Retail Trends For The 2017 Holiday Shopping Season

Dear Drew Soho Pop Up

 

The holiday season officially kicks off today. Let me just say, 2017 will go down as the year of the Holiday Pop Up. I have never seen so many.

The big difference is how well-designed and instagram-worthy they have become. Additionally, most are taking a “residency” approach i.e. extended leases for one to six months. Some are also doing multiple locations.

Three recent pop ups worth checking out if you happen to be passing through New York:

Dear Drew (14 Crosby Street, Soho)

Drew Barrymore’s new pop up will run thru April. It was developed by the Barrymore in-house design team and is the most instagram-worthy store in Soho (photo above, and more below)

  • Has a boho-chic, retro vibe (according to store staff, Drew is into nostalgia).
  • Most of the furniture in the store comes from Drew’s own houses.
  • The collection launched on Amazon Fashion last month and includes apparel, handbags, jewelry, luggage, hair tools and loungewear.
  • Bottom Line: It’s super cool, totally worth a trip downtown

Goop Gift (25 Bond Street, Nolita)

Chic and elegant (photos below at the end of the post). I breezed through quickly 3 days after it opened and what registered with me were candles, cool kids’ items, the Grey Goose Martini Bar and an impressive wrapping and personalization station. Also, all the sales staff are dressed in white coveralls.

Open through the end of the year.

The Arrivals – in 3 cities (NYC, LA, San Fran)

This is the second year they have operated pop ups for their outerwear collection.

  •  Gorgeous minimal look, super stylish.
  • All 3 stores were designed by Bower and Lotte Van Velzen (New York-based).
  • The pop ups will be open thru the end of the year. Photos below.

Also doing pop ups: Yankee Candle opened its first pop-up store in SoHo (503 Broadway), thru Jan. 3.  Terrain in Rockefeller Center (planning to check it out today). Amazon is also doing holiday pop-ups at five Whole Foods locations, none in NYC. The pop ups will be manned by Amazon employees and apparently they are getting a lot of flack from nearby mall stores.

Read on below for additional retail trends I’m tracking for 2018. Things are getting more creative but we are still over-stored and many believe we are only in the 2nd inning when it comes to needed store closures. Some experts going so far as to say half the malls in America need to close. The new CEO of Macy’s was just quoted as saying if they were starting out today, they would have no more than 250 Macy’s stores (vs. 700 plus at the moment).

 

RETAIL TRENDS FOR 2018

 

1. RETAIL SITUATION GETTING WORSE: TARGET CLOSING 12 STORES STARTING FEBRUARY 3, 2018

Most are in the Midwest – Minnesota, Illinois and Michigan

  • Within 5 years, 25% of American malls are predicted to close (Source: Credit Suisse)
  • For the first time, a majority of Americans plan to do their holiday shopping online.

 

2. STATS TO KEEP IN MIND AS WE HEAD INTO THE HOLIDAY SHOPPING SEASON (Source: IFTTT)

  • 58% of Americans’ shopping preferences shift during the holiday season, the majority prefer to shop online more during the holidays than throughout the rest of the year.
  • 36% would rather stay home and shop with Alexa than go to the mall with family/friends.
  • 36% use at least one retail subscription service (such as Stitch Fix, Bark Box or Harry’s Razors)
  • 57% do the majority of their holiday shopping at mass retailers like Walmart and Amazon.
  • 59% increase in purchases made from mobile devices

 

3. THE FIVE F’s OF GROWTH: The strongest retail/mall categories (Source: Crain’s)

  • Fitness chains
  • Food: It used to be 50-50 food and retail, now 70-30 for food versus retail
  • Furniture
  • Fun (entertainment concepts like movie theaters, bowling)
  • Fashion – mainly discount chains but there are some niche opportunities e.g. Untuckit is opening 100 stores over the next 5 years, 50 by the end of 2018

Untuckit Store (Prince St??)

 

4. BLUE BOX CAFÉ AT TIFFANY’S

 

 

Brilliant idea! Why it took Tiffany’s so long to do this is beyond me. Have tried to get a reservation. Totally booked up through December. And sadly, no tables for 1.

They serve a “Breakfast at Tiffany” as well as lunch, and tea (“tea sandwiches”).

The glamour of it all dissipates – and runs counter to my Audrey Hepburn fantasy –  when you see diners in their casual streetwear (which will be me also).

 

 

5. THE BATTLE FOR THE LAST-MILE: AMAZON VS. WALMART

Amazon signed contracts with the country’s biggest apartment operators to install delivery lockers in buildings amounting to 850,000 dwelling units throughout the U.S.

 

Building owners are forking over between $10,000 – $20,000 to Amazon for the lockers in order to solve one of their biggest problems:

  • Increasing numbers of daily package deliveries to buildings that require extra staff and hours each day for sorting, storage, and delivery of the parcels.

Walmart has acquired New York-based delivery service Parcel for an estimated $10 million. The company currently handles same-day shipping for meal-kit companies and online retailers.

 

One of Parcel’s customers, Bonobos, was also acquired by Walmart, for $310 million. Bonobos mastered seamlessly blending brick-and-mortar retail with its online sensibilities, something Walmart is desperate to master.

 

6. TURNING STORES INTO APARTMENTS (Source: Sun-Sentinel)

The biggest issue we have is not finding a place to shop. It’s finding a place we can afford to live.

Drawings for renovated mall turned into residential

A developer wants to demolish a section of the Village Shoppes of Pine Plaza and replace it with a three-story, 288-unit luxury apartment complex.

 

7. ELECTRIC DELIVERY TRUCKS OUTFITTED WITH LAST-MILE DELIVERY DRONES

 

Workhorse Group, a fledgling builder of electric trucks out of Ohio, will begin commercial testing with an undisclosed online retailer early next year of a new low-step electric delivery truck, some of which will be outfitted with the company’s “HoresFly” last-mile delivery drone.

The chassis was designed for Workhorse’s proposed postal delivery van – the company is a finalist for a seven-year contract to provide replacements for up to 180,000 U.S. Postal Service mail delivery trucks.

Workhorse’s N-Gen first public showing is slated for the 2018 Consumer Electronics Show in Las Vegas. Although I hear they are struggling financially so who knows where this goes.

But it’s not as wild as it seems:

  •  DHL uses drones to deliver medical supplies to a remote island in its native Germany, and delivery drones also are in use in China.
  • Delivery drone tests also are being run by Walmart, Amazon and Alphabet.
  • The U.S. Marine Corps also has been testing disposable wooden glider drones for delivery of supplies to troops in remote areas.
  • Watch the video – this may still be very much a work-in-progress.

 

ADDITIONAL POP-UP PHOTOS

Dear Drew

Travel theme

Dressing Rooms are awesome

 

GOOP GIFT

25 Bond Street

Sales staff in white coveralls

sampling of kid stuff

wrapping station

 

THE ARRIVALS

love this design

 

Share this post on: