Retailers are Adopting the Guideshop Model
As consumer preferences continue to change, retailers with brick-and-mortar locations are adopting new models to keep pace. One popular new model is the guideshop. Adopted by brands like Bonobos and Rent the Runway, this unique strategy offers consumers the opportunity to browse through a limited selection of items that represent the retailer’s inventory, while keeping the full inventory offsite and shipping purchased items directly to the shopper.
In a recent article for Apparel Magazine, Worldpay US Director of Product Strategy Mark Bergner addressed three reasons retailers are adopting the guideshop model.
Why consumers buy
Worldpay’s recent Pay That Way retail study found that shoppers make purchasing decisions based on availability, speed and convenience. The curated selection at stores like Bonobos and Rent the Runway allows shoppers to try on different items without sifting through countless racks of inventory. Compared to major brands who carry large inventories, the speed and simplicity of the guideshop model brings greater appeal to today’s on-the-go shopper.
The rise of mobile
According to Worldpay's Global Payments Report, e-commerce sales are expected to reach $2.4 trillion by 2019, and about 25 percent of those sales will take place exclusively on mobile. Even though today’s shoppers have the technology to make a purchase from just about anywhere, they still want to make sure the item is high quality. The guideshop model can help retailers offer consumers the best of both worlds by marrying the simplicity of e-commerce and experience of brick-and-mortar stores.
Customizing the experience
One example of how the guideshop model offers a unique, customizable experience is Rent the Runway's new Style Studio. With personal appointments designed to help individual shoppers pick out items that fit their body, budget and style, potential customers get all the attention they can handle. With customized experiences like this, retailers can foster their relationships with shoppers and build brand loyalty.
For more details on what retailers can learn from the guideshop model read Mark’s full article here.
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