What is the future of the retail shopping experience?
What is the future of the retail shopping experience? This is a question on many minds as the retail industry undergoes dramatic change. While the convenience of online shopping is changing consumer behaviour, the physical shopping experience is becoming increasingly relevant to customer loyalty and brand engagement.
Today’s consumers demand innovation, personalisation and a frictionless, fully connected retail world that is both digital and physical. What will be the next steps in delivering a reimagined retail shopping experience, and how will retailers lead the charge in addressing them?
This blog deconstructs the new in-store experiences that are moulding the fundamental shopping journey. From new consumer behaviours and AI disruption to immersive technology, this blog will draw out what retailers should be thinking and doing for their businesses in terms of shopping experience.
Embracing the ‘Phygital’ retail model
While online shopping has expanded, a study by EY Future Consumer Index (FCI) shows that 32 % of consumers, canvassed from more than 23,000 people across 30 countries, continue to yearn for personal service unique to in-store shopping.
Never Miss a Retail Update!Phygital retail is the combination of physical touchpoints (e.g., stores) with digital innovations (e.g., real-time inventory, personalisation, and consistent cross-channel experiences). For instance, shoppers can look up stock online, reserve through augmented reality (AR), or even try on using virtual fitting rooms. This method marries the instant satisfaction of a real-life shop with the browsing ease of the internet.
Features such as contactless payments and personalised product recommendations improve the customer experience, so it feels as if it were tailor-made and frictionless throughout the channels.
The future of retail isn’t an either-or question of physical or digital; it’s fully integrating both to create a richer, fuller omnichannel shopping experience. Phygital retail provides customers with the best of the online and offline worlds and minimises the cost of shopping.
What will the future in-store experience look like?
The future of the in-store experience is changing as retailers adapt to the evolving needs of consumers in an increasingly digital retail environment. Although e-commerce has changed the way customers shop, a physical store is important to experience a brand firsthand, to build trust, and to develop clientele. The in-store experience is moving from transactional to experiential, integrating innovative in-store technology with human design to drive deeper customer engagement.
Retailers must therefore continue to raise the bar, reimagine their physical stores as places that are about more than products, but rather about unforgettable memories.
Retail brands are finding that merging physical stores with the latest technological advancements creates spaces that are both convenient and enjoyable to visit.
Let’s take a look at the essential trends that will define the future of the in-store shopping experience.
- Leveraging artificial intelligence for higher personalisation
- Enhancing customer experience through store design
- Implementing Immersive Technologies
- Experiential shopping
- More inclusive stores: the role of community engagement
- Omnichannel integration for a seamless in-store experience
- Making in-store returns easier
Leveraging artificial intelligence for higher personalisation
Hyper-personalisation will also shape in-store shopping in the future. Highly tailored, one-on-one experiences that generate brand loyalty and boost sales. Today’s consumers expect real-time personalisation while in store, and more and more retailers are turning to AI-powered tools to meet that demand.
Using data from purchase history, behavioural trends, and location signals, AI can give customers tailored suggestions, deals, and goods for a unique “Moments of Truth in Real Time shopping experience”.
For example, M&S tested AI-enabled shelf scanners to optimise inventory and recommend personalised stocks for each location based on trends and preferences.
Evidently, AI-driven personalisation is critical for increasing customer retention and loyalty. Hyper-personalisation doesn’t just create a more enjoyable shopping experience: it helps retailers build stronger relationships with customers.
With the ability to fine-tune goods and services to meet individual requirements, businesses can provide tailored experiences that build consumer trust and increase the likelihood of long-term retention (a strategy increasingly informed by trends in gaming and retail loyalty)
Enhancing customer experience through store design
The physical layout and look of a store can also mean that people interact with a brand differently. Once again, this vision for the future of in-store shopping is one that is not about products stacked on shelves and packed into stores so much as it is about experiences crafted for engagement and exploration.
Retailers are planning to make their store designs more interactive by removing static aisles and replacing them with themed areas where customers can relax, try on clothes, and immerse themselves in the brand’s lifestyle.
Consider using other senses, such as sound (music), light (mood lighting) and scent to add depth to the experience and encourage shoppers to stay around longer. Stores, for instance, may incorporate wellness zones or calm areas in which people can rest from shopping. Walmart is already testing this out, trying what it calls “wellness” spaces where shoppers can participate in wellness experiences while at the store. They can, for example, take a fitness class or listen to a meditation session, in addition to shopping.
Implementing Immersive Technologies
A significant aspect of the ongoing digital transformation in retail involves implementing immersive technologies to enhance the shopping experience, both online and in physical stores. Augmented Reality (AR) and Virtual Reality (VR) are at the forefront.
