September 5, 2024
iStock.com/ClaudineVM
Will Banana Republic’s New Store Design and Layout Make a Difference?
Retail interior design and store layout are two fundamental factors that shape and influence a store’s customer experience and performance, ultimately helping generate more sales. In order to boost consumer engagement and enhance the overall shopping experience, brands like Banana Republic are stepping up their brick-and-mortar game.
As previously discussed on RetailWire, shopping malls, like ION Orchard, are starting to leverage experiential retail through gamification to increase engagement and loyalty. ION Orchard’s mobile app features an augmented reality game, “World of Rewards,” which rewards shoppers for interacting with retailers. This trend reflects a broader movement where retailers, including T.J.Maxx and Gucci, use gamification to attract and retain customers. By integrating interactive elements and immersive experiences, malls and brands can enhance the shopping journey and maintain customer interest.
But how about store layout and design more specifically?
According to Forbes, as retail brands continue to grapple with balancing the transactional and experiential functions of their stores, it’s clear that effective retail design is key to “unlocking optimal consumer engagement, which can in turn favor conversion and loyalty.” The outlet noted that store layouts should facilitate “seamless navigation from product discovery to purchase” while also incorporating engaging touchpoints that enhance the overall shopping experience.
Last month, Banana Republic unveiled its newly redesigned store at Westfield Century City in Los Angeles, following a recent revamp of its flagship location in SoHo, New York. The store, designed by architect Noa Santos and curated by creative advisor Jacqueline Schnabel, features an elegant interior with Venetian plaster walls, brass accents, and white oak floors. The design incorporates modern coastal elements and offers a sophisticated shopping environment, showcasing items like Taschen books, Moroccan candles, and French artwork.
The Century City location also includes premium items such as sculptures, a spacious fitting room lounge, a styling area, and an in-house tailor, reflecting a focus on quality and personalized service.
As for the flagship store in New York City, Banana Republic finished its redesign in May. As reported by Inside Retail, the store, which is two stories tall and 17,000 square feet in total, was renovated to be “a cultural curation of the Gap Inc brand’s ethos of modern exploration.” It was also designed with the same architect and creative advisor, and at the time, the company noted that this SoHo store would be “the leading indication of how the rest of Banana Republic’s stores will evolve depending on how consumers interact with the new space and services.” The Century City store’s similar redesign seems to be a good sign, in this case.
However, when compared to some other experiential retail stores, Banana Republic’s redesign may seem like nothing more than a decorative atmosphere. This does help carry across the brand’s style and essence, but is it enough to convert sales?
According to the Australian design studio Corso Interior Architecture, it does. “The significance of retail interior design has increased exponentially over the years,” the company explained. It also shared five reasons interior design can be beneficial for retailers:
- Enhancing customer experience: A thoughtful design creates a welcoming atmosphere with strategic layouts, appealing color schemes, and effective lighting.
- Maximizing product display: Prominently placed merchandise and visual merchandising attract attention thanks to “improved visibility, increasing their desirability and potential sale.”
- Reflecting brand identity: A good interior design aligns with brand values and target demographics to build trust and loyalty.
- Increasing sales and conversion rates: Effective layouts and design elements encourage exploration and impulse purchases.
- Staying ahead of the competition: Unique, memorable experiences through innovative design differentiate stores from online shopping and competitors.
The most important aspect of retail design, per Shopify, is how a store’s layout influences customer attraction. This includes the length of their visit, which products achieve the highest sell-through rates, and whether shoppers will return.
By integrating elegant aesthetics and interactive elements, Banana Republic’s new store design at Westfield Century City not only reflects the brand’s identity but also hopes to maximize product display, increase store sales, and create a memorable shopping journey.
BrainTrust
Michael Zakkour
Founder - 5 New Digital &International Marketing Lead at UNILEVER
Georganne Bender
Principal, KIZER & BENDER Speaking
Brian Delp
CEO, New Sega Home
Recent Discussions
Discussion Questions
How does adding experiential elements affect the balance between visual appeal and sales conversions?
What impact do high-end furnishings and art, such as those used by Banana Republic, have on perceived value and consumer spending?
How can brands use innovative store layouts to enhance customer loyalty and stand out in a competitive retail environment?
Poll
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The new store design does a much better job of communicating what Banana Republic stands for as a brand. Basically, there is a lot more storytelling to inspire consumers. There are also some great service additions, such as vintage assortments. All that said, I do think Banana Republic still has a lot of work to do in repositioning itself in the market. The new store fit is expensive, so it needs to be underpinned by strong consumer affinity to generate a return.
These marketing efforts are on the right track, however BR still seems to struggle to define its positioning in the market. The contemporary styling and price value relationship seems out of line with the target demographic it’s focused on. Much of the focus seems to remain on GAP.
