As we look to 2025 and beyond, it is clear that brick and mortar retail will continue its evolution. With most online shopping offering a muddy brand experience at best, it is more critical now than ever for retailers to offer unique experiences and eye catching designs to attract customers and create meaningful opportunities for engagement. Additionally, as uses for AI and technology have continued to expand, retailers have a unique opportunity to lean on these tools to obtain customer driven insight, lift sales and improve the overall shopping experience.
Experiential retail
Stores will continue to create memorable customer engagements through immersive designs, interactive displays, special events and disruptive retail experiences. Some products (like sound systems or home security products) simply can’t be vetted through the web, so creating a demo experience is critical. Similarly, retailers can utilize interactive media to help educate and engage a customer in store. Bottom line, utilizing technology to create a meaningful experience at retail is essential. And with all the new advances, the sky is literally the limit!
AI and machine learning at retail
Retailers can now use AI and machine learning to track inventory, predict disruptions, and adapt supply chains. The possibilities for using this technology are endless, but imagine being able to ensure in-stock products (a struggle for Brick & Mortar vs online retail) and help eliminate redundancy in products that are lower performing. 2025 will be a big year for growth and implementation of AI technology and it will be exciting to see how it continues to evolve and expand retail channels.
Understanding customers
In 2025, it will be critical for retailers to invest in understanding their customers and their shopping habits. From tracking average purchase values, knowing how often customers return to store (or online), and capturing geographical information to hone in on key markets and demographics; data is power. Not only is this data a great way to predict seasonal trends and forecast sales, it will also be an essential and readily available asset to developing where and how to implement retail programs for in person shopping experiences.
Recognizing the importance of physical stores
Retailers will recognize that physical and digital stores are symbiotic components of a single retail enterprise. While online shopping offers consumers a quick and effective means to shop, it simply can’t replace the in-store experience. Engaging with products, trying things on and walking the aisles are still equally as (if not more) valuable to shoppers. Bog box retailers will continue to play a pivotal role in opening their retail real estate to brands, and brands must in turn create high-impact, meaningful opportunities for customer engagement. Design and executed at the highest level, this is an opportunity for brands to not only lift sales and maintain that valuable real estate in store, but acquire that ever important brand loyalty that keeps them coming back for more.
One retail expansion you may not have seen coming:
Netflix will open permanent retail spaces called “Netflix House” that will feature retail, dining, and live experiences. Accordingly to Netflix, these spaces will creative “a year-round home for fans to live the stories they love. Enjoy rotating immersive experiences, exclusive merchandise, food, drinks, and much more.” Opening soon in Dallas and Philadelphia. Pun intended: we can’t wait to see what else is in store.
Want to learn more about how to maximize your brand experience in store? We would love to work with you on your next project. Please feel free to check out our work or contact us to get a project started!