The Internet Is a Shape-up Call to Retailers - Statistical Data Included

Recently I've been traveling the country with a presentation I created called Timebomb. Timebomb deconstructs the three generations--baby boomers (age 35 to 53), Generation X (23 to 34) and Generation Y (4 to 22)--that currently consume over $1 trillion dollars worth of goods and services each year. My lecture explains the belief structures, conflicting values and, more importantly the shared values of these three dynamic segments of the population. It usually generates spirited discussion, and the same pointed question always rears its curious head:"How is Internet commerce going to affect retail? Will the ability to touch, feel and try on a real garment or product ever be replaced by the cold, impersonal Internet?"

My answer has become a bit stock at this point: "Hell, yes!" I tell the audience. "When Internet commerce figures out how to provide a decent level of service, retailers will have no other choice but to shape up. When apparel makers can send out seasonal books with swatches of their current collection, and when body scanning for fit is made simple for all family members, then who wouldn't want to shop for apparel online with the same ease consumers enjoy when buying books and CDs?" Especially since we have all stopped counting the myriad shopping nightmares we encounter, due to the dismal state of service at retail.

A few weeks ago, I was in Florida with Vanessa (my assistant) to conduct a research audit for a new client. I decided to confirm my theory and wrote a "service travelog": one day of counting the retail catastrophes. Vanessa was so excited to combine work and pleasure (that's the famous Gen X work/play balance, I suppose) that she had reserved a convertible at Avis. Despite our reservation, we had to wait in a long snaking line of people for over 40 minutes. After presenting all of the necessary documents, we were told to wait, as there were no cars available. Waiting another 20 minutes was as good as making us "cry uncle" and we told the Avis agent that we suddenly didn't care about our reserved convertible and simply wanted our freedom. However, the angry consultant in me could not help barking (in a very boomer-ish "this shouldn't be this way" tone): "You're gonna have to try even harder if you want to keep that 'We're No.1' button on your lapel!"

I believe that any good retail consultant should be able to turn into an everyday consumer and then back into someone who can analyze a situation. In other words, I see myself as a harried war veteran slogging through the trenches and frontlines of the retail landscape.

Stop No. 2: In search of cash, we stopped by an ATM machine located outside of a local boutique. I slid my card into the machine but nothing happened. I asked the storeowner: "Does this ATM work?" A shrug and a shirk is what I got. After a few minutes I realized that the machine was placed directly in the sunlight and that the screen was blinded. Here comes the angry consultant again: "Don't you think that this machine would be better placed inside, where the sun is not a problem? People might even be encouraged to buy something!" I found myself gazing into the sales clerk's blank face--the usual response to a good idea that will never happen,

Once in the mall, our final destination, we were greeted by the Gap's introduction of their new 1969 jeans. When the Gap launches a new product, they usually deliver. Seduced by the jeans, I decided to try them on. I unsuccessfully looked for my size on the table and realized that the stacks were a mess and ran the fit gamut.

"Are these organized by size, or in any way?" I asked. The sales woman assured me that they were in order. She tried to make some sense of the stacks but realized that it would take one of us 20 minutes of digging to find my size. I said:"Since this is such a big launch for the Gap, don't you think it would be wise to organize those jeans by size, and try to entice the consumer a little more?" "They only just came in today," she replied. "I'll go look in the back." But by then my impulse was gone, and so was I.

Next stop: Speedo. I was looking for Lycra swimming briefs. Two women were in. One was loudly chatting on the phone with a friend about her evening plans, while the other was helping some customers try on some sandals. Phone lady would not be bothered and there was no signage system in the store, so I asked the busy one if they had what I was looking for. She began to direct me but almost immediately started a phone conversation with another customer. By then, I was getting really wound up and went back to the original phone lady to practically scream: "Can I please get some service here?!!" She simply turned her back to me and continued her phone conversation. We were outta here.

On to Hallmark, as I needed a few Valentine's Day cards for my nieces and nephews. I asked: "Where are the kids' valentines?" The teen behind the counter simply replied, "In back," with a huge sweeping motion of her hand. OK, I admit it, I was a little weary at this point and demonstrated to her that there was a lot of"in back" back there. She clarified matters by saying, "In the middle," which narrowed my search down to about a thousand choices.

We headed to check out a great looking New Balance store and were greeted by the "new breed" of super-service practitioners who boomed: "Welcome to New Balance,where 90% of our shoes are made in the USA "Here," he said, drawing us in,"look at this." He picked up a shoe and displayed it. "Can you read that, folks? I don't have my glasses with me," he feigned. "Made in the USA," we dutifully chimed out, like kids appeasing their crazy uncle. Soon we were muttering:"Let's get out of here; this place is creepy!"

Time to head back to the airport. We grabbed a pure-fat dinner at the cafeteria and noticed that there were no recycling bins for our cans and bottles. I told Vanessa that Generation Y (the "we care" generation) would not stand for that as they get older. As we passed by a newsstand, I wanted a Butterfinger. Alas, nothing of the sort. And the sales clerk had never even heard of the candy bar, Luckily, while we were on line to board the plane, I spotted a vending machine with a Butterfinger beckoning me from behind the glass, awaiting me for only 75 cents. I ate it happily, enjoying what proved to be my only positive shopping experience of the day.

My conclusion after a day like that? Online commerce will win out in the end if retail doesn't wake up. Bluejeans, a swimsuit, sneakers, greeting cards and a rental car should not be so difficult to deliver. The burning question is: Will retailers shoot themselves in the foot by eventually giving consumers a better e-tail experience? Or will a host of new e-commerce storefronts emerge and eclipse established brands? Retailers are too slow to realize that their employees are "brand ambassadors." Helpful, genuine service is perhaps the most critical part of building long-lasting relationships with customers. And that is a desire that all three generations share. So where will we find great service in the future? Coming soon to the computer screen in your living room!

Peter Levine is a founding member principal and executive creative director at the two-year-old "brand vision" firm, d/g[*] consulting New York. Levine has consulted for clients such as The Body Shop, Gatorade, Hard Rock Cafe, Nordstrom, Sears and Coca-Cola.

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