Could the time be ripe for a new concept in retailing?

Edwin · Aug 6, 2014

(This is an entirely speculative post - I have absolutely no plans to start a real-world business!)

I wonder if now would be the right time to start a new kind of shop, similar to the Kijkshop in Holland.

A quick bit of background: Kijkshop (literally "look shop") is a chain of stores which have exactly one of everything on display, in glass cases. Here are a few images taken inside various stores that probably explain it better than I can:
https://www.freebees.nl/assets/PageSlides/vrijenactief-2.jpg
http://shoppen.blog.nl/files/2011/07/kijkshopvernieuwd.png
https://www.freebees.nl/assets/PageSlides/kokenenwonen-2.jpg

Basically, it's like a more hands-on version of Argos i.e. instead of being stuck looking at a thick paper catalogue or a screen, you can actually see a product - you just can't handle it yourself.

It might work well, because one of the snags with otherwise extremely successful ecommerce sites is that you can't "see the goods" so for many product categories you're not 100% clear what you're getting. How big is the product? What's the exact colour scheme? Does it have a plug on it for X? Etc. etc.

At the same time, more and more people are using physical stores for "research" then going home and buying the stuff online.

I imagine this could work in one of several ways (not necessarily mutually exclusive):
A) Like Argos, or click-and-collect: the products are stacked out back and you can get them within a few minutes by going to a counter
B) Everything is available for next day or at least fast delivery, or future collection, but nothing is actually in store that very second. Saves massively on inventory overheads. Similar to ecommerce. People could shop using QR codes and a smartphone app, or a device similar to the one in Waitrose and some other stores that can read/store the barcodes of the stuff they're interested in. Final step would be to submit delivery info and pay for the goods.
C) Feed leads to trusted online partners so that people can use the store explicitly as window shopping, then be guided to buying the product cheaply from reputable online firms (from which the store makes an affiliate/partner commission)

I'm sure there are many ways to tweak and refine the idea, once the basics have been established. The main idea being that it dramatically increases the number of different products that can be made "available" in a given product category, because only one of each need ever be on display... So you could have 200 digital cameras, or 50 ultrabooks, or whatever - rather than the pittance that shows up in places like PC World.

Plus since the products are encased in glass, you don't have to worry about:
- Shoplifting
- Damaged packaging
- Misplaced products (people pick something up, wander round the store and change their mind, and just stick the thing they no longer want on the nearest shelf)

And finally, while you will end up with quite a bit of "shop worn" products (as in "stuff that's been out on display") they will actually be in near-mint condition (and therefore can be disposed off at much less of a discount) because they've not been pawed over by customers.

julian · Aug 6, 2014

I'm being thick again..

Firstly retail is dead..

Secondly, what's the difference between looking at a 360 rotating product image widget on a webpage and looking at it behind a glass case - you can't touch either.

Edwin said:
(This is an entirely speculative post - I have absolutely no plans to start a real-world business!)

I wonder if now would be the right time to start a new kind of shop, similar to the Kijkshop in Holland.

A quick bit of background: Kijkshop (literally "look shop") is a chain of stores which have exactly one of everything on display, in glass cases. Here are a few images taken inside various stores that probably explain it better than I can:
https://www.freebees.nl/assets/PageSlides/vrijenactief-2.jpg
http://shoppen.blog.nl/files/2011/07/kijkshopvernieuwd.png
https://www.freebees.nl/assets/PageSlides/kokenenwonen-2.jpg

Basically, it's like a more hands-on version of Argos i.e. instead of being stuck looking at a thick paper catalogue or a screen, you can actually see a product - you just can't handle it yourself.

It might work well, because one of the snags with otherwise extremely successful ecommerce sites is that you can't "see the goods" so for many product categories you're not 100% clear what you're getting. How big is the product? What's the exact colour scheme? Does it have a plug on it for X? Etc. etc.

At the same time, more and more people are using physical stores for "research" then going home and buying the stuff online.

I imagine this could work in one of several ways (not necessarily mutually exclusive):
A) Like Argos, or click-and-collect: the products are stacked out back and you can get them within a few minutes by going to a counter
B) Everything is available for next day or at least fast delivery, or future collection, but nothing is actually in store that very second. Saves massively on inventory overheads. Similar to ecommerce. People could shop using QR codes and a smartphone app, or a device similar to the one in Waitrose and some other stores that can read/store the barcodes of the stuff they're interested in. Final step would be to submit delivery info and pay for the goods.
C) Feed leads to trusted online partners so that people can use the store explicitly as window shopping, then be guided to buying the product cheaply from reputable online firms (from which the store makes an affiliate/partner commission)

I'm sure there are many ways to tweak and refine the idea, once the basics have been established. The main idea being that it dramatically increases the number of different products that can be made "available" in a given product category, because only one of each need ever be on display... So you could have 200 digital cameras, or 50 ultrabooks, or whatever - rather than the pittance that shows up in places like PC World.

Plus since the products are encased in glass, you don't have to worry about:
- Shoplifting
- Damaged packaging
- Misplaced products (people pick something up, wander round the store and change their mind, and just stick the thing they no longer want on the nearest shelf)

And finally, while you will end up with quite a bit of "shop worn" products (as in "stuff that's been out on display") they will actually be in near-mint condition (and therefore can be disposed off at much less of a discount) because they've not been pawed over by customers.

