Throughout 2023, more than 10,000 retail stores closed their doors. Around the same time, 70% of shoppers admitted they couldn’t remember the last time a brand excited them. Steve Lesnard, global chief brand officer at Sephora, also shared his belief that “retail isn’t dead, but boring retail may be in trouble.”
While many brands continue to close their high street stores, others are witnessing a revival. In a recent interview with The Times, entrepreneur Touker Suleyman reported that the ‘appetite for in-person service’ was finally returning post-covid, and insisted that “stores are back; people want the experience of being out shopping again.”
In an era where customers can buy anything online, those who visit brick and mortar stores are reportedly seeking enhanced experiences to make their trips worthwhile. Summarised by Director, Andi Davids for The Drum, “I hate to break it to you, but a cafe and personal shopping service isn’t going to cut it.”
As part of this revival, many brands are looking to cultivate immersive shopping environments by utilising new technology. This immersive, experience-based sales method was coined ‘retailtainment’ in 1999, by sociologist George Ritzer. Though this concept has existed for more than two decades it remains just as appealing for modern shoppers, with 80% of consumers being more likely to purchase after a positive retailtainment experience. The technological advances made in this time also allow today’s brands to enhance customer engagement in many exciting new ways, breaking the curse of ‘boring retail’.
We’ll explore some of these methods, along with some predictions as to how they could influence the future job market.
Disrupting the high street landscape
In 2023, the National Retail Federation reported that although consumers find online shopping convenient, brick and mortar stores still accounted for around 70% of sales. The market research platform, Momentive similarly shared that 56% of adults preferred to shop both online and in-store, while 88% felt it was important to have both options.
For customers who are flexible in their chosen way of shopping, retailtainment is a perfect example of how online retail can complement in-store experiences. For example, beacon technology has been adopted by brands like Apple to offer shoppers exclusive discounts based on their position in-store. These bluetooth sensors can be placed around stores to trigger and send proximity-based messages to customers’ phones.
Meanwhile, other brands have developed their stores which incorporate art installations, with ASMR and surrealist winding corridors, or science-fiction exteriors to intrigue the public and disrupt the usual high street landscape. Others have interactive audio installations to detail the history behind luxury products and heighten brand identity, or require shoppers to complete in-store missions by scanning QR codes to earn tokens. These methods all generate organic interest, increase marketing through word-of-mouth, and enhance brand recognition.
Online and in-store augmented reality
When shopping online, augmented reality (AR) is commonly used for 3D (or 360-degree) product viewers and virtual fitting rooms, adding an element of gamification to the user experience. According to data from Shopify and Rebecca Minkoff, 65% of visitors are more likely to place an order after interacting with a product in AR.
By 2029, the virtual fitting room market is expected to be worth $14.87 billion globally. Despite this success, some users express distrust around accuracy. In-store retailtainment technology such as AR mirrors can provide an accessible middle-ground, as they project clothing or makeup onto customers in real-time, but also allow them to request the product in person to determine the texture, quality and fit. This helps to manage the client’s expectations and provide a memorable experience.
When using virtual reality (VR) headsets, shoppers are transported into virtual showrooms. In the case of IKEA, this places them within a 3D-rendered home where furniture can be switched to different colourways and added to their carts. Something as time consuming as repainting a wall or switching furniture can be done in seconds, quickly deducing whether the product is right for them. For reasons such as this, some retailers have cited a 36% decrease in returns as a result of using AR – a common aim for many brands.
Evolving skill sets in retailtainment
Digital skills
Earlier this year, a study of 100 retail executives from large enterprises found that 99% predicted technology investments to increase, while 94% viewed tech as a key driver for attracting new customers. With this predicted rise, a knowledge of digital interfaces including UX/UI development, gamification and user sales journeys could become increasingly in-demand for retail and ecommerce roles. As a consequence we envision brand managers and design managers becoming increasingly sought-after as businesses seek these skills for launching interactive and engaging retailtainment campaigns.
Storefront dressing to engineer social media content
Modern technology is shaping the layout of stores themselves. Brands are looking for new ways to display their products aesthetically, subtly encouraging customers to produce user generated content by sharing their experiences online. Understanding how to do this effectively is a niche skill influenced by buyer personas and market research. As stated by Casper’s Environmental Design Director, Pete Trentacoste; “we try to make the stores and the space itself beautiful and inspire good looking pictures, but we’ll never put a hashtag on the wall.” This approach provides an opportunity for social media managers to collaborate with visual merchandising teams. By factoring in not just aesthetics, but also buyer psychology, they can create unique and eye-catching retail environments.
Supply chain planning and buying
Implementing engaging store installations can require a large amount of planning, design and materials. In traditional retail, high demand periods can be anticipated with coming holiday and sales periods. However, with modern retailtainment, these high periods of demand can be manufactured for various times of the year to align with and enhance new product launches. Therefore, adaptability when anticipating and understanding the resources needed for large-scale installations will be paramount. Those in buyer roles, particularly those with experience in interpreting data and anticipating new trends, will likely become highly sought-after.
Work with Distinct
As a leading East Midlands and London recruitment agency, we strive to stay informed on the latest trends in retail, and what they mean for the world of work. If you’re searching for your next job, looking to hire, or would like to discuss recent trends in the UK retail market, contact us today.
