The NuORDER team is back after another incredible edition of IGDS World Department Store Summit. This edition was held in Berlin, where we sponsored the “World’s Best Business Partner to Department Stores” category and our very own General Manager of NuORDER by Lightspeed, Michael Ganci, had the honor of presenting the award. Congratulations to the winner, Rituals, and the first and second finalists — L'Oréal and BESTSELLER.
IGDS was a whirlwind of connection, inspiration and fascinating industry insights. Here’s what’s new:
Gen Z and international consumers drive growth
While China’s travel restrictions have had a severe impact on the state of retail, there is good news to celebrate on the global industry scene. Retail is currently reaping the benefits of growth, largely spurred by enthusiastic Gen Z shoppers and international purchases made by shoppers from South Korea, Hong Kong, Taiwan, the US and the European Union. Travelers from these nations are outspending other travelers on their shopping excursions in Japan, France, Italy, and Spain.
Interesting facts:
- 35% of shoppers prefer shopping autonomously
- Bags and watches are APAC consumers’ top purchases
- Handbags and apparel are EU consumers’ top purchases
Insufficient investments lead to lackluster in-store experiences
In response to financial pressure, many stores are directing the majority of their investments into the digital aspects of their businesses. However, their in-store experiences often miss the mark as a result of these uneven investments. Every touchpoint leaves shoppers impressed or motivated to spend elsewhere. It’s essential for consumers to feel wowed by brick-and-mortar experiences — for both sales and brand preservation.
Retailers look to become local leaders
Retailers are leaning into the power of becoming leaders within their communities by focusing on location and region-specific offerings and even greater differentiation across their assortments. It’s an excellent way to form deeper relationships with consumers and make a meaningful impact.
- How can retailers stand out and create assortments, experiences, and services that speak specifically to a local or hyper-local audience?
- How can they build longevity into these relationships?
- What might encourage consumers to return to their brick-and-mortar locations with greater frequency?
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Love and magic
The concept of love was a major theme at IGDS. How can retailers woo shoppers to build long-lasting, meaningful relationships? Retailers are advised to romance shoppers, take measures to keep that romance alive, experiment to surprise and delight with newness and make grand gestures by creating a spectacle. In today’s landscape, there’s no room for lackluster retail experiences to thrive.
Deep interest in AI
IGDS attendees, demonstrating plenty of interest in AI, enjoyed two case studies on the subject featuring Kaubamaja and Boyner Group. Both retailers have successfully leveraged AI to drive their marketing strategies. Kaubamaja is the first recipient of IGDS’ new award category, “World’s Best Marketing Campaign by a Department Store”. The Estonian retailer deftly combined artificial intelligence and human creativity to become the first in their nation to create an inspiring, innovative, AI-powered campaign. Meanwhile, Boyner Group is using AI-powered interactive art to transform their Istinye Park store. The shop is outfitted with a colossal, interactive, “Flip Art Display” appearing prominently at several entrances. The display mirrors whatever is happening in front of it, such as shoppers walking by, to entertain shoppers and surprise and delight.
While the challenges ahead for retailers are clear, the vast opportunities for growth and forming deeper connections with consumers are also on the industry’s radar.
