While most retail sectors have been navigating disruption over the past two decades, it’s a more dramatic story on campus. In the consumer market, books are at risk. The general market for physical books has been shrinking for years with the shift to digital content and the growth of e-readers. Then compare this with a virtual wipe-out of physical textbooks.
According to Jon Bibo, CEO of the Independent College Bookstore Association, “The traditional textbook world evaporated in just 4-5 years, as it was replaced by digital course material.” That leaves a lot of floor space in major universities. Some colleges have to fill over 15,000 square feet of retail space, and larger universities deal with 30,000 square feet or more. This calls for a campus store transformation.
Brand marketers would benefit from a stroll across campuses where students have meals delivered all hours of the day by Grub Hub robots and pick up Amazon orders through lockers strategically positioned at student unions and dorms. Digital native students are increasingly frustrated with long checkout lines at brick-and-mortar formats where the product is often locked behind cases. Enter an opportunity to bring innovation that takes friction out of shopping.
On Campus Customers
Enrolled students aren’t the only audience shopping campus bookstores. Prospective students often make decisions on where to study based on impressions of all aspects of campus life down to the details on retail and food service options. A typical tour concludes with the opportunity to purchase collegiate swag.
Then add in parents and alumni who are important donors, and the store becomes a critical marketing tool. Wildcats gameday alone is big business where major universities see over 50,000 transactions. In the U.S., campus sales are close to $8 billion with licensed apparel representing about a quarter of this at schools with athletic programs.
University of Arizona Campus Store Retail Transformation
The disappearance of textbooks was a contributing factor to a rebranding initiative at the University of Arizona. The campus store had devolved into a disorganized, unfocused layout that was confusing and cluttered. U of A recognized that its bookstore no longer aligned with its broader institutional image of excellence and innovation.
After bringing on Peter Neff as Executive Director (previously with Meijer), they embarked on a transformation. Taking stock of the “house of brands” that included Apple, Nike, Champion and a full-service Starbucks within the store, Neff and his team set out to optimize the value of brands that appeal to campus constituents while staging a total makeover.
They analyzed what to keep and what new brands to add. A technology center became a centerpiece and new apparel brands such as Lululemon were brought in. A total redesign was led by Onyx Creative. Neff now proudly describes the store as a central hub for students, faculty, staff, alumni and visitors. “The renovation is intended to better resonate with the new generation of students.” All stakeholders agreed to rebrand it “U of A Campus Store” to reflect what is actually inside. Just four months after reopening its doors, sales were up 12 percent.
A Study in Brand Management
These developments should have brands clamoring to break into campus stores. According to Bibo, brands often don’t align their own collegiate ambassador events with product presence at the nearby campus stores. Brands that supply athletic uniforms through carefully negotiated sponsorship agreements with university athletic departments often miss the opportunity to engage in store-level promotional partnerships. Campus pop-ups and social media set-ups could be strengthened if they connect through college bookstores.
Bibo points out that Jansport, Vitamin Water and Dell invested early on with sales teams dedicated to the college consumer which gave them an initial leading edge over competitors. They no doubt recognized how college students establish longer-term brand affinities that translate their purchases well beyond graduation.
Big Tech Comes to the Big Ten
Brand marketers would benefit from a stroll across campuses where students have meals delivered all hours of the day by Grub Hub robots and pick up Amazon orders through lockers strategically positioned at student unions and dorms. Digital native students are increasingly frustrated with long checkout lines at brick-and-mortar formats where the product is often locked behind cases. Enter an opportunity to bring innovation that takes friction out of shopping.
Looking ahead, this sector is ripe for an infusion of technology. Amazon is already launching its cashier-less “Just Walk Out” on a number of campuses in the U.S. and beyond.
Retail Media is moving into the space which will demand more alignment of brand content and resources. Virtual “try-on” kiosks allow cosmetic brands to play in the game where students with little training can work the counters.
As advanced AI, sensors, computer vision, and RFID come together for seamless shopping on campus, the shopping experience will make a lasting impact as these sophisticated consumers enter the market for first-time homes and other life-stage milestones.
A Lucrative Market that Doesn’t Like to Be “Sold To”
Brands targeting the 18-24 campus consumer recognize the value of the 15 million students who spend $200 billion annually. Lucille Dehart of Columbus Consulting points out that creating loyalty in this lucrative market is challenging at best. “These consumers are exposed to more options than prior generations.” Growing up with social platforms, they are highly influenced by friends, reviews and recommendations. “They have a great deal of information and competitive choices — so earn their trust and nurture the relationship with micro personalization.
Consider Campus Stores Your Innovation Lab
The benefit of an on-campus presence? Dehart says, “Once you get them you’ve got them for a while.” The message here is that savvy brands know that loyalty starts young, and they work with campus store management to sell their products targeted to younger consumers.
Brands aiming to cultivate loyalty with ‘hard to reach’ students will find more leeway and collaboration on campus than with national chains. They can test curated product assortments and marketing strategies that integrate events and activations. Special edition merchandise can further brand engagement with students.
College students are often at the forefront of trends and cultural shifts. With their ability to amplify content on social media, they can be brand advocates and a great source for product and messaging feedback. The value of this audience through influence and future spending power should not be overlooked.
Campus stores are a great opportunity to tap into a market with innovative in-store experiences to introduce new products and services. It’s not rocket science to figure out what brands excel when students exit through the campus gift store, armed with must-haves and needs.
