The Power of Offline Retail in an Online World

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Despite the sheer abundance of people heads-down in their phones, physical experiences are thriving with retail spaces driving a sense of connection, pride and experiences for those that enter into commercial spaces.

E-commerce hotshot brands such as Warby Parker, Skims, Glossier, Allbirds and Revolve are opening physical stores in droves. But, why? All prior trends and reports suggested retail was dead just as TV was forecasted to die. But, TV never saw its demise. Instead, it evolved to meet consumer needs and lifestyles by offering on-demand content, multiple subscriber options and genres global and local. In this same vein, retail has been showing its evolution to continue to not just come alive, but thrive.

A recent white paper by foot traffic analytics firm Placer.ai, titled "The Comeback of the Mall in 2024," reveals a notable resurgence in shopping mall foot traffic, signaling a recovery towards pre-pandemic levels. Forrester forecasts that physical retail will make up almost 80% of global retail sales in 2025. In North America, 83.8% of retail sales for the fourth quarter of 2024 were projected to occur in physical stores, with the remaining 16.2% happening via e-commerce. 

But, if retail stores are just a place to buy products, why are they projected to thrive when consumers are constantly faced with a digitally-focused world? The answer is that brands are moving beyond retail as a place to simply sell products, but as a place to sell their brand and their personality. Gone are fluorescent lights and sale stickers. In their place are warm lounge areas to encourage lingering, digital displays to review entire product lines and pop-up events to engage and bring in the community.

Paper Source, what could be seen as a standard stationary store, has driven its premium appeal and positive sentiment by offering free workshops and community events. Not only are participants driven to the store space in often quiet times of the day, but they are able to meet with like-minded individuals which drives their sense of belonging. And all those positive feelings will often be attributed back to the place and space that gave them those feelings – in this example being Paper Source and most likely a few there as thanks.

What’s most important in driving the power of offline though is a spaces’ ability to connect with the audience and shopper it wishes to bring in. Many historical processes simply relied on designing for the likes and dislikes of head management. Unless they are exactly who a brand wants their shopper to be, this lack of research-backed design will undermine business goals and bottom lines. Instead, companies need to take the time to walk in their shoppers’ shoes. What do they do beyond ideally just shop at a given store? Do they like to read? Are they family-oriented? Where do they dream of travelling to? How could a retail experience play a role in inspiring and giving them the confidence to create the life they want? Let me them walk out of your store proudly holding a bag with your product and logo because they know it was a space created for them, and ideally only them. Trying to become everything to everyone will make you nothing to no one.

For all product-producing companies, go-ahead and consider retail. Either introducing for the first-time or revamping for the thirtieth time. But just know, the only way to succeed in this space is to standout. And the only way to standout is to connect in ways that are bespoke, personalized and cohesive to your story. Even if you have existing designers and vendors, consider this shortlist of questions to make sure they are taking a shopper-first approach:

1.      What is the ideal retail flow of foot traffic and how does your design encourage that?

2.      What do you know about our ideal shopper?

3.      What elements will speak to the audience to feel more connected and excited?

4.      Where else do they shop and where did you take your inspiration?

5.      What is creative, unique or innovative (not for you, but for them) in this space?

6.      How will this drive to our other channels such as e-commerce, pop-up and PR?

Humans crave physical touch, so let retail be another touchpoint that makes them crave more of your brand, product and experience. Ask the questions and bring the joy of offline to a growing online world. And if you need help in asking those questions, Senaura Spaces can help.