Retail Strategy

Retail Isn’t Dying. It’s Digitally Reinventing Itself
Retail Isn’t Dying. It’s Digitally Reinventing Itself 1440 428 ASG
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The rise of eCommerce has reshaped the foundation of retail. What started as a convenient alternative to traditional shopping is now a dominant force, driving nearly 16 percent of all U.S. retail sales as of mid 2024. But the story isn’t just about what’s happening online. The bigger shift is how this digital disruption is transforming the role of physical retail spaces.

Brands that once existed purely online are opening storefronts. Malls are becoming fulfillment hubs. Stores are no longer just about selling. They’re about storytelling, logistics, and experience.

Digital First, Physical Second

Retailers like Vuori and Mejuri began entirely online, building loyal customer bases and scalable operations through eCommerce. As their brands matured, they didn’t abandon digital but instead added brick-and-mortar locations that function more like experiential showrooms. These spaces help customers interact with the product in real life, but the final transaction might still happen online.

That is the future of physical retail: not as a competitor to eCommerce, but as a powerful complement.

AR and VR Are Not the Future. They’re Already Here

Augmented reality (AR) and virtual reality (VR) are turning the shopping journey into something immersive and interactive. Whether it’s IKEA’s app that lets you place furniture in your living room or Fenty Beauty’s virtual try-on tools, AR is helping customers make smarter choices without ever stepping into a store.

And in store? AR is being used to enhance discovery. Scan a shelf and learn more about a product, view a how-to video, or unlock a limited-time offer—all from your phone. These features don’t just make shopping more fun, they make it more effective.

VR, while less widespread, is on the rise too. Retailers are testing full 3D virtual stores where customers browse digital aisles from their homes. These spaces are not just futuristic. They are the beginning of a new hybrid experience where shopping happens anywhere.

What COVID-19 Made Permanent

The pandemic did not invent digital retail, but it did fast track its adoption. According to McKinsey, the pandemic accelerated eCommerce by five years in a matter of months. Contactless pickup, curbside delivery, and mobile-first shopping experiences became the new baseline.

Post pandemic, many consumers have kept those habits. In-person retail is still relevant, but only when it offers something online can’t. That is why experiential retail is on the rise. Think of Crumbl Cookies and its open-kitchen design that encourages customers to watch the baking process. Or athletic brands creating in-store fitness classes and gear demos.

Retail spaces that generate shareable, memorable moments are winning foot traffic and loyalty.

Real Estate is Getting Smarter and Smaller

Retailers are also localizing operations. Instead of relying on massive regional warehouses, they’re building micro-distribution hubs closer to customers. Physical stores are being reimagined as both fulfillment centers and experience zones.

This has also led to more flexible retail real estate strategies. Brands are exploring short-term leases, pop-up shops, and modular store layouts that adapt to demand. The modern storefront isn’t static. It evolves with the consumer.

The Takeaway: Reinvention, Not Retreat

Brick-and-mortar is not disappearing. It is becoming more agile, more interactive, and more digitally connected. Retailers that embrace omnichannel integration, invest in immersive technology, and rethink their physical footprint are finding new growth opportunities in a complex landscape.

eCommerce didn’t kill physical retail. It changed the rules. And the brands that are playing to win are using every tool—digital and physical—to connect with consumers.

Need help evolving your store strategy?

Asset Strategies Group helps brands find, design, build, and manage retail spaces that integrate digital infrastructure with physical execution. From site selection and leasing to immersive store design and omnichannel fulfillment, we provide end-to-end support with data-backed insights through our ASGedge platform.

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Let’s build smarter retail spaces together.

Turning the Tariff Crisis Into Retail’s Big Opportunity
Turning the Tariff Crisis Into Retail’s Big Opportunity 1440 428 ASG
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If you’ve been anywhere near a retail boardroom in recent weeks, you’ve felt the tension.

Tariffs are rising—again. Supply chains, already restructured post-COVID, are being tested once more. Freight costs remain stubbornly elevated. And now, with new duties slapping not just Chinese imports but key partners like Vietnam and Bangladesh, it feels as if the ground is shifting underfoot.

At first glance, this may look like a tariff crisis. And for retailers caught flat-footed, it certainly is. But for those who are agile, well-capitalized, and clear-eyed about the long-game mindset, this moment could be something else entirely.

A once-in-a-decade opportunity.

A Familiar Shock, A New Landscape

Economic shocks are nothing new to retail. From the Great Recession to the U.S.–China trade war, and of course the unprecedented disruption of COVID-19, the industry has seen how quickly the rules can change. What’s different this time is the scope and simultaneity of challenges—the tariff crisis hitting multiple countries at once, rising input and labor costs, and a value-driven consumer who’s still spending, but watching every dollar.

And yet, it’s precisely in these conditions that some of the most successful retail transformation stories have been written. As Steve Morris, founder of Asset Strategies Group, reminded us in a recent conversation, the retailers that come out stronger are rarely the ones that simply “weather the storm.” They’re the ones who move—carefully, yes, but decisively—into the void others leave behind.

The Shift in Power

Right now, we’re seeing a quiet but meaningful shift in leverage. Landlords, many still recovering from the post-COVID shakeout, are more open than they’ve been in years to renegotiating leases. Retailers that once struggled to secure premium real estate are suddenly finding opportunities to lock in prime space—at favorable terms and with long-term real estate leverage.

Brands with stable balance sheets and vision can begin expanding with less competition and lower occupancy costs. This isn’t about reckless growth; it’s about strategic placement. As Morris put it, “This is a buy-in opportunity”—not just for real estate, but for market share itself.

The Supply Chain Reset—Again

Sourcing, too, is undergoing a second evolution. Many retailers had just finished pivoting away from China in the wake of the 2018–2019 trade war. Now, with tariffs spreading across Southeast Asia, the old “China+1” playbook is being revised in real time. The new model? Something closer to “China+N+Nearshoring.”

This might seem like a step backward. It’s not. It’s a progression—toward a more resilient, decentralized, and strategically balanced supply network. Retailers that move now to secure production capacity in less-affected regions will have the edge. Those who wait could find themselves at the back of the line when the next sourcing crunch hits.

The Curious Strength of the Consumer

Amid all this tariff crisis turbulence, one surprise remains: the consumer hasn’t stopped spending.

In fact, some categories are seeing a surge in preemptive buying, as shoppers try to stay ahead of anticipated price increases. It’s a behavior that mirrors early-pandemic stockpiling—not from fear, but from foresight. Retailers that lean into this behavior with strategic pricing, loyalty perks, and thoughtful messaging are finding they can keep the momentum going.

