Chapter 15


The great big theatre of shop

You’ll learn more retail theatre in five minutes around an old-school street market than you’ll learn in a month of store observations.

In this chapter we explore

  • the essential need for movement in retail display, both physical and online
  • best practice retail theatre
  • use of ceremonies to create wow moments.

Movement and energy

You hear the expression “retail theatre” a lot but then ask the person saying what they mean by it and you’ll hear a dozen different answers. It’s just not that well-defined. Retail theatre is one of those things that everyone is aware is important but is not entirely confident in recognising or creating it. Perhaps that’s why really good and consistent examples of retail theatre are quite hard to find but, as physical retail becomes ever more an entertainment, as customers demand more reward from visiting stores, then retail theatre becomes incredibly important and useful.

For me, retail theatre is everything that animates a store. I’ve always seen the shop floor as a stage and on it stories are told and narratives played out – theatre is the “thing” that brings those stories alive. It’s the market stallholder barking their wares to the noisy party at Selfridges and all things in between that create movement, sound, smells and that demand to be touched or interacted with.

This is the one part of the book where I believe a real differentiation between virtual and physical stores has to be made. Theatre is a live thing, it lives in the physical space. Online, animation is critical, online performance and prodding of the senses are persuasive and important, but theatre is for the world of direct human interaction and direct triggering of emotion.

We will take a look at the problem and opportunity that comes from the poor quality of our eyesight in a moment and then, after that, I’ll run through some of my favourite examples of retail theatre in action.

Hotel Chocolat’s bit of theatre

Fabulous and authentic British chocolatier Hotel Chocolat handing round a silver tray of samples is supreme retail theatre. It doesn’t care that you buy that particular chocolate, it just wants you to see, smell and taste chocolate and, when the assistant describes what they are offering, “This is our purest/sweetest/awesome/delicious X”, it wants you to hear the words of good chocolate. You are in the store, you’re thinking chocolate and now you are tasting and experiencing that chocolate and the result is you want more.

Why theatre?

Because bringing the store to life brings your customers to life too. Your biggest challenge is to get customers to pick up stuff and interact with it and with staff – get that happening and you sell more things. If that interaction is done inside a great, animated and exciting store, then you get the Stew Leonard’s effect: a humble dairy becomes a sales machine and customers love it.

Us, the moles and the bats

Human sight is really poor when compared to many other mammals. In particular, our low-resolution eyes coupled to our face-pattern-recognising and motion-obsessed brains make seeing static things difficult. It is physiologically hard for people to pick out one thing from another if those things are static, such as cans of food on a fixture, a row of TVs on display or books packed in on shelves.

Worse, we don’t even see colour in our peripheral vision (something to do with the angle at which light enters and then hits the retina) and what we think we’re seeing isn’t real time. That second is a gigantic head scrambler – there’s quite a substantial delay in processing terms between a thing we are watching and our brain registering and dealing with seeing it. Gets crazy when you consider a task such as catching a ball where your brain applies an automatic compensation in its instructions to your arms for the fact that the ball you think you are seeing is actually physically closer to you than your eyes suggest. That’s exactly why I dropped the one catching chance I ever got when playing for my brother’s village cricket team. At least that’s my story.

Let me put on the lab coat and explain. What we think we see is, in reality, the image after it’s been mucked about with by our brain. Our brain applies two visual processes in particular that are great for survival of the species but rubbish for retailing. The first relates to faces: our big juicy brains are constantly looking to recognise faces so we can either defend ourselves from a competitive human, or mate with a willing one. So aggressively does our brain look for faces that it’ll make them out of almost anything: patterns in wallpaper, shapes made by shadows or a gravy stain on a shirt. This process is exactly why people report seeing the face of Bowie in slices of toast or dead relatives in the shape of clouds. The more challenging process is the one that refuses to concentrate on static things and instead scans peripheral vision for movement, because, in the past bigger things were often trying to eat us and they tended to do so successfully by sneaking up in the periphery without being noticed until it was too late.

