Verizon Wireless launched a new, very large “Destination Store” strategy today at the Mall of America. At nearly 10,000 square feet, this facility is an impressive footprint that is stocked full of the latest gadgets and technologies.

It opens tomorrow to the general public at 10am at 7pm Wednesday, November 20th after an appearance by pop star Selena Gomez.

The store was broken up in to areas Verizon has dubbed, “mobile lifestyle zones” which are staffed by specialists they’ve trained. The zones include these at the moment though Verizon’s EVP & COO, Marni Walden, indicated that the zones would be fluid and dynamic based on the rise and fall of various categories:

• Amplify It – for music on-the-go
• Get Fit – for tracking healthy habits
• Have Fun – for novel tech gadgets
• Home and on the Go – for home automation
• Anywhere Business – for simplifying life for travelers and small businesses
• Customize It – for making a style statement for your smartphone accessory

Directionally this Destination Store concept is a bigger and better version of a store strategy Verizon Wireless has been rolling out for the past year called “Smart Stores.”

With in-store pickup and same day delivery also being offered (which many retail analysts believe is ‘table stakes’ to be in the retail game) they are also going to be offering Wireless Workshops in-store to teach customers about new technologies and get them in to the store. Educating customers on all of these areas, what the gadgets and devices within them can do, is an imperative if mainstream consumers are going to start to buy and use connected devices and “things.”

DISCUSSIONS

I had an opportunity to talk at length with a very personable guy: Shankar Arumugavelu, SVP & CIO for Verizon Wireless. I framed-up my first question by pointing out the various “Home and On the Go” items being shown and for sale: Belkin WeMo; Kwikset lock; Nest thermostat; Philips HUE bulbs. Each of them had their own iOS and Android apps so my question was, “Don’t you think consumers will want ONE, unified platform to integrate and leverage all of these devices?”

He pointed out what his COO colleague had said about the zones being fluid and that they would have to learn what consumers wanted (and what they will actually buy). We discussed several developments in the Internet of Things space, but specifically what seems to be the obvious need for value-added platforms (e.g., Digi’s Device Cloud; SmartThings; ThingWorx; Xively). Without a unifying platform to offer consumers, Verizon Wireless has a big store to sell the individual items you can get at Best Buy or Amazon.

Talking with Mr. Arumugavelu it was pretty clear to me that, once again, those types of thoughts are ahead of the market. Evidence such as SmartThings raising $12.5M from Greylock Partners and Highland Capital and Quirky just raising $30M (some from GE). Quirky’s major partnership with GE just landed them a large end-cap display in Home Depot. These are all developments which prove the market opportunity is huge, but we are still very early on so maybe Verizon Wireless’ Destination Store timing is perfect.

IMPRESSIONS

So what did I think of the store itself? Gorgeous. Huge. Well stocked. Nicely laid out. A store I want to be in when it is open. With 71 people devoted to this new strategy (including “Solutions Managers”; “Experience Specialists”; “Education Specialists;” and others) the possibilities for making it a great experience are clear.

All of that said I’m not certain it is enough. Because of the cost of so many devices—especially the Internet of Things items showcased within the Home zone—people will naturally gravitate toward making strategic investments. Rather than buy and run several “point solutions” each with its own smartphone app, consumers will want ONE app that runs all of the devices they buy at the store and Verizon Wireless doesn’t have an answer for an integrated cloud platform which will encourage consumers to invest there and extend what they buy.

In addition, teaching people about fitness devices, how to turn off lamps with a switch, or use a Square payment device in a small business is interesting, but probably not enough value-add for consumers to want to flock to a Verizon Wireless destination store to buy items they can get elsewhere too.

But I’ve been wrong before: in 1990 I predicted the Mall of America would fail but it sure seems to be doing OK.  😉  In any event you owe it to yourself to go and visit this store since it truly is a destination which you’ll undoubtedly enjoy and you can make up your own mind.

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