lating into 398 items ordered per second. In the UK and US, Amazon Prime members pay a US$99 sign up fee that enables product order and free delivery within two days. To date, 20 per cent of all US households have subscribed to Amazon Prime. “Amazon Prime changes the way you shop,” said Bird. “If it’s not critical and you can get it tomorrow, that’s where you go.” Following this initiative, Amazon Prime became more enterprising in the form of a mobile app in major US cities that enables delivery within two hours. And now it is delivering fresh groceries over $50 for free. “I ordered groceries on a plane at night and they arrived the next morning before 0700,” said Bird. He emphasised that Amazon continues to innovate and that is where its success lies. For example, it has a Dash Button for Prime members that can be pressed to order more of a single product. “Out of laundry soap? Hit the ‘Tide’ button by the washing machine. Out of energy bars? Press the one in the pantry. Each is marked with the product it orders, and you’ll get a confirmation on your phone before it ships,” explained Bird. “You can even speak to it and order peanut butter! “Will these innovations revolutionise the way we shop. I don’t know but it’s great it’s giving it a go. “We live in interesting times driven by transformative technology.” Just recently Intel revealed the firm’s button-sized computed and controller wristband dubbed Curie, which is a sure sign that hardware makers are eager to build wearable devices of all kinds while pointing to the unwelcome size of many existing smart watches and smart glasses. “The power of computing is doubling every two years, making for big changes in retail,” emphasised Bird. “Reinvent formats and ways of commerce. Re-energise shoppers, reinvent the concept of value, reinvent the format of the largest stores.” He explained that in the past stores got bigger but now they are morphing and becoming smaller, with Walmart stores “now a quarter of the size of the original”. “Lowe’s in Manhattan is a quarter of the size of a regular store. Its press releases say it can do the same job it used to do with the help of technology.” He added that retraining customers to expect value in different ways also comes in the form of off price retailers which provide high-quality goods at cheap prices, usually at 60 per cent discounts. “The reinvention of retail formats comes in all forms such as a giant ATM vending machine popping out cupcakes being one of the more quirky examples, ie ATM rationality juxtaposed against the decadent pleasure of a cupcake.” Bird pointed to the unprecedented Awear, a small washable beacon that is sewn into the lining of clothes. The buyer is incentivised to actuate the reward by wearing the clothes purchased. An observer can hold up their mobile phone and see what product is being worn and in turn buy it. “Awear is harnessing the power of Internet of Things (IoT) and big data analytics to engage customers commercially as well as assisting fashion brands to increase customer loyalty and understand customer behaviour and product usage post-purchase.” Reinvention of retail is effectively spanning the sector from Domino’s enabling customers to order from anywhere on their Android phones or tablets to Disney’s MagicBands and cards, which are secure all-in-one devices that allow customers to effortlessly access their plans and vacation choices made through My Disney Experience. MagicBands are colourful, waterproof wristbands—resembling a watch or bracelet—that can quickly and easily touch to a sensor called a touchpoint. Cards work in a similar fashion, but physically resemble a plastic credit card or driver’s license. Both MagicBands and cards allow customers to unlock the door to their hotel, enter theme and water parks, check in at entrances, connect Disney PhotoPass images to their account, and charge food and merchandise purchases to their Disney Resort hotel room. Bird focused on Starbucks, which he said is truly adept at re-engaging shoppers. Its chairman and CEO, Howard Schultz, introduced a corner store at the gateway to Seattle’s historic Pike Place Market, a location rich in history and of significance to both Starbucks and the Emerald City. The design of its 1st & Pike coffeehouse evokes the warm heritage of that first store through its hardwoods, furniture and lighting. Notable store elements include: the leather on the bar’s outer facing is scrap obtained from shoe and automobile factories; the walnut used in the tables, doors and bar top was salvaged from a nearby farm; the signage on the bar uses recycled slate from a local high school; the community table is twice reused (it was previously located at a Seattle restaurant and before that, in a home); the restroom partitions are made from recycled laundry detergent bottles; and the the wall tapestry is made of repurposed burlap coffee bags from Starbuck’s local roasting plant. “You feel like you’re going into a roasting pan,” exclaimed Bird. “What incredible vision to build it. “Another example is Shinola in Detroit. The founder of Fossil Group wanted a new brand and found Shinola shoe polish, from which emerged the phrase ‘You don’t know shit from Shinola’. He turned it into a luxury lifestyle brand based on the maiden American theme and Detroit as the home of manufacturing. It now specialises in watches, bicycles, and leather goods among other items. “Another way brands are engaging shoppers is through being locally respectful and relevant. Whole Foods in Detroit says new things about Detroit and makes its inhabitants feel proud to be there, with the home of Motown theme prevalent. “Shoppers are even being enticed to buy bespoke cereal, often perceived as uncool, and to have it packaged in a shoe box. “Re-engagement with digital execution is everything in retail.” Bird stressed that retailers cannot bore people into buying. “Rather than getting customers through sales, Blue Star Donut attracts customers by running out of doughnuts at a certain time while customised lipstick has become so popular because individuality is recognised and the product tells the story of its origin and journey to the store – another way of reimagining value.” Bird concluded by pointing out that of utmost significance is that retailers retain their humanity. “Humans are underrated; we need to be human by empathising, collaborating and building relationships from the heart.” Nerine Zoio: nerine@insideretail.co.nz