Considerations from Retail-Focused Leaders

For wide-format producers, the retail vertical is significant in both its size and its breadth. From standard signage for sales and promotions, to experiential spaces designed to transform shopping and convey mood or enhance emotion, the opportunities to provide a variety of applications for retail settings of all types allow many producers to find spaces they can serve well and profitably.

To provide a view of the retail vertical as it is today and how it has changed (or will), Wide-Format Impressions spoke with two industry professionals serving retail in a significant way: George Gross, CEO of Infinity Images (Portland, Oregon); and Troy McGinnis, executive vice president, printing services at Phase 3 (headquartered in Atlanta, Georgia, with production facilities also in Dallas, Texas; and Mountain Lakes, New Jersey).

1» The Importance of Quality

As a producer serving retailers including Nike, Adidas, and Columbia Sportswear, George Gross says that over the years, customers have raised their expectations on print quality, partially because the baseline for acceptable quality has risen as equipment has become more capable. He says that in addition to excellent print quality, they’re increasingly looking for embellishment — spot varnish, shapes, and unusual color mixes. For Phase 3, which produces for retailers including Dillard’s, Neiman Marcus, and Cole Haan, print and production quality is paramount. Troy McGinnis says, “For higher-end brands, it has never been so high — they expect something new with every roll-out.”

This display for Adidas, produced by Infinity Images, focuses on products associated with international soccer superstar Lionel Messi. | Credit: Infinity Images

2» Growth Market Areas

Asked about the movements he’s seeing in the sub-segments of retail, McGinnis says that while it was not expected, he’s seeing a lot of activity with high-end brands, which he describes as the company’s strongest market. What’s driving the shift, he says, is that after COVID, people felt the need to treat themselves — “maybe realizing life is short.” Gross says he is seeing more of a focus on the store. “People still want to touch something — they want to see it,” he says about the continued value of in-person shopping. He shares that he has seen retailers soften what was once a robust and concerted push into digital signage.

3» Growth Application Areas

Gross says that, over time, he has seen a reduction in the amount of “flat print” his company does, such as printing on rigid styrene. He notes that while wide-format printing used to be a “choke point” in production, that is no longer the case. “That’s the easy part,” he adds. Today, many jobs include extensive finishing: handwork, assembly, integration, and work with subcontracting partners. McGinnis says customers “want to take things to the next level.” He says Phase 3 is seeing more expectations for shapes, textures, and complex designs. Customers increasingly are building showrooms for their products, he adds, which is a different approach.

4» Use of Printed Fabrics

Noting that “fabrics are super-versatile,” McGinnis says Phase 3 has used textiles for everything from silicone-edge graphics (SEG) to custom furniture, including bean bag chairs. Gross says Infinity Images is using fabrics for SEG but says, “a lot is being done for free-hanging fabric banners. Production-wise, he says fabric printing – particularly SEG – is getting increasingly easy to do if you have the right equipment in place. He adds that most of the retail-focused SEG his company produces is front-lit, noting backlit tends to be a more expensive application because the framing/lighting systems are more complex.

5» Producing Wallcoverings

“We do a decent amount of wallcoverings,” says Gross. As an application, it “ebbs and flows.” He says that while his company did a phenomenal amount of wallcoverings in 2019 as part of new construction efforts, he has seen it plateau over the past year. He says he thinks it might surge again. For many retail settings, McGinnis says wallcoverings are a starting point. “It sets the mood. Almost everything we do [in retail] sets a mood.” He shares that about 70% of Phase 3’s immersive displays incorporate wall graphics, which are produced using either wallpaper substrates or pressure-sensitive vinyl.

The addition of a simulated ski lift adds to the mood of this Infinity Images display for Columbia Sportswear. | Credit: Infinity Images

6» Other Décor Elements

“Because of our ‘ideation to execution’ model,” McGinnis says, “we ask about the full environment.” He adds that for immersive experiences, every single element needs to be considered, including lighting, which is a part of the company’s service offerings. For Phase 3’s customers, this is an attractive, differentiating factor. Gross says his company has produced décor elements for numerous new store openings and remodels, including the use of window films and a routed felt application that created an engaging, decorative element. Further, he said directional and ADA signage are essential for retail and the other verticals his company sells into.

