ethnic and economic diversity

Household Income Brackets Neighborhood Study

Median Age Statistics Neighborhood versus Whole City

<$25k

Males : This neighborhood : Whole city :

32.5 years 33.6 years

Females : This neighborhood : Whole City :

31.5 years 35.1 years

Education Levels Neighborhood

17%

$25-$44k

$45-$74k

14%

$75-$149k

31%

$150k+

28%

National

Masters degree or higher

26%

Masters degree or higher

11%

Bachelor’s or associate’s degree

58%

Bachelor’s or associate’s degree

48%

High school diploma or less

16%

High school diploma or less

41%

Accessibility Analysis Chicago, IL

15.26 - 20 : Most Walkable

10.51 - 15.26 : Above Av. Walkable Designated Bike Route Elevated Rail : Blue Line Bus Stop : 56 Bus Divvy Stop : Rentable Bikes - National Walkability Index & Google Maps

Zoning and Building Function Site Analysis Site Analysis Scope Wicker Park

North Milwaukee Avenue Wicker Park, Chicago, IL Wicker Park Zoning Analysis By Current Building Occupancy 10% 12%

38%

40%

Retail : Site (B3-2) Retail : Surrounding (B3-2&3) Commercial : Restaurant (B3-2) Commercial : Other (C, B3-2&3) Residential : Surrounding (RT-4) -City of Chicago

A Broader Scope Chicago, IL

Wicker Park Site Analysis Scope

Downtown Chicago

Walkable and equally bikeable. “Where cars take a back seat to those traveling on foot, bicycle, or transit.” Fiercely independent in artistic expression, business ownership, and resident activism. “A distinct and colorful neighborhood…with an emphasis on creativity and locally owned businesses.” Experimental and pioneering. “Look for new solutions to tough urban problems…to achieve an equitable and sustainable future.” -Chicago Metropolitan Agency for Planning (CMAP)

RESEARCH & PROGRAMMING: ZONING & BUILDING FUNCTION

A Millennial Demographic Born 1981-1997 21-37 years old Millennials make up a quarter of the nation’s population. 83.1 Millennials

325.4 million U.S. people

Millennials spend 28% of all daily person consumer spending. They spend $600 billion annually. $600 billion

U.S.: $2,142 billion

Millennial Myths

-Forbes

Millennial Characteristics Generalizations ⊲ ⊲ Technology-reliant, expect it to work ⊲ ⊲ Are a social generation, and socialize while consuming products and services ⊲ ⊲ Collaborate and cooperate with each other and with brands ⊲ ⊲ Adventure-seeking ⊲ ⊲ Value-driven

It’s all about online shopping. Face-to-face interviews and survey findings conclude that many members of the digital generation, both in the U.S. and in other countries, actually prefer visiting stores to shopping online. However, online and mobile channels are still important. The transition from smartphone / computer to store to for providing information and using online promotions should be seamless.

Loyalty is lost. Forty percent of retail leaders say that their number one concern of the new digital generation is their lack of loyalty. The evidence of their shopping habits, however, tells a different story. Millennials are loyal to brands that present: ⊲ ⊲ A customer-centric shopping experience ⊲ ⊲ An experience that is tailored to their wants and needs ⊲ ⊲ An experience where they are treated like a valued customer ⊲ ⊲ An experience that is personalized, with targeted promotions and discounts as the price for their loyalty (i.e. loyalty programs) ⊲ ⊲ A relationship where the brands court them actively ⊲ ⊲ 95% of Millennials say that brands that court them actively, with coupons sent via email or to their home have the most influence on them.

They treat retailers and brands the same as people on social networks. Consumers view social media sites differently than many marketers may assume. Social media connections do not ensure loyalty from customers. Millennials view social media relationships as “transactional,” meaning they getting deals, coupons, and learn of the retailer’s sales. A presence on social media is not enough to reach Millennials. A brand must become a topic of conversation and create a positive buzz. 18

THE CONSUMER REFORMATION

The Millennial Consumer Dichotomy : The Store Shopper and the Online Shopper

82% of Millennials still prefer bricks and mortar compared to online shopping. How do they shop? Channels of Majority of Millennial Purchases Made 16%

33%

51%

Offine Purchase (Brick and Mortar) Mobile Purchase Desktop Purchase -The Millennial Shopping Report, CouponFollow

