With many new and innovative concepts taking over, 2022 has shaped up to be an exciting year for retail businesses. A major shake-up is predicted in the way consumers shop, and businesses have had to adapt quickly to stay afloat. As people become increasingly comfortable using their phones to make purchases online, several unexpected avenues have opened for retailers to provide meaningful and personalized consumer experiences.
Major retailers are starting to adopt the store-within-a-store concept to allow customers to buy products from different brands in one place. Big names like Disney, Toys R Us, and Sephora are setting up their shops inside larger host stores. Ulta Beauty opened at Target, and Sephora at Kohl's is available in more than 850 stores. These collaborations deliver a more convenient and curated shopping experience using collective brand reputation and omnichannel expertise.
We can expect to see more retailers using omni channel tools to provide added flexibility and value to their customers — including augmented reality, allowing shoppers to try on products virtually before buying. Despite moving to e-commerce, many retailers still struggle to exploit these opportunities. Education is key for retailers to stay on top of their options.
Curbside pickup is becoming increasingly popular, offering a convenient and hassle-free way to get desired items. Nearly 67% of US shoppers used this service at least once in the latter half of 2020, and the number continues to grow. Benefits include no shipping costs, the ability to see a product before taking it home, and instant exchanges and returns.
Retailers are increasingly turning to experiential marketing tactics like retail activations to stay competitive. Brands like Sephora, Apple, and Nordstrom have been using AR and VR technology to engage with shoppers on a more personal level. Customers enjoy trying on clothes virtually and seeing how furniture will look in their homes using smartphone cameras.
Social media platforms like Instagram, Facebook, and TikTok have become integral in retail marketing strategies. Retailers can use video streaming to show off new product ranges, educate customers about product care, or invite customers to meet company founders. Creating entertaining live stream content builds brand loyalty and creates an emotional connection with the audience.
By allowing customers to pay for items in installments without interest rates or late fees, retailers are attracting more prospects — especially millennials who want to jump on the latest trends without straining their budget. Walmart and Target offer this service using Affirm and Zip, respectively. This trend has accelerated dramatically and shows no signs of slowing down.
Retailers are using AI and AR to offer a multi-sensory brand experience throughout the sales process. These technologies allow customers to get immediate attention, find desired items, try them on the spot, and pay instantly. We can expect an upsurge in digital mannequins, drones, touch tables, and interactive signage.
The resurgence of swap and giveaway groups on social media allows people to exchange unwanted items for ones they might like better. In addition to helping beat inflation and save money, these communities promote sustainability by keeping old items out of landfills. This trend introduces a unique opportunity for retailers willing to position themselves as sustainability-focused brands.
The retail landscape is shifting rapidly, and the brands that thrive will be those who embrace technology, prioritize the customer experience, and remain agile in their strategy. Lov Retail helps international brands navigate the U.S. retail environment. Get your Retail Readiness Report to see where you stand.