Starbucks and Experiential Retail, 2/2

Manicurists and bars are coming to Nordstrom, and some small businesses think hair cuts and espresso go well together. What's going on? And, why should Starbucks be a north star for these companies?

For Millennials, Gen X, and the Baby Boomers, Starbucks is a hangout. It's why they have 11,000 stores in the U.S. and growing, while Macy's is collapsing. A hangout is distinct from a destination, which is what most retail stores are. Destinations are like vacations–– how often do you take those?

Experiential Retail is a loaded label for 'a place you want to hangout at, and maybe you'll end up buying something from us along the way.' What's important is that the price of admission needs to be reasonable, like a tall frappuccino or pumpkin spiced latte.

Brandon Cohn