What’s clear is that consumers are more value-driven than ever. But value doesn’t just mean low price. It means trust. Transparency. The confidence that what they buy is worth what they spend.

For brands that understand this, there’s an opportunity to build loyalty that lasts well beyond this moment.

retail crisis

Investing When Others Retreat

In uncertain times, it’s natural to focus on defense. But history—and recent conversations with industry veterans—suggest that the biggest long-term wins often come from a different posture: thoughtful offense.

While many brands are freezing capital, others are making bold bets. Investing in automation, strengthening omnichannel infrastructure, enhancing the in-store experience—these are the moves that will define the next generation of leaders. Retailers like Target and RH are already ahead of the curve, having made proactive sourcing and technology investments before the current wave of tariffs hit.

And then there’s M&A. As smaller players struggle under the weight of rising costs and capital constraints, well-funded retailers have a window to acquire talent, product lines, or even entire brands at a discount. Retail consolidation is already underway—and for those prepared to act, this may be the cheapest growth capital available.

A Defining Test of Leadership

The truth is, this tariff moment is about more than duties and dollars. It’s about how leaders respond when the path forward is murky. Will they retreat, play it safe, and wait for clarity that may never come? Or will they look through the volatility and see what’s being offered—a strategic realignment of the retail landscape?

No one is saying this is easy. The risks are real, and the costs are high. But so is the potential upside.

Because when everyone else is pulling back, staying steady isn’t enough. The brands that win will be the ones that step forward—carefully, yes, but confidently.

The question for every retail CEO in 2025 isn’t just how to survive the tariff crisis.

It’s how to turn it into their greatest opportunity yet.

Bringing Your DTC Brand to Life: The Emotional Journey Into Physical Retail
Bringing Your DTC Brand to Life: The Emotional Journey Into Physical Retail 1400 428 ASG
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There’s something deeply magical about stepping into a physical store. The moment you walk through the door, you’re immersed in a brand’s world—the textures, the atmosphere, the energy. It’s an experience that goes beyond the transaction. It’s about connection. And for DTC brands, expanding from the digital space into physical retail is a journey that taps into something more than just business strategy. It’s an emotional step towards deeper engagement and connection with your customers.

As a DTC brand, you’ve already established trust and loyalty online. Your customers know you, they follow you, and they believe in what you stand for. But when you move from pixels and screens to brick and mortar, it’s not just about replicating the digital experience in a store—it’s about enhancing it. It’s about creating a space where your story can come alive and resonate in a way that feels personal and unforgettable.

The Power of In-Person Connection

Think about the first time a customer holds your product in their hands, feels its weight, and experiences its design up close. It’s no longer just a photo on a screen or a review online. It’s real. It’s tangible. It’s the beginning of a deeper relationship. As retail expert Rachel Williamson says, “The best retail experiences aren’t about just selling products—they’re about creating emotional connections that turn first-time visitors into loyal customers.”

When you open your doors to a physical store, you’re offering more than just products—you’re offering an experience that touches your customers’ hearts. There’s something undeniably powerful about seeing someone light up when they find something they love, hearing their excitement as they tell their friends, or simply watching them linger in your store because they feel at home there. This is what sets physical retail apart—it creates moments that stay with your customers long after they’ve left.

The CEO's Guide to Launching Physical Retail From DTC Roots

Entering physical retail is complex. Learn how the smartest DTC brands get it done, and get a step-by-step execution plan.

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Crafting a Space That Tells Your Story

Every brick-and-mortar store is an extension of your brand’s identity. It’s where your story unfolds in the real world, where your values and your mission come to life. But this doesn’t happen by chance. It requires intention, thoughtfulness, and a deep understanding of what your brand means to your customers.

Rachel Williamson shares, “A store is an extension of the brand—it’s where your customers experience the heart of what you do. It’s the chance to show them that what they’ve connected with online is just as authentic, real, and powerful in person.”

When you think about your store design, think about the emotion you want to evoke. Every detail should be a reflection of your brand’s essence. The layout, the colors, the displays—each element must tell your story and invite customers to immerse themselves fully in your world. This is your chance to create an environment that doesn’t just look beautiful—it feels like home.

Finding the Right Place to Build Connections

Location isn’t just about foot traffic—it’s about finding a space where your brand can thrive and connect with the right audience. Think about the neighborhoods, the communities, the people who align with your values. Your location should reflect the essence of your brand and attract those who will appreciate the experience you’re offering.

Rachel wisely says, “A great location isn’t just one with high foot traffic—it’s one that aligns with your brand’s values and connects with your customer base. It’s where your story can truly resonate and grow.”

The Heartbeat of Operations

Behind every unforgettable retail experience is an operation that runs like a well-oiled machine. From inventory management to customer service, the operational side of retail might not seem glamorous, but it’s what makes everything else possible. Think of your operations as the unsung hero that allows the magic to happen seamlessly. When everything is in place, customers don’t just shop—they are swept up in the experience, leaving with a smile and a story to tell.

Rachel puts it simply: “The real work in retail happens behind the scenes. It’s the operational excellence that ensures every interaction, every purchase, and every moment feels effortless to the customer.”

The Emotional Impact of Your Retail Store

Transitioning from a digital-only model to a physical one is more than just a business decision. It’s about creating an emotional experience that draws people in and makes them feel connected to something bigger than just a product. It’s about telling your story, building your community, and offering an experience that resonates deeply with your customers.

When you get it right, your store becomes more than just a place to buy things. It becomes a destination—a place where customers can connect with your brand in a way that feels meaningful. It’s a space where they feel valued, seen, and part of something important.

As Rachel wisely puts it, “A physical store isn’t just a retail space; it’s an experience that deepens the relationship you have with your customers. When done right, it becomes a place where your brand truly comes to life.”

The journey from DTC to physical retail isn’t just about selling products; it’s about creating a lasting impression, a deep connection, and an unforgettable experience. So when you open that door, make it more than just a store—make it a place where your brand and your customers’ hearts meet.

At ASG, we understand the emotional journey of expanding into physical retail. We’re here to help you make that leap with intention and heart, so your brand’s story can unfold in the real world. Let’s bring your vision to life, one unforgettable experience at a time.

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Now’s the Moment for DTC Brands to Go Physical—Here’s How
Now’s the Moment for DTC Brands to Go Physical—Here’s How 1440 428 ASG
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The U.S. retail landscape is undergoing one of its most significant shifts in decades. In 2024 alone, over 7,000 stores closed their doors, and early signs indicate that 2025 could exceed that number. From mass market chains like Big Lots and Rite Aid to category-specific retailers like Joann and Forever 21, legacy brands are pulling back—leaving behind a trail of vacancies in once high-demand locations.

