Retailers’ efforts to lure shoppers to stores with experiences still misses

Source: GPShopper

“Consumers are increasingly indifferent about the store experience,” Mikailov said. “When you’re indifferent you will just shop for price, and stores need to make you feel.”

With a few exceptions, most American retailers today are “incredibly bad” at offering a good in-store experience, GlobalData Retail Managing Director Neil Saunders told CNBC in an interview.

“Most retailers are still operating the same basic store model that they had in the pre-internet era,” Saunders said. “Shops look and feel tired and do very little to enthuse the customer.”

A retailer like Target, for example, has great products with functional merchandising, he said. But Target’s stores are more places to go and get things, rather than places to go and be inspired or have fun, Saunders said.

“The big department stores are the most guilty parties regarding lackluster stores. A dearth of investment and an unwillingness to change has meant that visiting an average department store is depressing rather that uplifting.”

While department stores like Macy’s and J.C. Penney might be missing the mark, specialty retailers are starting to realize changes that must be made in order for them to survive and thrive in an evolving industry.

Ulta is one example of a beauty retailer that’s been winning over more shoppers by offering unique experiences, like hair salons, facial stations and “brow bars” for eyebrow waxing, in its physical stores.

Lululemon, an athleisure retailer popular among millennials, is about to open a pop-up shop on New York’s Fifth Avenue with yoga classes, according to sign’s outside the building.

And then there’s Nike, which has made moves to merge the physical shopping experience with digital interactions by bringing its online shoppers into stores via training sessions, running clubs and more.

“To be fair, many retailers are trying to address this by introducing new services and offers, but the progress is slow,” Saunders said. “Meanwhile, some retailers are hitting the nail on the head.”