This exactly. What do they want to be when they grow up? Unfortunately they still don’t know and until they do know, this refit, which is costly, will have to be justified and supported with a revised go to market strategy before it can move forward.
A redesign of the store could potentially benefit Banana Republic to some extent, depending on the effectiveness of the new design; however, the underlying factors extend far beyond just aesthetics.
To what extent has Banana Republic successfully redefined its consumer base? How effectively has the brand adapted to the rapid decline of indoor malls? Additionally, how does Banana Republic’s online presence compare to that of its competitors?
Achievement is influenced by factors such as leadership, staff, improvements in personalized service and focus, product variety, pricing strategies, and additional elements. – Db
I watched a video on TikTok last week that capsulized Banana Republic’s store design from its days with a Jeep at the front door to today. It’s been quite a journey. And I have visited the NYC SoHo location multiple times. The store is beautiful. Gorgeous. I have also seen many a shopper enter, look around, and leave empty handed.
Let’s be realistic here: the purpose of a store is to sell merchandise, and it’s tough to buy merchandise when you aren’t sure how to shop the sales floor. Is that couch for sale or is it part of a display vignette? There is a lone sweater hanging on a rack next to a bed. Is it a prop for the bedroom furniture or part or an apparel grouping?
I understand what the designers are trying to do, but as a loyal BR customer, I wish they would spend more time on the collections and less on the Venetian plaster walls. This is a store we’re talking about, not a marketing installation.
No fair Georganne… you didn’t give us the big reveal: were you one of those who left empty handed (and if not was there a furniture depreciation surcharge on your receipt 🙂 ?)
Ha! I leave stores empty handed more and more these days. But as part of my job I also watch people shop for fun and profit. Where they go, how they interact with product and associates, what they buy. It’s interesting. You should come with me sometime!
With the ease of online shopping, BR is wise to explore ways in which the shopping experience can be more entertaining, more personalized, and more service-oriented. That’s the way to win these days….make shopping a visual treat + tactile destination laced with perks.
Absolutely, Jenn! With the option to online shop, brick-and-mortar stores need to integrate digital tools that truly enhance the in-store experience. Adding features that offer convenience and personalization will build loyalty and keep customers coming back. It’s about combining the best of both worlds to create a shopping experience that’s engaging and memorable.
Talk about timing! This week, I posted a quick vid highlighting the fact that Banana Republic’s SoHo store won the day at the end of my recent retail safari in New York. My clients picked Banana over a slew of digitized, experiential eye-catchers. The store pulls you in and encourages you to stay with highly curated design flourishes, negative space, understated (but not snooty) service, oh, and really nice merch! It’s a place built for lingering, pausing, and purchasing rather than dazed, hyper-sensory overload. Contrast is a powerful force.
The effect, in any, is tangential: attractive – or “interesting”, if you will – furnishings may attract (would be) buyers, who may actually buy things. Or they may not. But come on here: who among us reallty think Banana Republic’s problems – or any of the GAP holdings’ problems – have much of anything to do with how plush the chairs are? You can fetish all you want on how marv the straws are, but you’re still grasping for them.
Commerce is Culture. Culture today is immersive, narrative-driven, and must be attuned to psychographics. Banana Republic has done well in its redesign to communicate its culture.
1) Makes shoppers feel more relaxed and removed from their day to day concerns and reality. That comfort and disconnect takes you to a different state of being where you want to fit the store’s esthetic. So the wallet opens up a little. Same reason people pig out at Cheesecake Factory. 2) Takes the shopper out of discount hunter mode. 3) I got nothing. But also… I did not have “Link to Shopify guide to Retail Store Layout” on my bingo card. Congrats to those who did.
Customers today are different than 10, 20, or more years ago. There are changes in their expectations and the way they buy. So, it makes sense that a redesign needs to happen on a somewhat regular basis. It doesn’t have to be a complete redesign, but something to keep the experience fresh. However, when brands choose to make major changes, they should take a lesson from the Walmart playbook. It was reported in HBR that Walmart did a complete redesign on several stores. They listened to what customers wanted. They had data to support their changes. So, they redesigned the stores. The compliments and feedback were excellent. Sales remained exactly the same. So, maybe they didn’t need a complete redesign, but instead, a minor “facelift.” Big difference. Consider the bullet points toward the end of the article, and you have the reasons to keep your stores fresh and relevant.
Since I live in the “Saguaro Republic” of southern Arizona, I have yet been unable to visit either of the Banana Republic flagships in L.A. or N.Y.
So I checked out published photos here, here, and here. Very attractive as lounges. Lots of space and light and props spreading out the merchandise displays. Design award contenders, I’d imagine.
