The MULO Retail (R)Evolution: 5 Keys to Success

Retail is far from dead, despite the rise of online commerce.

It’s just evolving — in some cases radically.

The media is often filled with stories of MULO (multi-location) retailers declaring bankruptcy and/or shuttering locations.

But, at the same time, new brands and categories are emerging and expanding.

Fast Company recently featured new brands, including one with 15 locations and distribution through other major retailers. Their revenue is reported at $20M. The Little Words Project enables consumers to custom-craft jewelry. We’ve looked at this concept and other new brands and believe that these are some of the elements that today’s MULO brands must consider.

1. Personalization. As we can glean from The Little Words Project, retailers that enable their shoppers to make something unique may be a key to traffic and success. We’ve seen this among other brands as well — selling everything from candles to customized scents to footwear.
2. Entertainment value. Stores are no longer just a place to shop. They can also be destinations to be entertained and socialize. The new Foot Locker store is a great example. New uses for mall storefronts — like pickleball centers and gyms — can drive traffic to other nearby retailers too.
3. Integration with online shopping. Many retailers today don’t let out-of-stock merchandise thwart the sale. Effective store workers are trained today to arrange for next-day shipping when a consumer can’t find exactly what they’re looking for.
4. Right-sizing retail spaces. This ties directly to #3. If a brand can get away with a smaller footprint, they aren’t shackled with as much rent. Although small spaces can mean less inventory, if the brand can deliver close-to-immediate gratification through online fulfillment, everyone wins.
5. Both mass and local marketing strategies. National or widespread marketing and PR campaigns can help build awareness of new retail concepts, products, and services within existing brands. However, tapping into foot traffic and drive-bys with effective local merchandising is also critical, as is involvement in local community activities. Word-of-mouth and positive reviews remain critical to consumer decision-making. New brands should tap into the power of true influencers — people who use and love their products — rather than just posters with huge followings.

Will emerging brands continue to expand and survive in the long-haul? Only time will tell. As we’ve often discussed, having the right locations, a seamless supply chain, the best in-store talent, and technology that supports marketing and operations are all critical.

At Street Fight LIVE in November, we’ll discuss some brands and categories that have emerged over the past decade. You’ll hear about some successful new retailers and how they are hitting the ground (and the mall) running!