Let’s talk about that in a retail situation. You’ll have experienced what I’m about to describe as we all have. You’re standing in the soup aisle in a supermarket facing the dozens of cans of soup. You want chicken noodle and you’re staring and staring but you just can’t see the one you want. And then, suddenly, ‘Bang!’ you finally spot the tin and it’s been right in front of you all the time. You didn’t see it at first because your brain was paying attention to somebody on your left taking a can down off the shelf, and to a trolley being pushed along to your right, and to a sign moving in the air-conditioning breeze above you. You found the chicken noodle in the end because your brain kicked in two different processes. First pattern and shape recognition and then a different process called “reading”, forcing you to read labels, which is slower than looking for pictures and patterns.

Movement

Applying one part of retail theatre can solve these issues at a stroke. Picking stuff up and moving it around attracts customers’ attention. You pick up a tin of soup and wave it about and suddenly it’s the easiest thing in the world to see – everyone in that aisle can pick it out. Now, maybe that’s not practical in Tesco but it is almost everywhere else. Let me give you an example and a case study.

Impulse cakes

The example is one you can observe for yourself and it involves the express queue in a typical urban M&S Simply Food. If you’re there and you see a member of staff re-stocking the racks of small cakes and treats that are usually stationed at the point where the queue-guide turns … watch what happens … of the next ten people in the queue, eight of them will at least pick up a cake and, of those, most will buy it. Then contrast that with the rest of the time when the fixture isn’t being re-stocked. You’ll see maybe 1 in 30 customers picking up a cake. I’m not exaggerating these numbers. Observe it for yourself and have a think about an area of your store that might be boosted by movement, by taking something out of stasis and giving it energy.

Giving product a kinetic kick

A client of ours, a chain of bookstores, made one small change that boosted sales by up to 20% per store. And it was such a tiny change too. They had asked us to find a way to schedule shelf-stocking so that it could be done away from customers – the logic being “get the book trolley off the shop floor before we get busy”. I asked why this was a problem and they reckoned that it looked scruffy stocking shelves and that “as soon as you put something on the shelf, a customer will take it off again”.

Now, then, I hope you’re ahead of me right now. That client was seeing it as an unprofessional irritation, but you’re already seeing an opportunity, aren’t you? What was happening is that the books, which when static are nothing more than shapes with colours on them, had been given a boost of kinetic energy and customers were drawn to them. So, instead, we created a routine in which books would be shelved at the busiest periods, and we told staff that they were welcome to take all day to do it, provided the delay was because they were having conversations about books with customers who were drawn to the movement. And they did exactly this.

We even did things like taking all the books off one table, putting them on the floor near a different table, then taking the books off the second table and putting them on the first, finishing the job by picking up the original books off the floor and putting them on the now clear second table. Of course, we let the staff in on the gag, explaining that what looked like a nonsense job was actually generating movement and attracting customers. They loved it because it seemed to break a small barrier between them and customers. It seemed easier to start conversations as this process went on.

A round-up of great theatre

I’ve picked the following examples as a great cross-section of retail theatre. I’m not suggesting that each of these retailers is exploiting everything possible but there are elements of best practice that are worth using for inspiration. Or stealing wholesale, you decide.

Alfred Dunhill (UK and China)

Specifically, I’m looking here at Bourdon House (London) and Twin Villas (Shanghai). These magnificent houses are used as living film sets and are decorated such that it feels like a mysterious group of quintessential 1930s Englishman have maintained the residences as time portals to now. Every sense is triggered: smell the vetiver, juniper and tobacco; feel the handcrafted leathers and polished marble; hear the confident chatter of a chap instructing his tailor; taste beautiful morsels of food at the bar while sipping a Tom Collins; and see icons of gentlemen’s classic style laid out before you for your leisurely perusal. Personally, I don’t have the breeding for such places and invariably drop a drink on myself, say something that gives away the fact that I buy my socks by the kilo at Primark or just fall over, but for those in the target audience, this is theatre writ large – a place they can go to that lives up to the expectations they have of a life they feel comfortable living.