68% of all Millennials demand an integrated, seamless experience regardless of the channel. RESEARCH AND PROGRAMMING : MILLENNIAL DEMOGRAPHIC

Dynamic Shopping Journeys How Retailers are Engaging Customers

How can retailers enable personalized interactions to effectively engage their customers? Accenture’s Outlook global market research and analysis of consumers and retailers focused on six capabilities that retailers could provide in the modern retail market, based on what is important to consumers and what retailers are actually delivering. One focus or

capability was how retailers are “enabling personalized interactions through which they can effectively engage customers to offer the dynamic, accessible, and continuous shopping journeys, whether in-store, online, or via a mobile device, consumers desire” (Donnelly, C., & Scaff, R).

THE CONSUMER REFORMATION

Six Dimensions Contributing to the Creation of a Seamless Retail Experience Integrated merchandising (integrates sourcing & production with ordering and fulfillment)

Offering personalized interactions

Flexible fulfillment options (free shipping)

Capabilities and enriched services

Six Dimensions

Connected shopping (through technology)

Providing a consistent cross-channel experience -Forbes

RESEARCH AND PROGRAMMING : RETAIL EXPERIENCE

Survey Survey Respondents (41 Respondents) 12.5% Older Millennials (1981-1990) 87.5% Younger Millenials (1991-1997) Consider Themselves to be a Millennial 73% I consider myself to be Millennial 27% I do not consider myself one or not sure Reliance on technology (i.e. smartphone, laptop, etc.) 77% Very reliant on technology 23% Somewhat reliant on technology 0% Not reliant on technology

Influences on a Millennial Consumer Shopping Online Percentage of 41 respondents that are influenced by each option individually 57.5% Price Comparison 75% More Inventory (sizing, colorways, etc.) 95% Convenience 37.5% Further information about the product 52.5% Ability to use online codes 57.5% Ability to read customer reviews 65% Free shipping 50% Store incentive

Preferred method of shopping for apparel 32% In a store 29% Online 39% Cannot Decide - both in store & online Number of retail apps on mobile device

35% Ability to see items you may also like 20% Connection to your mobile app 7.5% Access to online customer service Likelihood to be loyal to an ethical and sustainable brand

29% None

39% Very Likely

56% 1-3

49% Somewhat likely

12% 4-6

7% Not likely

3% 10+

5% Not sure

Top Three Reasons for Online Shopping What are Millennial consumers looking for?

Convenience ⊲ ⊲ location / accessibility ⊲ ⊲ sizes + products available ⊲ ⊲ customer service ⊲ ⊲ quick purchase ⊲ ⊲ tech capabilities

Price Comparison ⊲ ⊲ Show similar items in smart miWWrror ⊲ ⊲ Details about the quality of products ⊲ ⊲ Educate consumers about the quality / ethics involved with the products (what they are paying for)

Influencers

More Inventory ⊲ ⊲ Data & market analysis of demand ⊲ ⊲ Have all items in stock, less of least in demand ⊲ ⊲ Offer free two-day shipping if product is not in stock

Likelihood of augmented reality technology becoming a vital part of the retail strategy

- Data gathered from survey conducted on Surveymonkey.com in January 2018

Where the retail industry is heading in the near future (store inventory and brand exp.)

34% Very Likely

58% Less store inventory, more experience

39% Somewhat likely

2% More store inventory, less experience

17% Not likely

20% No store inventory; omnichannel (online)

10% Not sure

20% Not sure 23

Technology in Retail How Retailers are Engaging Customers

“Retail will change more in the next five years than it has in the last fifty.” Accenture predicts that “retail will change more in the next five years than it has in the last 50 based on the consumer uptake

of communication technologies,” both instore and consumer owned.

Virtual Mannequins (Japan) Technology senses what the customer is grabbing Displays a video of a model (virtual mannequin) on the screen above

Augmented Reality American Apparel New age of QR scanning technology Scan tag, view item on mobile device, and share Topshop’s Virtual Reality Catwalk Show Wearing a VR Headset

mPOS : Mobile Point of Sale Opportunity for Engagement Conducting digital financial transactions in place Frees space that would typically be used for a POS countertop Transportable, improves customer experience 24

THE CONSUMER REFORMATION

Modern Retail Marketing Strategy Technology’s Role in Marketing

“A presence on social media isn’t enough. Brands must become a topic of conversation.” - Accenture Outlook Article, “Who are the Millennial shoppers? And what do they really want?” Social media sites are constantly evolving. The liking towards particular sites, like Facebook, have also evolved, or rather,

began to shift towards other social media sites, as several Millennials noted in their interviews with the Accenture team.

