The „retailtainment” revolution

Despite the boom in online shopping over the years, retailers have realized internet alone doesn't quite do the job, making the valuable relationship between e-commerce and physical stores more and more obvious. As a result, retailers are focusing on bringing the shopping experience to a whole new level. According to Ben Binns, EMEA Retail Director, JLL, retailers are starting to appreciate the value of having less stores but bigger and better quality, while creating more of an experiential environment. The growing importance of entertaining customers and providing a deeper understanding of the product has brought companies such as Samsung to open physical stores where no products are for sale, creating a pure experience for the client. Binns visited the Samsung store located in NY a few weeks ago „It‘s purely to get people in and reach a bigger affinity with the brand, along with a better understanding of the product. It‘s almost like creating a lifestyle venue”. Technology‘s relationship with retail is becoming more and more notable, reaching a point where customers can visualize products or try on clothes through virtual or augmented reality. Binns commented on the future of the VR/AR industry, making clear that it is unlikely technology will displace physical stores, but will work as a complement instead. „People still like the feeling of going and having something tangible, but the store has to have a reason and the ability to pull customers in.“ However, nothing can compete with the food and beverage industry. The growing popularity of eating out, along with the impossibility of having a meal or drinking a coffee through the internet brings this sector to play a huge role when it comes to shopping. Binns explained this further: „If you get the right mix you might have a family offering which keeps people in shopping malls for longer, which typically translates in to more visits to the shops.“