Founder & Managing Director of Younicorn

Monica Cannalire Founder & Managing Director of Younicorn

shoPPer-first retailing is the future, also from a sustainable PersPective

Retailers adopt targeted strategies in order to pursue the much coveted goal of sustainability. However, the weakest link in these strategies is still the task of making the accounts match the expectations in the value chain. Often it is precisely the sustainability engagement strategies that are not shareholder-focused at the beginning, i.e. they are unconvincing with regard to the costs/benefits for investors, just as they are not fully customer-centric at the end, i.e. not focused on the customer and his or her real needs and expectations when purchasing or using

«retailers adOpt is still matching targeted strategies fOr sustainability, but the weak pOint accOunts and expectatiOns between the beginning and end Of the value chain»

products. Economic, environmental, energy and social sustainability is a truly positive lever, as can also be observed in the growing and spontaneous propensity for responsible purchasing of our future GenZ and Alpha consumers. Brands will increasingly be called upon to report publicly on their progress, which will further motivate them to adopt more effective, but also more transparent strategies. That said, in general it is imperative that brands provide a true, and preferably memorable, retail experience. We ourselves are inevitably more sophisticated consumers looking for a personalised experience: for some, human contact and the good advice of a friendly salesperson will be important, for others the speed of efficient and easy digital interaction with contactless payment and virtual receipts will count. Brands must take advantage of the mountain of big data they are sitting on and improve all their sales channels to make the whole process welcoming, simple and connected. Shopper-first retailing is the future and resembles a star of value, with the customer at the centre and many important points: communication, marketing, social media, shops, pre- and post-sales support, online, web+app, digital services, shopper ID profiling, sourcing and delivery, not forgetting ethics and sustainability. Now is a moment of great truth, in which we are looking for a retail experience that makes us feel important, delights us, rewards our loyalty and continues to generate valuable interactions, including in-store. I was able to verify

▲ End.Clothing

Younicorn

this when working with a phygital multibrand like End. Clothing, launched online and grown with experiential stores as new hubs of social interaction. By the end of 2022, it will open a new shop in the heart of Milan too. Another very important issue, which is a direct consequence of the pandemic, is that in the last 2 years landlords and tenants have been forced to dialogue much more openly and to consider aspects of their work that were previously ignored. This dialogue should not be lost; on the contrary, it should be used as a basis for building a more solid future. The most recent negotiations have reduced the average terms of the first locked-in periods of leases from 6 years to 4.5 years, as well as providing incentives for tenants, all in order to protect the rents when they are fully operational, while sharing some risks. Retailers need flexible conditions to adapt to a changing market. But they, too, need to understand the needs of landlords and make an effort to reward their efforts. Perhaps with subsequent adjustments of the rent or by consolidating part of a variable, based on the turnover or conversion rate achieved through the location footfall. It is only possible to get off to a good start if the lease becomes a two-way street, conceived by a united and synergetic front between the two parties. I also believe we will see evolved forms of partnership in the not too distant future. •