Smarter Retail: 4 Ideas to Do Better.

Customer Experience – The Next Generation.

Know-how for creating the perfect customer experience is more important now than ever. Because in the age of Omnichannel Retailing , one thing stays the same: everything is changing. Click & Collect, return management, Click & Reserve, live shopping – these are just a few of the keywords that help guide smart decisions today.

Let’s start here: we’re witnessing a generational shift. Millennials will soon outnumber baby boomers. But what does this mean for retail at the point of sale? A lot. And in this blog post, we’ll share four ideas that truly drive sales – and will only grow in relevance moving forward.

Digital, But Never Digital Only.

That’s our mantra at DMS. We seamlessly integrate digital solutions into physical environments. And for customers, the same applies: never digital only. Two-thirds of millennials still prefer to shop in physical stores – online shopping can’t replace the in-store experience. Even among Gen Z shoppers (born after 1995), the preference for shopping at the point of sale remains strong. That’s the result of a survey by the NRF, the U.S. National Retail Federation.

The key takeaway for retail: customers will continue to seek out real-world customer experiences that only offline shopping can provide.

What’s Trending Now?

This isn’t about the latest fashion trends – it’s about what’s gaining momentum in retail. With the rise of new technologies and platforms, and the changing behavior that comes with them, retailers need to find new ways to improve performance. During a research trip to the U.S., our CEO Michael Buchacher was introduced to four key concepts for the “Store of the Future” – and we’re happy to share this know-how to perform better.

Experiential Retail: Shopping as an Experience.

We say this about experiential retail: en vogue – and not just in the magazines. It’s a real trend. To stand out from online competition, “experiential retail” focuses on creating truly unique in-store experiences. The five key elements for customers are: experiment, entertain, inspire, equip, and educate.

No, it doesn’t have to be an in-store ice rink like at British supermarket chain Iceland Foods. Let’s stick with two more practical examples from real retail cases.

Blush It Real Good.

This case is all about makeup – from mascara to blush. U.S. pharmacy chain Walgreens partnered with Birchbox, the online beauty subscription service. In-store, customers can curate their own Birchbox from a selection of exclusive beauty products. It allows them to explore new products firsthand, strengthens Walgreens’ position as a beauty expert, and helps Birchbox reach new customer segments. A customer experience that sticks.

It’s Going Well for Lululemon.

Lululemon, the Canadian athletic apparel retailer, is testing a new kind of membership model: for $128 a year, customers get personalized in-store support, workout classes, free express shipping, and a complimentary pair of pants or shorts. Partnering with running app Strava, the brand also organized a series of virtual runs in twelve cities, complete with after-race parties. Over 35,000 people signed up. Start strong, finish even stronger – it was a great run for the brand.

Products With Added Value: A Concept With Impact.

This concept is all about exclusivity – specific products or categories are turned into star products, and that makes the concept itself shine in retail. Online shops can offer millions of items without worrying about space. But physical retail can stand out by offering select, meaningful products. Purely functional items with no emotional appeal no longer have a place. It’s all about added value.

Let’s Get Specialized.

One example: Carrefour’s “Act for Food” pop-up store in Brussels doesn’t just offer healthy products from its organic line – it delivers an entire healthy living concept, including workshops. Another: Macy’s has integrated pop-up stores in nine locations through a partnership with Facebook. These shops feature curated selections from local businesses and online-only brands. Customers can even engage with products just like on Facebook – leaving likes or comments. It’s a smart way to spotlight product groups.

Where the Checkout Rings – Or Does It?

That’s not entirely true anymore – the checkout area is no longer the only touchpoint where the sale happens. One thing is clear: the traditional shopping journey is evolving. Customers want frictionless shopping experiences. New tech and digital payment solutions improve the customer experience, and in many urban areas, the traditional checkout is being phased out.

No Checkout, Please!

The classic “Second checkout, please!” is becoming a thing of the past. French grocery chain Casino, for example, uses only self-checkout terminals after 9 p.m. in its 24/7 stores. Need help? Press a button, and a staff member is notified. In Korea, 7-Eleven has introduced Click & Collect: customers retrieve purchases from secure “Seven Lockers.”

One downside: impulse buys – like candy bars at the cash register – will need new placement strategies.

Digital Meets Analog in Retail.

Digital and mobile technologies are raising expectations when it comes to convenience, customer service, and pricing – both online and offline. Customers expect immediate service and easy payment options.

More Digital Solutions at the POS.

At U.S. retailer Sam’s Club, members can only pay using Scan & Go – a dedicated app that also offers in-store navigation. Instead of cashiers, they’ve introduced “Member Hosts,” acting more like concierges than checkout clerks.

Cover Girl Meets the Digital Girl.

At CoverGirl in New York, customers are welcomed and assisted by a digital concierge named Olivia. Augmented reality allows them to virtually test makeup products – so they can explore and experiment digitally before they buy.

Retail – The Next Generation.

The four essential concepts for the “Store of the Future”:

• Creating immersive shopping experiences.
• Focusing on unique, value-driven products.
• Simplifying checkout and offering alternative payment solutions.
• Integrating digital and mobile technologies.

A lot is changing – but one thing remains constant: retail businesses must stay on top of trends and deliver a unique customer experience both offline and online in order to succeed.

Urbanization, time pressure, shifting customer behaviors, the convenience of e-commerce, and the rise of new technologies present challenges – but also huge opportunities. To thrive in the future of retail, you’ll need to adapt, innovate, and think bigger.

And from our experience, we know: digital solutions integrate beautifully into physical spaces. Only when both elements are aligned do we create true wow moments – even in retail.

‍