Where is Offline Retail Headed: Experiential Spaces for the Win

The Most Intriguing Stores built to Delight every Shopper‍

In retail, after every ‘touch, taste and feel’, comes “sense, experience and delight”.

Concept stores have become the new playgrounds for ready-to-wear brands and luxury houses, setting themselves apart from traditional brand stores with their bold, innovative spirit. These hybrid spaces blend fashion, art, design, lifestyle, and even gourmet food, creating a dynamic environment that inspires. Much like an art gallery, the items are displayed as masterpieces, inviting shoppers to immerse in the experience.

Adding to this immersive experience, technology and AI are creating a deeper connection between the shopper and the brand.

As we journey through some of the most intriguing retail stops, let’s explore these 10 standout, avant-garde retail experiences.

Chinese lifestyle brand Miniso has unveiled its first ‘scenario-based’ IP collection, Miniso Land, in China. Situated on Shanghai's iconic Nanjing Road, the store spans approximately 2,000sqm across three floors, offering a retail concept inspired by an “IP theme park.” It features exclusive IPs such as Harry Potter, Sanrio, Disney, and Chiikawa. “As Miniso’s flagship global store, Miniso Land not only reflects the brand’s vision but also marks a significant milestone in the company’s global channel evolution,” said Jeff Kou, VP and Chief Growth Officer of Miniso.

“Launching our first-ever Skims Valentine’s Pop-Up Experience in Chengdu is an incredible milestone for Skims as we continue to expand in Asia and across the globe.” said Kim Kardashian, Co-founder and Creative Director of Skims . Skims, the American shapewear and clothing brand, has launched its first pop-up store in Mainland China in collaboration with luxury department store Lane Crawford. Located at the Chengdu International Financial Center, the pop-up, which celebrates Valentine’s Day, will be open until February.

Uniqlo's Paris Opera store, which originally opened in 2009 with an impressive futuristic design by WonderWall , has reopened after 8 months of renovations. The revamped store now features expanded floor space and a refined new design that pays homage to the stunning architecture of the nearby Opera House. The original 1866 facade is enhanced by a majestic neoclassical staircase, blending classic charm with modern elegance.

The Gucci boutique in Chengdu beautifully merges digital art with retail, where the elegance of Florentine Renaissance architecture blends seamlessly with the local natural surroundings in a dynamic, ever-evolving AI-generated digital landscape. In collaboration with AI image generators like Midjourney , Stable Diffusion AI, and Dall·E 2, Random Studio's creative team expertly balanced human artistic direction with the unpredictability of AI, creating a unique and immersive environment.

‍Korean eyewear brand Gentle Monster is renowned not just for its products but also for its exceptional retail spaces. From Seoul to Los Angeles, its stores serve as immersive art installations, drawing visitors into imaginative and surreal worlds. Each location is thoughtfully designed with architectural elements, unconventional displays, and theatrical touches that seamlessly blend art with commerce. The brand's latest US store in Houston welcomes guests with a futuristic probe and a Giant Head kinetic installation.

Stepping into the Burberry store in Shenzhen feels more like entering a pop-up art exhibition than a typical retail space. With ten distinct rooms, each one offers a unique interactive experience. Among the many engaging features are a living sculpture that mirrors the viewer's shape and the Thomas Cafe, creating a truly immersive experience in this social retail space.

A new concept store in Bengaluru, India transports you to the stationery shop of your childhood dreams. Co-founded by Spandana Gopal of Tiipoi and sourcing consultant Malini Malik, General Items spans 300 square feet of design wonder. Described as a “design store and occasional gallery” by its founders, the space is designed to encourage community connection. Stepping into General Items is like entering the perfect stationery store you always wished you could live in!

The first Nike House of Innovation 001 opened in Shanghai, followed promptly by the New York flagship 000, and with a third on its way in Paris. Across each location, Nike presents cross-category, consumer-focused spaces and experiences, and promises city-exclusive items specific to each city.

Walmart 's new ‘Intelligent Retail Lab’ (IRL) in New York is an innovative, tech-driven retail space designed to explore the future of shopping. Equipped with AI-powered cameras, interactive displays, and a vast data center, the lab demonstrates how artificial intelligence can enhance the shopping experience. Real-time sensors and cameras track inventory, providing staff with precise notifications on when and what to restock.

Apple Marina Bay Sands is the first-ever Apple Store built directly on water. Positioned as a stunning floating sphere on the shimmering Marina Bay, this store redefines the retail experience in one of Singapore’s most iconic spots. Completely surrounded by water, Apple Marina Bay Sands offers breathtaking 360-degree views of the city and its impressive skyline. The innovative all-glass dome structure is a world first, supported by 114 glass panels and just 10 slender vertical mullions. As Apple’s third retail space in Singapore, this new location promises an unforgettable customer experience.