I’ve been a fan of BR since its early days because I like the better quality of the garments it sells. I was originally attracted to the “rugged” style the brand conveyed. I cannot ever remember lounging in a conversation pit or mounting a motorcycle in one of their stores. In fact, I cannot remember sitting down at all.
As professional retail observers, we Braintrust-ers have reason to analyze these stores in a clinical way. Are the designs innovative and congruent with the style of the merchandise? Does the storytelling work for their target customers? Most importantly, will the design attract visits and drive sales?
Flagship stores are almost always a conceit. I’d venture that many never achieve a direct ROI based on merchandise sales. Viewed as marketing vehicles, however, some may achieve an investment return by burnishing brand equity. I must conclude that is Banana Republic’s intent here.
I just walked the store on Broadway in NYC yesterday and it is really impressive. On it’s impact on sales conversion I think it will have an impact. I’ve moved away from shopping a lot of mainstream brands for a variety of reasons (I don’t want to have the same thing on when I look across the subway car, quality, sustainability, age) but personally I would not have thought of BR for cashmere (great cashmere table), suede goods (men’s jackets) and the home goods looked good, but still an affordable price point. There is also the Penthouse experience (which I did not do and am not sure what it is). Let’s face it no matter what price point your shopping, if it’s a beautiful environment, you’ll dwell longer, be more apt to try cloths on and purchase. Not posted as part of the question, but I think the creative design of the clothing and the design team being on the mark helps as well. Yes the real estate and the buildout are expensive, but perhaps fewer stores with better customer experiences and buildouts will lead to increased sales.
Experiential elements like high-end furnishings and art can boost a store’s visual appeal, but they don’t always translate to higher sales. Shoppers may admire the design, but if it doesn’t improve product accessibility or convenience, conversions will suffer.
I think brands need to balance aesthetics with functionality—luxury doesn’t mean anything if it’s hard to navigate or buy. Innovative layouts that make shopping easier and more enjoyable can definitely increase loyalty.
However, retailers need to ensure that their designs don’t just look good, but also make the shopping experience better and encourage more purchases.
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The new store design does a much better job of communicating what Banana Republic stands for as a brand. Basically, there is a lot more storytelling to inspire consumers. There are also some great service additions, such as vintage assortments. All that said, I do think Banana Republic still has a lot of work to do in repositioning itself in the market. The new store fit is expensive, so it needs to be underpinned by strong consumer affinity to generate a return.
These marketing efforts are on the right track, however BR still seems to struggle to define its positioning in the market. The contemporary styling and price value relationship seems out of line with the target demographic it’s focused on. Much of the focus seems to remain on GAP.
This exactly. What do they want to be when they grow up? Unfortunately they still don’t know and until they do know, this refit, which is costly, will have to be justified and supported with a revised go to market strategy before it can move forward.
A redesign of the store could potentially benefit Banana Republic to some extent, depending on the effectiveness of the new design; however, the underlying factors extend far beyond just aesthetics.
To what extent has Banana Republic successfully redefined its consumer base? How effectively has the brand adapted to the rapid decline of indoor malls? Additionally, how does Banana Republic’s online presence compare to that of its competitors?
Achievement is influenced by factors such as leadership, staff, improvements in personalized service and focus, product variety, pricing strategies, and additional elements. – Db
I watched a video on TikTok last week that capsulized Banana Republic’s store design from its days with a Jeep at the front door to today. It’s been quite a journey. And I have visited the NYC SoHo location multiple times. The store is beautiful. Gorgeous. I have also seen many a shopper enter, look around, and leave empty handed.
Let’s be realistic here: the purpose of a store is to sell merchandise, and it’s tough to buy merchandise when you aren’t sure how to shop the sales floor. Is that couch for sale or is it part of a display vignette? There is a lone sweater hanging on a rack next to a bed. Is it a prop for the bedroom furniture or part or an apparel grouping?
I understand what the designers are trying to do, but as a loyal BR customer, I wish they would spend more time on the collections and less on the Venetian plaster walls. This is a store we’re talking about, not a marketing installation.
No fair Georganne… you didn’t give us the big reveal: were you one of those who left empty handed (and if not was there a furniture depreciation surcharge on your receipt 🙂 ?)
Ha! I leave stores empty handed more and more these days. But as part of my job I also watch people shop for fun and profit. Where they go, how they interact with product and associates, what they buy. It’s interesting. You should come with me sometime!
With the ease of online shopping, BR is wise to explore ways in which the shopping experience can be more entertaining, more personalized, and more service-oriented. That’s the way to win these days….make shopping a visual treat + tactile destination laced with perks.