On the surface, it may look like traditional retail is collapsing. But the reality is more nuanced: retail isn’t dying—it’s being restructured. The contraction of underperforming legacy brands is clearing the way for a new generation of retailers. And at the front of the line? Digitally native direct-to-consumer (DTC) brands.

These DTC brands were born online. They understand how to connect with customers, build community, and scale through digital channels. But now, they’re turning their attention to physical retail—not because they have to, but because it’s a strategic advantage. And timing couldn’t be better.

Physical Retail Is Evolving—and DTC Brands Are Built for It

Physical stores have evolved from transactional environments into multi-functional brand hubs. They’re no longer just a place to sell products—they’re an extension of a brand’s digital presence, a tool for acquisition, a vehicle for retention, and a differentiator in a noisy marketplace.

Consider Warby Parker. The eyewear brand began online but quickly recognized the value of brick-and-mortar in improving conversion, lowering customer acquisition costs, and expanding brand presence.

Today, more than half of its revenue comes from physical stores. Parachute, Allbirds, Glossier, and Brooklinen have followed a similar path—relying on retail locations to increase average order value, reduce returns, and give customers a tactile experience that’s hard to replicate online.

DTC Brands

Importantly, these stores don’t follow the traditional playbook. They’re showrooms, not stockrooms. They’re built for service, not just sales. And they’re designed with data in mind—from site selection to staffing strategy to inventory planning.

The CEO's Guide to Launching Physical Retail From DTC Roots

Entering physical retail is complex. Learn how the smartest DTC brands get it done, and get a step-by-step execution plan.

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The Real Estate Market Has Shifted in Favor of the Agile

Legacy closures are creating more than just empty storefronts—they’re creating opportunities in top-tier trade areas that were previously out of reach for emerging brands. Prime mall spaces, urban streetfronts, and neighborhood power centers are opening up—and landlords are more flexible than ever.

Why? Because they need fresh concepts that drive foot traffic and align with the modern consumer. Digitally native brands bring just that. Landlords are now offering:

  • Short-term lease options for pop-ups or pilot stores
  • Revenue-sharing agreements that reduce fixed costs for tenants
  • Tenant improvement (TI) allowances to help offset buildout costs

This flexibility lowers the barrier to entry and allows brands to test physical retail without committing to long-term leases or high capital investments.

DTC brand

Start Small. Think Strategically. Scale Smart.

The beauty of the DTC playbook is how it translates to real estate: test, learn, iterate, expand. Physical retail doesn’t have to start with a fleet of flagship stores. In fact, the most successful brands are starting with one or two test markets, validating demand, and refining the model before scaling up.

Pop-ups are a smart entry point—especially in high-footfall corridors or recently vacated spaces. A six-month test can reveal everything from foot traffic conversion rates to local inventory preferences. It also helps brands understand operational needs, from staffing to fulfillment.

Once the model is proven, brands can move into permanent locations, expand to similar trade areas, and begin building a portfolio of stores that are not just branded, but profitable.

The Moment to Move is Now

What’s happening in retail today is a rare moment of realignment. The big, legacy players are shrinking. The leases are available. The terms are negotiable. And the consumer is ready to meet you offline.

For DTC brands that have mastered digital, the next frontier is clear: own the physical channel on your terms. With the right strategy, you don’t just get into brick-and-mortar—you use it to strengthen your brand, grow customer lifetime value, and outperform your competition.

The window is open. Smart brands are already moving through it. The only question is: will yours?

Why Livestream Retail Matters Now More Than Ever
Why Livestream Retail Matters Now More Than Ever 1440 428 ASG
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Bloomingdale’s leveraged livestream retail throughout the pandemic, transforming static shopping into dynamic, interactive experiences. These events weren’t just about showcasing products—they fostered direct engagement, exclusive access, and real-time purchasing.

Today, livestream shopping has evolved from an experiment into a core retail strategy. It doesn’t replace brick-and-mortar; rather, it enhances customer engagement by integrating digital and physical touchpoints.

With U.S. livestream e-commerce sales projected to hit $68 billion by 2026, leading platforms like TikTok Live, Whatnot, and eBay Live are setting new standards. For brands, this isn’t just a trend—it’s an opportunity to drive sales, build community, and create seamless omnichannel experiences.

 

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The New Frontier of Retail Engagement

Retail success hinges on meeting customers where they engage most—whether in-store or online. Livestream retail isn’t just another channel; it’s a high-engagement, data-rich touchpoint that blends entertainment with commerce. In today’s digital-first world, livestream shopping offers brands a direct, interactive way to build real-time relationships, showcase products in action through live demonstrations, and create urgency with exclusive, time-sensitive offers. More than just another sales avenue, it is a powerful tool for driving both online conversions and in-store traffic, reinforcing an omnichannel strategy that strengthens brand loyalty and deepens customer engagement.

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Why Livestream Retail Matters for Physical Stores

Livestream retail isn’t just an online sales tool—it actively shapes in-store behavior. With 83% of shoppers researching online before visiting a store, brands that leverage livestreaming effectively can influence purchasing decisions before customers even set foot in a physical location.

Retailers that integrate livestream shopping into their strategy can bridge digital and physical retail, using online events to drive store foot traffic and strengthen customer relationships long before an in-person visit. Beyond sales, livestreaming provides real-time consumer insights, helping brands refine merchandising strategies, experiential retail concepts, and store layouts. In the evolving retail landscape, success isn’t about choosing between digital and physical—it’s about orchestrating both in a way that maximizes customer engagement and long-term profitability.

Modern Livestream Shopping vs. Traditional TV Retail

The rise of livestream shopping may resemble the era of QVC and home shopping networks, but today’s version is more powerful, interactive, and omnichannel. Unlike traditional TV retail, modern livestream commerce offers:

  • Direct audience engagement – Real-time chat, polls, and Q&A create a two-way conversation between brands and consumers.
  • Omnichannel accessibility – Shoppers don’t need a TV; they can join via TikTok, Instagram, YouTube, or a brand’s website.
  • Frictionless purchasing – Seamless, in-stream checkout options enable instant conversion with fewer abandoned carts.

“At the heart of livestream commerce is a simple yet powerful psychology: viewers tune in not just to buy products but to be part of a moment.”
– Hackernoon

The shift from passive viewing to active participation is what makes livestream retail a game-changer. Consumers trust influencers and brands they engage with in real time, transforming shopping from a transaction into an experience.

