Embracing the Evolution
In an era when digital convenience often reigns supreme, physical stores face the challenge of declining foot traffic. Despite the undeniable appeal of online shopping, which offers unparalleled speed and convenience, brick-and-mortar stores still hold significant value for customers, providing tangible, sensory experiences and serving as community hubs that foster human connection.
For retailers, these physical locations are strategic assets that reduce transportation costs and enhance profit margins. However, to counteract the trend of diminishing footfall, physical stores must evolve, offering unique advantages that online platforms cannot replicate.
Experiential Retail to Redefine Consumer Engagement
The future of retail lies in transforming stores into engaging environments that captivate customers beyond traditional shopping. Stores are no longer just a point of sale; they must be vibrant interactive environments that foster a community. For instance, Santander’s Work Cafés combine a co-working space, café and banking services into one. These spaces not only serve Santander’s clients but also welcome the wider community, turning a standard bank visit into a social experience and boosting customer engagement.
Experiential retail focuses on creating memorable experiences that entice customers. This approach can include in-store events, personalised services and interactive displays. For example, Apple is known for hosting in-store events and training demonstrations, while Rebecca Minkoff was one of the first brands to use interactive smart displays, such as mirrors that allow customers to browse clothing options while in the dressing room.
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Technology to Expand the Retail Experience
For experiential retail to thrive, integrating technology into the physical shopping experience is essential. Tools such as facial recognition, virtual try-on services and QR codes can bridge the gap between online and offline shopping.
Sephora’s ‘Virtual Artist’ is a standout example of facial recognition used in this way. Both the digital mobile app and in-store 3D augmented mirror scans a customer’s face, detecting eyes, lips and cheeks for product placement, allowing the customer to try on makeup virtually without the need for a makeup artist or application of products.
Specsavers offers customers a virtual try-on service to test various frames before ordering or visiting the store. Similarly, OWNDAYS, a Japanese optical provider, allows customers to select frames online before coming for an in-store eye test, ensuring that their glasses can be ready within just 20 minutes of entering the store.
QR codes are another tool that retailers continue to utilise to connect the online and in-store shopping experience. Decathlon prints QR codes on in-store product labels, allowing customers to scan and virtually view the same product but in different colours and with other variations, in the moment. This “endless aisles” strategy provides customers with the opportunity to consider thousands more product options without the need for the retailer to store such products on-site.
Putting Convenience at the Heart of the Retail Experience
Blending physical and digital platforms not only enriches the shopping experience but also enhances convenience. Mobile apps and websites can guide customers to specific products, provide real-time availability and streamline the shopping process.
Target’s app, for instance, helps customers locate items in-store by specific criteria such as size or colour, ensuring the product is available to buy when they reach the store in person and resulting in greater customer satisfaction. Online convenience also supports accessibility, making it easier to locate specialised items, resulting in time saved for the customer and reduction of wasted journeys.
Leveraging AI for supply chain management and trend forecasting can significantly enhance customer convenience by predicting and adapting to supply and demand fluctuations. IKEA exemplifies this with its digital portal, which provides real-time inventory and delivery updates. This technology improves both online and in-store shopping experiences by updating stock availability with every sale, ensuring customers can check product availability before visiting their local store.
The Store of the Future
To revitalise high streets, it is crucial for retailers to merge online and physical retail strategies effectively. Embracing experiential retail, integrating cutting-edge technology and ensuring a seamless and convenient shopping journey are pivotal in rejuvenating physical stores. As retailers innovate and adapt, this hybrid approach promises to enhance customer satisfaction, loyalty and overall profitability for the retailer.
For more insights into retail innovation, visit BJSS’s dedicated section on retail transformation, which includes an eBook on the subject of the shifting retail landscape and the key trends that are reshaping the industry.
Kerry Lee is BJSS’ Retail Client Principal. He explores the evolving dynamics of retail and advocates for a blended strategy to rejuvenate high streets, leveraging the strengths of both online convenience and in-store experiences. Lee helps retail enterprises in adopting new technologies and implementing innovative solutions to better serve their customers and streamline operations. His expertise lies in helping clients achieve successful digital transformation through cloud migration, application modernisation and the adoption of new technologies, drawing on strong partnerships with major public cloud providers.