The Power of Place: Physical Retail Will Always Matter

By 2028, Forrester's research finds that 72% of total USA retail sales will occur in brick-and-mortar stores in 2028. Partially this is driven by a surprising majority (64%) of tech-savvy GenZ consumers who prefer shopping in physical stores.

Even in India, around 90% of the market is projected to remain offline, even as it reaches a size of $2.2 trillion by 2030, according to a joint report on omnichannel firms by Accel, Fireside Ventures, and market research firm Redseer.

Brick & Mortar provides unique sensory experiences, instant gratification, and personal interactions that can’t be replicated online.

For major retailers, physical stores serve as hubs for customer engagement, offering services like in-store pickups and returns. In fact, 28% of shoppers say the primary reason to shop in stores is to enjoy the experience.

Today, several new direct to consumer (D2C) companies are taking the offline route much earlier than their predecessors, as they look to deleverage from third-party platforms and access a larger consumer base quickly.

But the future?

Doug Stephens, author of Reengineering Retail: The Future of Selling in a Post-Digital World says "Today, 70% of mall space is dedicated to retailers, and most of them are selling apparel. The whole model will shift, and down the line 30% of the space will be for shopping, while 70% will be dedicated to food, entertainment, lifestyle, and community activities."

Mass to Micro Observability - Tech Stacks that Wow  

As retailers gear up for the next wave of retail in 2025, it’s the perfect time to leap into a fully digitized future. From real-time inventory visibility and a unified view of customers across channels to versatile fulfillment options, the stage is set for a game-changing transformation.

Retail leaders are making digital transformation and omnichannel capabilities top priorities, and the key takeaway for 2025? It's all about striking the perfect balance between cutting-edge innovation and practical execution.

The most obvious (& crucial) investment, even before AI, should be one in Unified commerce - which is enabled when brands use a single, integrated platform to manage retail operations across the entire digital and physical shopping journey. With an integrated system, retailers can unify data from every touchpoint including point of sale, shopper data, inventory information, digital engagement, order management, and marketing.

Generative AI has moved past the chatter and into real, measurable success.

Retailers that offered gen AI tools like chatbots during the Black Friday weekend noted a 15% better conversation rate. 6 in 10 retail buyers said that AI-enabled tools improved demand forecasting and inventory management in 2024. With digital efficiency looming, 2025 could be a breakthrough year, including advancements in strategic arenas of merchandising, supply chain, and marketing. Seven in 10 retail executives expect to have AI capabilities in place within the year to help personalize experiences, as per Deloitte.

Some retailers are also embracing AI to help enhance the in-store shopping experience, focusing on data-driven store design and layout optimization.

According to McKinsey & Company (2022), AI demand forecasting can reduce supply chain errors by 20-50%. They also report a reduction in lost sales of 65%. From Demand planning to inventory management, optimising delivery and supply routes, predictive analytics is key to every retail business today.

Also, with technologies like Storefox.ai , retail brands can utilise audio-intelligence to remotely monitor all their stores, without any physical intervention.

The global smart retail market is expected to grow at a CAGR of 29.1% by 2030. Even cutting-edge tech like AR is shifting from futuristic to fundamental.

Instead of offering AR try-on products to customers with a separate app, like IKEA did with Ikea Place, Ikea now offers their AR features directly in the main Ikea app. This clearly shows that brands are confident in their AR products reaching the mainstream, while consumers see real value in the technology for making informed purchasing decisions.

3D planograms are being overlaid on top of a shelf or section of the store using AR to support retail workers. This helps instruct employees on how to arrange shelves, zoning devices, merchandising displays, and products in accordance with the planogram.

Virtual fitting experiences are rapidly becoming the norm for online shoppers. Industry leaders like Amazon, Kering and Nike are investing in this technology to increase conversions and reduce return rates. While ready-made solutions are available, many retailers prefer custom-built systems to deliver a more immersive and brand-specific shopping experience.

Rihanna’s fashion brand Savage X Fenty also introduced a virtual in-store fitting room that employs advanced technologies such as AR body scans, computer vision, and AI.

And wait for this one…..

Dynamic pricing is also coming to brick-and-mortar stores. mic-drop!

Digital price tags enable retailers to update prices instantly based on demand and inventory levels. This allows for real-time promotions, dynamic pricing strategies, and a seamless shopping experience—all while boosting operational efficiency.

Other interesting use-cases for technology, as per Deloitte’s recent survey were:

• Nearly half (47%) of shoppers surveyed agree that digital screens positively impact their in-store grocery shopping experience
• Three-quarters of executives surveyed say they’re increasing investments in retail theft prevention
• Recent price reductions in radio frequency identification tags allow retailers to affordably tag a broader range of items, improving efficiency by enhancing inventory tracking and visibility. This allows more goods to be displayed on shelves rather than locked in display cases, creating greater shopping convenience.