Where Livestream Shopping is Scaling the Fastest

Livestream shopping is growing rapidly, but not all platforms are equal. TikTok, Whatnot, and YouTube are leading the charge, each offering unique advantages for brands:

  • TikTok – The undisputed leader in live shopping engagement. Since launching TikTok Live Shopping in 2021, the platform has rapidly scaled its e-commerce ecosystem. In November 2024, BK Beauty’s eight-hour live event shattered expectations, generating $100,000 in sales—five times its initial goal. With 40 million U.S. TikTok shoppers projected by 2026, brands that master TikTok Live gain a competitive edge.
  • Whatnot – It’s the fastest-growing livestream shopping platform in the U.S. and initially popular in niche categories like collectibles and streetwear. Whatnot’s explosive success—$2 billion in 2024 sales—proves its potential across industries. With 175,000+ weekly livestream hours, Whatnot now outperforms QVC’s weekly broadcast hours by 800x.
  • YouTube – With 2.7 billion users, YouTube dominates livestream video consumption. While 40% of retail shoppers have purchased products from YouTube livestreams, its real advantage is discoverability. As the second-largest search engine, YouTube helps brands drive long-tail engagement far beyond a single live event.

Retailers must match platform selection to audience behavior—leveraging TikTok for viral engagement, Whatnot for passionate communities, and YouTube for sustained visibility.

Integrate Livestream Shopping into Your Brand Strategy

Livestream retail isn’t a side project—it’s a scalable revenue channel that deepens brand-consumer relationships. Breaking into livestream shopping doesn’t require massive budgets, but it does require precision and strategic execution. Brands that succeed in this space aren’t just selling products; they’re building communities, driving engagement, and converting passive audiences into loyal customers.

One of the most effective ways to drive livestream success is through influencer partnerships. Collaborating with trusted creators—especially micro-influencers with highly engaged audiences—allows brands to tap into pre-existing trust and credibility. Choosing the right platform is just as critical. TikTok drives impulse purchases, Whatnot fosters high-intensity niche communities, and YouTube ensures long-term discoverability. Each platform serves a different purpose, making it essential for brands to align their strategy with audience behaviors.

Beyond partnerships and platforms, brands must prioritize engagement over hard selling. The most impactful livestreams feel organic and interactive, incorporating live Q&A, behind-the-scenes content, and exclusive promotions that create urgency and excitement. Finally, livestream shopping should be an extension of a broader omnichannel strategy—used not just to drive online sales, but to increase store visits, build brand loyalty, and strengthen the overall retail ecosystem.

The Future of Livestream Retail

Whether consumers shop in-store, online, or through livestreams, every touchpoint shapes their perception of a brand. Success will depend on the ability to blend entertainment with commerce, leverage real-time engagement, and build seamless omnichannel experiences that drive both online and in-store transactions.

The next wave of retail isn’t about choosing between physical and digital—it’s about orchestrating both to create deeper customer relationships, maximize lifetime value, and drive sustained growth.

The future of retail is about creating immersive, real-time experiences that drive engagement and sales. Livestream shopping is revolutionizing how brands connect with consumers, blending entertainment with commerce to shape the next era of retail.

Learn how livestream retail fits into the bigger picture of emerging trends shaping the industry. Download our exclusive report, Emerging Retail Trends 2025, and discover the strategies leading brands are using to stay ahead.

The Dollar Store Disruption: What It Means for Retail’s Future
The Dollar Store Disruption: What It Means for Retail’s Future 1400 428 ASG
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Look around your community, and you’ll likely spot a discount store like Dollar Tree, Dollar General, or Family Dollar. Once catering primarily to lower-income families, these stores now attract a much broader demographic, including middle-class and even affluent shoppers looking for ways to combat rising prices. As inflation reshapes consumer behavior, dollar stores have become formidable competitors in the retail space.

But while discount chains thrive, the success of the dollar store is no longer guaranteed. Expansion alone isn’t a strategy, and retailers that fail to adapt to changing definitions of value risk being left behind.

Higher Earners Are Trading Down—Retailers Need to Take Notice

Traditionally, the core customer base for dollar stores had a median income of $30,000-$60,000, according to research published in Retail TouchPoints. Today, that demographic is shifting.

Dollar Tree executives reported in a Q1 2024 earnings call that their fastest-growing customer base earns more than $125,000 a year. The reason? Rising interest rates and inflationary pressures have forced consumers across income levels to rethink how and where they shop.

Retailers beyond the discount sector need to take note: price sensitivity is no longer just a low-income concern. This means premium and mid-tier brands must reexamine their value propositions. Are you offering products that feel like a good deal? If not, consumers are increasingly willing to shop elsewhere—even if “elsewhere” is a dollar store.

Dollar General’s Winning Playbook vs. Family Dollar’s Expansion Mistake

Dollar General had ambitious plans to open 800 new stores and remodel 1,500 existing locations in 2024, continuing its aggressive push into rural communities. The company’s success is built on a clear strategy: providing essential goods, adding fresh food options, and maintaining operational efficiency.

In contrast, Family Dollar—purchased by Dollar Tree in 2015—planned to close 600 underperforming locations in 2024 alone, with hundreds more closures planned as leases expire. The reasons? Poor locations, misalignment with the Dollar Tree model, and operational challenges, including a $40 million fine for a rat-infested warehouse in 2022.

The lesson for all retailers: Expansion without differentiation is a losing game. Growth needs to be strategic, customer-focused, and operationally sound. Are you scaling smartly, or are you chasing market share without a sustainable plan?

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Shrinkflation: A Dangerous Game That Could Backfire

Dollar stores have become prime examples of shrinkflation—where products remain the same price but contain less product. While this strategy has helped Dollar General and Dollar Tree maintain profit margins of 31.5% in 2023 (significantly higher than Walmart’s and Kroger’s), it comes at a cost: consumer trust.

The question retailers must ask is: Is the short-term boost worth the long-term brand damage? Some retailers have an opportunity to take a stand against shrinkflation by offering clear, transparent pricing and “no-shrink” product lines. Brands that do so could earn lasting consumer loyalty at a time when trust in pricing is eroding.

What Retail Leaders Should Do Next

The evolution of dollar stores isn’t just their story; it’s a signal for the entire retail industry. Here’s what C-suite executives should focus on:

  1. Redefine Value Beyond Just Price – Consumers don’t just want cheap; they want affordability plus convenience, accessibility, and perceived savings. How does your brand deliver that?
  2. Be Strategic About Growth – Expansion for the sake of expansion leads to failure. Family Dollar proves that. Invest in location strategy, customer insights, and operational efficiency.
  3. Decide Where You Stand on Shrinkflation – Will you join the race to shrink products, or will you differentiate by prioritizing consumer trust and transparent pricing?
  4. Prepare for Even More Trade-Down Behavior – The next wave of shoppers trading down may not be who you expect. How are you adapting to serve higher-income customers looking for savings?

Adapt or Risk Irrelevance

The rise (and struggles) of dollar stores offers critical lessons for all retailers. Consumers are rewriting the rules of value, and retailers that don’t evolve will be left behind. Whether you operate in discount, mid-tier, or even premium retail, the question remains: Are you meeting the new expectations of value-conscious shoppers, or are you hoping they’ll return to old habits?

The future of retail won’t be defined by who offers the cheapest price—but by who understands and delivers on the new definition of value.

The Shoppable Content Era
The Shoppable Content Era 1440 428 ASG
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Some of you might remember the infomercial era—those late-night product pitches that caught sleepless viewers at their most vulnerable, selling everything from kitchen gadgets to miracle cures. Fast forward to today, and the concept of shoppable content has taken that idea and given it a digital-age makeover. Instead of drawn-out monologues, you now have instant, interactive shopping at your fingertips on platforms like Instagram, TikTok, and YouTube. With just a click or a swipe, you can buy what catches your eye in a seamless blend of entertainment and commerce. Whether it’s a livestream shopping event or a shoppable video from your favorite influencer, today’s shopping experience is all about engaging audiences in real-time, on their own terms.

For consumers, it’s all about convenience and immediacy; for brands, it’s an opportunity to engage audiences in more personalized and creative ways. Shoppable content is revolutionizing the retail landscape, making shopping more immersive, interactive, and enjoyable than ever before.

Why Shoppable Content?

More than a driver of immediate sales, shoppable content plays a crucial role in fostering long-term brand loyalty for businesses. By making products instantly accessible at the point of inspiration, your customers are more engaged and satisfied. That builds a deeper connection between brands and their audiences.

This strategy fits perfectly within a broader omnichannel approach, where digital transformation and customer experience management are keys to staying competitive. Shoppable content stands out as a pivotal element in creating a cohesive and personalized shopping journey. The goal is to ensure that every interaction with the customer is an opportunity to reinforce brand affinity and drive future sales.

The Competitive Advantage

By integrating shoppable elements into social media posts, videos, and even live streams, brands capture attention and convert engagement into sales in real time.

Beauty brand Sephora has successfully integrated shoppable Instagram posts into its marketing strategy, allowing users to purchase products directly from their feed. It’s an example of mastering social commerce to increase conversion rates and build stronger customer loyalty.

It’s worked. Digital storefronts have allowed Sephora’s 20 million social media followers to browse and buy products directly in the Instagram app. In August 2024, Instagram users in the United States spent an average of 33.1 minutes per day using the app. This half hour offers a prime opportunity for brands like Sephora to catch potential customers, as each minute spent on the app increases the likelihood of turning casual browsing into purchasing decisions.

This strategy was heavily influenced by the success of Sephora China’s partners, who served as a roadmap for enhancing the consumer experience in U.S. stores, according to Carolyn Bojanowski, Sephora’s general manager of e-commerce, in a Quartz news article. China’s social-commerce market exceeds $300 billion in annual sales.

L’Oréal introduced livestream shopping into its marketing strategy and quickly found success. The cosmetics company offers livestream makeup tutorials on YouTube and Instagram. Customers can meet with senior makeup and skincare experts who advise them on how to create popular looks using L’Oréal products.

During the livestream, the company creates excitement with calls to action like “click link for a 20% discount.” L’Oréal has held more than 50 livestream shopping experiences across five countries. At the same time, the company has seen a 150% increase in virtual try-ons through augmented reality (AR) immersion.

AI and Shoppable Content

As the digital shopping landscape evolves, shoppable content continues to grow, with sales through social platforms projected to reach  $82 billion in the United States by 2026.

Artificial intelligence is a major driver of this growth, enhancing the consumer experience through innovations like AI-powered shopping ads, virtual try-ons, and 3D product views. These technologies not only boost engagement and click-through rates but also provide a more personalized and immersive shopping journey, making it easier for consumers to interact with and purchase products directly within content.

Live shopping events are also gaining traction, where brands host live streams featuring product demonstrations, exclusive deals, and direct links to purchase items in real-time. These events are often powered by AI to optimize timing, content, and audience targeting, ensuring that the right products are showcased to the right customers.

AI algorithms also collect and process data from livestreams. This data often includes viewer comments, reactions and even purchasing patterns. Creating a personalized shopping experience then becomes easier and allows businesses to improve their customers’ overall satisfaction.

AI can even provide real-time language translation, allowing businesses to expand their markets, as well as enhance livestream shopping through image recognition capabilities.

Determining the ROI of Shoppable Content

  1. Sales Conversion Rates: One of the most direct indicators of ROI is the sales conversion rate, which measures the percentage of users who make a purchase after interacting with shoppable content. By tracking how many clicks on shoppable links result in actual sales, brands can gauge the immediate financial impact of their content.
  2. Customer Lifetime Value (CLV): Beyond immediate sales, it’s important to consider the long-term value of customers acquired through shoppable content. CLV helps brands understand how much revenue a customer will generate over their entire relationship with the brand. If shoppable content consistently attracts high-CLV customers, its ROI is likely higher than campaigns that only drive one-time purchases.
  1. Engagement Metrics: ROI isn’t just about direct sales. Engagement metrics such as click-through rates (CTR), time spent on content, and social shares can also provide insight into how well shoppable content resonates with the audience. High engagement often leads to stronger brand loyalty, which can translate into long-term financial returns.
  1. Attribution Modeling: To get a comprehensive view of shoppable content’s ROI, brands should use attribution modeling. This method tracks how different touchpoints—such as social media posts, email campaigns, or product pages—contribute to a sale. By understanding the role that shoppable content plays in the overall customer journey, brands can more accurately allocate credit and resources.
  1. A/B Testing: Conducting A/B tests allows brands to compare different versions of shoppable content to see which performs better. By experimenting with various elements—such as product placement, call-to-action buttons, or content format—brands can identify what drives the highest ROI and refine their strategies accordingly.

By leveraging these metrics and analytical tools, brands can determine a more accurate ROI of their shoppable content, allowing them to make data-driven decisions that enhance their marketing effectiveness and drive sustained growth.

Brands Getting It Right

Away is a travel brand that leverages social media and user generated content to reach consumers and not just sell products but build their brand around a cult of personality that truly engages, entertains, and attracts consumers.

