[STEP BY STEP] The New Community Store: Inside Brick-and-Mortar's Evolution

[00:00:09] Alicia: Welcome to Season 15 of Step by Step, Store to Screen, brought to you by Endear. One of the most exciting innovations within the retail industry over the past fifteen years has been the evolution of omnichannel service. Because while digital channels, ecommerce experiences, and even social media create incredible opportunities for us to engage at scale, there is truly nothing like going into a great store and having an incredible interaction with a knowledgeable, passionate associate. That's why Anthropologie continues to rise to the top, not just for Gen Z consumers, but for Gen X, even Boomers. This cross generational opportunity is something that executives like Mindy Massey, Global Executive Director of Stores, they don't take it lightly. That's why they're really investing in tools, technologies, and systems to support their associates. They're not just employees, they are human examples of the brand and what the brand stands for. And Mindy, she is someone that believes in order for people to thrive, you need to give them grace, space, and place to do so. And during our conversation, we don't just talk about the evolution of the Anthropologie brand and the human touch components, the in-store experience components that make these stores stand out. We get deep into people, culture, and how technology is not just a way to empower your people, but a way to let their strengths really shine through. And when so many retailers are rethinking their store footprint and even closing stores to simplify, Anthropologie is on an incredible path to growth and opening more locations. And that's because of leaders like Mindy. I'm so excited to share this conversation with you because she not only has some great insights about what it takes to build a lasting brand, she also has some great tactical insights and takeaways that any leader can apply. Mindy, I am thrilled to be on the line with you. I am a huge fan of Anthropologie and just a huge fan of the work you do. So first, thank you again so much for taking the time out to chat with me today.

[00:03:40] Mindy: Oh, thank you so much for having me. I love being able to be here and share with the brand and just have a wonderful conversation with you. So thank you for having me.

[00:03:50] Alicia: Yeah. We're going to be getting into a lot of the aspects that make the Anthropologie brand shine. But first, let's set the stage a little bit by going into your day to day. Like what encompasses your role and perhaps most importantly, how do you define and measure success day to day?

[00:04:09] Mindy: Well, have the wonderful opportunity of overseeing the stores in North America and also The UK. And being able to be out there globally, seeing all of the incredible teams that we have working to create the best experiences for the customer, that's what really fills my cup. I have to say success for me is those teams that I get to come across, are they feeling joy from what they do? Do they love what they do? Even in, you know, the challenging days, are they able to have perspective on how to move forward and set strategies to really achieve success? I have a really fine kind of intersection of people and profit that are important to me. Ultimately, when you're running a business, you have to be able to achieve profit because I think that's what fuels growth, but also that intersection with your people and how is the work making your team feel and are they motivated to be able to achieve success. So I would say that.

[00:05:13] Alicia: I love that you went there, that focus and commitment to your people first because retail is innately a people-driven business. And even in the digital age, your associates, the people who represent the brand, they're really the heart of it. So that's definitely going to be an ongoing, I think, point as we talk about Anthropologie's approach to in-store experience. In fact, you really helped pioneer that shift from solely stores that sell. Of course, selling things is very important. It is retail after all. But ultimately, it's about creating stores and experiences that serve the community. It's all about creating points of connection versus points of solely conversion. So what was that transformation process like? How did you help ensure that although you continue to serve the business, it is through the root of authentic connection with your consumers as well as your associates?

[00:06:14] Mindy: I would say more than transformation, it's been like amplification. So our service strategy has always been built on a foundation of genuine connection. We have a long rooted history of authentic engagement and relationship building, which really has gotten us to where we are today. Over the course of the past thirty three years, which is how long our brand has had stores, we've worked to amplify and support this natural approach with tools, technology, techniques. Those have all kind of evolved and strengthened our service offering. But we've always been following our customers lead to exceed their expectations. So this has really allowed us to grow in step with our communities.

[00:06:57] Alicia: I love that. So thirty three years and of that time you've been with Anthropologie twenty five of those years. Is that right?

[00:07:04] Mindy: I have. I'm approaching twenty six.

[00:07:06] Alicia: I'm sure it's been fascinating to see like the roots of the brand and what has made it so special for so long.

[00:07:12] Mindy: Absolutely.