Sustainability in Retail Channel Footprint Comparisons

Amazon states: “Online shopping is inherently more environmentally friendly than traditional retailing.” - Amazon.com Many factors contribute to the carbon footprint generated. Daily activities, like shopping, leave a carbon footprint, meaning that they emit gases due to the consumption of fossil fuels. The carbon

footprint of a holistic shopping experience consists of a wide set of variables, from the production, packaging, and energy usage of the manufacturer and retailer to the transportation of the consumer to the store.

RESEARCH AND PROGRAMMING ; TECHNOLOGY

Carbon Footprint Variables of the Supply Chain Both Channels Production

Logistics Energy Usage Packaging

Consumer Travel

Brick and mortar energy usage

How to Make Dual-Channel Retail More Sustainable Anita Lee-Post, Research Committee Member Reduce distance between the source and the customer. ⊲ ⊲ Physical movement with e-commerce can be problematic, especially overseas

Reduce packaging for shipping (or find sustainable opts.). ⊲ ⊲ Heavy/bulky merchandise that requires more packaging for protection while shipping is not a sustainable option compared to traditional retail

Brick and mortar should be located close to the supplier. ⊲ ⊲ Less energy consumption for packaging and transportation of goods

Brick and mortar should support sustainable consumption. ⊲ ⊲ Sell locally-sourced goods

Design with sustainability in mind. ⊲⊲ ⊲⊲ ⊲⊲ ⊲⊲

Temperature and lighting control (use of daylighting) Motion-sensor faucets Double/revolving doors HVAC system considerations

THE CONSUMER REFORMATION

Reformation’s Sustainability Efforts Channel Footprint Comparisons

“E-commerce is typically 30% more sustainable than traditional retail.” Uncover LA reports that Reformation’s new store L.A. store will have “earth-minded label’s halls and walls that will feature efficient lighting and low-VOC paints (which are release less toxins over time).

#Refbabes will also find hangers made from recycled material during their retail therapy experience; after check out, they’ll take home their goods in reusable tote bags.”

Reformation’s Vertical Integration Economic and Sustainable Efficiency

“Reformation became a vertically integrated directto-consumer business in 2012 ... and today, 80% of sales come through the website.” Vertical integration is a strategy where a company expands its business operations, such as when a manufacturer owns its supplier and/or distributor. This can help companies like Reformation reduce costs and improve operational efficiencies by

decreasing transportation expenses and reducing product turnaround time. This can help make the business more sustainable in their operations, as well as cut overhead and operational costs.

RESEARCH AND PROGRAMMING : SUSTAINABILITY

Adjacency Matrix Three Layers of Proximity Entry / Foyer Bike Rack Augmented Reality Runway Retail : Denim Retail : Accessories Retail : Outerwear Retail : Wedding Charging / mPOS Lounges Washrooms Fitting Rooms Common Area Fitting Room Magic Wardobes Stockroom / Storage Break Room Maintenance / Supply Room

THE CONSUMER REFORMATION

Adjacent Near

RESEARCH AND PROGRAMMING : MATRICES

Spatial Adjacency Diagrams Iteration One

Schematic Bubble Diagram Sketch

Schematic Stacking Diagram Sketch

THE CONSUMER REFORMATION

Lounge Stockroom / Storage

mPOS

Common Area Fitting Room

Maintenance & Supply Room

Magic Wardobes

Break Room

mPOS Washrooms Fitting Rooms Lounge

mPOS Accessories Retail

Lounge

Wedding

Jeans

Key Spaces Retail Spaces

Outerwear

AR Runway Entry

Adjacent Near

Bike Rack

RESEARCH AND PROGRAMMING : MATRICES

Square Footage Table Net and Gross Square Footage Allowances

QTY.