While many retail technologies are taking off, self-checkout seems to be stuck in the slow lane. Amazon’s retreat from its futuristic self-checkout systems and the shutdown of its Amazon Style stores signal that this tech still has hurdles to overcome. If one of the biggest and richest retailers in the world can’t make self-checkout profitable, it’s a tough sell for smaller businesses to adopt a “just walk out” model. Even Target is dialing back by limiting the number of items allowed at self-checkout.

‍Retailers, catch-up or get outpaced. Digitise & automate - as much as you can!‍

Cha-Ching! Turning Points into Profits: Loyalty Programs in Retail

• 69% of consumers say choice of retailer is influenced by where they can earn customer loyalty/rewards program points.
• Loyalty program members spend between 12-18% more per year than non-loyalty program members, as per NerdWallet
• 80% of customers are willing to pay more for a better customer experience.
• Customers spend 43% more money at brands they're loyal to.
• 39% of customers have made an unplanned purchase just to earn more points or rewards, as per Forbes

Some of the best programs in the space include the IKEA Family, followed by Samsung Electronics Rewards, Gap Inc., Good Rewards, Timberland Community, Dell Rewards, AdiClub, Starbucks Rewards, Sephora Membership, Blumetopia, LEGO VIP, Nike Membership, GameStop PowerUp Rewards Pro, The Nordy Club, Macy's Star Rewards, My Lancôme Rewards and H&M Members.

As customers, of course it comes with exciting rewards, discounts, and special benefits. And as members when we accumulate rewards, we’re less likely to switch to a competitor to avoid losing accrued benefits, creating a "barrier" to exit.

As retailers, the marketing theory behind loyalty programs centers on the idea of creating, enhancing, and sustaining customer loyalty to a brand or business. These programs are designed to retain existing customers, reduce churn and also to draw in new customers looking for perks. Thus, aiming to maximize customer lifetime value (CLV).

75% of retailers already offer a loyalty program, with another 22% planning to introduce one in the next 24 months, as per Salesforce.

If you’re part of that 22%, here are a few things to consider.

It’s not just about setting up a loyalty program; it’s more about building customer loyalty. The loyalty program should truly provide a rewarding experience to drive engagement and repeat purchases.

Chance-based games like spin-the-wheel or scratch-off prizes add an element of excitement, while tiered programs reward shoppers with exclusive benefits as they earn or spend points. Time-bound challenges encourage customers to complete specific tasks for points, driving short-term engagement, whereas milestone-based rewards keep them motivated by unlocking benefits after completing multiple actions.

Additionally, leaderboard rankings create a sense of competition, encouraging shoppers to stay active and strive for higher rewards.

In 2024, experiential loyalty, AI-driven capabilities and paying with loyalty points at the point of sale (POS) became core to successful programs.

The ultimate goal is to create personal connections, ones that seamlessly blend into customers' daily lives. And the supporting goal should be to make it easy & convenient. Mobile passes can replace traditional plastic cards, making in-store loyalty activities more accessible. Also, equipping staff with loyalty data is imperative - they can offer tailored product recommendations and timely reminders for coupons or rewards. Interactive experiences like in-store treasure hunts drive footfall and engagement by encouraging shoppers to scan product barcodes for rewards.

Beyond purchases, brands can reward lifestyle-based actions such as recycling & healthy habits. Like the Fitbit (now part of Google) Rewards Program, that gives users points for daily steps and workout achievements, discounts and offers from health and wellness partners & these points are then redeemable for discounts on new Fitbit devices. Another great option is implementing a retail loyalty program in collaboration with a strategic partner. An interesting example here would be Apparel Group’s app, Club Apparel with a loyalty program that boasts of 85+ brands such as Birkenstock, New Yorker, Cold Stone Creamery, Toms, Victoria’s Secret & Co., Tim Hortons & more, with 2300+ stores across 7 countries.

Decoding Retail: Your Insider Glossary

'Retail as a Service' or 'RAAS'

Retail as a service (RAAS) is like the WeWork of the retail world - where online retailers can create capsule experiences in physical spaces to focus on the service, not the sale. It removes the overheads that setting up a store would traditionally incur from the equation, giving retailers the opportunity to connect with audiences and convey their brand story via impactful messaging. Think Showfields in the US and Litestore in India.

Another great example from the Indian retail space is Broadway, where content meets commerce & experience meets discovery, an initiative led by Vivek Biyani , co-founded by venture partners- actor-entrepreneur Rana Daggubati, Apurva Salarpuria of Salarpuria Group and Anuj Kejriwal of Anarock, with Kishore Biyani (CEO, The Future Group) as a mentor.

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