The New Store

The company is opening a new Store at the famous Mall of America. There, you can buy a range of items, including underwear, jewelry, deodorant, and makeup. Mall of America will not be charging McKinsey rent, and the retailers within the store will earn all the revenue from in-store sales. There are a full-time team and a dozen experts behind the project.

The Reasons for the Store

According to McKinsey, the decision to open a store will help it attain fresh customer insights. The company will then use those customer insights to better advise its corporate retail clients, including offering better suggestions of the ideal technologies to invest in.

Achieving Its Goals

The retail experiment from McKinsey will begin with a variety of initial offerings, including women’s underwear from ThirdLove. The store will collect data regarding the ways that customers move throughout stores and make purchasing decisions. It will also test new technologies that could enhance the in-store experience of customers. These technologies could drive profits and sales for retailers.

McKinsey is operating on the idea that consumers have an increasing desire for shopping experiences that combine digital with traditional shopping and incorporating technology. One example of the tech that McKinsey plans to test in its store is smart mirrors. The mirrors can provide visual suggestions of clothing combinations, letting shoppers easily compare outfits. They will also try fit-determination software to make it easier to try on clothing virtually.

McKinsey will also experiment with other factors that their clients may be curious about. It will accept cryptocurrency and may test out reductions in labor to reduce costs.

How It Can Make a Difference

The insights that McKinsey gains from its retail store should prove useful for many businesses. This is particularly true as thousands of stores have shut down. Research indicates that over 8,000 stores already closed this year, and as many as 4,000 more may close before the year ends. These stores might have been able to avoid closures if they had some of the insights that McKinsey hopes to be able to provide, thanks to this store. The main focus of the store is to gather data on shopping experiences and test out new tech, not making sales.

Sources:

https://www.cbsnews.com/news/mckinsey-and-company-will-start-selling-underwear-in-retail-experiment-at-mall-of-america/

https://www.ft.com/content/ecac8728-df3c-11e9-9743-db5a370481bc

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