MAC (Canada)

Walk in and it’s all girls at their dressing tables being pampered by other girls in a theatrical blur of brushes, eyeliners and kohl. The interiors are dark, loud and broody and customers are stylish and confident – the combination is theatre. It is active and positive, compelling and young.

Apple Store (USA)

Crowds are good theatre and the best way to attract a crowd, by the way, is to be crowded – already if the store is quiet, gather the team and start expansively demonstrating something. Do that in the eyeline of passing customers and, pretty soon, like meerkats, one or two will notice and wander over and then more will follow.

Apple manages crowds quite brilliantly – stand outside and watch an Apple crowd queuing for a new product launch. They. Are. Insane. Staff, with the zeal of happy cultists, will whoop, cheer and otherwise cajole the assembled throng into a near religious fervour where salvation is a slightly different phone than the one already in their pockets. It’s brilliant, creating desire and expectation and reinforcing the sense that the products inside these stores are essential slices of life that must be had new and fresh.

Selfridges (UK)

Dull as ditchwater through the 1980s and 1990s until, in 1996, one of the kings of retail theatre, Vittorio Radice, swept in, ripped out the dark central escalator tower and opened up the store, spending £10m on the building in the process. Selfridges today has come full circle – back to the principles of wonder, entertainment and fun that the eponymous H. Gordon Selfridge founded the store with in 1909 – under the inspired creative leadership of Alannah Weston, who took over from Radice in 2004 and has continued to ramp up the energy and theatre in the store. Weston constantly improved the store both architecturally and theatrically, in particular through the use of strongly themed campaigns she calls “retail activism” that tackle current issues in engaging and often fun ways. Claiming not to be a retailer, Weston always had a keen eye for the numbers but perhaps coming to Selfridges from a world coloured by art, design and creativity is what has helped her to make this one of the most vibrant and exciting retail destinations on the planet.

Stew Leonard’s (USA)

The entire store, all four of them, is packed with theatre. From the outside, one of the first things you see is the faux grain tower. It’s a small thing, but it begins setting the stage for a dairy, farmshop narrative. Then, inside, a single path takes you on a winding yellow-brick-road show through the product. At every step there are samples being flourished with smiles, animated products abound, literally in the form of animatronic milk cartons and a joke-telling cow’s head, and a webcam live from the milkshed tells the story of freshness. On busy days, there are even people dressed as fruit dancing around the place. It’s all active theatre and it’s brilliant – please do make the effort to visit one.

Liberty (UK)

Here, it is the building itself that is a dramatic example of retail theatre. Built in 1924 from the black and white timbers of two British warships, Liberty’s London home is a character in and of itself. It tells customers lots of the story of its proposition before they even enter. Under the inspirational leadership of Ed Burstell, Liberty has returned to its roots as a theatrical destination, much in the manner of Selfridges, but because of the scale of the building and its interior, Burstell has chosen to tell a more intimate story. It’s a retail narrative that has brought Liberty right back into the consciousness of Londoners and is a great example of how a retailer can use the limitations of space to create positive results.

IKEA (Sweden)

In furniture retailing, room sets have always been a staple feature, but it was IKEA that turned them into a procession of interactive plays, each representing a possible lifestyle. The store layout moves every visitor past every room, and every room is a more complete stage set than was traditional in the sector. There are walls, lighting, false ceilings, facsimile windows, rugs and detail – to the extent that it is easy to imagine all the things in that room set in your own home. It’s another form of retail narrative, one that makes it incredibly easy for customers to put themselves into.

Kiehl’s (US)

Looking like somebody’s idea of an apothecary fit for an episode of Seinfeld, Keihl’s interiors are straight out of a TV studio, but manage to, at the same time, feel authentic and honest. That’s because the people working the film set are superbly well selected and trained and offer such an engaging service. The customer experience is full of little ceremonies of theatre, from the way staff can have a customer seated and sampling in seconds to the freebie sachets of product that are presented at the end with a friendly flourish. I love the Kiehl’s customer experience and highly recommend all retailers to study it. There’s theatre and engagement in spades here.

Digging out the moments

A good way to introduce theatre into your store is to break down everything you do into small “ceremonies”, little routines that create a bit of difference, done with a flourish. It can be something as simple as presenting the bag in a particular way at the end of a sale, the way your people greet customers, the steps in a demonstration, and so on. Any routine element of the customer journey can be made into a ceremony, from attracting attention to taking the money.

Sony’s moment of theatre

I once taught Sony’s in-store demonstrators to “flourish” a remote control in such a way that it would attract customers. A tiny moment of theatre that, at first, the team were distrustful of. It involved holding the remote down at the hip at arm’s length, then circling it out to the side and then out front and wind-milling the other arm over to press a button, then as the button was pressed making a startled “wow” gesture. It sounds nuts, and the way some of them performed the move it looked nuts but, after a while, they began to enjoy the silliness and expression of the thing. The magic bit, though, was out in stores where most of them discovered that this daft bit of movement and theatre could draw a crowd faster than the 23-hour Greggs in Newcastle giving out free pies*. Before they knew it, an intrigued potential customer would be at their shoulder wondering what the fuss was. That’s theatre from ceremony.

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* This is, of course, a lie as nothing draws a crowd faster than free pies in any Greggs. The Sony crowds did form fast, though.

At hotel chain Malmaison, it packs these theatrical ceremonies into everything. Look at the way it deals with a dinner order for a glass of port. Instead of bringing you a glass of port, they bring a clean, empty glass and their port decanter. Your glass is checked, given a little extra polish, placed down and the port is poured there in front of you. It’s a process that adds very little to the time it takes to serve a glass of port, but it looks fantastic to the customer – the lovely liquid appetisingly pouring out, the gently pleasing glass-filling sound and the rich colour of a generously filled decanter, the delicious odour rising as molecules are jumbled into the glass – expectation and anticipation go through the roof. There’s very little efficiency cost to this, either. The port would still need pouring and the waiter would still need to have come to the table and returned back to the kitchen.

Lovely boutique French jewellery brand Les Néréides fills its sales journey with lots of ceremonies that add up to a deliciously satisfying customer experience. It starts with a visually reinforcing store layout: everything is fresh, collections are given room to breathe and staff are dressed in sweet summery clothes that match well with the design ethos of the jewellery. That’s theatre too – it’s the equivalent of great set and costumes. As soon as customers interact with the habitually happy and approachable staff, the ceremonies kick in. Lots of drawers of product are removed and placed upon the counter, but in a set way so that only the items that are currently “in play” are visible.

You’ll see women, buying for themselves, given mirrors and encouraging comment, and you’ll see assistants trying on necklaces to help people buy gifts for female partners. It’s incredibly human and involving. Then purchases are wrapped in paper and the paper sprayed with the house scent, then dropped with a deliberate flourish into nicely designed gift bags that seem modern and classic all at the same time (much like the jewellery) and, finally, the bag is tied ostentatiously with a pretty bow. The whole process is full of ceremonies and it makes the experience feel very special indeed, especially given this is costume jewellery selling at a very reasonable price.

Fundamentals of retail theatre

For our next journey into retail theatre we’re going out on to the street – we’ll maybe even learn about other parts of the puzzle too. That’s because the best lesson on the fundamentals of retail you could ever have is to be found at traditional street markets. I don’t mean the cool new-wave artisan street markets either, but the honest cut-throat ones. In particular, the fruit and veg stalls on those markets. Right there is where you will see the most efficient, simple and effective principles all in action – not because somebody spent a year studying at the London School of Economics but, instead, because those principles have been passed down over the generations. From father to son, from mother to daughter – because they work.

Seriously, I can’t recommend strongly enough that you go and quietly observe the dynamics of a busy street market.

