View all newsletters
Receive our newsletter - data, insights and analysis delivered to you

McKinsey Opens Bricks-and-Mortar Shop as “Stage” for Retail Technology Firms

"Insights to retailers exploring opportunities to re-imagine the store"

By CBR Staff Writer

Online shopping — and a desperately inadequate response from policy makers — is continuing to suck the lifeblood out of bricks-and-mortar retail: a record 2,870 UK shops shut down in the first half of 2019, and Goldman Sachs says Amazon is set to be the prime beneficiary as 12,000 stores fail in the US in 2019.

Yet hope reigns supreme that tech can help turn the tide – technology companies like Microsoft continue to open physical stores – and today management consultancy McKinsey & Company joined the fray, opening its first physical shopfront in New York as a “stage” for retail technology firms to showcase their wares.

See also: ASOS Bloodbath: AI Retail Opportunity?

The New York-based company, which has over 30,000 staff working across 130 cities, said the store “Modern Retail Collective” will be open to the public and located in Mall of America. It will be refreshed regularly to bring “new technology, brands and experiences together to offer seamless and immersive end-to-end customer journeys” McKinsey said, highlighting three particularly technologies.

McKinsey Retail 

The firm explained the decision as an attempt to help retailers cut through the “saturated technology market”, saying that while the future of bricks-and-mortar is dependent on the adoption of a smooth omnichannel experience, retailers often don’t know where to invest and how to separate the wheat from the chaff.

The store will feature:

  • “Interactive mobile hotspots with single-tap access to product details that allow customers to create virtual baskets
  • “Smart mirrors and fit predictor software to virtually try on products outside the fitting room
  • “Faster, future payment options like mobile and cryptocurrency capabilities

Early “Phase 1” partners include Chatter Research, Compass Marketing, ComQi, FaceCake, Farfetch, Flexa, Microsoft, MSM Solutions, Smartrac, Square, RetailNext and Zebra Technologies, McKinsey said today. 

“Retailers are experiencing many pressures as they navigate the evolving retail landscape. As a result, stores are closing left and right, with more than 8,000 U.S. store closures announced so far this year,” said Tiffany Burns, Partner in McKinsey’s Atlanta office and Retail Stores Practice Lead, North America.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

She added: “Modern Retail Collective will provide insights to retailers exploring opportunities to re-imagine the store through new in-store experiences and technologies that will enhance customer experience and overall store performance.”

See also: Retail Intelligence Company Trax Raises $125 Million, Brings Cameras to Supermarket Shelves

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU