Book retailer Borders is launching concept stores that mimic online shopping. Borders wants to give in-store customers an experience similar to online.
Retailers have been tinkering with the store shopping experience for
centuries. Traveling merchants and open bazaars gave way to fixed stores that
were usually general stores that carried a little bit of everything.
Then stores started getting more specific in what types of products they
sold, and then started getting less personalized in the customer service they
offered. Shopping malls brought lots of different stores under one roof for
easy consumer access, and in recent years "big box" general
merchandisers have combined the general store and shopping mall concepts.
Also in recent years, the Internet has proven to be a major bugaboo for
brick-and-mortar retailers. E-commerce retailers offer customers personalized
service and great convenience, and often waive or minimize shipping fees while
also skirting sales tax regulations. Brick-and-mortar chains have responded to
the e-commerce threat with all kinds of strategies, but mega-book-retailer
Borders is experimenting with an interesting strategy that could be summed up
as, "If you can't lick 'em, join 'em."
Since February, Borders has opened 14 concept stores that incorporate many
facets of the online shopping experience into a brick-and-mortar environment.
Many books are displayed with the front covers facing out, rather than in the
traditional spine-out manner. An in-store digital center allows customers to
perform activities they might normally do online, such as create custom CDs,
download audio and visual content, and even create and publish their own books.
Other e-commerce-style features of the Borders concept stores include kiosks
and LCD display screens that provide shoppers with interactive access to
customer reviews, expert recommendations, author interviews and other reader-oriented
content. The concept stores are quite large (the first one opened, in Ann
Arbor, Mich., measures almost
29,000 square feet) and feature user-friendly layouts and plenty of lighting to
make browsing as easy as possible. Of course, in-store kiosks allow customers
full access to the Borders.com e-commerce site to provide a true cross-channel
Criticisms of the Borders concept store format have included charges that it
is too much like a library, does not go far enough in providing true innovation
and does not offer consumers enough incentive to leave the comfort of using the
Borders.com site at home. I'm not sure why aligning the format of a bookstore
with elements of a library is necessarily a bad thing, but the other two criticisms
are worth looking at more closely.
Does the new Borders store concept go far enough in providing innovation?
Essentially, it combines a number of existing technologies with some
customer-friendly layout ideas. In the sense of true "innovation,"
where you are presented with things you have never seen before, I suppose the
new Borders store concept does not qualify.
But in the sense that no other book retailer I am aware of has done anything
similar, Borders is offering innovation. Innovation usually happens in small
increments, and by applying a number of Internet concepts to the
brick-and-mortar environment, Borders is making a commendable step toward
bringing the 20th century store experience into the 21st century.
Will consumers pampered by the ease of buying books online be drawn into the
new Borders concept stores? Time will tell. Most likely, the casual book buyer
who is picking up a gift or seeking to buy something for a purely utilitarian
purpose will stay at home.
But book-lovers are a passionate breed, and want the opportunity to browse
through books in person and get a real sense of what might make them decide to
pick up a Hemingway novel over a Faulkner novel for their next read. The
additional information and convenience of the Borders concept stores will
probably have appeal for the dedicated reader.
There may be enough dedicated readers out there to justify the expense
Borders is undoubtedly putting into these new concept stores. But regardless of
how this experiment turns out, it is an important evolutionary step in
brick-and-mortar commerce. The dinosaurs may have ultimately failed, but they
still had a major impact on the world that is felt today. Do "fossil fuels"
ring a bell? Dan Berthiaume covers
the retail space for eWEEK. For more industry news, check out eWEEK.com's Retail Site.