In-store Experience becomes even more important after Covid-19

By Meredith Gaskill and B. Ellie Jin

COVID-19 had many effects on our world as we know it today. It changed the way we view our time, our health and our priorities, among many other things. It also changed many industries drastically, including fashion and retail. The retail industry experienced great financial losses as the supply chain was disrupted. Now, many researchers are looking at how retail is making a come-back and what these shifts mean for the future of retail businesses. Let’s take a look at some of the changes and innovations in the retail industry:

The Importance of the In-Store Experience

Retail experienced an e-commerce boom during COVID-19 that might have had retailers wondering if the in-store experience was going to be as valuable to consumers anymore. Now, it is apparent that although the e-commerce industry is important for retailers to maintain, the brick-and-mortar experience is just as important for engaging and maintaining customers.  In a survey of the state of retail shopping, 7 in 10 respondents said they describe themselves as in-person shoppers, while only 30 percent say they would be best characterized as online shoppers (PRNewswire 2013). About 70% of consumers consistently say they want to “touch and feel” products before they buy, but it is becoming increasingly necessary for retailers to do more to catch their consumers’ interests in the storefront (There’s still a place for Brick and Mortar Shopping 2017). 

New Innovative Brick and Mortar Experiences

Customers not only want to get back to the brick-and-mortar shopping experience, but they also want innovative and exciting in-store layouts. A few of the trends in this arena include conceptual pop-up shops, in-store events and parties, and incorporating more sensory stimuli into the physical shopping place. French luxury brand, Jacquemus, set up a pool locker room-like pop-up shop in London, where customers can get a sense for their branding aesthetics and artistic appeal while shopping their latest product line. Read more about this here: https://bricksmagazine.co.uk/2022/05/04/dive-into-jacquemus-and-selfridges-new-pop-up-retail-space/

Another example of innovative brick-and-mortar storefronts is Nordstrom’s Local New York City store, which is booming with experiences and services for its customers. During COVID-19, Nordstrom established itself as an e-commerce leader in the retail landscape, but now they are focusing once again on their in-store experience since consumers are back to shopping in-person (Howland, 2020). There are many in-store experiences that Nordstrom’s NYC flagship location offers to consumers. In-house tailoring, styling, food and beverage options, and beauty services are just a few things consumers love about this storefront. Nordstrom has marked themselves as a leader in the race to create meaningful in-store experiences for its consumers, and because of this will continue to gain market share in post-pandemic times. 

Noho’s Showfields is a great example of experiential retail, combining in-store pop-ups with theatrical themes that connect with consumers’ senses. They have a number of brands and in-store curations that rotate and engage consumers with the product assortment. They also host events to engage customers such as pilates workshops, happy hours, and special interest experiences (Showfields n.d.) Showfields has coined itself the “most interesting store in the world” because of their experiential retail setting that constantly reinvents and reimagines the in-store experience for visitors. 

Changes regarding D2C and Re-entering Retailers 

During the pandemic, many retailers struggled as brands decided to sell direct-to-consumer and take a hiatus on wholesale due to store closures and financial difficulties. Brands such as Puma, Levi’s, and Birkenstock demonstrated serious efforts to their D2C business during the pandemic because of the lack of in-store shoppers (Direct to Consumer Booms During COVID-19 2021). Now, as the effects of the pandemic are seemingly behind retail, brands are beginning to re-focus their efforts on wholesaling in-stores due to the costs of D2C. D2C brands are recognizing retailers are a great way to reach and engage consumers, access valuable data on shoppers’ habits, and test out new markets and products without much cost upfront (Tharp, 2022). 

Glossier is a great example of a primarily D2C company that is now refocusing their efforts on selling in brick and mortar stores. Glossier initially closed their brick and mortar stores in the wake of the pandemic, but has now decided to adopt a “people first, product second” mantra in the reopening of brick and mortar stores. In response to Glossier’s return to retail, founder Emily Weiss said “We imagine a future where digital and offline experiences exist in harmony, all in the service of helping people connect more deeply with themselves and others” (Bargh, 2021). 

How can apparel brands keep up to these trends? 

Before the COVID-19 pandemic, experiential retail was exciting for consumers, but in the aftermath of the pandemic, it is becoming more of an expectation rather than a bonus in the marketplace. The pandemic has shown us that retail is not dying, but rather is experiencing a revival among today’s consumers. Brands, especially in the higher-end market, must invest in their in-store experience in order to keep consumers excited. 

References

Bargh, B. (2021, June 17). Cosmetics Business. Retrieved March 20, 2023, from https://cosmeticsbusiness.com/news/article_page/Glossier_makes_global_return_to_retail/177312 

Howland, D. (2020, August 3). What the pandemic has done to Nordstrom’s revamp. Retail Dive. Retrieved February 27, 2023, from https://www.retaildive.com/news/what-the-pandemic-has-done-to-nordstroms-revamp/582635/ 

Jonathan.Eungblut@imrg.org. (2021, December 7). Direct-to-consumer booms during covid-19. IMRG. Retrieved March 20, 2023, from https://www.imrg.org/blog/direct-to-consumer-booms-during-covid-19/ 

Survey says: ‘brick and mortar’ shopping is consumers’ favorite: U.S. shoppers stay close to home, seek holiday deals, per family dollar survey. (2013, Dec 03). PR Newswire Retrieved from brick and mortar’ shopping is consumers’ favorite: U.S. shoppers stay close to home, seek holiday deals, per family dollar survey.

Tharp, M. (2022, December 15). 5 reasons DTC brands are moving to retail. Rockerbox. Retrieved March 20, 2023, from https://www.rockerbox.com/blog/5-reasons-dtc-brands-are-moving-to-retail#:~:text=1.,of%20shopping%20in%20a%20store. 

There’s still a place for brick and mortar shopping — market talk. (2017, Jan 13). Dow Jones Institutional News Retrieved from There’s still a place for brick and mortar shopping — market talk.