Nothing compares to the experience of shopping from the comfort of your own home. Whether you are laying in bed, on a lunch break or mindlessly scrolling through product pages while watching TV, it is everyone’s favorite pastime. Yet something remains so special about the traditional in-store shopping experience and 47% of consumers plan to make their holiday purchases in department stores. Full of personalized touchpoints and the chance to engage with brands face-to-face it holds a unique attraction. As we approach the holiday season, let’s explore how you utilize some physical retail trends and make the most of the in-person shopping experience for your customers.
Key physical retail trends:
- Experience > product
- The power of pop-ups
- Use of new technologies
Experience > Product
In-store experiences are becoming the key to brick-and-mortar success for retail brands who are trying to bring consumers back in person. With 88% of customers considering the experience a company provides to be as important as its products and service, many brands are transitioning to focus on the experience more than the product. As the holiday season approaches, retailers are recognizing that creating memorable in-store experiences is not only a year-round strategy but also a crucial element in capturing the festive spirit and attracting holiday shoppers.
- Apple: While the design-focused stores maintain a minimalist aesthetic, Apple places a strong emphasis on enabling customers to engage with a diverse range of products. They also offer classes, demonstrations and various activities where customers can come together and learn more about the brand’s products.
- Starbucks Reserve Roastery: With less than 10 locations worldwide, Starbucks has created an exclusive experience for customers to experience the best of the coffee brand while also learning about the origins and history of the products. Consumers get to experience new Starbucks creations and roasts while also paying tribute to each city’s art, architecture and culture.
- Lululemon: Every week, Lululemon stores across the country turn their stores into instant yoga studios. By offering complimentary classes led by instructors from the community, Lululemon is getting people into their store by bringing people together to be active and fulfill their mission of inspiring people to live their best lives.
The Power of Pop-Ups
Pop-up stores are short-term retail establishments that open for a brief period of time. This could be to expand a customer base, promote seasonal sales, test a new market and more. For exclusively online stores, pop-ups are a way to show products in person and have the opportunity to interact with customers face-to-face. Many stores decide to open up pop-ups during the holiday season to attract more consumers during this busy time of the year.
- Djerf Avenue: This Swedish, ready-to-wear brand, has been exclusively online since 2019. But last week they hosted their first ever pop-up in New York City, allowing the brand’s fans to see the clothes in person for the first time since the Djerf Avenue was founded.
- Skims: Kim Kardashian’s loungewear and shapewear brand has held pop-up events in cities such as New York, Los Angeles and Miami. The most recent pop-up store, which launched in London in June, featured decor designed to evoke the ambiance of a LA poolside setting, promoting the brand’s swimwear collection.
- Shein: Since 2018, this fast fashion brand has been hosting pop-up events, discovering that its customers greatly enjoy the opportunity to engage with the brand face-to-face. These pop-ups also serve as an effective marketing strategy to showcase and promote new collections or collaborations.
Use of New Technologies
Emerging technologies have been transforming commerce, enhancing both the online and in-person shopping experiences. AI has taken over the ecommerce world, replacing mundane marketing tasks and significantly improving customer interactions through the deployment of chatbots. Simultaneously, in physical stores, AR and other cutting-edge technologies are reshaping the shopping experience, making it more seamless and immersive. While virtual try-on capabilities are particularly relevant to the world of ecommerce, these technologies are starting to find their place in physical stores, and bringing a whole new level of excitement and convenience to the holiday season, further blurring the lines between online and in-store shopping.
- Snap Mirrors: Snapchat recently launched their “Snap AR Mirrors” which are in-store fitting room mirrors that allow users to try on clothes and accessories virtually. They are currently being used in Sephora, Nike, Men’s Warehouse and more.
- Adidas: Adidas added multi-sensory installations to their flagship store in Beijing, China to create a more exhibition-like experience. The brand created a giant interactive cube offering a lottery for purchasing limited-edition items, a digital sound garden enabling visitors to dance alongside avatars in personalized music videos using AR technology and more.
- Lowes: With such large stores, it can be difficult for customers to find products and navigate through stores. This is why Lowe’s has started testing their “Lowe’s Vision Navigation” which helps customers by using computer vision to give customers turn-by-turn digital directions to the products they need.
While online shopping offers undeniable convenience and accessibility, the in-store shopping experience continues to captivate with its blend of immersive omnichannel encounters, personal connections and the magic of face-to-face interactions. As we gear up for the holiday season, let’s remember how these physical retail trends can help brands create unforgettable moments, forge lasting relationships and leave a lasting impression on your customers.
FAQs:
1. How do retailers measure the success and ROI of pop-up stores, especially when considering factors like customer engagement, brand exposure and conversion rates, given their temporary nature?
- Retailers can measure the success of pop-up stores through various metrics, including foot traffic, sales revenue, customer engagement and brand exposure. They can track the number of visitors to the pop-up, the duration of visits and the conversion rates of visitors into customers.
- Additionally, retailers can conduct surveys or collect feedback from customers who visit the pop-up to understand their satisfaction levels, preferences and likelihood of making future purchases.
- To calculate ROI, retailers should compare the costs associated with operating the pop-up, such as rent, staffing, marketing and inventory, with the revenue generated during the pop-up period. They can also consider the long-term impact of the pop-up on brand awareness, customer loyalty and market expansion.
2. What are some potential challenges or drawbacks associated with implementing new technologies, such as AR and AI, in physical retail stores, and how can retailers effectively address these issues to ensure a seamless and positive shopping experience for customers?
- One potential challenge is the initial investment required to implement new technologies like AR and AI, including hardware, software, training and integration with existing systems. Retailers need to carefully assess the cost-benefit ratio and ensure that the technology aligns with their business goals.
- Another challenge is ensuring seamless integration and compatibility between different technologies and systems within the store environment. Retailers may encounter technical issues, interoperability issues and data security concerns that need to be addressed proactively.
- Additionally, there may be resistance or skepticism from customers or employees who are unfamiliar with or hesitant to adopt new technologies. Retailers must invest in user education, training programs and user-friendly interfaces to overcome these barriers and ensure widespread acceptance and adoption of the technology.
3. In what ways do retailers balance the need for innovative in-store experiences with traditional retail elements, such as product availability, pricing and customer service, to create a holistic and engaging shopping environment for consumers during the holiday season and beyond?
- Retailers can strike a balance between innovative in-store experiences and traditional retail elements by leveraging technology to enhance rather than replace core retail functions. For example, they can use AR and AI to personalize product recommendations, streamline checkout processes or provide interactive product demonstrations while still maintaining a robust inventory and pricing strategy.
- Retailers need to prioritize customer service and human interaction, even as they integrate technology into the shopping experience. Providing knowledgeable staff, responsive customer support and personalized assistance can complement technological innovations and create a memorable and positive experience for customers.
- Retailers should also monitor consumer feedback, market trends and competitive developments to adapt their strategy continuously and ensure that they meet evolving customer expectations while staying true to their brand identity and values.
