Shopping in a Window Wonderland

Big stores in cities such as Chicago have always hosted fab holiday windows. Now those displays are high-tech, high-end—and crucial to sales

by Reena Jana

• View Slide Show

Holiday shoppers strolling down Chicago's stylish Michigan Avenue are accustomed to the extravagant window displays beckoning consumers to buy pricey gifts. But this year, the street's Ralph Lauren (RL) store is introducing an unusual alternative, one that gives new meaning to the phrase "window shopping."

On Nov. 20, Ralph Lauren installed a 67-in. touch-screen display that allows passersby to purchase any item from the company's RLX line of high-performance ski-wear—24 hours a day. They can then retrieve available items from inside the store, or have the clothes shipped from a central warehouse—no long check-out lines necessary.

"Our goal was to do what we thought was the most exciting holiday window we could create," says David Lauren, senior vice-president of advertising, marketing, and communications at Polo Ralph Lauren (and the founder's son). The tech-savvy strategy is designed to appeal to sophisticated early adopters.

Six-Figure Windows

"We also saw the interactive window as a way to reinterpret the Ralph Lauren brand," …one that is often associated with traditional, preppy clothing…"in a very modern way," Lauren says. The touch-screen window also displays informational videos on ski conditions in the jet-set destination of Aspen, and ski tips from experts.

Ralph Lauren's interactive window is just one striking example of how luxury brands are using increasingly elaborate holiday displays to attract high-end shoppers. Some of these displays are estimated to cost up to six figures—which some might see as a big investment for a short-term project without measurable sales impact. But most retail executives see such displays as a three-month branding effort that cost less than a magazine or TV ad campaign—and can have broader impact.

"The appeal of a holiday window is that it is lower priced than direct-mail ad campaigns or a TV ad, and can reach a wider audience of shoppers that wouldn't shop at certain stores during other times of the year," observes retail analyst Dana Telsey of The Telsey Group.

Wooing the Wealthy

Consumers are generally spending more than ever on holiday gifts: $800, up from $740 last year, according to a survey from industry trade group National Retail Federation. And Thanksgiving weekend, when most splashy holiday displays are complete, is a key time to woo high earners.

A recent Maritz Retail Research Group poll found that 44% of those with household incomes between $75,000 and $100,000 were planning to shop on Black Friday in 2006. While not an overwhelmingly whopping percentage, this data suggests that even affluent consumers are starting their holiday shopping relatively early this year.

To court wealthy customers, jeweler Cartier updated the façade of its Fifth Avenue flagship store in Manhattan, which for nearly 30 years has been adorned with a giant red bow every December. This year the company has added an enormous, automated musical gift box that opens at 5 p.m. each evening to play Christmas carols. This in addition to an already spectacular holiday display featuring New York City's largest custom installation of LED lights—95,000 of them, which illuminate the 215-ft. long ribbon and eight-ft. tall bow that decorate the store.

Looking Like Vegas

Not far away, Saks Fifth Avenue (SKS) upgraded the 40,000 LEDs (supplied by Philips Electronics) that power 50 10-ft. tall, flashing snowflakes that have appeared on the front of its Manhattan flagship for the past three Decembers.

"Kids and families have loved the traditional Saks mechanical window displays for years. But the lights have a contemporary Vegas quality—and it shows that we're changing with the times," says Tim Wisgerhof, the designer of Saks' holiday displays, as he stands behind a half-finished window backdrop.