The Strategist

McKinsey Consulting to open underwear and cosmetics store

09/27/2019 - 06:37

McKinsey will open a store in the largest shopping center in the United States. The company will invite third-party brands to try new technologies in offline retail and understand how traditional stores can withstand the Internet, and first of all, Amazon.

The McKinsey store will open on Friday, September 27, at the Mall of America in a suburb of Minneapolis (USA), writes the Financial Times. At the site, McKinsey intends to test new technologies that will increase attractiveness of offline shopping compared to online purchases in the "Amazon era."

Shoppers at the McKinsey store will be able to take advantage of several new devices, such as smart mirrors and software to help them choose the right bra size. It will be possible to pay for purchases with cryptocurrencies. McKinsey will collect customer behavior data for its own use.

The store will cover an area of about 465 square meters, and will include shops of several brands. At the first stage, four fashion and beauty companies will take part in the experiment. The project also involves technology companies, including Microsoft.

“We thought it was a good opportunity to learn. This is an interesting example of how a consulting firm is trying to add value,” said Heidi Zack, co-founder of ThirdLove.

McKinsey will not have to pay for space in the mall. The store’s revenue will go directly to retailers who will pay a commission to McKinsey. The consulting company does not hope to profit from the project called Modern Retail Collective: the revenue from partners will be used to cover costs. The main value for McKinsey is statistics: the firm believes that the store will help them understand which solutions work in offline retail and which do not, and then use the information to improve customer recommendations.