Published Thursday 10th October 2019
For many years, industry experts have been talking about the changing face of bricks-and-mortar retail. Many high-street stores have faced closures as market competition grows, particularly from online giants such as Amazon. Regardless of industry and target audience, stores have been warned that a failure to adapt will see them follow a similar fate to those before.
Specialists have spoken for many years about the need to develop ‘experience retail’. Despite this, many companies are still unsure about what this could mean for them. Recent launches of such experiences across the UK, from recognised names in multiple sectors, have brought the need to adapt back into sharp focus.
The Samsung Experience
In late September, technology brand Samsung opened a ‘KX’ store in London’s Kings Cross, in the upmarket Coal Drops Yard Shopping District. You cannot buy any products at this location – there are no products for sale. Instead, Samsung has created a 20,000sq ft experience-led destination.
The open-planned store is roughly structured like a home, allowing people to see and experience Samsung connected products in action. The lounge offers people the chance to play the latest Xbox videogames on one of Samsung’s high-resolution flatscreen TVs. An advanced printer allows visitors to create collages of themselves which they can print or share on social media. The kitchen is furnished with Samsung’s connected technology, allowing people to experience checking the contents of the fridge and operate lights through their devices. The kitchen island is complete with stalls and workspaces where visitors are free to use their laptops or talk with friends.
There is a café in-store, along with a ‘digital cockpit’, a flushed-out car showing how Samsung’s technology can work inside vehicles of the future. There is a range of other experiences available, alongside special classes and events. There is also a customer support lounge, where people can troubleshoot their Samsung devices with an assistant and receive advice on what product would be best for them.
It’s worth reiterating that no Samsung products can be brought within this retail store. There are no price tags or stock available to take away. However, space that would have been occupied is instead used to create an all-purpose location that people can enjoy.
More Examples of Experience Retail in the UK
For a technology brand like Samsung, the benefits of this style of retail can appear obvious. People can’t buy products in-store, but their target market can easily purchase products on their mobiles after leaving, or even while experiencing the items themselves. It can be argued that market competitor Apple has been doing something similar in their stores for years.
However, they are not the only brand incorporating experiences into their bricks-and-mortar strategy. Young online fashion brand Stance recently opened its first flagship store in Central London, designed to include space for artist workshops and experiential events. While many department stores have struggled over recent years, luxury location Harrods has found consistent growth thanks to its ever-changing line of in-store offers. These include luxury cafes, financial management centres and their other renowned in-store services.
Seasonal events are becoming increasingly common and varied, as locations vie for the consumer’s attention. During August, Westfield’s shopping centres included a VR Jungle Adventure experience where families could immerse themselves in a distant world full of exotic animals.
Maximising Retail Profits in the Modern Age
As we enter the Christmas period, experience retail will again take centre stage for many businesses. From shopping centre ice-rinks to in-store gift wrapping, seasonal experiences are a long-standing tradition for retailers. However, the key for companies going forward will be to create more evergreen experiences that keep footfall high throughout the year. These experiences will require a rethink of current marketing strategies and potentially sizeable investments.
Here at Expense Reduction Analysts, we have many years of experience in helping major retailers save money by streamlining their supply chains. Our specialists have worked across a range of markets and can reduce retail operating costs in a variety of areas. Our long-term procurement strategies could unlock the capital you need to reimagine your in-store experience. If you are interested in learning more, why not get in contact with our team or discover our previous work through our case studies?