While some may have suspected bricks and mortar retail would struggle in a time of low growth and high inflation, the luxury sector is proving the opposite is true.
In fact, the latest figures from Bain & Company reveal that people are increasingly keen to enjoy upscaled retail experiences. It predicts that in contrast to premium stores suffering after the 2008 global financial crash, the industry is now showing that global sales growth in luxury retail is looking very likely to hit 3% to 5% growth in 2023, possibly rising to 6% to 8%.
This chimes well with research from Mood Media that found more than four in five shoppers will return to a store with the right atmosphere. This desire to be immersed in a premium experience is prompting the smartest retailers to upscale their operations through reimagined spaces where stunning design cues provide an elevated experience for shoppers.
This is being further underlined through many launching luxury services. This can be through merchandising more premium items, as well as lavish coffee bars, luxurious beauty treatment areas and new ways of interacting with the brand and its ranges. It is also being delivered through smart use of technology to serve customers better, in a more timely and personalised way.
Pampering and rental
H&M’s new flagship store in Regent Street, London is a case in point. The lasting first impression comes courtesy of one of the largest LCD screens in Europe. The double 4K display features graphics that evolve during the day, responding to the number of shoppers approaching it. The latest tech is not there just to impress. In the kid’s section, customers can scan characters on their mobile phones which then appear in augmented reality in the store to add a little fun.
Augmented experiences are all well and good, but H&M is also rolling out real-life experiences through a new beauty bar where customers can enjoy a range of treatments and pampering. It is also debuting a new concept – fashion rental. H&M Rental allows customers who are signed up for its membership scheme to rent items for a maximum of seven days. Items can be selected in the store or reserved through its app to be later picked up in-store.
The flagship shop is also offering a recycling service, so customers can pass on their treasured pieces for someone else to enjoy. This element of aligning a store’s environmental credentials with its customer’s values can be seen nearby at the Uniqlo store on Regent Street where customers can pay £3 to have clothing repaired, allowing pieces to have a longer life and avoid fabrics ending up in landfill.
Reimagined brands
Upscaling is not just the preserve of London stores on its famous shopping streets; retailers across the country are repositioning themselves to the public, so their brands can be reimagined and top a customer’s favourite list. The current post-pandemic period is proving to be a time when savvy retailers are asking customers to come back and see what they have to offer, both in terms of brand repositioning and new deeper, more immersive experiences.
A good example is how River Island recently unveiled its River Studios concept. In what the media are referring to as “an elevated visual approach” that reinvigorates both the brand and the high street with “an elevated experience”. The design is breathtaking, with displays giving room to truly stand out and make the mark underneath high ceilings which give shoppers a renewed sense of space.
The tech deployed at the new look store builds on the visual impact to take customer experience to new heights. A screen in the middle of the store features ‘Chloe’ an AI styling assistant who can give advice on which pieces might suit a customer. Then, in the fitting room, displays show the customer what else is available in a range so they can ask an assistant to bring over a different size or complementary pieces. The screens also offer an endless aisle through which customers can order products that are not currently available in-store.
Action stations
Just as this brand elevation work is not restricted to London’s famous shopping streets, it is not limited to high-street fashion. It’s having a significant impact on other parts of the industry, such as sports retailing. In Manchester, Sports Direct has just unveiled its latest flagship store at the Arndale Centre, and it’s jaw-dropping.
Laid out over five floors, its spacious design features curated spaces, dedicated sporting zones and interactive areas. The latter allows customers to play basketball, try out some mini golf, play table football or try their luck at computer sports games. The tech on offer is not just for fun, there’s a gait analyser and foot scanner to ensure customers get the best-fitting footwear. A dedicated bra shop is also on hand to make sure athletes can get the right underwear.
You only have to see pictures of the new store to see why it’s been labelled as “a step forward in the brand’s elevation strategy”. Whatever preconceptions customers may have from visiting a Sports Direct store in the past will be shattered.
This upscaling of sports retail experiences is clearly evidenced in new concepts unveiled by both Peloton and GYMSHARK. Peleton’s new Covent Garden Studio is an extension of the normal retail store. Customers can check out the Bike and Treadmills on offer but, even more importantly, they can now join in regular talks and demonstrations.
Similarly, at GYMSHARK’s first store, the focus is not just on visiting the brand but on being fully immersed in it. The company wanted to go beyond simply displaying its range of sports fashion and so runs 30 bookable fitness sessions every week. Customers can move beyond shopping to working out and then grab a coffee and a bite from the in-store café.
Smart retailers are realising this unlocking of a brand’s core proposition, devising new ways for the public to discover what it stands for is now clearly the path to tapping into growth. As shoppers return to the high street at levels not seen since the pandemic, the secret is to reintroduce customers to a better version of a brand. Stunning new store designs are one part of this, but so too are new experiences that build on a core brand proposition to turn a shopping trip into an experience.
Valentina Candeloro, International Marketing Director, Mood Media
