Hointer’s New Tricks for Bricks

Through a special arrangement, presented here for discussion is a summary of a current article from the newmarketbuilders blog.

While the rise of online shopping has transformed the retail world over the last 15 years, the next 10 will see "a total reversal," with technology enabling "rich, three-dimensional in-store experiences for customers."

That’s the view of Dr. Nadia Shouraboura, the CEO of apparel start-up, Hointer. Although Hointer’s robot-powered, mobile-centric apparel stores have created a buzz, Dr. Shouraboura’s overarching goal is to offer a solution that helps brick & mortar stores become more efficient, rather than to become a branded retail chain. With three located in Seattle and Silicon Valley, a few more will open in major cities to serve as labs that let brands and retailers "see exactly how it works and how it would apply to their brand."

The labs will also explore other solutions to redefine the in-store experience.

In an interview with newmarketbuilders, Dr. Shouraboura, formerly vice president, global supply chain and fulfillment platform at Amazon, noted that for many categories such as apparel, electronics and jewelry, "the in-store experience is actually better." Now that shoppers have been educated on how to shop online and via mobile devices, they are primed to look at physical retail in a new way.

hointer

"I remember my early days at Amazon, when it was hard to convince customers to give their credit card numbers online or use the technology," remarks Dr. Shouraboura. "Now, the customers who come into my store are completely ready for that. They all pull out their mobile devices. They all know how to download apps. They all know how to tap items. They all know how to check out. It’s just so natural to them."

At a Hointer, a shopper scans a QR code on a pair of jeans and enters their size. Within 30 seconds, an automated robotic process delivers a pair through a chute to their dressing room.

Hointer’s "micro-warehouse" enables each location to carry a wide selection of inventory to compete with online’s endless aisles. While reducing labor costs, the automation also makes better use of space and improves the experience, particularly wait times in dressing rooms.

"The technology knows all of the items and how to retrieve them and it prioritizes tasks," says Dr. Shouraboura. "It’s a very efficient, very compact warehouse that has the ability to respond to a customer request very quickly."

Continuously recording what items shoppers try on, discard and touch also provides real-time data that hasn’t’ been captured at retail before. She adds, "We aggregate data but also maintain it at a granular level, so we can provide customer-specific data to our associates."

Dr. Shouraboura envisions a future in which "we’ll see many different product presentations and of course all of it will be omni-channel. You’ll have full access to the inventory, but it’ll be thrilling in three dimensions with five senses. Touch, smell, feel. It’s going to take a lot of people and innovation to figure out how to make the store really exciting, step by step. We want our children to go to the store and have fun. Not just shop. Fun."

BrainTrust

Discussion Questions

Has online and mobile primed shoppers for a transformation in the in-store experience? What is the potential for retailers to leverage Hointer’s technologies to transform their back rooms and the shopper experience? Do you share a similarly enthusiastic take on how technology can reinvent the in-store experience?

Poll

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Bob Phibbs
Bob Phibbs
10 years ago

While Hointer continues to get buzz, I never hear anyone talk about how busy they are, or how profitable. Sure they have impressive $ behind them, but an Automat for clothes seems fairly niche.

The founder’s quote, “Too many people working, too big, too expensive and their inventory is a mess” tells me this is another attempt to remove humanity from shopping. I’m not a fan.

Joan Treistman
Joan Treistman
10 years ago

As consumer behavior changes, expectations are simultaneously modified. Hointer appears to have great insight as to innovative ways to meet and exceed these newer expectations in an ever changing dynamic environment.

Using the one example of bringing new items and sizes to the dressing room with a simple app is very impressive. That overcomes occasions when a customer leaves without trying on that one size bigger or smaller, just because she needs to get dressed (or semi dressed) to walk back out onto the floor and find that other size. Maximizing the convenience would seem to maximize the sales opportunities.

