Immersive Shopping In 2024

Fresh from my latest retail safari I'm buzzing with excitement about the ever-changing landscape for brands and stores in 2024. We’ve all seen the news regarding the blows the high street has taken, with giants Wilko making headlines; alongside store closures from the likes of Argos, Next, and WHSmith. Despite this, it's not all bleak.

Sadly, it’s true that since 2018, 6,000 retail outlets have vanished, and while it's easy to point fingers at COVID and the online shopping surge, there's a silver lining. Forward-thinking stores are rewriting the playbook on attracting customers, securing long-term growth, and are emerging as the victors. Just look at the success stories of Primark, Dunelm & Footasylum, who, in particular, made headlines throughout the year with several store openings and upsizing across the UK alongside a year of ‘record growth’.

While the industry fixates on luring Gen Z with social media development, it's essential to remember that this tech-savvy cohort still craves in-store experiences. A recent ICSC report revealed that despite their digital prowess, Whilst 95% of Gen Z like shopping online, just as many (97%) also enjoy going shopping in person. About 30% cited the ability to get products immediately, 28% said they liked being able to see, touch and try products, while 11% enjoyed not having to pay for shipping.

However, respondents did say that shopping online meant they could compare prices more easily (30%) and get better deals and prices (20%). Sure, online offers price comparisons and deals, but the thrill of browsing in-store remains unparalleled. Social media wields immense influence over Gen Z's purchasing decisions, with platforms like Instagram and TikTok swaying nearly 85% of respondents.

So, why the push for physical spaces if the future seems digital?

I remember discussing the future of the high street during the height of Covid. As one wise client mentioned ‘The stores that future proof themselves are the ones that will win and physical retail is far from dead, but boring retail certainly is’. This mantra rings truer than ever, epitomised by Gymshark's partnership with Selfridges, who recently became their first ever wholesale partner. It shows that a brand which has won big digitally in the last few years is signalling a shift toward maximising physical exposure and there's no better place to expand your presence than in one of the iconic Selfridges stores!

My recent time in Dubai cemented the feeling that I’ve had for a while. Technology is the underlying foundation to bring retail experiences to life as the landscape continues to advance. However ,to survive in the new digital reality, traditional brick-and-mortar retailers need to embrace change and adapt their business models to better meet the evolving needs of consumers. Successful retailers don't just use technology; they leverage it strategically. Digital Signage, Kiosks, and personalised in-store apps are the new weapons of choice. And let's not forget the importance of a seamless omnichannel experience, with options like BOPIS and curb-side pickup elevating customer satisfaction. Now we’re not necessarily talking about anything new here and it’s not ground-breaking advice. However after spending a great deal of time speaking with businesses on this journey, I've learnt that for these in-store technologies to be truly effective:

• They need to be seamless & unobtrusive
• The need to empower in-store staff
• The need to enhance the buying journey

This is perhaps where the tricky element comes into play as many retailers & brands I've worked with often find themselves in a situation where they ‘are building the plane whilst flying it’ whether with unexpected growth or stuck embedded within legacy. Because of this, the widespread adoption of all of the technologies mentioned above has been hampered in the past for sure.

For this reason, it is critical to have a strong partnership ecosystem in place. One that as a business you are proud of and can lean on when necessary to support you as required. Whether it’s new eCommerce platforms, back end solutions or instore / onsite tools & enhancements, ensure to ask all required questions prior to signing an agreement and when you can, speak to another brand or business that is already working with that supplier to get a first hand experience.

There are a number of approaches when it comes to enhancing the consumer experience, a game changer in my mind is the use of location based services (LBS). Not only can it be utilised in store, but businesses can also use LBS to optimise warehouse operations, enabling asset tracking and route optimisation tools. In turn streamlining inventory management and driving efficiency, while reducing overall costs.

Going back to what the technology can do in-store. LBS presents an array of innovative features that can significantly enrich the retail journey. Whether that be access to digital coupons, upsell recommendations, pinpoint navigation assistance, personalised promotions and real time product information tailored to preferences. The opportunities are endless. In addition, not only does the technology elevate the shopping experience it provides retailers with a deeper understanding of the customer journey. By leveraging these advanced technologies, retailers can gain insights into customer preferences, behaviours, and interactions, leading to more informed decision-making and the ability to tailor offerings to meet individual needs.

Ultimately, a win win for both customers and stores. An overall better and more seamless shopping experience for consumers and a more holistic view of the customer journey for retailers.

The key factor and consideration for an investment of both time and resource into enhancing the overall store experience however is to ensure that the experience is relevant. I’ve seen many retailers often jump at the chance to play with that shiny new toy, to then chuck it out quite quickly. In a world where customer loyalty is key, spend time investigating how your in store experience can be enhanced, and find out what’s going to drive your consumers' experience in an informal and seamless way. If you can, go and do a retail safari of your own to take insight & findings from others leading the charge.

As easy as it is to explain how it's done without any examples, I wanted to share some of the experiences I've come across and researched which stand out as great examples of how technology can be seamlessly incorporated in-store to drive customer experience. In the meantime, Stay tuned for more insights and examples by following Tech Hubble where we'll continue to delve into the evolving landscape of retail technology and its impact on customer experiences.

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