Unlocking the Value of Fit Tech: Personalization and Recommendations
“MG2 Advisory research found that in-store fit tech is […] a big draw for footwear shoppers. Up to 68% of consumers reaffirmed the importance of a ‘customized fit,’ and 40% said fit scan technology would benefit their in-store experiences.”
“I think the industry is benefiting from not just the acceptance of this technology but the overall fluidity that consumers are experiencing with technology,” said Melissa Gonzalez, Principal at MG2, to Retail Touchpoint’s Alicia Esposito.
Architecture Firms See Billings Change – MG2 Ranked #18 in Architectural Firms list for 2024
So excited to see that The Orange County Business Journal has ranked MG2 #18 in its Architectural Firms list for 2024.
“The firm has seen an uptick in retail, industrial, and affordable housing markets, according to chief executive officer Mitch Smith. ‘The growth in all three of these sectors has had a substantial impact on architectural billings in our Irvine office, reflecting the adaptability and agility of our team,’ Smith said.”
For the Thrill of It: Eatertainment Experiences That Cater to All
Eatertainment has been called the most disruptive force in the industry since the launch of fast casual*. As part of the “experience economy”, eatertainment taps into longtime favorites like bowling and mini golf, as well as newer entrants like pickleball, surfing and escape rooms. And while these environments are often designed with a specific activity in mind and include elements such as interactive dining, live performances and innovative technology, it is important that owners, operators and designers consider 什么their audience truly desires in these spaces as a way to unlock a sense of connectivity, and ultimately drive repeat visitation and spend. In our investigation, we sought to understand and identify the eatertainment environment features that deliver the most value to consumers and the on-site amenities and programming opportunities that contribute to making the experience an unforgettable one.
*Robert Thompson, CEO of Angevin & Co.
The full report is available for download at the bottom of this preview. Take me there now!
What We Learned – Consumer Personas Defined
Per our investigation, each of our respondents self-identified with one of the following consumer personas, providing a deeper look into their experience with and their perceptions of an eatertainment environment, and which enhanced offerings would deliver the most value to them:
48%, Funclusives
Defined as individuals whose preferred experience is one where they don’t need to be an expert to enjoy themselves and there is a level of accessible and social fun; appeals to first-timers, those newer to a game or activity; food is a secondary component of the experience.
29%, Food Fanatics
Defined as individuals whose preferred experience is one where the food and beverage offering is on par with or exceeding the entertainment; appeals to those who view the entertainment component as icing on the cake and secondary to the food offering.
23%, Competitively Social
Defined as individuals whose preferred experience is to participate in a certain activity (i.e., pickleball, golf, sports betting); appeals to more avid fans and those who want to get in on the action and compete; food is a secondary component of the experience.
The Opportunity, Evolution, and Growth of Eatertainment
Eatertainment has a rich history, from traditional bowling alleys with finger foods and pitchers of beer, to mini golf with ice cream and snow cones, to arcades with soda fountains and bubble gum machines. What gives this genre staying power is its function as a “third place”, a welcoming destination to convene with others, offering a unique blend of entertainment, dining and social experiences that foster a sense of community and belonging. If we look at key drivers of society today, and the near future, the transformation of how we work, naturally interact and discover have all evolved consumers’ needs and wants. Digitization continues to open up access to information and communities on a global level creating an always connected society while also fostering a paradoxical sense of disconnection. This juxtaposition opens an underlying yearning and craving for real, in-person activities, connected through shared experiences of joy and laughter and escapism. By studying the cross generational influences from Gen Z to Boomers, we uncover the opportunities that exist for these environments to embody the pillars of desire, blending the nostalgia of traditional pastimes with modern innovations and providing experiences that become a beacon for socialization, joy, camaraderie and thrills. Experiences that keep guests wanting to come back again and again.
Interested in More? Download the Full Report!
MG2 creates unforgettable culinary and entertainment experiences that engage the senses and inspire play.