Mark Price
Mark Price
10 years ago

Technology has the capabilities to improve customer experience at retail far beyond the “interesting but not so useful” examples in this article. Given the poor state of customer experience at retail today, the best use of this technology will be to identify customers and help to “smooth out” their experiences by providing them with products, offers and added value based on who they are and what they have purchased in the past.

RFID technology has the capability to identify customers as they enter the store and to provide store associates with information about that customer to help them service the customer more efficiently and more personally.

Extensive training and store engagement will be necessary for those associates to learn how to leverage the new technology in a way that does not seem artificial and clunky.

Finally, we must recognize that technology enhancement at retail will only appeal to specific segments of customers. Many customers perhaps the majority, will prefer the “old-fashioned” way of engaging at retail, and retailers must be prepared to both move forward with new technology and provide strong experience to customers who do not wish to use that technology.

Ralph Jacobson
Ralph Jacobson
10 years ago

For more than a decade, innovative retailers have implemented these exact capabilities in their stores, including a global apparel manufacturer’s flagship store in California.

There is still a differentiation of physical stores that is tough to duplicate online. The youngest shoppers still prefer to shop stores, especially in malls, rather than shop online.

John Boccuzzi, Jr.
John Boccuzzi, Jr.
10 years ago

The concept is very exciting and I am confident it will become more widely accepted over the next 5 years. One of the most exciting benefits of this technology is the new data about shoppers and products. Knowing what a customer puts on, buys, or returns can help tweak product features and also make recommendations for individual shoppers.

Over time I can see users walking into a dressing room and a display showing them everything they have purchased and tried on over the last year. It would also then show shoppers suggestions (similar to Amazon) on what they might like or items that would go with other items they have purchased in the past. Today this is only done at high-end clothing stores. This technology makes it practical for a much broader set of stores.

As with most things, this solution is not for everyone or every product line. Demographics of shoppers and the need to try/test items will play a factor on where it will work best.

Todd Sherman
Todd Sherman
10 years ago

Online has definitely primed shoppers for the increased use of technology in shopping to make the process more enjoyable and efficient. Online also started the process of digitizing the shopping experience and has created assets retailers can leverage for in-store shopper engagement.

Having shopped at Hointer’s in Seattle, it was interesting in a way similar to being in Disneyland’s Tomorrowland: the technology was thought-provoking, but didn’t necessarily provide an enhanced experience. Part of that was due to the category Hointer’s has chosen—high-end jeans—which is one where an associate can be very helpful by providing guidance prior to the changing room. That said, it is pushing some boundaries and there are likely to be learnings and payoffs that retailers can take advantage of.

Regarding the use of technology in-store, mobile is already changing the way people shop. The opportunity is for retailers to find the best ways to use it to connect their shoppers to their brand and drive better experiences and reduce costs.

Lee Kent
Lee Kent
10 years ago

While I certainly agree that the use of technology in stores can help transform the experience, I am not so sure the Hointer’s experience is the best one. But it is a good start.

And another thing; who said that shopping in and of itself isn’t Fun? Many of us love to shop and we love to share and talk and get advice. As long as it’s not pushy. Just go hang out in the dressing room at an Anthropologie and you will likely experience what I call “the dressing room party!”

Retailers must look at what kind of experience their in-store customer wants and add the tools and technology to enhance it. Said tools and technology can then be used to collect data, as mentioned, about what is being tried on, bought, customer history, etc., that can then be used to further enhance the experience.

Removing the sales associates and automating the whole process of shopping? That’s not fun!

Larry Negrich
Larry Negrich
10 years ago

Mobile technologies, smartphone adoption, proliferation of apps, and online retail innovation are all forces that make today’s consumer want more from the in-store shopping experience. Smart retailers look for ways to make the shopping experience more interesting and rewarding for their customer. Perhaps the right retailer can find a use for the technology outlined in this article.

I would advise retailers to look beyond the sizzle of new technology and measure all solutions based on the impact they make on driving the right customer to visit the store more often, increasing the basket size and profitability of the transaction, improving in-stock functions, and improving shopper assistance capabilities to deliver a delightful shopping experience. If the solution has those capabilities then it should be incorporated into the retailer’s solution roadmap, ASAP. Or else, don’t waste the precious time and resources.

