Nespresso’s Latest Store Concept Stands As Retail Inspiration For All

As a true direct-to-consumer business, Nespresso started out selling its capsules via e-commerce in the late 1990s, before launching its first store in 2000. Fast-forward 20+ years, it is now one of the most established, premium coffee brands in the world, with over 800 stores that pay tribute to the brand’s coffee expertise and lifestyle credentials. So, what makes Nespresso stores so special and appreciated by loyal and first-time customers? Jaime Mur, Nespresso’s global head of retail and customer experience, shares for Forbes his vision of retail, how to make store experiences memorable for shoppers and why physical stores are essential for the brand.

Interaction, immersion and inspiration are the building blocks of Nespresso stores

When speaking with Mur, it is clear that customer experience is at the heart of Nespresso’s retail offering. Whether to accommodate returning customers who want a quick capsule refill or to guide first-time consumers, store associates and the different in-store areas are devoted to fulfill these different types of shopper missions efficiently. Thanks to Nespresso’s loyalty program containing relevant customer information as well as click-and-collect options, customers know they can be served seamlessly and face absolutely no friction during the path-to-purchase. At the same time, lingering is highly encouraged.

“Retail is not only about fulfilling a need, but is is also about discovery, learning, sharing experiences and being heard,” says Mur. Nespresso’s latest boutique concept builds upon this mindset, with the creation of masterclasses and discovery stations where customers can immerse themselves in the world of coffee, learning about different coffee beans and recipes. This type of interactive, engaging experiences is at the heart of Nespresso’s new offering, enabling it to share its coffee universe in a unique and distinctive way.

After being launched in cities like Amsterdam, Sydney and Hong Kong, this retail concept arrived in Toronto’s busy Union Station. The store was designed to meet every possible customer need, from product pick-up to self-selection, used capsule drop-off, coffee order pick-up and machine purchase with personalized engraving. It balances modern aesthetics and spacious areas with a warmth that inspires shoppers to explore and engage with Nespresso’s ecosystem thanks to coffee tastings, masterclasses and exchanges with true coffee experts.

Just as with other locations, the coffee player collaborated with local artists to anchor every store in its local culture and immerse customers in a unique, localized store experience. In placing such devotion to customer service, the retailer has without a doubt borrowed from the codes of luxury hospitality, helping boost customer satisfaction while at the same time reinforcing the brand’s equity.

Nespresso stores also serve as feedback and innovation centers

Despite starting as an online business, Nespresso has since put stores at the core of its customer acquisition and retention strategy. “Nespresso has a unique business model allowing us to always be in direct contact with our customers. Hence, we are constantly listening to their needs and expectations – which are continuously evolving within today’s dynamic landscape. Therefore, we aim to make our boutique concept evolve based on our customers’ preferences,” Mur explains. This type of agile feedback and observations allow for valuable shopper insights that can be captured and reviewed directly by Nespresso teams, implying that the retailer can always be a step ahead when it comes to activating a new product and store strategy that resonate with customers and the market.

While many retailers were scaling back on store operations and investments during the pandemic and others placing all their eggs in e-commerce, there is no doubt that physical retail is making a resurgence, thanks to the very concrete benefits it can bring to a brand. As a result, research by Square shows that 94% of retailers planned to enhance their in-store customer experience this year, turning shopping into engaging events for shoppers. Many retailers are therefore adapting and playing catch-up.

This shift has in no way impacted Nespresso, which has always seen physical retail as a fundamental part of its overall strategy: stores are seen as much more than a space to make transactions happen; they can also play a role when it comes to showcasing new innovations and testing those with a market.

Mur affirms: “our boutiques is the place where we stage our latest innovations, where customers can discover what’s new with the brand but also where they can craft their own recipes, learn about coffee origins, inquiry about our sustainability efforts, about aluminium or even our home compostable capsules.” A few months ago, these home compostable capsules were launched in select boutiques in France and Switzerland only, a way to gauge reactions to this new innovation before expanding distribution to other markets and channels.

Nespresso is as much a lifestyle brand as it is a coffee brand, which is what this new boutique concept conveys so well. From educating curious shoppers to inspiring customers with real-time coffee recipes, each visit is seen as an opportunity to deliver an immersive, enjoyable customer experience – thus elevating physical retail to an engaging journey of senses and culture, an ambition many brands thrive for but fail to execute. As Mur puts it, “stores are destinations where people come not just to shop but to experience something special, something that transcends the transaction. It is a feeling that draws us physical stores, no matter where we are in the world.” Something that can never be replaced, especially not by e-commerce.