Physical retail traditionally exists in a vortex of information, which doesn’t make sense for brands these days, says Matt Alexander, co-founder and CEO of new department store Neighborhood Goods, on the latest episode of the Innovators podcast.
The company’s inaugural space, which launched in Plano, Texas, in late 2018, carries a selection of new and established brands in an environment that is hyper relevant to both its location, and its customer, through the use of data.
Alexander’s view? Success lies in information. “If you’re a direct-to-consumer, digital-native brand, you’re going to look at this world, and you’re going to say: ‘We should be able to capture a certain amount of informative data to dictate how we should run that store, and how we should merchandise [it]’.” he explains. “That’s what they do on the web all day long. The moment you land on any of their websites, they know a huge amount about you, and exactly how you’re interacting with that site. And they optimize around it.”
His brilliant phrase: it’s all about operating in an economy of relevance.
It’s for this reason many legacy retailers are otherwise struggling, he explains. In a basic sense it comes down to them not creating the goods, services and experiences that they know for fact the consumer wants. There is therefore a lot for them to learn from D2C incumbents – from Everlane to Casper – who have placed this front and centre in their strategies.
Join us for this episode as we also explore why experiential retail needs to go beyond just putting a ball pit in the store, how modern brands are using the physical space for entirely new reasons, and why Alexander believes legacy retailers may still have the ability to play catch up after years of ignoring consumer needs after all.
Catch up with all of our episodes of the Innovators podcast by the Current Global here. The series is a weekly conversation with visionaries, executives and entrepreneurs. It’s backed by the Current Global, a consultancy transforming how consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.