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Enhancing Online Apparel Shopping at Walmart
For instance, Walmart, recognising the need to make online apparel shopping easier, acquired virtual fitting room platform Zeekit and has rolled out its “Choose My Model” experience on its website and app. This feature allows online customers to select models that represent their body type to visualise how clothes will look, directly addressing a common barrier to online clothing purchases and boosting e-commerce sales.
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Improving the In-Store Experience at M&S
Similarly, Marks & Spencer has been increasingly implementing in-store augmented reality (AR) and trialling an in-store AR app, “List & Go,” in its White City store. This app uses real-time navigation on an interactive store map, guiding customers to the precise location of items on their shopping lists.
Experiential shopping
Retail in the future is about creating experiences that are more than just buying something. In October and November 2024, 88% of the UK population visited a retail destination, while in November, people under the age of 35 went to physical stores an average of 9.5 times, which is twice as many as those over the age of 55.
Experiential shopping is the practice of bringing fun and interesting displays, workshops, and activities to your customers, which allow them to interact with your brand. Retailers have the option to weave in social media influencers, cooking demos, or even gamified shopping trails to create more engaging shopping experiences.
For instance, companies like The Perfume Shop are already trialling and benefitting from experiential shopping, offering spaces where customers can try out products in a tactile and interactive way.
“We’ve been truly grateful for the incredible reception from our customers! They’ve loved exploring our new Harlow store and enjoying tailored consultations to find the perfumes that suit them perfectly”. Store Manager at The Perfume Shop in Harlow.
Social media influencers play an important role in helping shoppers connect with and trust brands, particularly for niche markets, such as ethical fashion. Influencer marketing remains a valuable tool for boosting engagement and attracting consumer attention through social media platforms, but also in-store events. In fact, 78% of UK consumers trust recommendations from influencers more than traditional advertisements.
More inclusive stores: the role of community engagement
Inclusive shops with strong ties to local communities are also increasingly prevalent. On the flip side, retailers are realising that diversity and community connection are necessary if they want to draw shoppers in and keep them coming back. This means that stores reflect the values and needs of the local community.
Retailers can create environments in thoughtful and nuanced ways by hiring a diversified staff, stocking the shelves with regionally tailored assortments and engaging with the community through various activities.
As an example of a company that actively engages with its community, Lush Cosmetics hosts activist seminars and workshops at its Green Hub, the first space the brand opened to the public on its UK Manufacturing campus. These initiatives highlight the brand’s commitment to ethical living, sustainability, and its proximity to local consumers.
Omnichannel integration for a seamless in-store experience
The future of retail is all about omnichannel integration, and this means bringing together brick-and-mortar store experiences with digital touchpoints to create a cohesive customer journey. This includes not only providing services such as Buy Online, Pick Up In-Store (BOPIS) but also having omnichannel loyalty programmes that are seamless between both online and in-store.
The goal for retailers should be to provide consistent, personalised shopping experiences in stores and online. By implementing digital loyalty programmes that offer cross-channel perks and rewards customers irrespective of their shopping behaviour, retailers can cultivate stronger customer relationships and encourage repeat purchases, ultimately driving customer retention.
Making in-store returns easier
With consumer appetites for convenience on the march, retailers need to provide simple, frictionless returns to keep shoppers happy.
According to Loop, a returns software platform, 98% of customers say they will purchase from a store again if the returns process is easy. Customers still prefer in-store returns over shipping ones because of how much easier and faster it is.
Retailers can expedite the return process by using self-service kiosks and enabling mobile receipts, which also make it as convenient as it gets for the customer to return an unwanted product. It can really help with repeat business and enhance the entire shopping experience.
Adapting to changing consumer behaviours
The future of in-store retail also needs to account for the unique behaviors and habits of younger generations like Gen Z and Millennials, who are digital natives. These consumers are values-led and are looking for brands that match up to their ethical concerns, be that about sustainability, inclusivity, or social responsibility.
Retailers need to pay attention to customer preferences in order to create shopping experiences that reflect the values of their audience and remain relevant in a constantly changing market.
Final thoughts
The future of the retail experience isn’t an either-or between digital and physical, but an all-of-the-above merge into one cohesive, purposeful journey. While consumer tastes change and technology evolves, retail stores need to embrace agility, experimentation, and connections with communities in order to survive.
To meet and, ideally, exceed customer expectations, every part of the in-store journey (and wider retail experiences) has to evolve, whether it’s through omnichannel methods, a new immersive approach to retail, AI-powered customisation, or store design.
To stay ahead in this transformation, we encourage retail leaders to attend the Future of the High Street. Discover how your brand can lead the next era of shopping, where experience is everything. Register today!
