Fast Five Shorts | Pro Or Con: The Growth Of Digital Screens In Stores?

Summary

Omni Talk Retail Podcast Summary

Episode: Fast Five Shorts | Pro Or Con: The Growth Of Digital Screens In Stores?
Release Date: February 20, 2025
Host: Omni Talk Retail (Chris Walton and Anne Mezzenga)
Guests: David, Lisa, Arianne Parisi (Chief Digital Officer, JD Sports)

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Introduction to the Digital Screens Debate

In this episode of Omni Talk Retail, hosts Chris Walton and Anne Mezzenga delve into the contentious topic of digital screens in retail stores. The discussion is sparked by Shields' recent $11 million investment in digital signage, a move that has polarized opinions among industry experts and insiders.

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Shields' $11 Million Investment in Digital Signage

Chris introduces the primary subject by highlighting Shields' significant investment in digital signage. According to Chain Store Age, Shields, an employee-owned sporting goods retailer known for its expansive stores and interactive attractions, has partnered with Mood Media to deploy approximately 460 LED screens across their stores. This translates to about 13 screens per location, strategically placed in five key zones, including men's and women's shoe sections, store corners, structural columns, and above grand staircases.

Notable Quote:
"The digital signage project involves the installation of approximately 460 LED screens, strategically placed to enhance the in-store experience."
— Chris Walton [00:00]

These screens are designed to synchronize display networks for storewide campaigns featuring major brands like Nike, Adidas, and Lego. Additionally, the initiative streamlines 32 individual store systems into Mood Media's Harmony platform, allowing centralized management of audio and visual experiences.

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Perspectives: Pro and Con on Digital Screens

David's Initial Stance: Pro

David expresses strong support for Shields' digital signage initiative. He argues that the integration of digital screens enhances the already rich, experiential environment that Shields offers. From simulators for golf equipment to interactive bowling lanes, the addition of digital displays complements these attractions.

Notable Quote:
"Shields is experiential to begin with… I was actually in a Shields yesterday, saw some of the digital signage and they had a new Samba drop that I didn't know about and I actually went and bought a new beer Samba. So like, yeah, it works."
— David [02:12]

Lisa's Support for Strategic Implementation

Lisa reinforces David's positive view, emphasizing that digital screens can be highly effective when used by reputable brands with engaging content. She cites a conversation with Arianne Parisi from JD Sports, noting the importance of brand continuity across digital and physical platforms.

Notable Quote:
"Brands like Nike, Adidas, Lego… they use their brand representation effectively on these screens, creating a seamless experience."
— Lisa [03:30]

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Counterarguments: Technical and Experiential Concerns

Arianne's Critique: Overreliance on Screens

Arianne Parisi offers a contrasting perspective, questioning the necessity and efficacy of large-scale digital signage in physical stores. She argues that consumer preferences are shifting towards online shopping, where digital interactions are already prevalent. For in-store experiences, she advocates for live, interactive elements such as sales associates, experiential activities, and real-time product demonstrations.

Notable Quote:
"Consumers go to the store for an experience and a touch point, not more screen time."
— Arianne Parisi [05:02]

She contends that the $11 million could be better allocated to augment the in-store experience with human interactions rather than expanding digital screens, which may lead to an oversaturation of technology that doesn't necessarily enhance customer satisfaction.

Concerns About Maintenance and Obsolescence

Both Chris and Arianne highlight the technical challenges associated with maintaining a network of digital screens. Issues like high costs, rapid technological obsolescence, and the potential for screens to malfunction can detract from the customer experience.

Notable Quote:
"The software updates that you've got to put in… is it going to be a bad experience?"
— Arianne Parisi [07:35]

Chris emphasizes that while Shields may handle the investment due to their large store sizes and experiential ethos, many other retailers might struggle with the practicality and financial viability of such initiatives.

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Impact on Customer Experience and Brand Strategy

Enhancing vs. Detracting from the Experience

The debate centers on whether digital screens enhance the shopping experience or simply add to the technological clutter. David and Lisa argue that when implemented thoughtfully, screens can deepen brand engagement and provide valuable information seamlessly integrated into the shopping journey. For example, a new product launch showcased on digital displays can drive immediate sales, as seen with David purchasing a new beer Samba after seeing it on a screen.

Conversely, Arianne and Chris caution that excessive or poorly managed digital signage can overwhelm customers, detracting from the tactile and personal aspects of shopping that many consumers value.

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Financial Implications and Strategic Allocation

Cost vs. Benefit Analysis

The substantial $11 million investment by Shields is a focal point for discussing the return on investment for digital screens. David and Lisa see it as a strategic investment that aligns with Shields' brand identity and customer expectations. On the other hand, Arianne and Chris question whether such funds could be more effectively used to enhance human elements of the shopping experience or to invest in other technologies like audio plays, which are easier to manage and maintain.

Notable Quote:
"Is this the best use of $11 million, or could you do that to augment the in-store experience and why people go to the store to begin with?"
— Chris Walton [08:43]

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Conclusion: A Nuanced View on Digital Screens in Retail

The episode concludes with a recognition that the effectiveness of digital screens in retail heavily depends on the retailer's brand, store size, and overall strategy. While Shields may successfully leverage digital signage to enhance their experiential stores, the same approach may not be universally applicable across different retail environments.

