JLL: Physical and digital experiences key to keeping consumers visiting retail stores

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PETALING JAYA (May 17): With the advance of technology and the growth of e-commerce, the key to keeping consumers coming back to physical stores is to be able to provide an integration of physical and digital experiences, said international real estate services firm JLL in its recently-published “Destination Retail 2016” report.

According to the report – which looked at a sample size of 240 retail brands in cities in the US, Asia Pacific, Europe and the Middle East – both retailers and retail spaces now have to contend with a growing urban population who are increasingly knowledgeable and demanding.

“These shoppers will generate more information and data than ever before. The days of consumers primarily browsing high-street stores for their next purchase are long gone. Today’s decision-making process takes in multiple channels and numerous sources, often simultaneously,” the report said.

However, the report stressed that this does not mean that consumers no longer browse for products in retail spaces; instead, it has become part of a wider consumer experience.

“Technology has breathed new life into retail spaces, making retail as vital as ever for landlords and renters alike. But now that transactions can take place anytime and anywhere, they need more of a reason to visit a store,” the report explained.

So what must retailers do to keep consumers engaged?

“The key to keeping consumers entertained is to integrate physical and digital experiences so as to provide an interactive and all-inclusive, in-store experience that is combined with excellent services,” the report said.

“Innovative retailers are responding and adapting store formats to provide an interactive element that many consumers now desire,” the report added, citing retail brands such as Tommy Hilfiger and Bloomingdales.

“Tommy Hilfiger recently launched a digital showroom at its Amsterdam headquarters where buyers can digitally view every single item in the collection to create custom orders via an interactive touchscreen table linked to a huge screen wall. The concept is targeted to eliminate the need for samples, order forms and, eventually, physical showrooms,” the report noted.

According to the report, Bloomingdales is in the mist of testing wall-mounted iPads in fitting rooms, which allow their customers and staff to scan products and check for available sizes, colours and customer reviews.

“A direct link to the inventory system allows for checking and locating the desired items throughout its multimillion-item inventory.

“Retail spaces will become less about simply shopping and more about a holistic entertainment, educational and leisure offering,” the report concluded.

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