Although store design and experience teams expect to have higher budgets over the next year, they’re increasingly plagued by the same challenges — and some new ones to boot.
Retail TouchPoints’ 2024 Store Design & Experience Survey found that these teams are struggling to navigate the rising cost of materials (57%, up from 38% in 2023); adapt experiences to new consumer expectations (also 57%, up from 42% in 2023); and react to tighter store design budgets (47%, up from 38% in 2023). At the same time, they have to consider some new realities, such as how to best integrate new digital media and technology components into existing and net-new concepts (44%).
How can store design teams best prioritize their efforts and ensure their “in real life” (IRL) experiences align with both consumer and business needs? A panel of seasoned design experts discussed these challenges during this year’s Retail Innovation Conference & Expo, outlining the key themes and takeaways:
Takeaway 1: Impactful visual storytelling can drive tangible change and action.
A store design should drive engagement, even excitement, motivating shoppers to spend more time browsing. However, Mike Munchoff, Creative Director of ChangeUp, believes that brands and retailers have a unique opportunity to turn their stores into “stages,” where they can “tell stories and facilitate the change we want to see not only in our business, but also in the world by creating that positive change in people’s lives.”
Visually, brands need to think about how they can communicate their mission and what they stand for to drive that deeper connection, according to Munchoff. “We know that consumers care about purpose-driven initiatives and that these initiatives drive that deeper connection with a brand. But it’s challenging these days, because there’s so much bombardment of news cycles and marketing, and there’s all this information overload that’s causing a bit of a paralysis with consumers. I think we have a unique opportunity to cut through all that white noise, capture an audience and captivate them, and inspire that kind of change and action.”
While some brands are conveying their purpose by investing in concepts that incorporate sustainable materials and design elements, others are navigating both cultural and budgetary challenges that prevent them from making mass updates to their store fleet.
Takeaway 2: Intentional technology use is key to success.
Visual storytelling helps bring the brand mission and vision to life, but technology can unlock the effectiveness of human, physical experiences, according to Angela Gearhart, Executive Practice Director – Connected Customer Experience at AAG Consulting. That is why any digital component in a store needs clear objectives and a strong purpose.
“Digital technology needs to serve a role, and you have to be really clear on who it’s for,” Gearhart explained. “You not only need clearly defined objectives, but also clearly defined outcomes, so you need to think about how you measure the effectiveness of technology in-store to make sure that what you’re doing is a positive investment.”
Gearhart indicated how technology could support store experiences in four ways:
- To create a “wow experience” that helps customers understand the product, driving consideration and conversion;
- To simplify the purchase experience and personalize shopping ease and convenience;
- To collect first-party data so retailers can learn more about in-store shoppers; and
- To provide a safe and secure in-store experience for products, customers and employees.
James Farnell, Retail Practice Leader for Little, noted that some of the most “exciting” and effective examples of in-store technology are embedded into the customer experience and natural environment of a store.
“We’ve experimented for the past decade, trying things out and putting in technology that hasn’t always worked. But what we’re seeing now and what excites me is other ways to layer in that technology, so it’s not just a screen on a wall, but using different planes and surfaces to put technology in. It’s more layered in, so you don’t see it as much; it’s more supportive of the experience. Also, [it’s about] putting technology in the hands of consumers so it actually works.”
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Takeaway 3: Non-commerce-driven activations and physical experiences can support more brand- and product awareness-driven KPIs.
Non-commerce activations and events can help brands connect with consumers in compelling and authentic ways, and in some cases, these non-commerce experiences can drive commerce. For example, in Gearhart’s former role at Sleep Number, the company created an event channel that hosted about 35,000 eventsthat drove an incremental $400 million in revenue.
Farnell also noted that spaces like American Express Lounges, the Samsung Experience Center in New York City and Capital One Cafes indirectly build brand loyalty. Auto brand Rivian takes this idea to an extreme with its spaces; the one in Laguna Beach, Calif. is an updated cinema from the 1930s, where the company hosts movie showings and programmatic content.
“They take a Rivian out to the canyon out back, serve hot chocolate out of it, have all this programming, and they try to get kids out there and exploring,” Farnell explained. “It’s very contextual, and they have a lot of strong programming to support that experience, so it helps position the brand appropriately.”
