Post-pandemic offline retail is bouncing back with physical stores growing at 18.5% versus e-commerce growth of 14.2% in 2021. However, customers’ shopping behaviour has undergone a remarkable change. This has created new challenges for brick-and-mortar stores - how to create experiences that bled with what customers are used to online. The traditional formats are changing and new formats are being created. It is time for all retailers to look at their stores with fresh eyes.
A global survey found that nearly 60% of consumers polled expect a lot of retail space – more than half – to be focused on experience rather than product by 2025. Retailers are using technology to experiment and create their versions of the “Store of the Future”. Let’s take a look at what the “Store of the Future” could mean for fashion retail.
What exactly is meant by “Store of the Future”?
The "Store of the Future" is the latest buzzword in fashion retail. It is a broad term to cover all the innovations, both in terms of business formats as well as the rapid adoption of new technologies to enhance customer experiences.
According to Boston Consulting Group, brands that create personalized experiences are already seeing a revenue increase of 6% to 10%, which is about two to three times faster than brands that don’t. So, the Store of the Future is all about creating personalised experience for each and every customer.
This is possible only by incorporating technologies such as Artificial intelligence (AI), Augmented reality (AR), Virtual reality (VR) etc.into the customer journey to offer personalised experiences that transform the way customers shop for products.
Let’s take a look at what is happening today.