ASOS leverages both shoppable content on Instagram and Snapchat, as well as user-generated content and encourages consumers to post their own photos with the hashtag #AsSeenOnMe.

With nearly 40 million followers on Instagram, H&M has transformed their Instagram page into a shoppable platform by tagging items and providing convenient purchase links.

Net-a-Porter is considered one of the most successful social commerce shopping successes. They give users insight and entertainment through well-written articles that contain links to products, like this interview with Gracie Abrams that includes photos with get-the-look links.

The Shoppable Content Outlook

The future of shoppable content is promising, with projections indicating that social commerce sales could reach $1.2 trillion globally by 2025. As consumers increasingly prefer to discover and purchase products directly through social media, retailers have a significant opportunity to meet their customers where they are, particularly as Gen Z leads this shift. However, success in shoppable content requires careful execution—common mistakes such as poor user experience, broken links, low-quality visuals, and ineffective influencer partnerships can deter potential buyers. To fully capitalize on this trend, retailers must prioritize seamless integration and continuously optimize their content strategies.

Can AI in Retail Fix the Pervasive Service Problems?
Can AI in Retail Fix the Pervasive Service Problems? 1440 428 ASG
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When was the last time you had poor service at a store or restaurant? I bet you can think of more than a few instances. Now think of the last time you experienced truly exceptional service. If this is harder to think of, you’re not alone. Retailers’ shift toward operational excellence during the pandemic has caused many retailers to leave us underwhelmed by our retail experiences.

One troubling statistic is that one in every three customers will walk away from a brand they love after bad service. On the other hand, consumers are willing to pay up to 16% more for great service and up to 18% more for luxury services, not to mention increased loyalty to retailers who get it right. Exceptional service can drive impulse purchases too, with 49% of buyers making spontaneous decisions after a personalized experience.

Biz Tech shared insight from the IBM Institute for Business Value report that “From slow checkout lanes to absent associates, in-store shoppers are still struggling with the same headaches they’ve always faced.” They go on to point out, “that means that only 9 percent of 20,000 customers in 26 countries report satisfaction with their in-store shopping experiences, the report says. For e-commerce shoppers, the number is only slightly higher, at 14 percent.”

Investing in customer experience makes sense. So why isn’t every brand doing it? And can  the integration of AI in retail help?

Challenges in Retail CX

Despite advancements in retail technology, many brands have prioritized operational efficiency over customer experience post-pandemic. A study by SAP found that over 60% of marketing leaders acknowledge the digital shift in CX strategy, yet nearly two-thirds lack confidence in their CX strategy’s ability to retain customers in this new environment.

Yet, consumer loyalty declines as CX declines, and almost half of consumers think CX is getting worse. Most retail leaders believe that investment in technology, including AI, is the way forward, but struggle with the uncertain ROI. They are investing, though. The Global AI In Retail market size is expected to reach $24.1 billion by 2028. Investing in technology to improve CX is necessary.

“What’s becoming clear is that customer-centricity is proving key to retailers’ improving fortunes. The stores that are thriving are the ones building on strong, digitally driven and adaptable omnichannel foundations, supporting customers to shop when, where and how they want.” – Retail Week

AI can help improve CX. It can be very good at engaging with customers to make product suggestions based on historical purchases; it can approximate human interaction to a high degree of success. But – and it should not be surprising – it can also create disastrous consequences, especially large language model (LLM) hallucinations. LLMs can “hallucinate” facts and make mistakes in reasoning.
To avoid disaster, KPMG recommends that companies “develop a ‘responsible AI’ framework to govern all your AI applications” and “ensure that the technology is being used not only ethically, but also legally.”

Intelligent Investment in AI and Machine Learning

Even as the obsession with generative AI and machine learning grows, striking a balance between technology and human-based service is essential.

“Despite the fast pace of technology innovation and the rapid increase in AI solutions as an enabler of EX/CX strategy, 8 in 10 executives agree that human-led support will remain a critical element to employee experience (EX).”

However, investments in AI and ML can help retailers address consumer priorities.

Graeme Geddes, Chief Growth Officer at Zoom says in this Forbes article:
“Generative AI-powered solutions for CX aren’t merely ‘nice-to-haves’ anymore—they are now fundamental for success. Businesses that haven’t invested in AI will fall behind on productivity and customer satisfaction in 2024. Generative AI capabilities with unified communications and omnichannel contact centers are helping CX workers get more done, while deeper analytics on customer sentiment and engagement are enabling CX workers to strengthen relationships.”

The human touch should always exist, but AI can be used for routine tasks to free up people to focus more on the experience for shoppers.
“In the retail industry, AI is proving to be not just a powerful tool but also key to enhancing the capabilities of human workers with actionable insights and complex, automated calculations.” – Forbes.

Generative AI Increases Customer Loyalty

According to a CX Network survey, 28% of respondents recorded a positive impact on customer loyalty through their use of generative AI and 39% percent recorded a positive impact on company profits. The biggest areas of impact were investments in generative AI for virtual agents and agent assists, which reduced the need for human intervention. The ability of AI to analyze and synthesize data to automate simpler tasks and customer responses “enabled agents to focus on more complex issues and high-value interactions.”

Some companies are getting AI right and truly enhancing the customer experience. They’re using it to streamline the customer experience; reduce friction; prevent inventory depletion; provide virtual experiences for trying on everything from makeup to shoes; and answer questions intelligently (with far less hold time) 24/7. MSR Cosmos identified the following retailers who have mastered the power of AI for good to deliver these types of improved experiences:
• Amazon Go
• Walmart’s Smart Shelves
• Sephora’s Virtual Artist
• Nike
• Nordstrom

‘Botshit’ is a Bane

As chatbots take over every aspect of our lives when it comes to online customer service, it’s not always an ideal replacement for humans. In fact, the term “botshit” has been coined to describe the disasters that happen when chatbots are not properly overseen by humans. Air Canada found out the hard way that when their bot offered a customer the ability to claim a bereavement discount after the flight. They had to honor it. It’s the adage of garbage in, garbage out. If retailers want chatbots to be successful, the data they’re being fed must be accurate.

Data-Driven from Start to Finish

To improve AI in retail and ensure it delivers for consumers, retailers need to prioritize investments in AI in ways that free humans to provide better CX while taking over the largely routine and automated functions within the operation.

