Moving over from Physical to Experiential Retail

E-commerce evangelists are busy pronouncing the end of physical retail. Being an e-com enthusiast, I believe that e-com is here to stay. However, being a retail passionate, I also believe that physical retail can never die. It will just transform to a more experiential form providing social gratification.

A recent NRF article corroborates this- “The challenge for a retailer today is to rise above a line item on a to-do list; it’s to provide a solution to shoppers’ needs — in a way that gets the shopper to emotionally slow his pace and breathe.” This is being called as the new era of experiential retail, which I couldn’t agree to lesser.

Experiential retail could be described by some as converting a boring experience of browsing, trying and buying into something fun and exciting, using things like augmented reality and interactive technology (Source). Innovations in store technology like beacons, virtual mirror and advent of IoT can surely change the way we shop.

Additionally, there are examples which have less to do with technology but more to do with the value added services provided at the store or the expertise of their sales staff. Two such retailers (both in sports retailing) are worth discussing.

Image Source: Decathlon India website

1)   Decathlon – It is a one-stop solution to amateurs’ sport needs covering around 40 sports. Some of the best things about the store are - huge store size and wide-spaced aisles that give plenty of space to test equipment like cycles, kid scooters; trial rooms located right at the end of aisles selling apparel for specific sports; clear labeling; helpful staff; long selling hours (10 am to 10 pm) and ample parking space.

Decathlon develops and sells its own products, which have a decent quality and affordable price. This makes them more penetrable to the masses. 

However, the highlight of the Decathlon stores is their basketball courts available for playing free-of-charge. In countries like India, where community sports spaces are grossly inadequate, this is a welcome change. The shop-front courts provided a lively aura to the Decathlon store that I visited (situated on the outskirts of Hyderabad, India). 

2)  The Bike Affair – As the name suggests, it deals with everything around cycling. Not just the core product – cycles (or bike), but all the accessories related to it. Along with that they provide maintenance services, rent bikes, arrange knowledge-sharing workshops and cycling events.

Their loyal customers are cycling enthusiasts who come to them not for the product or the discounts, but for the know-how of its staff. Although this is a boutique store, but I can’t resist to compare it with Apple stores which are famous for their ‘Genius Bar’. 

It would be worth-while to see more and more retailers take on a transformation journey to move from transactional to experiential form.