Making Space – Real Time: Meta Labs @ Best Buy, Lululemon, & Kohl's Babies R Us Shop-in-Shops
Chris Niesen is back for episode 2 of Making Space Real Time, presented by the Association of Retail Consumer Professionals (aka ARC) in partnership with Omni Talk. Omni Talk CEO Chris Walton returns as guest host, and this time both Chrises walked all three stores before hitting record.
In this episode
Meta Lab at Best Buy. The AI glasses and VR headset shop-in-shop launched in June and is now in 50 stores, while Meta takes its standalone labs from 8 to 14. Chris Niesen breaks down placement, design, and experience at the Roseville, MN store: strong framing and hands-on demos, but broken smart mirrors and 600 square feet of empty floor next door. Chris Walton argues the real question for Best Buy's shop-in-shops (Meta, IKEA, Yardbird) is who pays for the staffing, and explains why this was the first display that made him see a future for smart glasses.
Lululemon's rough quarter. Q2 revenue fell 4.3%, comps fell 9%, women's leggings dropped 20%, and store openings are being cut as new CEO Heidi O'Neill steps in. Chris Niesen's diagnosis is that the brand no longer has a clear point of view, especially next to Alo, Vuori, and the Gymshark shop at Dick's. Chris Walton was the only customer in the store at 2 p.m. on a Saturday, and he explains why "SKU reduction" is code for "we need to focus" and why localization won't fix a product problem.
Kohl's doubles down on Babies"R"Us. The concept is expanding to 56 more stores on top of the 200 opened in 2024, even as Sephora at Kohl's (about 10% of sales) keeps sliding. Chris Niesen makes the case that the stores themselves are fundamentally broken and that Kohl's should cut 20% of its fixtures and product before chasing the next shop-in-shop. Chris Walton pushes back slightly: baby could be the right traffic play, and he'd stop taking Amazon returns before he'd kill Babies"R"Us.
The Checkout. Why Altar'd State is a visual merchandising standout, what Lush's Ruth Andrade told Ben Miller about walking away from social media, college sports allegiances, and favorite Christopher Nolan movies.
Final Sale. Chris Walton's assignment for Chris Niesen and a future show: the 100+ Toys"R"Us pop-up stores opening this year, and whether they're Spirit Halloween part two.
Timestamps
- 0:00 Welcome and what this show is about
- 2:11 Chris Walton on conference season
- 4:42 Story 1: Meta Lab at Best Buy
- 11:33 Who pays for shop-in-shop staffing?
- 18:14 Story 2: Lululemon's quarter and what it looks like in store
- 23:50 How new leadership should approach the turnaround
- 28:53 Story 3: Kohl's and Babies"R"Us
- 33:42 Is Babies"R"Us the right move?
- 37:41 The Checkout
- 42:16 Final Sale: Toys"R"Us pop-ups
- 43:16 Wrap-up
Links
- Watch on YouTube: youtube.com/omnitalkretail
- Listen: search "Omni Talk Retail" wherever you get your podcasts
- Chris Niesen's writing: chrisniesen.substack.com
New episodes every other week. If you enjoyed the conversation, please leave a like or a review. We'll see you on the floor.
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