With ecommerce becoming a more popular method to shop, companies are looking for ways to bring in extra customers to their retail locations, while also giving them more reasons to stay there for longer.
Some retail locations are hosting art exhibits, offering additional services, and providing helpful expertise and assistance to those who visit, all in hopes of bringing in more foot traffic, offering value that online shopping can’t match, boosting brand loyalty, and more.
Many Physical Retailers are Leaning Into Experiential Retail
With more people turning to digital storefronts to get what they need, many retailers are aiming to entice more shoppers to check out their stores with strategies like experiential retail.
This is a strategy that turns a physical store into an engaging and immersive place that focuses on things like entertainment, community, and interaction, rather than just somewhere that sells products.
Instead of having rows of shelves like many traditional retailers, companies leaning into experiential retail may feature open layouts, product demonstrations, places to test items, experts to answer customer questions, and even live events and shows.
Key Reasons for this Shift
There are many reasons for this shift in physical stores going from solely a place to buy things to places where people actually want to spend time.
First, this type of strategy really leans into the advantages that physical retail has over ecommerce, such as human interaction, product testing, the ability to see and feel items in person, and other types of sensory engagement.
While some people prefer the convenience and accessibility of shopping online, others are returning to in-person shopping as they desire interaction, a sense of community, more curation, or the “thrill of the hunt” that is often lacking when shopping online.
As a result, many of these engagement-focused changes in physical retail are being used to combat ecommerce competition and help physical retail stand out. Here are a few other potential reasons for the shift:
- Using attractive, interesting, and striking environments or events can often inspire customers to share images or videos of the location on social media or with friends, which may entice other shoppers to come check it out.
- Hosting events may foster a sense of community among people in attendance and can turn casual shoppers into brand advocates.
- Unique or intriguing in-store attractions or events can also dramatically increase foot traffic and dwell time, which can increase both sales and basket sizes.
John Lewis is Revolutionizing its In-Store Experience
An example of a company that’s aiming to evolve the in-store experience it provides shoppers is John Lewis.
The British retail giant is expanding its services and making several changes to its stores, including opening dedicated art galleries, which will feature personalized art consultancy. The company is also opening many in-store travel hubs to help people plan holidays, doubling its existing in-store health clinics, and doubling its piercing and jewelry-welding services.
These services will join the other services already introduced at many John Lewis locations, like home design, personal styling, and nursery consultations.
Speaking about the changes, Katie Papakonstantinou, the director of services and hospitality at John Lewis, said that “Our stores are the beating heart of the John Lewis brand, and physical retail is undergoing an exciting revolution. Today’s shoppers want far more than products on shelves, they want inspiration, helpful expertise and extraordinary experiences.”
Other retailers may follow with similar plans, and several already have, as many retailers look to make their stores about more than just the products on the shelves.
Our Take
Physical and Online Retail Don’t Have to Compete
In retail, people often take a side between ecommerce and physical retail, and argue why it’s the better option and why sellers should focus on it. However, the truth is that both physical retail and ecommerce are valuable and deserve your attention.
In fact, many digitally-native DTC brands are opening retail locations, just like many brick-and-mortar stores are going online. Having an omnichannel strategy where you prioritize both ecommerce and physical retail can give you the best of both worlds and offer seamless experiences to customers, no matter where they shop.
While some smaller ecommerce sellers may not be able to open an entire store like the heavy hitters in their industry, they can still participate in physical retail by hosting pop-up shops, joining local markets or shows, partnering with local stores, selling on local marketplaces, or hosting events.