Net Square Footage

Gross Square Footage

Retail : Dresses

21.25 SF

85 SF

Retail : Tops

21.25 SF

85 SF

Retail : Tees

21.25 SF

85 SF

Retail : Jeans

48.5 SF

194 SF

Retail : Bottoms

21.25 SF

85 SF

Retail : Jumpsuits

85 SF

Retail : Petites

85 SF

Retail : Outerwear

85 SF

Retail : Accessories

90 SF

Retail : Wedding

85 SF

Retail : Swim

85 SF

Window Display

117 SF

117SF

Vestibule

66 SF

Bike Rack (now exterior)

70 SF

Virtual Reality Runway

88 SF

Charging / mPOS stations

8.5 SF

25.5 SF

THE CONSUMER REFORMATION

QTY.

Net Square Footage

Gross Square Footage

Lounge(s)

127 SF

381 SF

Unisex Washroom

78 SF

Common Area Fitting Room

265 SF

Fitting Rooms

32 SF

64 SF

Accessible Fitting Room

50 SF

100 SF

Magic Wardrobes

7 SF

35 SF

Stockroom (now in basement)

1,000+ SF

First Level Stockroom & Break Room

536 SF

Office Space (now in basement)

180 SF

Maintenance / Supply Room

57.5 SF

PROGRAM SQUARE FOOTAGE:

1,813 SF

40% CIRCULATION:

1,907 SF

TOTAL PROGRAM SQUARE FOOTAGE:

4,769 SF

RESEARCH & PROGRAMMING: SQUARE FOOTAGE TABLE

The Consumer Re f o r m a t i o n : Tech as the Staple Item, Not an Accessory

THE CONSUMER REFORMATION

RESEARCH & PROGRAMMING: INSPIRATION

Additional Research The Creation of “Me Places” in Retail

“Dressing Rooms of the Future” Me Spaces are described as the spaces that make people truly want to spend their time in a store, or where they feel special. As Bergemeyer Senior Associate Mare Weiss reflected on a discussion at GlobalShop about the concept of me spaces, she realized that a strong opportunity for me spaces exists in fitting rooms. The fitting room is the most intimate area of a store, and where 60% of shopping decisions are made, according to a 2014 study by the technology brand Philips. To successfully create fitting rooms that tap into this concept of “catering to the customer,” Mare suggests that designers : ⊲⊲ ⊲⊲ ⊲⊲ ⊲⊲

Encourage choices to shoppers to continue building outfits Offer control by having adjustable features (lighting, etc.) Create a mini-sanctuary that is more intimate Make it social by inspiring shoppers to become “brand ambassadors”

-POLO Ralph Lauren Smart Mirror

THE CONSUMER REFORMATION

Zara’s First “Online” Concept Store Radio Frequency Identification & Sustainability ⊲ ⊲ Motion detectors in the storeroom dim the area’s lights by 80% when nobody’s around. Motion detectors are also installed in toilets and corridors. ⊲ ⊲ The store’s lighting dims to 66% of usual during janitorial and merchandise loading and unloading time. ⊲ ⊲ The shop is equipped with the most efficient heating and air conditioning on the market (Variable Refrigerant Volume system.) ⊲ ⊲ Energy-intensive systems are turned on in a sequential pattern to prevent demand spikes. ⊲ ⊲ Thermostats automatically adjust for heating and air conditioning. ⊲ ⊲ Electronically-regulated air curtains at store entrances prevent the influx of colder or hotter air from outside. ⊲ ⊲ Speed-controlled mechanical escalators. ⊲ ⊲ Automatically opening double entrance doors. ⊲ ⊲ Wood used in store fittings and furnishings bears the PEFC seal, which guarantees that it comes from sustainably, responsibly harvested forests. ⊲ ⊲ Zara shopping bags also bear the PEFC seal, while plastic bags are biodegradable.

-Example of Zara Online Concept Store

RESEARCH AND PROGRAMMING : ADDITIONAL RESEARCH

THE CONSUMER REFORMATION

Schematic Design Schematic Narrative, Existing Conditions, Conceptual Diagrams, Fit Plans, Custom Component, & Consumer Journey