[00:07:13] Alicia: Make moves, but also like take shape over time as consumer behaviors have changed. So let's talk about that a little bit and how it's really shown up in the frame of retail spaces. So these aren't just stores. They are truly immersive cultural destinations. What does it actually take to make a store feel like that cultural heartbeat of not just the brand, but whatever neighborhood city that the store happens to be in?

[00:07:45] Mindy: It's such a great question and it's so nice to reflect on this question. A few things I would say here is that we're very protective of the space in which things are created. The physical space, the headspace, the space for curiosity, the space for ideas, the space to build relationships. Alongside that, we empower our leaders to run their stores for their team and for their customers. So much of what we do is actually an information exchange. It flows, like home office to stores, stores to home office. It flows both ways. And the stores have such a strong voice in who their customer is and are able to share what is important to their community. It really allows for a scaling of personalization. One of my favorite things to do is to talk to customers about their Anthropologie. For the longest time, the customers really felt like theirs and their community was the only one, which I think was wonderful. But then also as they started to travel and see that there were other locations, they really started to talk to me about their Anthropologie. They all have their favorites. They all have these really authentic connections that are rooted in shared investment. This is because of the people in the stores creating the service, creating the environment. A little story that I'd love to share is most recently we had a customer who moved to Charleston and one of our first stops in a place where she didn't know anyone was our store. And she told the team there, she said, "I came to Anthro because this is a place that feels like home to me no matter where I am." And we definitely recognize the beautiful responsibility that comes with that.

[00:09:26] Alicia: Oh, I love that. That's amazing. And I love that you bring up freedom and in a way autonomy on behalf of the managers and the associates because they know the space, they know the culture, they know the community a lot better than people at corporate, I could imagine. Obviously at a fundamental level, there's freedom. But what else is required to make this localization and creation of community stores a reality?

[00:09:53] Mindy: Well, think for a very high accountability and high expectation brand, we hold ourselves to that standard because of the love that we have for our customers and our communities. We do provide guardrails, but the lanes are kind of wide open for a localized approach. This could include events that we have in the stores, ways that the teams can support the community impact, the charity partners that we select. I think that there is an incredible team at the home office that is just dedicated to this work. They really harness the individuality of our stores and that really makes for a wonderful marriage of allowing teams to feel empowered to do the right thing for their customer, but then also having the support that allows them to lean into the areas that are most important to them.

[00:10:43] Alicia: I love that. So having those guardrails, those parameters and guidelines, that creates the consistency, right? And I'm sure that there's training that goes into this because you have a lot of employees, right?

[00:10:57] Mindy: Yes, we do. We have over 10,000 employees in our field across the globe. And they're incredible.

[00:11:05] Alicia: Got it. Yeah, that's amazing. So how do you, as a leader, you're overseeing the stores, you're overseeing the people, and on one side you want to give these employees freedom, you want to give them autonomy, but you also have maintain that brand level consistency and adhere to the promise that you're creating for your consumer. There are standards in place. How do you strike that balance of grace, space, and place and kind of give your people that opportunity to flourish, but still ensure that that customer promise is being fulfilled?

[00:11:45] Mindy: Well, a couple of things here. So I always think about that one friend that you always go to that will tell you the truth. And you're always like, "No matter what I put on, no matter what I do, there's always going to be that one friend that I can go to and they're going to give it to me straight." And I love for our stores to be that environment with the customers. So we want to work until we get it right. We want to really build on those relationships and be there in the long kind of like long term for the customer. We wanna be there for all of their milestones versus just that given moment. And when you put it into that context, I think it really allows you to come into the relationship with a lot of authenticity, a lot of transparency, a lot of truth, and it lets us work until we get it absolutely right. And that's what we strive to do. So we have multi generational customers. We want every customer to get exactly what they need no matter what the trend may be, we want them to feel good in it. We want them to really be able to feel that they can celebrate themselves in our product. And I think that we approach it from the fact that the authenticity of the relationships is what drives the KPIs versus the KPIs driving the relationships. And I think we really work to teach how to connect the dots both metrically and anecdotally to define success. So we embrace it that way. When you mentioned grace, space and place, which you know I'm super passionate about, this comes down to the leaders that we choose. I think the experience is always so important, but right up there with experience is decision making. So I believe that the culture of a company is truly baked in the smaller decisions you make, decisions that you make on a packed day, what you choose to make space for, how you react when someone actually takes a risk and fails, what you choose to prioritize, what you choose to recognize, how you celebrate all of the small wins. This is how you support creating grace, space and place across so many stores. So it's more of the who than it is the how for me. Are we picking the right people to create that culture and create that environment? Are we hiring the leaders that understand the significance of taking time to understand what is important to others? How to coach, how to develop, how to make the decisions that reflect truly what matters. I have so much gratitude for all of our who's out there in our business. They're so incredible and they're so inspiring and I take so much from them.