Final Thoughts:
"It's too hard. I don't want to do this. The maintenance is like, come on, guys."
— David [08:20]

The hosts and guests agree that while digital screens can offer significant benefits when aligned with a brand's ethos and customer engagement strategy, retailers must carefully consider the practical challenges and ensure that such investments truly enhance the customer experience.

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Key Takeaways:

• Strategic Placement & Content: Effective use of digital screens requires strategic placement and engaging content from credible brands.

• Maintenance & Costs: High maintenance costs and technological obsolescence are significant concerns that can outweigh the benefits.

• Customer Experience: Digital screens should enhance, not detract from, the in-store experience by complementing human interactions and experiential activities.

• Brand Alignment: The success of digital signage is highly dependent on the retailer's brand identity and the nature of their customer engagement strategy.

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This comprehensive discussion on the Omni Talk Retail podcast sheds light on the multifaceted considerations retailers must navigate when integrating digital screens into their stores, balancing innovation with practicality to meet evolving consumer expectations.

Transcript

[Chris]

Shields is investing $11 million in digital signage according to Chain Store Age. The employee owned sporting goods retailer known for its mega sized stores filled with all sorts of fun attractions has completed the digital signage initiative with Experiential media. Has completed its digital signage initiative with experiential media company Mood Media. The digital signage project which began in October of 2023 involved the installation of approximately 460 LED screens which is an appro currently 13 screens per store. And I did the math and they are placed through live strategic. Five strategic zones in each store including men's and women's shoe sections, store corners, structural columns and above the grand staircases. Wow, sounds cool. Skills can synchronize the display network for storewide takeover campaigns by brand partners such as Nike, Adidas and Lego. Interesting or segment promotional content for localized zone delivery. The initiative consolidates 32 individual store systems into a single unified application through Mood Media's Harmony platform which provides centralized management of the audio and visual experiences. David, want to start with you on this one too because I know you're interested to talk about it. Are you pro or con the growth of digital screens in store in general and is shields roughly 13 per store. Therefore too many or. Or too few. The floor is yours.

[David]

Yeah, thank you, Chris. You know on this one I'm even stronger than on the last one.

[Chris]

Really?

[David]

I don't think kind of digital signage in every stores and tons of screens makes a ton of sense for shields though. I think it makes perfect sense, right?

[Lisa]

Yes.

[David]

All the shields are experiential to begin with. Right. Whether you're shopping for new golf equipment and you hop in the simulator or like you want a pair of bowling shoes and you're on the. You know they have a bowling lane in mind. Like it's. I love going there. It's like you know my, my daughter ends up riding the Ferris wheel and you know you can go shooting. You can do all kinds of things.

[Chris]

My bingo card. David too for pulling.

[David]

She really is. I mean it's an incredibly well done store from all of the sections and all of the different experiences you can have and I think this just adds to it. I was actually in a Shields yesterday, saw some of the digital signage and they had a new Samba drop that I didn't know about and I actually went and bought a new beer Samba. So like it? Yeah, it works and I think it's perfectly placed in. In their stores. It builds on the experience that is already walking into the shields big box, you know that exists today. So it's it's right in line with their strategy.

[Lisa]

I love that, David. Yeah, I love that. David's setting us up to just take, like, retail safaris for every headline. First we're going to Milan, then we're gonna go buy sambas at Shields. I like. I like your style, David.

[Chris]

I know, I know. I've got, like, five.

[David]

Like, we're gonna get us on the road, right?

[Chris]

Yeah, let's get us on the road. Yeah. Take. Take this podcast on the road. That's a great idea, David. All right.

[Lisa]

And.

[Chris]

And I. I was talking about this a little bit with you yesterday, I think. So my question for you, coming off what David just said is, does the category matter in terms of, you know, the success of digital screens? What's your thoughts there?

[Lisa]

Yeah, I mean, I think Lisa's the best person we can ask about this, given her experience. But I. I do think, like, David's saying that this is one of the use cases where I do feel like digital screens make an impact. I think you have brands that are already creating really engaging content. A while back, we talked to Arianne, the Chief Digital officer, I think. Yeah. Parisi of JD Sports, and she was just talking about how, you know, they're using this content on their website, on the product detail pages, and then they're to be able to see that again in these large, multifaceted displays that you're seeing in. In a Shield, for example. I think it's great continuity for that brand to kind of be there and use their. Their, you know, their brand representation that they have with athletes and other things and all the content in another space. So I like it in this category with these big brands like Nike, Adidas, Lego, and some of the other big brands that Shields carries, too. So I think it makes sense here. I have a problem with it when we start to get into, you know, putting 300 of these in a grocery store, for example, to advertise cottage cheese. Like, I don't. I don't know that that's going to have the same allure here, but for this specific use case with these brands in the departments like footwear? I think it makes a ton of sense.