Edwin · Aug 6, 2014

julian said:
I'm being thick again..

Firstly retail is dead..

Secondly, what's the difference between looking at a 360 rotating product image widget on a webpage and looking at it behind a glass case - you can't touch either.

Every time I go down the shops, they're full of people wandering around, often large numbers of them

I just thought they might as well wander around a product in a glass case in a different sort of shop. One that squeezed a huge lot more into a smaller footprint, thus counteracting the eternal upward pressure from rent increases and rising business rates.

Plus it's easier (for many people) to trust a real world store. They're in a fixed location (and rent commitments means that's going to be true for years unless they go bust) and people can actually see the product they're only minutes (or a day) away from receiving. There's somebody to help explain things, somewhere to get advice, and somewhere to take stuff back to...

Remember, online is still only about 14% of all sales. And it's eventually going to top out, unless you imagine a world with ZERO physical shops. And then what will people do of a weekend?

julian · Aug 6, 2014

Yes your right loads wandering about, but how many are just looking at it inside a glass case, and then going home to order it online

Edwin said:
Every time I go down the shops, they're full of people wandering around, often large numbers of them /QUOTE]

ChrisMM · Aug 6, 2014

These places already exist, they're called showrooms.

I buy pretty much everything online these days. It enables me to research the item fully and then compare prices, and get it delivered the very next day.

What items would you actually need to see in person before ordering? They'd be considered purchases wouldn't they?

But say I wanted a brand spanking new awesome 90" mega tv. What would be the benefit to trailing into town to look at in Curry's? The TV sections are goddawful. Better off doing all the online research, checking user reviews and feedback and ordering for next day delivery.

Showrooms are great for cars and furniture. Online trumps all the other dross on the high street.

ian · Aug 6, 2014

Sorry but it wouldn't be a success. Still a bricks and mortar store at the end of the day which means higher overheads and an inability to compete on price. It may mean more items on display, but equally the chances of stock available (apart from the display item) are still minimal as stores don't want to carry quantity any more, even if they have the required space. Amazon don't even carry much stock, usually a handful of each item at best and they have vast distribution centres.

I don't know about anyone else, but I avoid the shops on the weekends, but seldom frequent them anyway. I suspect 12% online also factors in supermarket chains which account for most spend and physical stores remain the largest trade.

Whilst you may not be able to see a physical item online, the consumer protection (must to the annoyance of sellers) is significantly better, allowing you to try your purchased goods and then change your mind within 14 days, you can't do that in-store and don't have the hassle of going to buy, parking etc.

Ecommerce is the future, but even that is likely to be challenged by digital media and (despite my resistance) 3D printing.

Stores like Argos which were once successful are struggling to stay afloat and I suspect we might see some more heavy hitters fall by the wayside this and next year.

ChrisMM · Aug 7, 2014

ian-d said:
Sorry but it wouldn't be a success. Still a bricks and mortar store at the end of the day which means higher overheads and an inability to compete on price. It may mean more items on display, but equally the chances of stock available (apart from the display item) are still minimal as stores don't want to carry quantity any more, even if they have the required space. Amazon don't even carry much stock, usually a handful of each item at best and they have vast distribution centres.

I don't know about anyone else, but I avoid the shops on the weekends, but seldom frequent them anyway. I suspect 12% online also factors in supermarket chains which account for most spend and physical stores remain the largest trade.

Whilst you may not be able to see a physical item online, the consumer protection (must to the annoyance of sellers) is significantly better, allowing you to try your purchased goods and then change your mind within 14 days, you can't do that in-store and don't have the hassle of going to buy, parking etc.

Ecommerce is the future, but even that is likely to be challenged by digital media and (despite my resistance) 3D printing.

Stores like Argos which were once successful are struggling to stay afloat and I suspect we might see some more heavy hitters fall by the wayside this and next year.

Argos have started offering a delivery in 90 minute option which is pretty awesome: http://www.argos.co.uk/static/StaticDisplay/includeName/Shutl.htm

They have sooo many high street stores, acting as mini distribution centres is a great idea.

stellar73 · Aug 7, 2014

I bought a new camera recently. Had researched it thoroughly and knew the model I wanted. Also knew the best price (over £250 cheaper than high street) was from a particular online store. Despite this I really wanted to have a play around with it before ordering just to see if I liked the feel and build of it so I popped into Jessops.

Did feel a bit bad! If the price difference had been £50 I might have bought from them but I don't have £200 to burn.

Anyway to get back to Edwin's point about items in display cases, this is one type of item where I don't think this concept would work. Actually for most types of goods (as long as there are clear photographs, dimensions and a returns policy) there's not much risk in buying online these days.

diablo · Aug 7, 2014

It's not a new retail model. Jewellers have been using this retail model successfully for decades.

foz · Aug 7, 2014

Fiat Live Store http://vimeo.com/86018620

murph · Aug 7, 2014

Can't see the point. Very limiting in the number of products they can sell... Imagine Argos trying to *effectively* display one of everything they sell!

disruptive · Aug 7, 2014

Two things:

It reminds me of the Korean (?) stores that have images of products on shelves that you can select to purchase. Sort of massive screen full of consumables.

One problem of glass cases is sheer space - getting enough items in it to make the retail space work. I think VR will take before glass cases will be hitting the high street.