Retail Unwrapped - from The Robin Report

EP 261: Why Traditional Retail Stores Are Missing Return on Experience


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When you are an architect who works on projects around the world, your perspective about American retail changes through a refined filter. Kevin Roche, Founder of Roche Design Strategy, has the advantage of understanding firsthand the power of Return on Experience (ROE). He believes traditional retailers face an uncomfortable truth: Legacy KPIs are measuring the wrong things entirely. The most successful retail destinations have quietly augmented traditional metrics with something more elusive: ROE. Join Shelley and Kevin as they discuss innovators like Le Bon Marché (a TRR Retail Radical) that invests half a million euros in evening concerts with no direct sales conversion tracking. Dior's Paris flagship operates a museum with paid admission. And Restoration Hardware (another Retail Radical) builds luxury hotels and operates yachts. These are calculated investments that require a decade or more to mature funded by patient capital. They explore the fundamental question confronting retailers: Are they in the hospitality and entertainment business or the transaction business?  The stores winning today don't sell products—they orchestrate experiences so compelling that customers join the brand rather than simply buy from it. Yet most retail boards remain trapped in short-term thinking, unable to make the courageous leap toward investments that won't show ROI or ROE for years.

Special Guest: Kevin Roche Founder, Roche Design Strategy

For more strategic insights and compelling content, visit TheRobinReport.com, where you can read, watch, and listen to content from Robin Lewis and other retail industry experts, and be sure to follow us on LinkedIn and Twitter.

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Retail Unwrapped - from The Robin ReportBy Shelley E. Kohan

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