Lee Peterson
Lee Peterson
10 years ago

I see the transformation as even more fundamental in terms of the in-store experience. How about better employees, more interesting store design and more unique product offerings?

We just did a study called, “Amazon Can’t Do That,” and what we found was that consumers were rooting for stores to be better, that online shopping was “purely functional” vs. stores as “emotional.” But a lot of that is about getting better at basics, IMO.

Bottom line for stores is, if you act like a fulfillment warehouse, which is what Amazon is, you’re going to get crushed by Amazon. So, time to ramp up the in-store experience! Digital or fundamental, it’s time for stores to get better.

Karen S. Herman
Karen S. Herman
10 years ago

Absolutely share the POV that technology can reinvent the in-store experience and contribute to a shopping experience that entertains, educates and rewards each customer.

I get less excited about the automated robotic process here and would prefer to hear about a highly organized back-of-store operation and a well trained and courteous sales staff at front of store.

Still believe that human interaction in the shopping experience carries special value and creates stronger brand loyalty, when it is executed well.

Tom Smith
Tom Smith
10 years ago

Perhaps for Millennials, who like to shop in brick and mortar with friends, however, not for this boomer who always prefers to shop online versus brick and mortar.

Herb Sorensen, Ph.D.
Herb Sorensen, Ph.D.
10 years ago

My observation is that this is a frank recognition that the bricks store IS a warehouse. It’s just moving the current warehouse from the front of the house to the back of the house and automating back there. Leaving the front of the house as a sample display area. It’s an interesting approach, and worthwhile in introducing a more realistic view of what retailing really is.

Online has clearly shaken things up, but far too many in retail still act as if what evolved 100 years ago is etched in stone, and they simply “robotically” repeat the process: warehouse the merchandise and wait for the stock-picker shoppers to remove it.

Marge Laney
Marge Laney
10 years ago

Ms. Shouraboura has had it with the lack of service in the fitting room and has applied her online knowledge to create the Hointer solution. I like the efficiency of having the items show up in the fitting room and being able to discard the unwanted items back in a chute. Cool stuff.

Her technology has eliminated the sales associate from the equation in the fitting room. I don’t agree with that. The fitting room is the only area of the store where the customer is truly open to meaningful engagement with associates. Loyalty is built with personal engagement and the fitting room is the best place for that.

Retail customer service technology is about alleviating pain points for the customer. The biggest pain point for the apparel retail customer is the fitting room. Customers make their buying decision at the moment of try-on and getting them the right size, color, or an opinion is important at that moment. If customers don’t get that support, the likelihood of them leaving is almost guaranteed.

The best solution, as I see it, is arming the associate with technology that provides visibility into what is happening in the fitting room and at the same time a tool to help them deliver an elevated knowledgeable experience to their fitting room customers. Tablets are perfect for that.

The big news is the big data that the fitting room offers. The fitting room is an untapped gold mine of analytics. Want to learn how well your sales associates are executing on the sales floor? Want to learn if your associates are engaging with their customers in the fitting room? Are you staffing your fitting rooms to meet demand? How about understanding why the yellow sweater that you thought was going to be a hit isn’t? The insights literally go on and on.

So while the fitting room experience needs work, I don’t think the solution is to burn it down and start over as in the case of Hointer. I do believe in technology that enables the associates to be successful and serve their customers, while enriching each customers experience and connection to the brand.

Crystal Leaver
Crystal Leaver
10 years ago

Yes, the technology of Hointer’s dressing room is innovative, but the in-store experience is about so much more. Mobile devices are always on, always with shoppers. And shoppers prefer to use them in many cases than seek out a store associate. In-store mobile apps can provide direction on what’s in-stock, product location for larger stores, deals and coupons, and recommendations. There is tremendous opportunity for retailers to enhance every part of the purchase process via the mobile device.