As a result of the recession, consumers are scrutinizing the purchases they're making. Living beyond one's means is no longer a status statement (Goodbye Joneses). It's no longer good enough just to offer a product. Consumers are looking for fewer products that offer greater value.

So, how do you offer a product, service or experience that provides greater value? According to keynote speaker, Chip Conley, CEO from Joie de Vivre Hospitality, it takes understanding shoppers' higher needs. Conley believes that by applying Abraham Maslow's Hierarchy of Needs to customers, you can discover and meet unrecognized needs. At the top of Maslow's Hierarchy of Needs is self-actualization—the point where peak experiences occur. There's a quantum leap when you move from the first level of meeting expectations (survival) to the second level of meeting desires (succeed). The third tier where meeting unrecognized needs is achieved is when customers are truly transformed to evangelicals. Brands like Anthropologie, Apple, Nordstrom, Whole Foods and Lululemon are good examples of transforming their customers to evangelicals.

Technology was a repeated theme from last year's conference, but this year the focus was more on how to create a unified experience. Seasoned IRDC speaker, Jim Crawford from Taberna Retail, took to the stage again and reminded us that we should not think in multi-channel, but instead by customer touchpoints: On the Go, At Home and In the Store.

This year we saw many retailers implementing new types of technologies in-store. Some retailers were eager to implement without strategy, and as a result experienced failure, while others took a more thoughtfully planned approach and saw success. Crawford suggested that in order to achieve success, it's important to think of the role technology plays in-store—to attract, inspire and engage. Technology does not equal innovation alone, it's the way it's used in the store that creates or enables innovation. New Balance's Urban Dash, Airwalk's invisible pop-up store and Ralph Lauren's use of 4D, were our favorite examples of innovative ways to use technology.

By 2015, the Millennial population will reach 85 million, surpassing the Boomer generation. It's no surprise that this was a hot-topic for attendees, as it's already creating a significant change in the marketplace. In the panel session, "Designing for the Millennial Shopper," the presenters dug deep into the minds and shopping habits of Millennials, ages 18-29, to determine how they're shaping the retail landscape.

One particular key point of the panel discussion was recognizing the uniqueness of this demographic group—they are the most diverse generation due to the fact that they span demographics. They are made up of students, individuals moving out and moving up, adjusting professionals and Millennial parents. There's a bigger idea here—using demographics as a way to segment is dead, therefore utilizing psychographics and attitudinal information will continue to play a greater role.

However diverse, there are some things that we do know about this group of consumers. Millennials don't follow the traditional societal path. They've experienced a lot of real-life experiences, so their values—trust, transparency and authenticity—reflect that. They are frugal, but that doesn't mean that they don't have money to spend; they will make it stretch more than any other generation. They plan out what they're going to spend and consult several sources of information before making a purchase decision. Millennials have grown up in a digital world, so they crave tangible, high-touch experiences. The idea of technology is irrelevant; it's to be expected. Understanding that this generation is connected more so than any other generation, retailers need a holistic view—what is their journey with your brand—not just in-store.

"One of the biggest population trends today is the migration to urban centers, which springs from people's desire for authenticity, shorter commutes, greater diversity of experiences and an escape from mass culture. Today, 50% of the world's population lives and shops in urban centers, and by 2050 it will likely be two-thirds." (Source: Chain Store Age, August/September 2011)

Someone who strongly supports re-urbanization is Rob Forbes, IRDC closing keynote speaker and founder of Design Within Reach. As a self-described "streetwalker," Forbes travels the world exploring cities like Amsterdam and Paris. Recently, he was able to observe a revitalization of urban centers and public transportation, inspiring his newest venture, PUBLIC Bikes, a San Francisco-based company that designs and sells European-style urban bicycles and gear. Forbes created PUBLIC Bikes with a mission to help improve the quality of our public spaces and our public lives.

Based on his success in creating community-focused retail, Forbes urged retailers to find a way to be more relevant in the urban environment. He discussed the reversal of a 40-year trend, stating that cities are culturally changing and urbanism is the future. This creates new realities for retailers and gives them the opportunity to become a part of the movement and take some risks.

Check out this video to learn more from Rob Forbes about why design matters and the vision behind PUBLIC Bikes.

Related to the trend of re-urbanization is the idea of "Little and Local." For those big-box retailers not currently in an urban environment, it likely means embracing the idea of a smaller footprint. It also may mean a smaller product assortment, tailored to the specific needs of the local community it will be serving. Walmart, Target, Best Buy, Bloomingdales and Gap are all examples of retailers with small format stores currently or in the works.

Whole Foods is another example of a retailer adapting to the trend of little and local. Whole Foods took to the stage at IRDC announcing that they believe "Little is the New Big." By creating smaller stores, Whole Foods is able to reach new markets and through research, determines what the customer wants. Whole Foods admitted that some of their stores were just too big to begin with, so with a smaller format they can create better operations and be more efficient and achieve a more intimate experience.

With over 300 stores in the Whole Foods chain, you might be surprised to learn that no two stores are alike. Whole Foods takes localizing to a whole new level. Each store is researched on a community level and is assigned a community advocate who attends neighborhood meetings and events, and serves as the area contact for questions and concerns. Each store also has a local forager who travels around and talks to producers. Not only does Whole Foods sell the products from these local producers, but they also aid small businesses by providing loans. In an effort to have the stores reflect local flavor, they each have an artist who often utilizes local materials to incorporate into the space, such as a gym floor salvaged from a nearby high school.

It's also worthwhile to note that no design is typically final. They open the store, see how it works and sometimes it's remodeled in six months in order to find the right fit for the community. Taking all that into consideration, it should come as no surprise that Whole Foods is this year's 2011 VMSD/Peter Glen Retailer of the Year.