Absolutely, Jenn! With the option to online shop, brick-and-mortar stores need to integrate digital tools that truly enhance the in-store experience. Adding features that offer convenience and personalization will build loyalty and keep customers coming back. It’s about combining the best of both worlds to create a shopping experience that’s engaging and memorable.
Talk about timing! This week, I posted a quick vid highlighting the fact that Banana Republic’s SoHo store won the day at the end of my recent retail safari in New York. My clients picked Banana over a slew of digitized, experiential eye-catchers. The store pulls you in and encourages you to stay with highly curated design flourishes, negative space, understated (but not snooty) service, oh, and really nice merch! It’s a place built for lingering, pausing, and purchasing rather than dazed, hyper-sensory overload. Contrast is a powerful force.
The effect, in any, is tangential: attractive – or “interesting”, if you will – furnishings may attract (would be) buyers, who may actually buy things. Or they may not. But come on here: who among us reallty think Banana Republic’s problems – or any of the GAP holdings’ problems – have much of anything to do with how plush the chairs are? You can fetish all you want on how marv the straws are, but you’re still grasping for them.
Commerce is Culture. Culture today is immersive, narrative-driven, and must be attuned to psychographics. Banana Republic has done well in its redesign to communicate its culture.
1) Makes shoppers feel more relaxed and removed from their day to day concerns and reality. That comfort and disconnect takes you to a different state of being where you want to fit the store’s esthetic. So the wallet opens up a little. Same reason people pig out at Cheesecake Factory. 2) Takes the shopper out of discount hunter mode. 3) I got nothing. But also… I did not have “Link to Shopify guide to Retail Store Layout” on my bingo card. Congrats to those who did.
Customers today are different than 10, 20, or more years ago. There are changes in their expectations and the way they buy. So, it makes sense that a redesign needs to happen on a somewhat regular basis. It doesn’t have to be a complete redesign, but something to keep the experience fresh. However, when brands choose to make major changes, they should take a lesson from the Walmart playbook. It was reported in HBR that Walmart did a complete redesign on several stores. They listened to what customers wanted. They had data to support their changes. So, they redesigned the stores. The compliments and feedback were excellent. Sales remained exactly the same. So, maybe they didn’t need a complete redesign, but instead, a minor “facelift.” Big difference. Consider the bullet points toward the end of the article, and you have the reasons to keep your stores fresh and relevant.
Since I live in the “Saguaro Republic” of southern Arizona, I have yet been unable to visit either of the Banana Republic flagships in L.A. or N.Y.
So I checked out published photos here, here, and here. Very attractive as lounges. Lots of space and light and props spreading out the merchandise displays. Design award contenders, I’d imagine.
I’ve been a fan of BR since its early days because I like the better quality of the garments it sells. I was originally attracted to the “rugged” style the brand conveyed. I cannot ever remember lounging in a conversation pit or mounting a motorcycle in one of their stores. In fact, I cannot remember sitting down at all.
As professional retail observers, we Braintrust-ers have reason to analyze these stores in a clinical way. Are the designs innovative and congruent with the style of the merchandise? Does the storytelling work for their target customers? Most importantly, will the design attract visits and drive sales?
Flagship stores are almost always a conceit. I’d venture that many never achieve a direct ROI based on merchandise sales. Viewed as marketing vehicles, however, some may achieve an investment return by burnishing brand equity. I must conclude that is Banana Republic’s intent here.
I just walked the store on Broadway in NYC yesterday and it is really impressive. On it’s impact on sales conversion I think it will have an impact. I’ve moved away from shopping a lot of mainstream brands for a variety of reasons (I don’t want to have the same thing on when I look across the subway car, quality, sustainability, age) but personally I would not have thought of BR for cashmere (great cashmere table), suede goods (men’s jackets) and the home goods looked good, but still an affordable price point. There is also the Penthouse experience (which I did not do and am not sure what it is). Let’s face it no matter what price point your shopping, if it’s a beautiful environment, you’ll dwell longer, be more apt to try cloths on and purchase. Not posted as part of the question, but I think the creative design of the clothing and the design team being on the mark helps as well. Yes the real estate and the buildout are expensive, but perhaps fewer stores with better customer experiences and buildouts will lead to increased sales.
Experiential elements like high-end furnishings and art can boost a store’s visual appeal, but they don’t always translate to higher sales. Shoppers may admire the design, but if it doesn’t improve product accessibility or convenience, conversions will suffer.
I think brands need to balance aesthetics with functionality—luxury doesn’t mean anything if it’s hard to navigate or buy. Innovative layouts that make shopping easier and more enjoyable can definitely increase loyalty.
However, retailers need to ensure that their designs don’t just look good, but also make the shopping experience better and encourage more purchases.