[00:14:17] Alicia: I love that. But I do want to talk about design and experience strategy a little bit, if that's okay.

[00:14:23] Mindy: Yeah, I'd love to.

[00:14:24] Alicia: Each of your stores have an in house display artist and a dedicated art room. These are powerful commercial vessels, but in many ways it's living, breathing art. Right? So what is your approach to ensuring that artistic focus stays alive and that it's just as much of a cultural and artistic institution as much as just a retailer looking to connect with community? Because I really do think there's a strong distinction there.

[00:14:54] Mindy: Definitely. I think so much of our heritage is steeped in making the ordinary extraordinary. You find something really simple and you make it super innovative. And you're just so blown away by the creativity that goes into that. Our team is led by Lance Wynn and Erica Lavinia. And both of them just ooze creativity and they also value the collaborative process. It's that combination of creativity and collaboration that I think really comes alive within our stores. So similar to the stores having such a strong voice for the customer, our display artists in our stores also share their ideas that create springboards for the brand. So this process is actually something so incredible to see, how the collaboration and the way that the idea kind of turns and how it keeps getting better and better and more beautiful as it kind of every different set of hand touches it. So it's an amazing process to actually see and be part of. And I think in every role in our brand, outside of just our display or our design or our merchandising, I think everybody has so much creativity in how they approach their role. And we have a lot of clarity on really celebrating creativity and it's in everything that we do, but definitely the display artists create the most tactile kind of experience, but it's really amazing to be this destination of discovery and joy, surprise and delight, color, connection, all of those things come alive in our doors. And this team is at the forefront of that. We value and understand really truly the magic of something being made and find joy in creating this for our customers and ourselves. We're often, you walk by something that someone's making and you just have to stop in your tracks and just see that process. So season after season, we really work to kind of create that for our customers and ourselves.

[00:16:57] Alicia: I have to say I did have one of those stop and stare moments at an Anthropologie store. It was outside of the Rockefeller Center location around the holiday season.

[00:18:12] Mindy: Oh, yes.

[00:18:13] Alicia: It was with all of the yarn displays.

[00:18:16] Mindy: Yes.

[00:18:17] Alicia: And it was like trees were being created. I think there was a hot air balloon of some sort.

[00:18:23] Mindy: Hot air balloon was one of my favorite interpretations.

[00:18:27] Alicia: I was like, "Is this for real?" I had to go up and, like, look at it, like, at the window. People probably thought I was crazy, but I was just like, this is the most unbelievable thing I have seen. So it just goes to show it's not just the scene itself. It's all of like those material decisions that come into play that really can bring it to the next level. And that's the creativity at play.

[00:18:51] Mindy: Right. That's the ordinary to extraordinary. It's like you never could have imagined how many, you know, seeing yarn, what it could create or seeing some simplistic materials really come alive in creative ways. And the team is so resourceful. So a lot to celebrate there.

[00:19:09] Alicia: No, that's amazing. And I'm curious, when you think about creativity, how much is it tied to the ability to take a moment, whether it's cultural, community, something else? I mean, there's always data coming into us. We're always consuming information. How much of that creative expertise is tied to someone's ability to take that moment of inspiration or that moment of opportunity and turn it into something new? Is there like an adaptability or agility component to this?

