Before the internet, the most convenient way to get trendy and affordable clothes was to go to the department store. Now, with Amazon and other online retailers, physical shops must compete with online stores that offer low prices and quick delivery.
It might be natural to think of online shopping in competition with physical retail. As consumer preferences change, online retailers can more quickly reflect new trends and demands faster than physical stores can restock their shelves. However, physical stores provide consumers the opportunity to see how a product looks and feels in the real world, without having to buy it first. But the future of shopping is not quite so either/or, emerging neo-retail is a new model that blends digital assets and physical experiences, shaking up the conventions of commerce.
Showfields and Neighborhood Goods, department-esque stores in NYC, are successful takes on this new wave of experiential retail. They are more like showrooms, with exhibits that leave products on display like art. There is an emphasis on perusing the store like a gallery as opposed to combing racks full of the same product. Each brand is highlighted with its own unique story, and consumers can rally behind the mission of a small-scale creator whose product might be in support of BIPOC, LGBT+, feminist, and/or sustainable goals.
Displays at Showfields, NYC.
Because of the open, museum-style layout of neo-retail, there is an opportunity to play with the function of the space without upending the store and moving everything around. Outside of business hours, Showfields and Neighborhood Goods quickly renovate their stores into yoga classes, conferences, and family events that locals can enjoy. This is particularly important in New York City, where real estate is valuable.
Unlike traditional department stores, neo-retail spaces are designed to host people, not just get paying customers in and out. This reinforces that neo-retail is just as much about community as it is about commerce, which reflects the values of a growing class of consumers who want to feel more connected to the brands they spend money on and the companies they support.
Screenshot of Showfields website. Event posting.
Window-shoppers can explore products without feeling pressured to make a purchase. In fact, in-store shoppers are encouraged to go to the store’s website and get products shipped straight to their houses. This can help to reduce online returns, which have increased sharply since the pandemic. In fact, around 218 billion dollars of all online purchases were returned in 2021 (National Retail Federation). Neo-retail’s diverse product offerings, from makeup to clothes to baby formula, should help mitigate the issue of returns across the board by giving consumers a one-stop shop for in-store-first, online purchases. In this neo-retail model, backroom inventory does not exist in-store, which makes the goods feel more exclusive, but also positions the customer to shop from the company website after seeing the product in person.
In the 90s and early 00s, shopping was all about buying the right brand. Stores like Abercrombie and Fitch had a monopoly on clothing culture and lifestyle; they promoted white centrism and social exclusivity. In neo-retail, we are seeing micro-brands explode into popularity, with BIPOC and LGBT+ creators popping onto the scene with small-scale, mission-based offerings. Stores like Showfields and Neighborhood Goods give a physical platform to many of these brands that once only had access to digital marketplaces, like Etsy and Instagram. Ultimately, these offerings speak to the lifestyle aspirations of young people that want the products they buy to represent their values and intersectional identity.
Screenshot of Showfields website. Search products by social mission.
Neo-retail stores like the ones in NYC represent a trend we see across the country. In the decisions people make every day, they want to feel like they are having a positive impact and are contributing to the greater good of society. Additionally, customers want customizable products fast, and at their fingertips, without sacrificing the quality that is often questionable with online ordering. With these trends in mind, retailers can begin to rethink their existing digital and physical assets to draw audiences and entice existing customers in new and valuable ways. Neo-retail has the potential to become a more efficient hybrid of existing retail options; Showfields and Neighborhood Goods are just the beginning. At Orange Sparkle Ball we are excited for the opportunity to see and shape what comes next.
Writing and research by Nia-Simone Eccleston, Design Strategist Apprentice.
Photos and research by Ashley Touchton, Design and Startup Strategy Consultant