Traders calling out to punters can be exhilarating to watch and listen to, especially when it’s done well. What you can learn from listening to these calls (called “barking”) is a sense of what really turns customers on. The lines shouted out have been passed down from trader to trader and adapted over generations. Traders still use them because they make customers react. Go beyond the old-time vocal theatricals and you can see some incredible promotional instinct at work. In particular, fruit and veg sellers do two things when they bark:

  • They bark the promotions: “two for a pound”.
  • But listen closely to the words they use when describing the produce – it’s not just “cherry, strawberry, apples, oranges, pineapples”. You’ll hear “Sweet cherry!”, “Lovely ripe strawberry!”, “Get your fresh apples!” and “Juicy golden pineapple!”

The adjectives – fresh, delicious, ripe, sweet, rosy-red, juicy – are part of the performance and they materially affect the way passing customers feel about what’s being sold. If you’re even vaguely craving sugar and you hear “sweet and delicious red cherry!” you’ll start picturing them in your subconscious, you’ll be imagining what they might taste like. There’s a chance that your mouth may even be watering right now. Incredible stuff! Remember the Warby Parker example earlier – these words mean things, they’re important, they trigger a response and, when spoken, have a visceral effect on us.

As part of building theatre in-store (and when writing about product online), you need to encourage your team to use adjectives like these whenever they’re talking about the products they love: awesome colours, fantastic fit, stunning design, superb taste.

This does two things: it engages customers, but, even better, it also gives them the words they will use later to describe how pleased they are with whatever it is they’ve bought: “Yeah, I got these new jeans, they’re a fantastic fit.”

There are merchandising lessons there too

Fruit and veg on a stall tends to be laid out pitched at an angle up off the table, with orders then being fulfilled from produce behind the angled crates. This arrangement makes it look like there is more food there than perhaps there really is – this is important because we animals are reassured when we see what we perceive to be plenty. You didn’t think we were influenced by that stuff, maybe? We are, all of us. We had a convenience store client in Kazakhstan once where fear of shortage had been directly passed down from the Soviet era to people born after independence. Retailers overfilled shelves and over-fronted everything as a direct result.

Look at the way colours are arranged on a fruit and veg stall too. Rather than blending harmoniously from red to orange to yellow and so on, contrasting colours are put next to each other. This is to help our poor eyes pick one thing out from another but also because, when you walk past this arrangement, it flickers in your peripheral vision where you are seeing it in high-contrast monochrome. That flickering attracts our attention and makes passers-by almost involuntarily glance over.

Stage managing for effect

Managing perceptions is another aspect of great retail theatre and here, again, the fruit and veg sellers can do interesting things. When I originally wrote Smart Retail, I would often need to walk down the Whitechapel Road and past the permanent street-market there. The market contains six greengrocers’ stalls, each offering similar products. One morning, I noticed lychees had arrived; these are a big draw for the greengrocers there. On five of the stalls, lychees were all presented at the front in a sort of hot-spot visible to all customers.

But, on the sixth stall, they weren’t even on the table. This greengrocer hadn’t even had time to get his lychee stock on to a shelf because it was still all on his delivery trolley and customers were pulling boxes of lychees straight from his trolley. Next day, the lychees were again right out front on their delivery trolley … and the next … something didn’t seem right.

I asked the stallholder, Dinesh, why he did this. Dinesh said that customers who saw the lychees tended to believe his were extra fresh because they hadn’t been around long enough to be taken off the delivery trolley. “How fresh are they?” I asked. “Three days, these ones.” “Do your customers really believe your lychees are fresher than everyone else’s because you’ve not even been able to get them onto the stall?” “Yeah, they do.”

Suspending disbelief, helping customers to feel a positive thing. These are theatrical tools and you’ll find ways to apply them to your business too.

Why shopping channel presenters are unheralded geniuses

One easy way to get a bit of performance and movement into the store is to do lots of demonstrations. Again, watch market stallholders: they handle the product constantly, rotating stock, shifting clothes, rearranging sizes or colours, juggling sweets, playing music, sparking up toys, cooking spices on their hotplates. If a stall is momentarily quiet, the stallholder will do their equivalent of my crazy remote control flourish, fishing for customers until they get a new bite. Almost every trader you see will hold a bag of product in his hand as he barks out the deal on that item. A tiny detail but, again, it’s done because it’s useful in attracting customers.