SCHEMATIC DESIGN

Schematic Narrative Illustrated Concepts

The clothing may have seams, but the interface should not. An evident theme discovered through the course of research in the previous phase was centered around the idea of seamless integration. Millennial consumers expect a seamless experience as they consume products and experience through the use of their handheld technology, and to remain relevant in the eyes of this target market, brands must prioritize these efforts. “The clothing may have seams, but the interface should not” became the grounding from which the concept would be built upon. In creating a seamless experience, one first must understand how the Millennial consumer shops. The survey performed in effort for the last review was especially helpful, because it clarified the three top reasons for why Millennial consumers may want to shop online (by order of importance) : convenience, price / product comparison, and more inventory. However, Millennials are still turning to brick-and-mortar stores as their primary method of shopping, with online shopping closely behind. Oliver Wyman conducted a survey of about 1,500 U.S. apparel consumers in September of 2017, and they found that while 68% of shopping is a one-stop experience (either go to the store or shop online), the remaining 32% of shopping experiences are multistop experiences. This may mean that a consumer shops online before a store purchase or even shops multiple times in store before an online or store purchase. In designing a seamless experience for a retail store, both types of consumers must be considered in their shopping experiences in order to turn over the

THE CONSUMER REFORMATION

highest transaction rate for the brand. Design considerations of this could include large enough stock rooms, data integration in stock rooms, and a seamless technology experience with the consumer (through apps and in-store devices). The Oliver Wyman study showed that there are four stages of the consumer journey, those being the entry, the journey, the purchase, and the post-purchase. In the entry phase, consumers approach the store and ultimately make the decision of whether or not they would like to enter. The study asks, “How do you improve your brand’s value proposition while also operating in a store-centric, itemspecific world?” Design considerations of this idea could be shown through visual displays and interactive elements that both engage the foot traffic outside of the store and advertise the products. The next phase of the consumer journey is the actual journey, in which the study asks, “What are your consumers’ transaction triggers?” Millennials are in tune with their emotions and how a brand makes them feel, and a cohesive brand presence can aid in the creation of profit for the store. In another article from Bergemeyer, a presitigious retail design firm in Boston, they explained that retail spaces must create “me places,” or places that illicit a mood and create a personalized experience for the consumer. Important spaces within “me places” are fitting rooms, where the interaction between the consumer and the product are most personal. Store design and design consideration should look at the fitting room as an opportunity for profitable success, especially with the use of interactive technology.

The most crucial phase is the purchse, where the study asks the reader, “Are you prepared for the future of the shopping journey?” The future of retail is turning to primarily all digital sales, with an emphasis on customer experience. Mobile point of sales stations are becoming more relevant as we move into the digital world, and they are replacing cashwraps that eat away square footage. In a trip that I took to the new Athleta store in the Summit, I found that the newly-opened store was designed to have mPOS stations that fold out from the wall, and become a tabletop station to proceed with a digital purchase. However, to adhere with traditional ways of the shopping journey, they had a hidden cashwrap behind a wall. There is much to be said about how brands are portrayed as they move away from this cashwrap, “fast-fashion” mentality – for it gives the consumer a better understanding of the value of what they are buying. Millennial consumers are and will continue to buy into brands, not just products. Lastly, the post-purchase phase asks, “How can brands capitalize on consumers’ desires for repeat purchases, to do so by engaging directly with their brand and online site?” Design considerations for post-purchase would simply build upon the previous journey phases, in that they all impact the consumer’s opinion post-purchase, and will influence eventual repurchase. From observing precedents from previous Reformation stores, Lululemon London, Zara, Adidas, and other apparel stores, and understanding was gained on the approximate square footage that may allow for the greatest function of the new Reformation space. It was determined that the store may need more space to fit the imagined program, so a mezzanine came into play. Looking at Chicago Building Code in accordance with the IBC, a new mezzanine can only

be 20% of the floor area below. However, this 20% added enough for the additional program elements. The program was then officially created, as shown on page 3233 of the dossier, and critical and noncritical adjacencies were able to be distinguished based on precedent studies and common knowledge. Through retail space planning research, it was found that 40% of the square footage of the space should be dedicated to stock room and other back-of-house functions, while 20% should be dedicated to retail (fitting rooms included), with a remaining 40% dedicated to circulation (within the retail sector). Both occupancy areas, through code research, are mercantile classifications, so there can be 30 SF per person both on the retail floor and in the back-of-house areas. Using this data, I am currently trying to find more research on the approximate number of fitting rooms I should have. As I compile the data from other stores, I can comprise a median number of fitting rooms that may be appropriate for the store. Two bubble diagrams were created to show the critical and non critical adjacencies reflected in the adjacency matrix. They show the occurrence of custom components that wil be created later in the project. Also, back-of-house program elements are clearly marked as enclosed by the differentiation of the circle thickness. These diagrams translated easily into possible fit plans, shown on the next page. In keeping with accordance with the 40%-40%-20% ratio, I could create an approximate plan (note: mezzanine will include some of the 40%20% retail-circulation square footage). Growing on this idea of “me places,” the next diagram shows destination points within the consumer journey that exemplify places where a consumer can ultimately be triggered to make a transaction through interaction with the product and the brand.

