Putting on a show

Retail as entertainment destinations

2020 has started amidst the closure of many retail stores including EB Games and Harris Scarfe. Meanwhile, online shopping has continued to grow in Australia, seeing an average of 14.3% growth annually for the past five years. Why would consumers shop at physical stores? Online retail is more convenient, has a wider range of products, and is often cheaper than their physical counterparts. However, online retail cannot replace the ability of physical stores to provide experiences to customers.

Physical retailers are not all rolling over in the face of ecommerce – many are incorporating unique and interesting experiences to draw consumers away from their homes and back into the store. For example, US grocery chain Sprouts Farmers Market sometimes includes a bar serving a range of wines, beers, and food for consumption in-store. The chain also boasts a self-serve salad bar in many stores. Australian homemaker retailer Spotlight recently opened its second small-format store in The Glen, Melbourne. Spotlight Creative focuses on three categories – craft, sew, and party – though differs from the brand’s big box stores through its dedicated creative space to hold classes and DIY workshops. Athleisure brand Lululemon opened a flagship store in Minnesota featuring a mini-gym, café, and a try-before-you-buy attitude. The brand is also extending the store to beyond fitness, with movie nights, concerts, and panel discussions aimed to create a community around the store.

On a bigger picture, shopping malls and department stores are offering increasingly fantastical experiences. Showfields, a retail concept that opened late 2018 in New York, provides a space for direct-to-consumer brands that typically begin their lives online to showcase their products amidst displays of interactive art and experiences. On an even bigger scale than Showfields is Area15, a new retail and entertainment complex scheduled to be opened in early-mid 2020 as an addition to Las Vegas’ wealth of entertainment. The complex will feature ever-changing art and immersive installations complemented by brand activations and unique events. Complexes such as Showfields and Area15 promise to draw consumers into bricks-and-mortar, creating an immersive experience where consumers may even forget they are being sold to.

While retailers are closing their physical stores, many innovative retailers are opening experience-focused concepts that blend shopping with entertainment. These retailers offer unique experiences, something that online retailers may find difficult to replicate in the digital space. Boring retail is on the way out, with enjoyable and even fantastical experiences available to recapture the imagination of consumers in the physical world.