Nordstrom partnered with MG2 to design and remodel an existing store in Bellevue, spanning multiple buildings with the intent to develop a new fleet-wide strategy. This new dynamic for the Nordstrom customer will set the stage for future retail success.
The goal is to establish a seamless, discovery-driven customer experience showcasing the most sought-after brands in the world. All areas of the store will be updated to create a designer-level experience—clear, light, warm, and flexible. The design and implementation of the new Fleet-Wide Strategy will focus on the following: customer experience, brand attraction, innovation, flexibility, budget, and operational efficiency.
Going Beyond the Transaction: Building Cross-generational Connectivity & Trust
Over the next 20 to 30 years, an estimated $68 trillion of wealth will transfer from Boomers to their Millennial and Gen Z offspring. This generational shift means banks need to think about how they can appeal to both their existing and future clients. While there have been attempts at attracting new customers through features such as cafes and coworking spaces, the question remains if consumers find value in these features and whether they deliver a real sense of connection with the bank. In this report, we investigate consumer banking perceptions and preferences, and identify design strategies and opportunities that can positively impact the consumer at a physical branch, resulting in increased visitation, improved consumer sentiment and trust.
The full report is available for download at the bottom of this preview. Take me there now!
What We Learned
Per our study, our respondents shared the following key insights as it relates to their experience with and their perceptions of a physical bank environment and which enhanced offerings would deliver the most value and greater consumer satisfaction:
Importance of Convenience
Respondents overall prefer a branch that prioritizes a convenient experience at nearly 4X the rate of a branch that reinforces a sense of financial confidence and knowledge
Feelings of Assurance
MORE THAN 60% of all respondent age groups want a physical bank that evokes security and reliability
Fostering Community Ties
Respondents ranked branches that elect to act as community centers, choosing to go beyond just deposits and withdrawals, to be the #1 REASON across all age groups that positively influences their perception of the bank
Hybrid Service Model
NEARLY 70% of respondents desire self-service technology when processing a deposit or withdrawal, while more than 60% desire a staff-supported journey when dealing with something more intensive, such as applying for a loan or getting account help
Interior Design Elements
50% of respondents desire natural lighting in a banking environment, which led across all age groups
The Modern Branch Must Deliver Convenience, Personalized Service & Community Engagement In Order To Be Seen As A Valued Partner
In order for the branch to attract the next generation of banking customers, banks need to create spaces with their consumers and communities in mind, ensuring that their physical locations are prioritizing what matters most, such as being equipped with technology that delivers convenience, financial advisors that are more like allies and partners and spaces that support personalized service as well as connection with others. By testing alternate branch strategies such as ITMs or micro locations, banks can create a bridge to a broader consumer base, establishing roots in communities previously untapped. And through intentional, consumer centric design, the bank branch can become a space of comfortability and trust, featuring elements such as a welcome desk, an open floor plan and privacy pods for more sensitive conversations. If the branch can make the customer’s life easier while demonstrating respect for their business and time, the bank will be perceived as being a place that helps consumers succeed and grow throughout their financial journey, serving as their go to partner for all the major milestones ahead.
Download the full report for all of the key banking insights
Netflix to Open Two Entertainment Venues With Shopping, Dining
In the news: MG2’s Gen Z report was included in a Total Retail article about two new entertainment venues that Netflix is opening in Philadelphia and Dallas.
MG2 also produced a cinema insights report diving into moviegoer personas and theater trends.
VMSD Ranks MG2 among Top 5 in 2024 Top Retail Design Firms
We’re thrilled to be ranked among the top 5 in VMSD’s 2024 Top Retail Design Firms. Now in it’s 30th year, the list includes top design firms in the retail industry from around the world.
MG2 Advisory Launched to Offer Strategic Services for Retail Markets
Global architecture and design firm MG2 has formally launched MG2 Advisory, a new service providing strategy and insights to empower emerging and established DTC retail brands, national retailers, and mixed-use developers working with retail tenants.
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
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…”
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
纽约州纽约市
Manhattan Beach CA
Manhattan Beach, CA
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.
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