[00:19:44] Mindy: For sure. I mean, I think, you know, there is so much happening in a day, macro, micro, all coming at you that it's really important that you're able to kind of harness the agility, harness the ability to pivot. We've had ideas that we've tried that were like, "Okay, that's not going to work. We have to start over." It's really having that moment and space for that reflection to make sure that that's the path that you want to continue down, but also it gives you time to reflect on, okay, did I make the right decisions? Did I go in the right direction? And that kind of goes back to one of the previous answers we were talking about, just about that grace, about that space, about that perspective, about really having the time to think about it. But I do think that our team is really made up of a strong balance of tenured and new talent. And this really creates an amazing dynamic because it helps us stay familiar with what we know and going back to that heritage, going back to what we always want to protect, but then it also really helps us to cultivate relevance and progress. So I think it's going back to the people. I don't know how I always circle back to the people. But I do. {laughter}

[00:20:59] Alicia: It's always the people.

[00:21:01] Mindy: It goes back there every time, but I think it's about that balance and that dynamic that really, I think, really helps us kind of achieve those goals and be able to have a strong adaptability and relevance in the process.

[00:21:16] Alicia: Yeah. And since we're talking about goals, what has been most interesting for me covering the industry for, oh my gosh, twelve, thirteen years at this point has been the evolving conversation around measuring success. And what KPIs are we tracking specifically as it relates to in-store experience? Because as these environments have gotten more experience-driven, more focused on service, community building, all of these things that we're talking about, it seems pretty clear that although there are some fundamental ways to measure value of a store, there are some other things at play too. So how does Anthropologie handle that? What is top of mind for you from a measurement and gauging success standpoint?

[00:22:05] Mindy: Well, we definitely, about the sharing of voices, we look to the customer to tell us where we're winning and where we can do better. So we give them a survey platform to share with us directly. And we always are using those results and commentary to build and refine our strategy to make decisions and improve. So, we track... I'm very proud to say that we look at NPS and we have some industry leading scores there. We also have industry leading customer satisfaction scores. And so we really are listening and working to improve there. So I do feel like the best way to see success within a store is to look at what the data is telling you, but then also marry it with the energy and the way that it makes you feel. And I think that's how you can get a true assessment of whether or not you're winning.

[00:22:56] Alicia: That's great. And what's been interesting for me is seeing how brands and retailers are thinking about their brick and mortar investments and what their strategy is moving forward. Some are really doubling down on short term activations and alignment to cultural moments. Others are going big on flagships. Others are pulling back, which I find to be really interesting. Who is right sizing and why? Expansion is top of mind for Anthropologie, right? So how are you thinking about where Anthropologie shows up and where the opportunities are? What do you see in brick and mortar maybe that others are not looking at or looking at differently?

[00:23:40] Mindy: For sure. I'm so excited to talk about the robust growth strategy that we have. And it makes me so excited to think about all of the amazing communities that we're showing up in. And I will say that over my time with the brand, this is probably one of the areas that we've had the biggest evolution. We historically had a pretty tight footprint of what we wanted to go into and we've really evolved to that in the last several years. We're embracing stores of different sizes, different types where we have so many different unique assortments of product for the communities that they serve. We're really thinking about who's walking in the door and making sure that those needs are met. We're so uniquely positioned with our own brands. And you look at the brands that we have in apparel, accessories, home, garden, all of those different areas. It's really allowing us to put the pieces of the puzzle together in a way that best serves the customer and that community that will walk through the door. And so this gives us so much incredible runway for growth. And I'm so excited about the potential that we have to continue to amplify our footprint out there.

[00:24:59] Alicia: That's great. And I'm sure something that's top of mind for you as it is everyone in the industry it seems is what that next generation of shopper looks like, what they want, what they expect. We're already starting to see a lot of really interesting insight for Gen Z, but then everybody's talking about Gen Alpha. What could they possibly want? And what has been really interesting for us on the Future Commerce side is looking at the basically pivot back to the one seemingly "old school" physical shopping experiences. They're going back to malls. They are really looking for those more community driven moments so to speak. And they're really making a day, an outing out of going to retail environments. And I'm curious, not just for Anthropologie, but just your general industry thoughts and perspectives on what you think this means for the future of retail and what it means to create a community driven space, taking into account this consumer who not just loves these more offline IRL experiences, so to speak, but they are still digitally connected, There's a lot of nuance there to unpack, and I'm curious how you're taking it and approaching it.

