Consumer shopping habits have evolved quite a bit in the past two decades. Before the 2010s, consumers regularly went to malls, department stores and other retail shops as a pastime. But with the advent of smartphones in the 2010s, consumers began spending less time in stores and more time shopping online on mobile devices. People have become accustomed to at-home delivery rather than browsing stores in person.
Despite changing shopping habits, there is still strong demand for traditional brick-and-mortar stores. Last year, the National Retail Federation anticipated retail sales to grow to between $5.23 trillion and $5.28 trillion, with about $1.47 trillion to $1.5 trillion of that coming from non-store and online sales. That indicates that about 70% of total retail sales still come from brick-and-mortar locations, making it clear that even today consumers still like to shop at stores in person.
But drawing customers into stores is not nearly as simple as it was a few decades ago. Dave Foos, principal consultant at Clarkston Consulting, says seaside retailers can’t just keep their stores stocked and hope customers will come flocking in.
“It’s more complex than it used to be where it was just stick product on the shelves,” he explains. “You’ve got to create a reason for them to come in.”
And that’s where experiential retail comes into play: give customers a reason to come to the store by providing them with an immersive, memorable and engaging shopping experience.
Foos’ career in retail spans nearly 20 years with roles in both consulting and corporate environments.
“Experiential retail is a way to get people into the boutique, into the shop and get them engaged so that then down the line, they will turn around and purchase.” — Dave Foos, Clarkston Consulting
“The primary goal of experiential retail is engagement with the customers; sales become a byproduct of that engagement,” Foos says. “Experiential retail is a way to get people into the boutique, into the shop and get them engaged so that then down the line, they will turn around and purchase.”
Appealing ambiance
To better engage customers, seaside retailers need to consider the ambiance of their stores. To set the mood of a store, Foos suggests retailers think about the five senses: sight, sound, smell, taste and touch.
For sight, adjust the lighting, displays and decor in the store to match the store’s vibe. Holly Daniels Christensen, founder and CEO of Dune Jewelry, says seaside retailers need to have visually appealing stores to create conversations with customers. Her boutique called The Cove in Norwood, Massachusetts, applies a technique called color blocking where merchandise is organized based on color as a way to create conversation.
“I know this technique works for some people, it doesn’t work for others,” she notes. “But for us, it works because customers are asking questions and it creates this cohesion of color.”
Retailers also should be thoughtful about the music and sounds echoing off the walls of the store. Foos notes that customers may enjoy tropical tunes at a Margaritaville resort gift shop, whereas Led Zeppelin or Aerosmith may be more appropriate to play at a Hard Rock Hotel gift shop.
Retailers can engage customers with smells, tastes and touch through sampling options. Daniels Christensen attests that samples can be extremely beneficial at boosting customer experience.
“We sell so much True Ocean body spray because it’s out there to sample and the whole store smells like it. Sampling is just key,” she says.
Considering the customer
Knowing the community and prospective customers also is key to experiential retail since it helps seaside retailers personalize the shopping experience. Flip Flop Shops might operate dozens of shops in different communities, but Steve Schultz, director of shop shenanigans at Flip Flop Shops, makes sure that each of his franchisee and shop owners is familiar with their local community to make each shop its own.
Flip Flop Shops features one-of-a-kind artwork at each of its locations geared toward the locality, such as Elvis artwork in Las Vegas or roosters and palm trees in Key West.
“Although we are a franchise, we don’t have the Golden Arches,” he says. “On every one of the buildings, the more unique and different we can make it, the more fascinating the business becomes.”
Part of making a unique store involves knowing the community and its customers. In Key West, roosters and chickens are plentiful. So when Flip Flop Shops opened a store in Key West, Schultz made sure the store incorporated roosters and chickens into some of the store’s artwork. In Las Vegas, Elvis is highlighted on Flip Flop Shops’ artwork.
Personalization also is key to experiential retail. Daniels Christensen says simply offering products that can be personalized — such as birthstones or Zodiac symbols — can help seaside retailers make meaningful connections with customers. She says Well Told offers some unique, personalized gift options worth considering or even just offering brands that are hard to find elsewhere. “Offering that extra level of personalization is huge.”
Create an event
Seaside retailers shouldn’t be shy when it comes to what Foos calls “retail-tainment.” Host various events (even if they aren’t related to sales) and participate in community events to provide customers with experiential retail.
As an example, he notes that a store like REI might host kayak classes for customers. Even though attendees might not buy a kayak from REI during that class, it gives prospective customers an experience with the store. He says, “It’s that experience to try to get you to do something above and beyond the normal shopping experience that hopefully then down the line translates into a sale.”
Schultz says Flip Flop Shops has hosted plenty of events across its franchise locations that have given customers memorable experiences. During the grand opening of one Flip Flop Shops store, a hip-hop group danced in the store’s parking lot, which helped to draw a crowd to the new shop.
Schultz says seaside retailers can also create events tied to brands in the store. He shares that one Flip Flop Shops location has hosted “Fahlo Friday,” connected to the popular Fahlo bracelets. People would meet at the store on Fridays to share their love of Fahlo bracelets and tracking animals. Although they weren’t necessarily coming to shop, coming for the group gave the guests a positive experience in the store.
He also suggests that seaside retailers try hosting simple events like Tequila Tuesdays or Wine Wednesdays to encourage people to visit.
“Look at your market and give them the unexpected,” Schultz concludes. “Take those connections in your community and take advantage of them. And have fun with it!”
This article was adapted from a session at the Coastal Connections Conference.
