Retail Reimagined

In the face of the so-called “retail apocalypse,” as traditional stores are closing, digitally native brands are moving into physical retail. Mine too: Saatva is opening its first brick-and-mortar location, which we’re calling a viewing room, in midtown Manhattan today.

When I launched an internet company 10 years ago, after being part of a team that ran 200 home furnishings stores, I didn’t think I’d be back here again so soon. Why would I? Web retail was a game-changer. I could sit in one room, surrounded by my team, and do more volume than a 200-store chain, without the burden of commercial rents, insurance, local advertising, and a host of other expenses. On the web, the store never closed–I could sell mattresses even in my sleep! (Provided I slept at all, now that I was running a 24/7 business.) 

But today’s digital retail is completely different from what I left 10 years ago. The viewing room we are about to open is retail reimagined for a new age, with different rules, different expectations, and different measures of success.

The customer is in charge. Back in the day, when a customer walked through the doors, we knew exactly what to do: Hit them with five key product points and push hard for the sale. Buy now, or you might lose out.

Customers today are different. They have access to so much more information and so many choices that the hard sell is out the window. Instead, we offer an environment where customers can learn about our products at their own pace. Sure, there will be people around to guide and answer questions, but you can also come in, sit at one of our information kiosks, and not talk to anybody if you don’t want to. Through technology we’ll be able to direct you to the right product and offer you all the information you need to make the best choice.

Besides, I don’t want people making a decision to buy because of some sort of discount. It costs us a lot of money if somebody returns the mattress. We want to make sure that the customer is buying it because they’ve done their research and it makes sense for them. We’re not afraid of people taking their time. I have always been a firm believer that through objective measures of comparison, our product stands out above all others in its category. That’s true for every mattress we sell, whether it’s innerspring, memory foam, 100% latex, customizable air, or high-durability hybrid. 

The store is an extension of the website.  For a DTC business, the physical location is simply another channel for serving the customer. Today online mattress sales make up about 10% to 12% of the market. Those are the people who don’t need to go to a store, who are very comfortable with home trials and getting technical information about products online. But that leaves 85% of consumers who still buy in stores and who still feel the need to touch and experience a mattress before buying. Putting our viewing room in place allows us to connect with those customers.

We don’t care where the sale happens. We don’t care if someone makes a purchase at one of our work stations (iPads) in our store, or using their own equipment in one of our sitting areas, or if they go home and buy. We will never judge a store’s success based solely on the volume done at the store itself. Instead, we’ll look for a lift in the zip codes that make up the digital marketing area around the store. Our website and our retail “box” are one. Everything about one helps feed the other. Any retailer today who doesn’t understand that will lose. 

Data will help us succeed. Here’s what customer research looked like 25 years ago: You picked a popular street, rented a storefront, maybe fixed it up a bit, and stocked it with goods. Then you put ads in the local paper and hoped that people showed up. So much retail was done from the gut.

Today, everything is data first. DTC companies sit on a wealth of data unlike anything that’s ever existed before. We know who our customers are, where they live, how they shop, what they want. Because we are a digital company with a national manufacturing and delivery infrastructure, we already have a customer base in every city where we might open a physical location. We know going in who our customers are and how to serve those customers more efficiently. There’s no guesswork. 

After December 4, come see us in the Saatva.com Viewing Room at 969 Third Avenue in Manhattan, and let me know what you think.

This article has been reposted on LinkedIn.