In-store experiences at their best can make consumers' lives easier—perhaps through a seamless checkout process—or more enjoyable, thanks to an experiential atmosphere. Often, technology can be a useful assist here, but it can also serve as a distraction if retailers chase whatever the shiny object of the day is versus investing thoughtfully to meet shoppers’ real needs. These days, generative AI is the word on everyone’s lips, and retailers have found a myriad of use-cases for the technology across efforts like employee staffing levels and personalized gift finders. Both Target and Walmart have boasted of the technology’s usefulness in helping associates handle customer requests in stores, and retailers more broadly are excited about its potential to take over mundane tasks from employees.
It’s too early to tell what the eventual impact of generative AI will be across the industry. As with all things, trends in retail tech tend to ebb and flow, sometimes in unexpected ways. Take the QR code, for example, which shot to prominence during the pandemic after being largely ignored for decades. But alongside these innovations, retailers can’t lose sight of the more basic elements of the in-store experience, like adequate staffing and inventory levels, engaging merchandising displays, and helpful employees. The needs of a given sector also might dictate how retailers approach the physical store, whether it’s bringing in complementary shop-in-shop partners, opening food concessions, or integrating visualization technology.
In this package of articles, we’ll share examples of how retailers are thinking about the in-store experience, from payments to experiential retail and sector-specific trends. And as always, we’ll have our eyes on how this all changes, too. Physical retail is still the most popular channel to shop, but as AI tools become more prevalent, retailers will need to rethink in-person offerings. Stores are still dominant, and they will be in most categories for some time to come. Though AI tools for shopping continue to grow in popularity, retailers cannot neglect brick-and-mortar stores. Stores are valuable assets, and if you were to consider cutting or eliminating store footprints because of the rise of online shopping, you may be missing a significant trick.
Studies show that a majority of consumers prefer shopping in person. Stores continue to be valuable for product discovery, understanding promotions, and new product launches, which customers don’t necessarily get through AI curation. Retailers are also beginning to introduce fresh in-store experiences and services. Providing services in-store can diversify revenue streams and drive increased foot traffic and customer loyalty. Executives say visitors to experiential formats tend to stay longer and spend more than typical shoppers. The combination of these strategies shows that as retail evolves, the store experience is still critical to engaging consumers.