Another great training ground for learning demonstration skills, and I am serious, is the shopping channels on telly. Watch the guest presenters, especially. These are the people from the product manufacturers who get to come on and plug their wares. These men and women are often brilliant instinctive performers who talk and demonstrate benefit after benefit. Now, I’m like everyone else who gets a bit annoyed when these presenters are talking up something obviously shoddy, but the techniques are still valid. Imagine applying it to your best stuff, to product you genuinely believe to be great. Online, these are the people you need making product videos for you. Have a look at AO.com from the UK for its benefit-driven videos and at the superb review videos at US motorcycle retailer RevZilla. This one is a good example: https://goo.gl/1PJzos. I should mention that the jacket he’s rightly cheering on there is made by our family business and it’s brilliant. Buy one!

What I’m suggesting you do here is to tap into the power of everyday performance. The demonstrating and playing with stock. Customers really are drawn to products when they see life and action around them. Helping customers to more easily imagine your product actually working for them is very powerful.

Dunkin’ v Krispy Kreme
Prodding every sense all at the same time

At the height of its success, Krispy Kreme (KK) stores were taking three times more money than similarly sized Dunkin’ Donuts stores. Broadly the same product (although KK reckons its recipe delivers a better texture), same sort of locations, maybe Krispy Kreme had a little bit more of an authentic brand heritage, but that’s marginal.

So how come it sells so many lovely, lovely doughnuts?

Scott Livengood is the man who took the business from $200m to $1.2bn revenues in just three years. His big innovation? The introduction of a big bit of retail theatre. Just like fashion, doughnuts are best when hot and fresh in-store. Livengood’s moment of genius was to connect the childhood delight of hanging around the kitchen when mum or dad were baking with the process of buying a doughnut.

Up until Livengood’s arrival, fresh Krispy Kreme doughnuts arrived at customers through an anonymous hatch in the wall so that the machinery of cooking that doughnut was kept well out of view. Livengood recognised that watching your doughnut being cooked fresh in front of you, taking in the wonderful cooking aroma, would heighten anticipation and spike desire for the product. Stores were then redesigned to make the most of what became “doughnut theatres” and cooking times were changed from early morning to times that matched the optimum desire times – lunchtime and late afternoon – with the aromas then pumped out into the street.

Livengood also decided that free hot doughnuts should be given out to waiting customers during cook times. His finance team said this would halve sales at best, customers coming in for two doughnuts would only buy one and get the other free. What Livengood knew instinctively was that many new customers would come just because there was the possibility of a fresh hot free doughnut and would buy more while there.

A tiny moment of truth: during a store visit, Scott witnessed a staff member wave to a child from inside the “doughnut theatre”. It made the kid’s day and it appeared the staff member felt good about the interaction too. Scott says that was the moment he realised that he’d done something special.

There is a sting in this particular tale that goes back to Big Idea. The USA is waking up to the need to eat more healthily, which is, potentially, the distant death knell for the doughnut. Krispy Kreme has failed to adapt to this change in the market and is suffering as a result.

Dunkin’ Donuts, on the other hand, has moved itself towards a coffee positioning. It has significantly improved the coffee itself, installed proper Italian coffee machines and is now using the advertising slogan “America Runs on Dunkin”. It’s clever: Dunkin’ is now telling customers, “Hey, we’re the real American coffee place and we have the finest American snack to go with your coffee.” The result is that Dunkin’ now serves more cups of coffee per year in the USA than Starbucks, doughnuts have become a small percentage of the sales mix and profitability has gone through the roof.

Now
Things you can do now

  • Identify five sources of animation in your merchandising. Can any of these be broadened into other parts of the offer?
  • Find three things in the list of great retail theatre examples that could be adapted to your business.
  • Find three opportunities to demonstrate product.

Next
Strategic considerations for the longer term

  • Find every opportunity through the complete customer journey to define ceremonies – instigate a programme to create these.
  • Ensure that theatre, movement and opportunities to demonstrate are at the heart of your next format development process.
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