[Chris]

Yeah. And the other question that brings up for me, too, and is it, are we liking this more because we're envisioning it more as a branding play and. And. Or is it more of a retail media play? So. So, Lisa, what. What's your take on this discussion?

[Arianne]

Well, it's funny because my take is a little bit different than the three of you. My initial reaction When I looked at it, that I think it was an overspend in the digital screen space. And the reason I say that, listen, consumers that are, are shopping, are shopping online first, that's their digital retail screen. So yes, they can link all those same assets from the brands that they do there. Because most people are shopping on their phone before they're going into a store. When they go into a store, they want physical touch, they want interaction from a sales associate, they want experiential, I'll give David that because I think Shields is great at that. But that means there's somebody in the store, whether it be a celebrity, an athlete, you know, some, you know, a consumer that can talk to the product, wear the product, display the product. I think real, live, interactive action is what people want to participate in when they go to the retail store because they could do all the other stuff online.

[Chris]

So set another.

[Arianne]

Go ahead.

[Chris]

That, no, that's really interesting. So said another way the $11 million investment you think could be repurposed to do the things that you're talking about versus like putting digital screens to show the same content that people are going to see on their mobile phones via TikTok, Instagram and such.

[Arianne]

100%. I mean, I think it's a proven fact that consumers go to the store for an experience and a touch point, not more screen time. That's my perspective.

[Chris]

I, I 100 agree with you, Lisa. So, yeah, actually I didn't know how I got lumped in with the, the other two because I'm on your page. I'm on your page. 100. Yeah. I think that the only points I would make to kind of add on to what you said is I think, I think there's a lot of retailers and I don't know if Shields is one of them because, you know, they have pretty big stores, 13 screens per store. Maybe they can, they can do that. And David's seen it and says it looks pretty good. But I think there's going to be a lot of retailers that are ruining the day. They put all these digital screens in the store for the purpose of, quote, retail media, which is why I asked you that question because, you know, and there's a lot of reasons for that. One, like you just said, Lisa, they're expensive. And then to the tech, it's obsolete over time. Like what changes faster than a digital screen, like a digital television changes all the time. And then they're also really hard for the stores to manage. Like if they don't work, they break and then you get bad content going through them. So for my money, like, that's why I don't like them. And if to your point, Lisa, I would actually be experimenting with audio plays because audio plays are easier to manage in the store. You can promote the messages you want. It just seems like a simpler, easier way to go about this. But, Lisa, you have something else you want to add?

[Arianne]

I mean, I just want to add to you on the tech side. I can't tell you in the last 20 years how many stores I've gone into that have put what they'll call new tech in. And eight out of 10 times, it's broken and sales doesn't how to get it to work. And, you know, like, I know technology is getting better over time, but the maintenance, the, you know, you know, you know, the software updates that you've got to put in, Is it going to be a bad experience? Ultimately, that's the question, because you're turned off when you go in and want to experience, and it's not there as well.

[Chris]

So. Yeah. So I. I'm with you 100%. So. And David, did Lisa and I turn you to our side at all or what? What are you guys thinking? Are you still liking this?

[David]

Not to lose instead of to win?

[Chris]

Okay. All right. Wow.

[David]

It's too hard. I don't want to do this. The maintenance is like, come on, guys. Like, this is. Yeah. Don't think it's gonna be the right strategy and works. I agree. It shouldn't be everywhere. And. And absolutely, I could care less about, you know, seeing cottage cheese on sale at my local grocer, but in the right environment, this works.

[Chris]

Yeah, I like Lisa's play. I like Lisa's thing, though. We're all budget constrained. And is this the best use of $11 million, or could you do that to augment the in store experience and why people go to the store to begin with? I think that's the interesting question here.

[Lisa]

But I think you're looking at a different retailer. This is Shields. This is not like, you know, XYZ retailer. This is a very experience is part of their brand ethos. Like, this is. You are looking for this kind of stuff. And the one thing that I would say to maybe challenge what Lisa was saying about, you know, having more people in the store. You can't get LeBron James to show up at every Shield store that doesn't scale, but you can get LeBron James to record something specifically for Shield's customers. Talking about a new shoe drop that's coming out this week that's going to go all over these stores. So I do think that, like, this is a very unique, unique case study where, yes, there is. There is a use case for it in these SHIELD Screens. The screens are bendable. Like, we don't. I haven't seen them. But, like, if it. If it's just shut off completely and it's black, does that detract for the. From the experience or do you just not see anything? And that's fine. Like, I. I think there's more that needs to be more research I need to do. I need a field trip.

[Chris]

Like, yeah, we need to go to S.H.I.E.L.D. yeah. All right, let Lisa in here. Lisa wants to chime in again, and then we'll move on. But, but, Ann, I do think you could get Dick Weber to display his bowling shoes to David's point. But anyway, Lisa, go ahead.

[Arianne]

I mean, one thing. LeBron James can drop a personalized message to your email, you know, or your screen just as well. So I just challenge spend the money, go for driving different things. I just don't think it's in the sense of a screen.

[Lisa]

Yeah, that's great.

[Chris]

I love this show already.

[Arianne]

This show is great.