Investing in technology isn’t just a way to save money on labor costs or reduce inventory costs. Retailers can also use the data gathered by employing AI technology to:
• Map traffic. Heat maps can help retailers position products strategically based on traffic patterns.
• Improve personalization. By using AI to analyze consumer purchases and preferences, retailers can better personalize offers and product suggestions.
• Make supply chains more efficient. From inventory management to supply chain excellence, AI and ML can transform the entire supply chain process, including reducing labor costs and product costs.
• Improve customer experience. Smart mirrors, interactive displays, customized digital signage, and interactive displays can enhance the in-store experience.

What’s Next for Retail CX?

Retailers should already be providing seamless omni-channel experiences and personalization, and as we look to how technology will improve CX this year and beyond, it’s as if the era of The Jetsons has finally arrived (ok, maybe not the flying cars – yet). But technology is evolving exponentially, and in the next few years, these things will become prevalent:
• Robots in warehouses, fast food restaurants, and retail shops, like the KettyBot.
• Chatbots like Ada, with language skills and responses imperceptibly human-like.
• Faster decision-making through automation to optimize business operations.

AI’s potential is greater than its best chatbot, though. As Joe Andrews writes in Microsoft Start, “Solely focusing on automation can be a trap for businesses, drawing them into a narrow focus on tasks like AI chatbots and basic troubleshooting. I believe AI’s true potential lies in its capacity for observability. Rather than simply executing predefined tasks, AI must dig deep into data, uncovering trends and patterns within customer interactions that might otherwise remain hidden.”

So while GenAI is “soulless,” as retail thought leader Robin Lewis describes it in The Robin Report, it can “amplify marketing messaging, and deliver design suggestions (for better or worse) that can help designers and marketers. It won’t replace them, but GenAI may be a partner to human decision-making and an alternative to making assumptions about customers and the marketplace.”

Humans will continue to play a pivotal role in shaping CX, driving customer satisfaction and loyalty. But even as retailers employ humans to further actual empathetic engagement with consumers, technology will provide a foundation for automation and intelligent decision-making capabilities that frees the people part of the equation to further elevate the overall customer experience.

Is Mixed Use the Future of Retail?
Is Mixed Use the Future of Retail? 1440 428 ASG
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Imagine stepping into a vibrant urban oasis where every convenience is at your doorstep and the pulse of the city is right outside your window. This is the promise of North Loop Green in Minneapolis, a visionary mixed use development that is redefining the future of retail and urban living. With its seamless integration of homes, short-term rentals, shops, offices, restaurants, and event and green spaces, North Loop Green transformed blighted city blocks into a dynamic, sustainable community.

Mixed-use developments like North Loop Green offer incredible opportunities for retailers. Not only can these developments bring vibrance to communities and neighborhoods, but public parks, event space, and restaurants mean steady foot traffic and a constant influx of new consumers. These dynamic environments foster community engagement, sustainability, and economic resilience, positioning retailers for long-term success and innovation.

Why Mixed Use Makes Sense For Residents

Skyrocketing housing prices continue to impact renters and homeowners even as the macroeconomic outlook continues to improve. This is driving people to seek alternative living spaces that are more economical—and mixed-use buildings make sense. The World Health Organization reports that 70% of the global population will live in cities by 2050, and as dramatic urbanization continues, mixed-use projects are likely to dominate new real estate construction, according to Northspyre:

“Walkable mixed-use neighborhoods provide pedestrian access to stores, restaurants, and other businesses without requiring the use of a car for transportation. In addition to promoting a healthy, active lifestyle for residents and convenient access to amenities, mixed-use neighborhoods also decrease car dependency, reducing air pollution and making areas more livable overall. “

Nearly 80% of U.S. adults said they would consider a residence in a live-work-shop-play community that offered entertainment, dining, work, and recreation opportunities—and the number of apartments completed annually in “live-work-play” developments quadrupled between 2012 and 2021, rising from 10,000 to 43,700, according to a study from the International Council of Shopping Centers (ICSC).

Mixed-use retail is only growing, and savvy retailers are betting on it for their own growth. Demand for retail locations in mixed-use developments is substantial, with more than 60% of retailers expressing a preference for these environments, according to CBRE. That’s why mixed-use retail spaces offer higher occupancy rates, often between 90-95%, compared to 80-85% for standalone retail properties.

Retail spaces in mixed-use developments also command premium rents, typically 10-20% higher than traditional shopping centers, as noted by ICSC. This willingness to pay higher rents is justified by the built-in customer base and vibrant atmosphere provided by the diverse mix of residential, office, and commercial components within mixed-use developments. Sure, rent is on the pricey end, but a study by the Urban Land Institute (ULI) determined that consumers are willing to spend up to 15% more in mixed-use developments compared to traditional retail environments due to the convenience and enhanced shopping experience.

Foot traffic in mixed-use developments is 20-30% higher than in traditional retail locations, as reported by JLL. This increased traffic correlates with longer dwell times, which are 30-40% higher, and improved customer retention rates, up to 20% greater, according to the ULI data. These factors contribute to robust sales growth for retailers, with an average annual sales growth of 5-10%, significantly outpacing the 2-5% growth seen in standalone locations.

Developments Embracing the Live-Work-Play Lifestyle

Hudson Yards (NYC) – Hudson Yards is “the largest private real estate development in the history of the United States and the largest development in New York City since Rockefeller Center.” The site will include more than 18 million square feet of commercial and residential space, more than 100 shops, a collection of restaurants, approximately 4,000 residences, The Shed, New York’s first arts center to commission new work across the performing arts, visual arts, and popular culture, 14 acres of public open space, a 750-seat public school and an Equinox Hotel® with more than 200 rooms.

King’s Crossing (London) – King’s Crossing “is the largest mixed-use development to be masterminded in London for over 150-years – an adventurous, dynamic, creatively driven collective in a brand-new postcode, N1C. It’s also the city’s best-connected transport hub, drawing shoppers from across London and all over the UK to visit every day.”

The Center for Potsdamer Platz (Berlin) – The Center for Potsdamer Platz is a 1.2 million square foot mixed-use complex with 67 residential units, almost a million square feet of office space, and over 200,000 square feet of retail. “Additional renewal plans have been made for an immersive entertainment experience, expanded retail, globalized culinary offerings with sustainability programming, and the addition of new fitness and lifestyle amenities. This includes a partnership with Nike, activating part of the public realm.”

A Bright Future for the Mixed-Use Development

Mixed-use developments are not without some controversy. We know that gentrification can stem from urban renewal projects that include mixed-use spaces like these. Developers and communities are learning from the lessons of past developments. In East Austin, Tex., a mixed-use development will include affordable housing units, to ensure the long-term residents won’t be priced out.

