Downturn a time to innovate, retailers tell UA global conference

It's those companies that will thrive when the economy rebounds, speakers said Thursday at this year's Global Retailing Conference held by the University of Arizona's Terry J. Lundgren Center for Retailing. Nearly 300 retail insiders and students are attending the two-day conference, which continues today at the Westin La Paloma Resort & Spa.

"Recessions present opportunities. They present opportunities in leadership and innovation," said Patricia Walker, an executive partner with Accenture. "Companies that grow after a recession, they grew during a recession."

During her presentation, Walker painted a stark contrast between today's retail scene and those of years past. Many consumers — especially those now in their teens and 20s — won't bother visiting an actual store, she said.

As such, retailers need to start looking at stores as extensions of their online presence, and not the other way around, she said.

Lundgren, the retail center's namesake and chairman, CEO and President of Macy's Inc., said that 2008 "was one of the worst years on record for our industry."

Still, he stressed the importance of innovation — even during a recession.

"This is the year to make changes," he said, especially because expectations for success are already low.

The new trend among consumers is "recession chic," said John Karonis, the president of Kurt Salmon Associates.

"It's cool to save money," he said. "It's cool not to show off with your purchases."

But retailers can continue to succeed if they maintain their brand integrity and create a unique store experience that's tailored to a local market, Karonis said.

Another speaker, Rob Sinclair, the director of Microsoft Corp.'s accessible technology group, said its important for retailers to make sure technology is usable to those with vision or hearing impairments because otherwise they will lose that customer base.

Before his presentation, Sinclair said that when Microsoft and its clients have made such changes in accessibility, all users benefit from them. For example, Microsoft is adding to its Windows products improved computer screen magnification and voice-over technologies that can read text on a Web site, in different languages.

And he agreed that a recession can be the right time for a company to upgrade its technologies.

"If you look at the companies that came out of the Great Depression, they continued to invest and innovate during the depression," he said.

Mike Martz, director of new stores for PetSmart, said that about 30 of the company's employees are attending the conference.

He said they get "ideas about what other retailers are doing and see how we can apply it to our company."

Retail future

Here's more of what Accenture's Patricia Walker said about the future of retailing:

• Stores loaded with inventory will no longer be a primary point of purchase.

• Some consumers will never visit a store as online shopping grows.

• Consumers will take an active part in product and store design — and those designs will change rapidly.

• "Green," or environmentally friendly, stores and products are here to stay.