7» Experiential Approaches

Gross says Infinity Images produces experiential applications but only for select clients. He says they are often produced for only a subset of a retailer’s stores — with a focus on so-called “flagship” locations. In addition to printed elements, he says his company has also included running water, simulated winter settings, and even used directional sound to include claps of thunder.McGinnis says, “the bar continues to get raised,” in the experiential space. “What’s fun and challenging is that you need to constantly innovate.” He adds that serving the experiential space requires knowing how to look at spaces and then plan the job holistically.

8» Integrating Digital Signage

Asked about digital signage, McGinnis says, “You can’t ignore the use of the technology, especially in QSR [quick service restaurant].” He adds that while Phase 3 has worked in this area, he believes “it will not drive tactile objects out.” Further, he says that while, “in some ways, digital is more easily forgotten — that does not mean it won’t be a part of our business.” Gross says that while his company has handled digital signage for a handful of clients, he sees it as an opportunity requiring a heavy investment to get started. Once started, content must then be created and regularly refreshed to meet client expectations.

9» Chasing Luxury

Regarding serving luxury brands, Gross says his company “has done a little bit.” He says part of the reason for his answer is geographic: Most luxury brands focus on a few key U.S. markets, of which Portland is not one. About these spaces, Gross describes them as being “far more product-oriented, and less signage.” McGinnis says working with luxury brands is different than other retail spaces because they are less hesitant to try bold approaches. “They already take big swings with wild, artistic design.” He says Phase 3 advises designers working on these high-end spaces to “aim for the stars, then dial it back from there.”

10» Changing Customer Preferences

Asked how customer preferences have changed, McGinnis says the retail space has two different segments: those seeking to move products, and those occupying the high-end. Of this latter group, he says that while they generally don’t care if the product is purchased online or in the store, they want customers to come into the store for inspiration, for the branded experience. Gross says he notices that his customers are taking more time to make decisions, thus compressing production time. Because of this, he says that for retail clients, it is “common to be making changes the day before or the day of the work going out the door.”

This structural display, produced by Phase 3 Marketing and Communications for Neiman Marcus, features bold color and demands structural integrity. | Credit: Phase 3 Marketing and Communications

11» Seeking Sustainability

“They want to see less waste in production,” Gross says about the sustainability requests of his retail customers. In addressing those requests, Infinity Images has designed tighter and more compact packaging, which can lower transportation costs. Also, he is seeing more interest in re-using or re-skinning displays or fixtures. For Phase 3, McGinnis says, “it varies by verticals.” He says the company offers sustainably preferable options to its customers, “and some can justify a slightly different price point.” He adds that if sustainability is woven into the client’s corporate identity, then they will accentuate sustainability, specifying projects accordingly.

12» What Has Changed?

When asked to share what he thinks has changed the most in the past few years about serving the retail vertical, McGinnis says it is the continued focus on raising the experience level — the move away from shopping toward something deeper for the shopper. He says that the shift is toward experiential work, whether it’s a countertop display or a full, immersive experience. Gross says his clients want “something unusual, or a new view of something. We’ve been successful [through our work] bringing people into the stores, and when the displays are ‘cool,’ it has increased sales by as much as 100%.” Further, he says design has become increasingly important: “Six or seven years ago, we didn’t have any designers [on staff]. Now we have eight.”

13» What Will Change?

Finally, asked how he expects the retail vertical to change moving forward, Gross expects to see more digital signage used. He notes that visual elements that change frequently could logically transfer away from print toward digital screens. “You can alter it whenever you want,” he says, “especially for stores with chains. It gives the ability for big rollouts and customization.” McGinnis says he doesn’t expect to see huge changes in the retail space. He says that while there may, over time, be fewer retail outlets, the remaining spaces will offer more. He adds that due to consumer demand, “brick and mortar is here to stay.”

From the feedback given by these two retail-focused producers, printing for the retail vertical — on a high level — means growing in new directions. Customers in this space are seeking deeper ways for their customers to engage with both brands and products, which is a profound shift from simply compelling a consumer to buy. Those producers who can meet this call and bring engagement strategies to the table will be those who can access higher-level customers seeking higher-value services.