The Evolution of the ‘Experience’ Changing the Retail Game • THINK Global Research

The retail industry has taken some hits over the past decade with the collapse of the ‘physical store’ forcing retailers to respond to customer needs and go online. Does this mean traditional retail as we know it is dead? And in years to come, will the humble shop store front be nothing but a distant memory?

We are spoiled to have the opportunity to work with industry leaders like Anna Petracca, CEO of Lorraine Lea. With over 20 years of experience in retail, Anne lends her expertise to forecast how this billion-dollar industry will transform the retail landscape in Australia. When we sat down with the dynamic retail CEO, she had a few interesting market predictions…

Retail marketing vs. entertainment

Anne predicts that shopping centres will evolve into multipurpose ‘experience centres’. She goes on to explain that these centres will combine a variety of digital and technological applications to not only cater to, but also to entertain and delight customers as they shop. This concept can be summed up by the buzzword, retailtainment —“the use of ambience, emotion, sound and activity to get customers interested in the merchandise and in a mood to buy”. We can expect to see traditional brick-and-mortar retailers embracing retailtainement. The idea is to keep customers engaged for as long as possible to boost retail opportunities while contributing to their overall shopping experience.

‘Process’ just as important as ‘product’

Because of social media and the prevalence of shared customer experiences online, retailers will need to work harder to master each aspect of the end-to-end process. With every touchpoint being scrutinized by their audience, from browsing to purchasing to unboxing, retailers will need to apply digital and technological strategies to truly delight and excite their customers. The shopping experience and the presentation of the product will be as important, if not more, as the quality of the product itself. “Free delivery” and “next-day delivery” is no longer a catch-y bonus for the digitally-inclined customer but, instead, an expectation.

What about the little guys?

Major players are investing heavily in digital to stay abreast of changing retail trends. That means the future for smaller retailers will not be bright unless they adopt digital strategies and invest in the right technologies to keep their customers coming back!