Remember pop-up stores? Customers lined up around the block to cram into your crafted space. They put their grubby mitts all over your interactive touchscreens. They tried on as many pieces of clothing as they could. They drank your bubbly. You may have even done group yoga with them. Gross. Still, we’ve seen some significant investments in flagship stores recently. Nike opened its Live store in Guangzhou; Ikea launched its Home of Tomorrow in Poland; and in Australia, T2 created its first
rst sustainable store.
If only we could visit them.
So, is that the end for experiential retail?
Hardly. It’s just that the customer’s idea of an excellent retail experience has changed.
Let’s be honest. “Experiential retail” is often just a lazy term for a physical store where we’ve included some pretty stuff to look at and interesting stuff to play with. It was fun while it lasted but, surely, we can be better than that. Covid-19 might be the thing to push us.
In the “new normal” world, customers will revert to more basic needs. They’ll want their retail experience to be quick, safe and, hopefully, enjoyable. This reprioritisation opens up considerable opportunities to reimagine experiential retail for expedited fulfilment, ultra-convenience and immersive online connection.
Where in-store technology focused on engagement, it turns to convenience. Out with immersive experiences and in with the ability to check out on your phone, shopping carts that automatically check you out and virtual fit-on stations. We’re not hanging around in your filthy store.
Where stores were once the centre of the universe, they become part of the puzzle to fulfill online orders as quickly as possible. A well-optimised store network is a substantial competitive advantage. We saw this with the second stage of lockdowns in Melbourne in Australia; Woolworths immediately converted three of its Melbourne stores into fulfilment stores.
In the US, Target is using its “stores as hubs to offer guests a broad suite of fulfilment services that meet a wide range of guest needs”. This store-led fulfilment includes same-day shipping, click-and-collect and curbside pickup. Stores now fulfil 80 per cent of Target’s online sales.
Using stores to give fulfilment choice and speed is the new customer experience. But unlike the old experiential retail, it doesn’t stop at the store. Immersive retail experiences extend into our prisons homes as well.
Merging entertainment and shopping
We saw some brands take their physical experience online very quickly. High-end Australian furniture brand King Living was nimble and got virtual showrooms up in a matter of weeks. Others, like Diesel and Kanye West reinvented the online shopping experience by creating virtual shopping worlds. Covid or not, I’m not sure we’re ready for Kanye’s twisted dark fantasy.
We have seen a surge of interest in TikTok and shoppable live-streaming channels with the Covid restrictions. Merging entertainment and shopping has never been as popular since motivational speaker Tony Robbins started selling steam mops to us.
During Covid, the previously ho-hum Nintendo Switch suddenly sold out. Why? All because of a sudden surge of interest in the Sims-like game Animal Crossing. We saw quick brands capitalise by setting up clothing lines specifically for characters within the game, offer professional services and even set up new stores to allow trading. Ralph Lauren even started selling outfits for Bitmoji figures. Are we looking for a quick escape or have we just gone mad in lockdown?
There are thousands of other examples of businesses that are delivering experiences outside of immersive physical experiences: Think products that integrate into lifestyles, packaging that is an adventure to unbox and customer service disguised as a social catch-up. The opportunities for immersive experiences are much more significant if we take them out of the limitations of the store.
The short of it is, our customers’ idea of outstanding shopping experiences has changed. Stores aren’t the playgrounds they once were. But it doesn’t mean we have to give up on creating amazing experiences. We just need to adapt! Now, what to do with all those touchscreens?
Nathan Bush is the founder of e-commerce consultancy 12HIGH. He was previously group digital manager at Super Retail Group and was placed in the Top 50 People in E-commerce four years in a row. Contact: nathan@12high.com.au