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Nearly 60%<\/strong> of store design teams say their top challenge is adapting store experiences to new shopper expectations, according to Retail TouchPoints <\/em>research. But retail organizations are gathering more data about their customers \u2014 their behaviors, preferences and expectations \u2014 than ever before, which can help guide retailers as they seek to improve the customer journey.<\/p>\n Even at the store level, design teams can tap into traffic flow patterns, sales metrics and even engagement KPIs to understand how shoppers venture through stores, where they stop and, in some cases, how much time they spend in specific areas of a store. Retailers like Sephora <\/strong>and Coach <\/strong>are increasingly aggregating and democratizing this data to inform all kinds of store design decisions, from strategic shifts to tactical, store-level changes.<\/p>\n During the National Retail Federation\u2019s 2025 Big Show, executives from these retailers shared how they are using data to:<\/p>\n Over the next five <\/strong>years, Sephora is embarking on an incredibly aggressive project: assessing and redesigning every store in its footprint.<\/strong> During her keynote at the NRF Big Show, Artemis Patrick, President and CEO of Sephora North America, explained that \u201cthere was a lot of insight drawn through different formats to get to where we are today.\u201d The beauty retailer will use these insights to determine which adjustments need to be made for specific formats. While some will be small tweaks, others will be complete design overhauls.<\/p>\n One of Sephora\u2019s most notable findings from the data-gathering process was that most consumers didn\u2019t like having their makeup done in most Beauty Studios, largely because they were stationed in the front window of stores. Patrick explained that, in retrospect, these insights weren\u2019t exactly shocking, but that they uncovered some additional opportunities for improvement, like better lighting. As a result, the new store designs have the Beauty Studios off to the side.<\/p>\n Sephora\u2019s major store project started when the retailer launched a new store format derived from its merchant insights. \u201cWe looked at productivity and heat maps; we looked at how people are shopping,\u201d Patrick said. \u201cBut then there\u2019s an art to it, right? The merchant has to think about what\u2019s going to be trending and hot in the next two, three<\/strong> years.\u201d<\/p>\n To better standardize brand curation and merchandising, Sephora focuses its coveted gondola displays on key categories, so the shopping experience effectively represents the assortment. Additionally, this approach makes it easier for stores to update their displays.<\/p>\n Sephora also has implemented a more flexible store design that includes modular fixtures. The retailer can continuously look at sales and traffic data and iterate each store\u2019s flow, moving fixtures around to accommodate different consumer behaviors and preferences.<\/p>\n As of January, Sephora has updated 111<\/strong> stores and all key metrics, from transactions to store productivity and sales, are up.<\/p>\n Coach has rolled out myriad new store concepts and experiences worldwide, from branded caf\u00e9s to diners and shoppable customization studios. Giovanni Zaccariello, SVP of Global Visual Experience for Coach, loves to experiment and test new ways the brand can come to life. However, he admits his team thinks he\u2019s \u201ca politician,\u201d because \u201chaving a big idea is step one, but step two is selling it.\u201d<\/p>\n That\u2019s why all new Coach concepts ladder up to a larger company strategy and support a three-tiered model Zaccariello described as the \u201c70-20-10 Rule.\u201d The largest share of all store investments (70%<\/strong>) consists of commerce-focused, \u201con brand\u201d experiences. Their primary intent is to get products in front of customers to drive sales. The next tier, which accounts for 20% <\/strong>of all investments, includes more experimental concepts that were tested on a small scale and proven to drive impact, either through brand awareness, buzz or sales. Finally, 10% <\/strong>of Coach\u2019s ideas are meant to awe and inspire \u2014 and most of all, push creative boundaries.<\/p>\n With this model, Zaccariello and his team can ensure they\u2019re always aligned with the broader Coach mission and vision for innovation. It also helps drive transparency and accountability, ensuring everyone is aligned on how new ideas connect to business objectives.<\/p>\n However, that doesn\u2019t mean every idea is executed perfectly from day one. Zaccariello emphasized that managing your team to move forward, even in those times when you move backward, is key to success. \u201cYou have to fail, you have to learn, you have to readjust and just be prepared for that,\u201d he said.<\/p>\n Zaccariello and his team have run with some pretty out-there design concepts, from a branded airplane to a hot air balloon. While these ideas technically only make up 10% <\/strong>of Coach\u2019s design investments, they tend to require the most creative risk-taking. These projects also tend to require external partners, especially if they\u2019re experts in emerging areas that resonate with Coach\u2019s hottest market: Gen Z.<\/p>\n \u201cThat 10%<\/strong> is the area where we sometimes reach out to external partners to look at what\u2019s out there, especially if it\u2019s a new technology, like the work we do in the metaverse, the gaming world, or even what we did with our immersive windows,\u201d Zaccariello explained.<\/p>\n In fact, Zaccariello considers gaming experiences \u2014 especially through platforms like Zepeto \u2014 a natural extension of Coach\u2019s physical experiences, which unlocks significant opportunity for innovation. After all, these digital worlds are extensions of Gen Z\u2019s IRL identities. While they may not have the disposable income to buy a Coach Tabby bag now, they can <\/em>give their avatar one, which activates their (hopefully) long-term relationship with the brand. \u201cI\u2019m always about this 360-degree mentality,\u201d Zaccariello said, \u201cso when you see things on different channels, you\u2019re looking and talking to the same brand, but you\u2019re talking [to them] with a different level of depth.\u201d<\/p>\n<\/p><\/div>\n\n
Use Insights to Develop Long-Term Strategic Playbooks<\/strong><\/h3>\n
Combine Art and Science to Power Store Design and VM<\/strong><\/h3>\n
Take a \u2018Crawl, Walk, Run\u2019 Approach to Design Experimentation<\/strong><\/h3>\n
Always Allocate Time (and Money) for Innovation<\/strong><\/h3>\n