SCHEMATIC DESIGN : NARRATIVE

Branding Precedents Retail Store Experience Lululemon London Dalziel & Pow

Maison Martin Margiela Beijing

Reformation Store San Francisco 42

THE CONSUMER REFORMATION

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SCHEMATIC DESIGN : PRECEDENTS & DIAGRAMS

Schematic Design Deliverables

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THE CONSUMER REFORMATION

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SCHEMATIC DESIGN : DIAGRAMS

THE CONSUMER REFORMATION

Design Development Developed Concept, Floor Plans, Supporting Drawings, Perspectives, and Furnishing and Material Considerations

DESIGN DEVELOPMENT

Design Development Narrative Design Objectives

[A brand] is an entity that embodies its own mission and values and offers an experience through its environment and its products sold within. The previous progamming and schematic phases of this project focused on accumulating and filtering through research that could not only drive the basis of the concept, but inform educated design choices. Because of the research conducted of Reformationâ&#x20AC;&#x2122;s target markets, the concept for the store became to create a seamless shopping interface through the use of technology that connects the consumer to the brand. In this ever changing age of technology, a brand isnâ&#x20AC;&#x2122;t only an entity that sells products; rather, it is an entity that embodies its own mission and values and offers an experience through its environment and its products sold within. As the research continued into the design development phase, the circulation path of a user with their interaction with technology became an important focus. Brand precendents, such as the nearby Adidas store, the Spanish brand Zara, Topshop, and existing Reformation stores became guides with both square footage and circulation for the floor plan of the new Reformation space. While these brands may

THE CONSUMER REFORMATION

incorporate technology in different ways, they each provide a user experience that is unique to their brand. The Adidas Store in Wicker Park used local art and furniture to connect the users to the surrounding community. Topshop is using QR-code technology to encourage users to use their own technology to interact with the scannable labels they have in the store, thus promoting a digitally-driven user experience. The survey conducted in the previous phase of the project revealed that the factors of more inventory, convenience, the ability to compare prices were the reasons behind why Millennial consumers are straying away from traditional brick-and-mortar stores and heading towards a more attractive online channel. These factors became the drivers of the design development phase, with extensive attention paid towards how the flow of the plan, fixture specification, and use of technology could impact the userâ&#x20AC;&#x2122;s perceptions of more inventory, of convenience, and the seamless ability to compare items.

The first changes made to the building were made to combine the separate tenants, 1405 and 1407 North Milwaukee, to create one cohesive space. These changes first started with making alterations to the exterior, which before consisted of four entrances : the residential entrance and three retail entrances. These entrances were clustered, and confusing to potential foot traffic on Milwaukee avenue. These entrances were condensed into one public entrance into the store with a vestibule and a separate tenant entrance accessible from Wood Street. This not only allows for better circulation around and within the store, it also allows for a larger retail floor and more exterior perimeter for window-front display. Iterative thinking was used to rethink how the zones on the main level would interact with each other. The zones were separated by a stairwell to the mezzanine retail level, which before iterations of the plan, was negatively impacting the flow of the plan. By integrating the virtual runway into the design of the stairwell, the stairwell now is a central focus that merges the two zones as opposed to dividing the two zones. This same iterative process can be applied to other zones within the space, especially where retail zones meet one another. Technology, like the virtual runway, can be used as a tool to achieve a cohesive space, both in function and in physical flow.

Existing Conditions (1405 and 1407)

Plan Iteration (Combined Tenant Spaces)

Storefront Elevation Iteration

DESIGN DEVELOPMENT : NARRATIVE

Design Development Deliverables UP

N.I.S.

DOWN TO STOCK ROOM

N.I.S.

