The evolution of omnichannel multi-site retail brands

Royal Services Inc. was founded in Kansas City in 1993 out of a need for national facility maintenance services which were unable to be performed by our namesake who at the time was focused on providing residential solutions only.

Problem solvers What started as purely a mechanical solutions company, has evolved over time as we have responded to the problems faced by our clients. One of the biggest desires of our partners was the need for one point of contact to consolidate communication, reporting, invoicing, and trust. With this in mind we have been open minded and have evolved to meet our clients' ever growing needs. This means that we now provide integrated facility solutions from preventive and on-demand HVAC maintenance, to electrical and plumbing repairs, to all of our clients.

The emergence of e-commerce

In recent years the retail industry has meandered through massive changes including the evolution of Amazon, the continued growth of the internet and e-commerce, and the continued trend of omnichannel retail. This has been a huge problem for many businesses who are purely retailers, and do not own any other stages of the supply chain. Well known casualties in this area include Sears, Sports Authority, Circuit City, and Blockbuster. Of those that have survived these challenges, many have consolidated their portfolios and have gone from several hundred stores, to a much smaller number of "flagship stores" where the focus is on the customer experience. Many stores have simply become a marketing tool with customers exploring products in store and then completing the purchase from the comfort of their homes. This is a trend that has been compounded by Millennials and their shopping habits, expectations, and general beliefs.

The benefits of vertical integration

The retailers who have been the most successful in this paradigm shift have been those who control more than one stage of the supply chain, described as being 'vertically integrated'. By having more control of the entire production process, companies have more margins to work with, and are not reliant upon the success of other businesses along the way. A great example here is Port Washington, WI based footwear company, Allen Edmonds Shoes. This high end retailer sources hides from local tanneries, hand stitches shoes in their fascinating warehouse which is attached to their corporate offices, and then sells the product in their own stores. They also have an e-commerce arm, and do sell their product in other retail stores such as Gordmans and Nordstrom Rack.

The birth of experiential retail

With these high end locations, the focus is on the customer experience, and for this to be as desired, it is imperative that the store environment is in impeccable condition. Interactive and engaging experiences are critical for the success here, so many of these locations will feature virtual assistants, personal sizing and styling services, and the ability to customize the product to meet your own desires. This is obviously more expensive than a standard bare bones retail location but with a smaller number of boutiques, combined with a strong online presence, the whole system is actually much more affordable, effective and convenient for the companies in question.

An impeccable retail environment

As the retail industry has evolved, we have found the niche of high end, luxury, destination retailers as one which is a perfect fit for our world class, concierge service. Quick and efficient response times, the highest quality workmanship, incredible communication between all parties, and an understanding of our clients' expectations are all things that we understand and can deliver. In this environment, a store just being open isn't good enough, it has to be in perfect condition with all lights working, efficient and effective HVAC units, and an aesthetically appealing store appearance.

There are different expectations if you are a discount store, where customers are looking solely at cost. In this environment the store can be much simpler and an aesthetically appealing store environment is not required as this would just require more investment which would lead to increased costs. However, in upscale retailer boutiques, everything is required to be of the highest quality from start to finish. Would you be prepared to pay $500 for a pair of shoes in a store that had half of its lights out, no air conditioning, and two broken windows?

As the retail industry continues the shift from malls to outdoor shopping areas and lifestyle centers, and from pure retail to vertically integrated business models, we expect the demand for premium in-store experiences to continue to increase. We are also seeing the continued trend of "clicks to bricks" as online retailers create a fleet of brick and mortar stores.

What are some destination retailers that you are familiar with, and how have they adapted the store to be more experiential for you the customer? Share your thoughts in the comments section, and also let us know your preferences when it comes to shopping. I personally love the convenience of being able to jump online when drinking my morning coffee, but when clothes and shoes are involved an in-store experience is critical!

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