Retail’s Future: The Store as Entertainment
When was the last time you went to a store and felt happy just by being there? Remember the movie, “Breakfast at Tiffany’s”? In it, Holly Golightly lovingly looks into the Tiffany store window on Fifth Avenue and says "... nothing very bad could happen to you there ..." How wonderful to feel that about a store experience! Whether feeling special or entertained or valued, stores that make you feel that “nothing bad can happen” have a special place in the hearts of their customers.
In today’s digital world, how can stores create the feeling of engagement and excitement that Holly felt when looking at the Tiffany’s store window? Our surveys show that customers are still interested in shopping at stores, but the store experience they value today is very different than what they valued in the past. And their expectations of the future will be very different as well.
In the "Synchrony Financial Future of Retail Study," when asked about the most exciting ideas for the future, 55 percent of consumers surveyed picked “an in-store experience that entertains me” as one of the top three most exciting ideas. And according to the "Synchrony 2016 Affluent Study," about 70 percent of shoppers say they would rather spend money on experiences over spending on things. The message is clear — shoppers want to be entertained when shopping.
Below are some new shopping formats that we may see in the coming years as brands respond to this sentiment:
- Experiences merged with shopping. Various categories are now being added to the retail experience. Examples include coffee shops, cafés, music experiences, bars or complimentary products or services inside the store. It’s a big reason why local “markets” are making a resurgence across America. Some call it “retail-tainment.” The retail experience can be a place to gather or a place to just relax and have fun.
- Crafts and learning within the store. Retailers can let shoppers see how a product (like a leather belt) is made from scratch. While this experience is already being used, it may become more mainstream in the future.
- Retailer apps that are interactive and combine the digital and store experience. For instance, a customer can pick out clothes and reserve a dressing room right from the retailer’s app. This is both a timesaver and a delighter.
Ryan Mathews, a Futurist at Black Monk Consulting says,
“So, the question then is, if you don’t need to go to a place to get stuff, what do you need to go to a place for? And that’s kind of what we call higher engagement things: the experience, advice, consultation, fun. It’s moved beyond transactions into real relationships.”
So, looking to the future, the bricks-and-mortar store may no longer be a place to just pick up a sweater or a pair of shoes. It may be a place to meet your friend for a drink, learn to mix a cocktail and pick up that cute scarf that goes perfectly with the pants you’re wearing. For the Holly Golightly of the future, that could be the next “Breakfast at Tiffany’s” experience.
Note: The views expressed in this blog are those of the blogger and not necessarily of Synchrony Financial.
Sue Yasav is the VP of Thought Leadership at Synchrony Financial. She's responsible for developing strategic insights through surveys, social listening and academic studies on topics related to the financial services and retail industries. She authors white papers on consumer trends and articulates impactful strategies for marketers in the areas of digital transformation, customer experience and insights into specific growth segments of the U. S. population. Sue has 20 years of experience in the credit card industry, encompassing 10 years at Citi Cards as VP in the Finance and Marketing organizations. In the past 11 years at Synchrony Financial, Sue has been a Lean/Six Sigma Master Black Belt, a marketing leader for a high-end retail partner in NYC and the leader of Value Proposition Development.