STOCK / BREAK

FIT 2 SUPPLY FIT 1 FIT 4 FIT 3

WASH

COMMON FITTING

OPEN TO BELOW

AR SCREEN

VEST. TECH

FIRST LEVEL PLAN NOT TO SCALE

SECOND LEVEL PLAN NOT TO SCALE VIRTUAL REALITY RUNWAY PLAN NOT TO SCALE COLOR KEY DENOTES WHERE LED SCREENS WILL BE PLACED HORIZONTAL AND VERTICAL

HARD MATERIALS CEILINGS, WALLS, & BEAMS

SOFT MATERIALS TEXTILES & RUGS

SOFT MATERIALS FEATURE TEXTILES 50

THE CONSUMER REFORMATION

Depth = 2' - 2"

CUSTOM COMPONENT

5' - 2"

5' - 9"

Height = 6' - 5" Height = 6' - 5"

EQ EQ

0' - 4"

6' - 5"

EQ EQ

Depth = 2' - 2"

Width Width = 3' = - 0" 3' - 0"

FITTING ROOM PERSPECTIVE

SE LOUNGE PERSPECTIVE

Herman Miller Crosshatch Chair

HighTower Brasilia Table

COMMON FITTING ROOM PERSPECTIVE

VR LOUNGE PERSPECTIVE

Swedese Accent Sofa

Swedese Pond Table

Ref. Level 0' - 0"

MAGIC WARDROBE PLAN, SECTION, & ELEVATION

MEZZANINE LOUNGE PERSPECTIVE

Hans J. Wegner Armchair CH26

Mattiazzi Medici Side Table

Hans J. Wegner Shell Chair CH07

Swedese Coffee Bean Table

DESIGN DEVELOPMENT : DELIVERABLES

THE CONSUMER REFORMATION

Final Presentation Finalized Floor Plans and Supporting Drawings, Custom Components Drawings, & Interior Renderings

FINAL PRESENTATION

The Consumer Reformation : Tech as the Staple Item, Not an Accessory Design Objectives Millennial consumers expect a seamless experience as they consume products and experience through the use of their handheld technology, and to remain relevant in the eyes of this target market, brands must prioritize these efforts. “The clothing may have seams, but the interface should not” became the grounding from which the concept would be built upon. Site Analysis Zoning and Accessibility

Wicker Park Site Analysis Scope

Site Retail Restaurants Commercial Residential

-City of Chicago

THE CONSUMER REFORMATION 82’ - 6”

Final Presentation Research A Millennial Demographic

A Millennial Consumer Dichotomy : The Store Hopper and The Online Shopper

Born 1981-1997 21-37 years old 83.1 Millenials

325.4 million

Millennials spend 28% of all daily person consumer spending. They spend $600 billion annually. $600 billion

U.S.: $2,142 billion -Forbes

68% of all Millennials demand an integrated, seamless experience regardless of the channel.

82% of Millennials still prefer bricks and mortar compared to online shopping. How do they shop?

Channels of Majority 16% 33%

Offline Purchase Mobile Purchase Desktop Purchase

51%

A Millennial Demographic : How do they shop? Convenience ⊲ ⊲ location / accessibility ⊲ ⊲ sizes + products available ⊲ ⊲ customer service ⊲ ⊲ quick purchase ⊲ ⊲ tech capabilities

Price Comparison

Influencers

⊲ ⊲ Show similar items in smart mirror ⊲ ⊲ Details about the quality of products ⊲ ⊲ Educate consumers about the quality / ethics involved with the products (what they are paying for)

More Inventory ⊲ ⊲ Data & market analysis of demand ⊲ ⊲ Have all items in stock, less of least in demand ⊲ ⊲ Offer free two-day shipping if product is not in stock

Bricks and Clicks : The New Era of the Brick and Mortar STOREFRONT ELEVATION DRAWING NOT TO SCALE

FINAL PRESENTATION : DELIVERABLES

Final Presentation Deliverables UP

N.I.S.

STOCK / BREAK FIT 2 FIT 1

SUPPLY FIT 4 FIT 3

WASH

COMMON FITTING

OPEN TO BELOW

VEST.