Nevertheless, demand for mixed-use developments is expected to surge, driven by a renewed desire to engage locally and support neighborhood businesses. These live-work-play environments attract diverse business tenants and residents by integrating safety, wellness, commerce, and connectivity into their design. With the right retail mix, such developments can see up to a 25% increase in rent and property values, according to Green Street Advisors. This is particularly significant as middle-market retail centers, which have traditionally been less innovative, are now transforming to meet the evolving needs of urban living. It will be interesting to see how retail brands evolve their experience to take advantage of the unique community bubbles mixed-use spaces create.

Innovation Labs and Open HQs in Modern Retail
Innovation Labs and Open HQs in Modern Retail 1440 428 ASG
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Dubbed “Test City, USA,” our hometown of Columbus, Ohio is a mecca for start-ups and product testing. The demographics here mirror the larger United States, in a nice mid-sized, Midwestern package.

In the northeast quadrant of the city is Easton Town Center, a pioneer in mall design. Since opening in 1999, it has tested the possibilities for open-air retail that includes high-end retailers, department stores, brick-and-mortar direct-to-consumer stores, restaurants, entertainment venues, and more.

Today it continues to innovate with EastonLABS, a 500-square foot retail space that retailers can rent to test new products. The mall has since added Restau/Lab to give restaurants the same opportunity.

Flagship stores also are transforming into dynamic community spaces—hubs of creativity, collaboration, and community engagement. These “open HQs” allow brands to integrate consumer input directly into the design and development process and foster positive customer experiences at the same time.

“The retail market is under pressure. The retail landscape is evolving. Success at the shelf is no longer about the depth and breadth of inventory, but rather creating engaging experiences for customers. Change is the new paradigm. Retailers need to adapt to current trends to keep a seat at the table.”
– Deloitte

Companies like HP, Starbucks, Ikea, Sephora, and even Major League Soccer have all launched innovation labs and Open HQs to explore new business models, enhance customer experiences and stay competitive.

Yet the vast majority of innovation labs – a whopping 90% according to one industry report – fail or eventually close, falling short of the success they hoped to accomplish.

Here is what retailers who want to stay ahead of the curve and meet consumer demand for a better experience should know about exploring innovation models and avoiding potential pitfalls.

Engaging the Customer in Innovation

Consumer demand for personalization has only been growing, with 71% expecting businesses to get to know their individual interests. Furthermore, 80% of customers agree that the customer experience is just as important as products and services. Open HQs and creative hubs allow retailers to integrate consumer feedback directly into their processes, fostering a sense of community, and improving customer insights. Retailers are hoping to create a new breed of consumers who are emotionally invested in the brand. And with a staggering 72% of total U.S. retail sales projected to (still) happen in physical stores by 2028, the open HQ model offers customers a place to connect personally, even one-on-one with the brand.

An Evolving, But Not-New Concept

The Genius Bar, where customers receive tech support directly from experts, epitomizes the brand’s commitment to customer engagement and service.

Apple Senior VP of Retail Angela Ahrendts explained that she wanted Apple stores to be a town square, “where the best of Apple comes together and everyone is welcome.”

Several retailers in the United States have introduced an Open HQ model, including Nike’s House of Innovation in New York City. Nike offers personalized experiences where shoppers can test products, provide feedback, and even see prototypes in development. This interactive environment not only enhances the shopping experience, but also allows Nike to gather valuable consumer insights.

Nordstrom’s Innovation Lab has continually learned from trial and error how to refine the lab process and continues to lean in to new technologies that allow customers to personalize products and experience seamless online-to-store integration. Their commitment to experimentation and customer-centric solutions sets them apart.

Walmart’s Intelligent Retail Lab (IRL) is focused on customer experience and efficiency. Residing in a 50,000-square-foot Neighborhood Market store in Long Island, the lab uses thousands of cameras on the ceiling and sensors embedded in shelves to monitor the store in real-time to improve efficiency, keep costs down, and enhance the shopping experience for customers. The cameras can even detect the ripeness of produce based on color alone and alert workers when restocking is needed.

In London, the Samsung KX space in King’s Cross is a striking example of a tech brand embracing the Open HQ model. The venue features a range of experiences, from product demonstrations to workshops and events. Visitors can interact with Samsung products in a relaxed, communal environment, providing feedback directly to designers and developers.

Challenges in Innovation

While the Open HQ and Innovative model offers numerous benefits, it also presents significant challenges. Although many companies have announced new labs, just as many have announced closures.

Earlier this year, Walmart announced the closure of its Store No. 8 innovation hub to cut costs. The retail giant cited the lack of the need for the hub as the reason behind the closure since many of the interactive technology features it was testing are now integrated into several stores.

Ikea’s Space10 lab also shut down last fall after the cofounders stated they had reached all the objectives they had set for the lab. One of the lab’s developments in the decade that it was open was the creation of an augmented reality app that allowed consumers to use their phones to see what a furniture piece would look like in their living spaces.

The very way Open HQs and innovation labs are designed lends itself to challenges. Because innovation is continually evolving, labs will inevitably date themselves and risk becoming obsolete. Because of the costs associated with running Open HQs and innovation labs, retailers may close them more quickly if they fail to produce immediate and tangible results. Look no further than the rule of products. For every one that succeeds, another 10 or more will fail. Retailers must balance the cost of such initiatives with the potential return on investment.

To overcome these challenges, retailers need to adopt a flexible approach. Partnerships with local businesses and community groups can help offset costs and enhance the value of the space. For example, hosting events or workshops in collaboration with local artists or entrepreneurs can attract a diverse range of visitors and foster a sense of community.

The Road Ahead

“Experiential retail – a concept that involves creating unique, innovative, and interactive experiences for customers in a physical retail environment – will be a top trend.”
– NetChoice

As retailers continue to experiment with the Open HQ model, the key to success will be adaptability and a genuine commitment to customer engagement. By actively listening to shopper input and incorporating it into their design and development processes, retailers can create a dynamic and personalized shopping environment. This not only enhances the customer experience but also fosters a sense of loyalty and brand advocacy, as customers feel their voices are heard and valued.

The future of retail lies in creating spaces that are not just about selling products, but about building relationships and fostering creativity. Retailers have the opportunity to transform their stores into vibrant community hubs where ideas can flourish, and feedback is actively sought and appreciated. These spaces can host events, workshops, and collaborative projects that engage customers on a deeper level, making the overall experience more meaningful and interactive.

By prioritizing adaptability, embracing innovation, and valuing customer input, retailers can set new standards for what it means to create a truly engaging and dynamic shopping experience.

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