In-store experience can help retailers boost customer engagement
23 August 2022, Mumbai
Improving In-store experience can help retailers not just boost sales, but to also increase customer engagement, according to the findings of a report by realty consultancy CBRE released on Monday.
Customers are looking for engaging, immersive, and convenient experiences that give them a reason to visit stores instead of making online purchases. As a result, experiential retail is counterbalancing the growing popularity of e-commerce, and ensuring profitability by increasing the brand’s physical presence, the report adds.
With the resumption of out-of-home activity and shoppers returning to physical stores, organized retailers are picking up on expansion plans that were stalled during the pandemic. Transaction activity in the retail sector grew over 100 percent on a sequential basis in the June quarter. In the first half of 2022, it reported massive growth of over 160% year-on-year, albeit, on a low base, it said.
Growth was driven by pent-up demand, which resulted in a renewal in physical visits to stores even as online shopping continued to perform well.
Retailers are favoring dynamic and flexible lease contracts as they meet rapidly changing consumer expectations. This is driven by the demand for plug-and-play outlets, particularly for small, independent firms. Showrooms with personalized designs are becoming more popular.
The CBRE report recommends retailers infuse more technology in stores. Already, apparel retailers are using technology like virtual trial rooms and smart mirrors to for customers to ‘experience’ the outfit or accessory instead of actually putting them on.
Given the popularity of athleisure clothing, retailers are also collaborating with brands to include these categories in their offerings, it adds.
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