Market: MG2 Advisory

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Prestige Beauty Company

Building a Sustainable Store Design Program

MG2 partnered with a prestige beauty company to assess and develop a customized, scalable sustainability program for both new and existing retail stores globally, spanning their family of brands. 

The objective of this more than 12-month endeavor was to establish a framework, along with measurable standards and criteria, that could be incorporated into the built environment across various categories, including store buildout, energy, and water conservation, sustainable sourcing of materials, and operations, among others.

Goals included:

  • Immersion into corporate and brand goals
  • Establishment of standards for sustainability in the built environment
  • Create a set of criteria to measure sustainability
  • Evaluation of the full lifecycle of the brand environments, including design and materials selection, vendor selection, fabrication, installation, operations, visual merchandising, and end-of-lease removal/recycling of all elements

Deliverables included:

  • Stakeholder workshops to establish priorities by brand
  • Toolkit and guidelines, creating standards and specifications for sustainability in the built environment
  • A scoring system to evaluate and rank achievements within the brand’s custom sustainability program

  • Project Details

  • Location Multiple Locations, U.S.
  • Client Confidential
  • Services
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Navy Exchange

The Navy Exchange (NEX) oversees more than 300 NEX retail stores on 92 naval bases worldwide, varying in size from small self-checkout convenience stores to large department stores. In 2020, NEX enlisted MG2 to partner with them in a department-by-department exploration into how to redefine value at its owned locations. This exploration encompassed Beauty, Consumer Electronics, Kids, Footwear, Home, Jewelry, Food Hall and Provisions – all utilizing Oceana base store as the anchor test store. 

Once implemented at Oceana, the NEX team worked with MG2 to leverage learnings from the pilot location to apply a guide for further iterations and eventually a rollout playbook to adapt and scale each department’s evolution. 

Goal:

Due to the continued elevation of the competitive landscape, NEX has invested in evolving and elevating their value proposition to their patrons by reimagining the store experience department by department.  

“Thirty years ago, it was really convenient because everybody lived on base, but now more families live off base.

It’s about creating a sense of excitement, a sense of community, a sense of belonging, and being able to allow patrons to check more off their list.”

– Rich Honiball, EVP and global chief merchandising and marketing officer for the Navy Exchange Service Command (NEXCOM)

Let’s not think of
ourselves as the military store;
let’s think of ourselves as
a retail destination.

Process: 

The MG2 Advisory Team, in partnership with our design team, took a multi-pronged approach to assessing how each department could best support consumer needs. 

This included:

  • An audit of brand insights (both qualitative and quantitative) as well as competitive benchmarking analysis
  • Evaluating consumer trends (for example: identifying the desire to shop for beauty products in store by regimen)
  • Surveying the NEX consumer audience as it relates to opportunities to elevate in-store experiences and identify key drivers to make Navy Exchange their shopping destination
  • In-person field interviews – immersing ourselves on base with new recruits and sailors and talking with store management to learn first-hand where they are seeing gaps both experientially and operationally in store

This evaluation identified opportunities beyond price to deliver value across the fleet of locations. Through a deep dive analysis into trends and customer pain points and desires, including areas that provided demystification, we could identify drivers and preferences to inform the in-store experience evolution, allowing the Navy mission to be more deeply reflected in the spaces visited by sailors and families.

Based on the insights and research the MG2 Advisory Team brought forward, MG2 designed stores that provided greater space for storytelling, fostering excitement and a sense of community. As a result of these findings, the NEX team revamped each department, reimagining the customer journey, merchandising, wayfinding and operational change.

Beauty Initiative Highlight / The Results Are in the Data:

The beauty department redesign was first introduced in the Oceana store in 2022, followed by the Pensacola Navy base store in Florida. Post Oceana’s redesign: The beauty departments now demystifies customer discovery. The products which had been arranged by brand alone are rearranged by regimen instead. New end caps feature educational tips and how-tos and a flexible space in the new beauty department hosts special events and live streaming.

The post-redesign sales increases have been significant:  

  • Oceana beauty department sales rose by over 10% year over year compared to the same period prior. In the remodeled Pensacola store, sales increased by 6% Y/Y. 
  • Beauty Zone increased 510 bps to Tidewater, 820 bps to Enterprise. 

“The way that the departments are structured and organized elevates the product, elevates the experience, and makes it easier for the customer to find what they’re looking for…”

– Rich Honiball

Press Coverage

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Nordstrom Local

Nordstrom Local

As part of its growth strategy to better serve customers and expand its presence into the New York market, Nordstrom sought to expand its local store experiences to offer new services such as online order pick-up, alterations and tailoring, styling, and more, catering to the unique needs of customers who live and work in target neighborhoods.

They partnered with MG2 / The Lionesque Group to bring their vision of offering boutique, local services to life in New York City’s Upper East Side. Working side-by-side with the Nordstrom team, our designers ensured furnishings, fixtures, customer flow, and build-out met the demands of the local shoppers. The resulting space features a flexible model and floor plan that is adaptable to the changing needs of customers.

Manhattan Beach, CA
New York City, NY
Manhattan Beach CA
Manhattan Beach, CA
Meet Our Team

Melissa Gonzalez

Principal, Founder of MG2 Advisory

Melissa leads MG2 Advisory, the firm’s strategy and insights practice. Drawing on her success working side by side with some of the fastest-growing direct-to-consumer companies and well-established brands, she advises clients and our design teams on how to leverage forward-thinking insights with innovative strategy from concept through implementation.

Continually pushing the boundaries of experiential environments, she sits at the forefront of integrating physical and digital with cutting-edge concepts that foster foundational consumer engagement and lifetime value.

Team collaborating around a table

Perspectives