[00:26:13] Mindy: So much nuance. I think both generations value authenticity and transparency, which aligns so much with our brand ethos and just the experience that we want to provide, the service that we want to provide, it aligns very nicely there. So I also think that both generations are so informed and have access to information and a confidence to navigate it in a way that's really inspiring. So we provide so much versatile product offerings. We have the personalized and authentic way in which we work to style for each individual that I think also aligns with those ethos from both generations or what's important to them. Additionally, our work in sustainability and community impact is a shared priority. And I know that the experience piece of it is so important to both generations. So I think our creative environment and what we talked about from making sure that we're protecting that experience, protecting those moments of joy, protecting that stop in your tracks and kind of look at something so unexpected and so beautiful really feels like it's gonna play well into that. So it's that layered experience versus the straight transaction based interactions, which we know is so important and something that we celebrate as well.

[00:27:33] Alicia: Yeah, I was going to add, I would say of all of the different brands that I've spent years tracking, brands that I shop with, Anthropologie has always been able to balance that traditional, more analog approach that feels a bit luxe, curated, high touch, but then you're also a very modern brands. You are very active on social media. You do understand the importance of ecommerce as well. So taking the best of it all and really building this rich ecosystem is really, I think, the key finding what that right mix is for your specific brand and Anthropologie completely nails it.

[00:28:15] Mindy: Oh, thank you so much. And I think what we love and what we really thrive is our multigenerational experiences. I had previously mentioned seeing customers come in, you know, daughter, mom, grandma, all shopping together, all in the fitting rooms together. It is so fun and so rewarding to see that multi generations of customers are enjoying your brand in a way that feels authentic to themselves. And I think it's something that I feel so proud that we're able to provide. But then when you talk about the omnichannel customer, so you're talking about, you know, different generations of customers and then different customers shopping different channels. We know that our omnicustomer is so valuable to us. Our customer has so much going on in their lives that they trade in almost like time as a currency. So we want to show up in the way that supports this and be there for them whenever and wherever they want us to be. So we're embracing technology in a way that supports that philosophy. We have new strategies that are really reinforcing the omnichannel connection and wherever the customer starts their journey with a brand or wherever they're at in that moment both channels are celebrating and reaffirming with how they're relationship building. So we never implement technology for the sake of technology. We only embrace the tools that truly enhance the experience and support the customer's time and engagement.

[00:29:46] Alicia: Oh, that's excellent. I know from past conversations with you that your team does really dedicate itself to collaboration. And there have been a lot of conversations as businesses scale, what does that collaboration look like and how do we maintain it as we grow? So do you have any thoughts, opinions, best practices that you've learned over the course of your career that is really key to driving that cross functional alignment and collaboration to ensure that rich, seamless experience we've been talking about?

[00:30:23] Mindy: Well, I would say step one, surround yourself with the best of the best that I have the pleasure of working with. So aside from that, which I know I just feel so grateful for the talent that I'm surrounded by and the leaders that I get to learn from. And I've learned so much from the way that Tricia Smith, our CEO, leads us. We all have really meaningful touch points and are always working towards a shared vision. But what Tricia has layered in there is so much trust to allow for the experts to contribute in the way that they do best. So that really creates this autonomy to make informed decisions and also take strategic risks. But you're also so aligned in what your approach is. We can finish each other's sentences as far as what our priorities are and our objectives are, but we're also putting our own stamp on it in our areas of expertise. And so you just get so much great knowledge, great ideas, great partnership in achieving the goals. So I think it's important to, when you think about collaboration, which I'm so passionate about, I think you also have to be mindful of stagnation that's masked as collaboration. So you can over collaborate and there can be a lack of decisiveness. And if you're collaborating to that point, you may already be behind where you need to move next. So you've got to balance collaboration with that decisiveness so that you can continue to move forward. And I think that if you're partnering with a team that is always balancing history, but then so considerate of future next steps that allow for all of your tree branches to grow and you're always evolving in step with the customer, I think that's how you'll truly find success.

[00:32:21] Alicia: Amazing, Mindy. Such a great way to close out. It's really the people that power it all. And it's very clear that it's not just brand out that you're creating that connection and that collaboration. It's really within the organization as well. So thank you again so much for taking the time out to chat with me.

[00:32:39] Mindy: Oh yeah, it's been so wonderful. Thank you. I really appreciate your time and your great questions. It makes me excited to be able to share and reflect. Thank you.

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