FIRST LEVEL PLAN NOT TO SCALE

SECOND LEVEL PLAN NOT TO SCALE

“Virtual Mannequin Display” is driven by technology in the retail fixture to detect when a customer picks up an item of clothing SOUTHEAST LOUNGE & WINTER GARDEN RENDERING

THE CONSUMER REFORMATION

SECOND LEVEL REFLECTED CEILING PLAN NOT TO SCALE

Width Width = 3'=- 3' 0"- 0"

Depth = 2' - 2" Depth = 2' - 2"

CUSTOM COMPONENT MAGIC WARDROBE PLAN, SECTION, & ELEVATION

5' - 2"

5' - 9"

EQEQ

0' - 4"

6' - 5"

EQEQ

Height = 6' - 5" Height = 6' - 5"

FIRST LEVEL REFLECTED CEILING PLAN NOT TO SCALE

Ref. Le 0'

COMMON FITTING ROOM RENDERING

FINAL PRESENTATION : DELIVERABLES

Final Presentation Deliverables

VIRTUAL RUNWAY RENDERING

NOT IN SCOPE

FEATURE WALL :

5' - 3 1/4"

9' - 6 3/4"

Level 3 26' - 0"

Level 2 13' - 0"

2' - 10"

10' - 11"

PIVOTED LOUVRES

VIRTUAL RUNWAY SECTION SECTION NOT TO SCALE 58

THE CONSUMER REFORMATION

Level 1 0' - 0"

VIRTUAL RUNWAY PLAN PLAN NOT TO SCALE

MEZZANINE RETAIL FLOOR RENDERING

SOUTHWEST LOUNGE RENDERING

MEZZANINE RETAIL FLOOR RENDERING

FINAL PRESENTATION : DELIVERABLES

Citations Bohlin Cywinski Jackson. (n.d.). Projects. Retrieved February 04, 2018, from https://bcj.com/ projects/reformation-retail-store Charlton, G. (2014, February 27). 12 more examples of digital technology in retail stores. Retrieved February 04, 2018, from https://econsultancy.com/blog/64408-12-more-examplesof-digital-technology-in-retail-stores CouponFollow. (summer 2017). The Millennial Shopping Report . Retrieved February 4, 2018, from https://www.thediamondloupe.com/sites/awdcnewswall/files/attachments/The_ Millennial_Shopping_Report_Summer2017.pdf. Directo-Meston, D. (2017, May 24). Reformation Is Opening Not One, But Two More Stores in Los Angeles. Retrieved February 04, 2018, from http://www.uncoverla.com/2017/05/24/ reformation-opening-stores-platform-culver-city-melrose/ Donnelly, C., & Scaff, R. (2013). Who are the Millennial shoppers? And what do they really want? Outlook: The Journal of High Performance Business,(No.2). Enviromeant. (2017, November 24). Adidas Store Chicago . Retrieved February 04, 2018, from http://enviromeant.com/adidas-store-chicago/ Kestenbaum, R. (2017, June 14). This Is How Millennials Shop. Retrieved February 04, 2018, from https://www.forbes.com/sites/richardkestenbaum/2017/06/14/this-is-how-millennialsshop/#22026fd1244c Niche. (n.d.). Wicker Park Demographics and Statistics. Retrieved February 04, 2018, from https://www.niche.com/places-to-live/n/wicker-park-chicago-il/residents/ Solomon, M. (2014, December 31). 2015 Is The Year Of The Millennial Customer: 5 Key Traits These 80 Million Consumers Share. Retrieved February 04, 2018, from https://www.forbes. com/sites/micahsolomon/2014/12/29/5-traits-that-define-the-80-million-millennial-customerscoming-your-way/#7215578925e5 Thau, B. (2017, June 28). Five Signs That Stores (Not E-Commerce) Are The Future Of Retail. Retrieved February 04, 2018, from https://www.forbes.com/sites/barbarathau/2017/06/27/ five-signs-that-stores-not-online-shopping-are-the-future-of-retail/#676c90874641 The Chicago Metropolitan Agency for Planning. (2013, October). Wicker Park Bucktown Innovation in Parking Management Existing Conditions Report. Retrieved February 4, 2018, from http://www.cmap.illinois.gov/documents/10180/0/WPBExistingConditionsReport. pdf/248bcd74-23ea-325f-f655-6c6cf325b644 United States Environmental Protection Agency. (2017, April 20). Smart Location Mapping. Retrieved February 04, 2018, from https://www.epa.gov/smartgrowth/smart-locationmapping#walkability

THE CONSUMER REFORMATION

CITATIONS

Brooke Kamins