Immersive Retail
The Surge of Immersive Retail
As online shopping continues to rise, in-person shopping has experienced a steady decline. Many retail shopping centers and malls are now facing increasing vacancies and closures. However, to eradicate the sharp decline of in-person shopping, immersive retail has become a way to adapt and survive dwindling sales. Immersive retail is the use of diverse methods of technology and tools to provide unique ways of engaging customers actively.[1] Whether it is using technologies or creating spaces through pop-up shops, immersive retail’s main goal is to be able to provide engaging, interactive, and personalized shopping experiences that captivate customers, creating return business while entertaining the consumer.
Types of Technology Involved in Immersive Retail
Immersive retail often incorporates technologies such as augmented reality (AR) and virtual reality (VR) as unique ways to engage with customers. Augmented reality provides interactive experience with computer-generated content. Such as digital images, which customers can view through a handheld device to give a customer visual experience before they buy something. Its goal is to enhance the real world with these digital features. For instance, a furniture retailer can use AR for a customer to visualize how a sofa may look in their living room. Having the opportunity to change the color or the design of the couch to a customer’s personal preference. In contrast, VR is completely virtual. Its main feature of creating a three-dimensional environment that people can interact in a seemingly real way. Its features bring visual and sensory together. As a result, through VR, a customer could experience the live performances of classic bands like Queen or The Beatles, making them feel connected and immersed, enhancing one’s shopping and entertainment experience.
How Shopping Malls and Retail Shopping Centers are Implementing Immersive Retail
Re-Imagined malls have started to integrate immersive retail strategies in their stores to bring more customers to brick-and-mortar locations. Seen with retail shopping centers like The Boulevard Mall re-imaged, innovative adaptation is actively happening. This re-imagining has brought in recent immersive technology, helping foster the environment in these locations which can boost customer interest and visibility. For example, electronic displays like digital signage deliver lively advertisements and information, being able to be updated in real time. With the inclusion of self-serve kiosks that motivate shoppers to make purchases independently without needing staff assistance. Its main purpose is creating a desire and urgency for customers, not just to shop, but creating a memorable experience for them. Notably, SCA Design has been involved in several past projects at the iconic Boulevard Mall.[2] The architecture and design team have contributed to designing and redesigning spaces that are supportive of these new forms of experiential retail as they’re being implemented.
The Rise of Pop-Up Shops and Kiosks for Immersive Retail
As more experiential retail is being implemented throughout in-person locations, a notable rise of pop-up shops and kiosks has occurred. Pop-up shops are temporary spaces that are open for a short period. While kiosks are booths that are used as a quick and convenient way for transactions in high-traffic areas. Companies such as Starbucks have used pop-up shops and kiosks to integrate immersive retail in retail locations as a form of advertising. A prime example being the Starbucks kiosk located at Mandalay Bay, in where SCA Design provided tenant improvement design.[3] Particularly located at Mandalay Bay’s Convention Center, this kiosk blends Starbucks iconic branding with visibility in a high-foot-traffic location. This approach in immersive retail can draw both loyal customers and passersby, helping maximize customer interest and elevating the brand’s presence.
The Role of “IoT” and Data Centers in Immersive Retail
With the rise of immersive retail, technologies such as the Internet of Things (IoT) have become integrated into this kind of retail. IoT technology is the collection and exchange of data information that’s interacted with the environment. Connecting everyday objects and devices to the internet. Accordingly, this can be seen through smart shelves, in which provide real time inventory. When these IoT shelves detect that inventory is low on stock, they automatically reorder the items. This is particularly useful for retail tenants that focus on merchandising as it ensures product availability. However, this type of technology wouldn’t be possible without the support of data centers. Data centers serve as a backbone for these technologies, storing, processing, and distributing all digital data. Without data centers, innovations such as IoT would not be feasible. Due to them relying on this constant data processing to function. Which is why it’s important to acknowledge the importance of data centers in immersive retail.
Immersive Retail in the Future
Shopping experiences will continue to integrate immersive retail. As the growing popularity of this type of experiential retail continues to grow, with its benefits, more companies and businesses will continue to use immersive retail to gain foot traffic and interest. Particularly, to build personalized experiences that can build brand loyalty. Brands like Build-A-Bear, giving personalized experiences towards their customers with interactive activities. One example is their “heart ceremony” where customers actively participate by placing a heart in their stuffed animal. These sensory experiences encourage customers to return in the future. Another immersive retail experience can be found at Meow Wolf’s Mega Mart at Area 15. Its playful. It’s a unique feature absent in e-commerce, offering a way to counter the ongoing decline in in-person shopping. It’s also important to acknowledge that VR, AR, kiosks, and pop-up shops do play a role in immersive retail. However, it only represent a small portion of other strategies that can be used to create immersive and engaging retail spaces.
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About the Author
My name is Gabby Bazan, I am a summer intern at SCA Design. I have had the opportunity to research and develop website blogs to inform potential clients about architecture-related topics. This process has strengthened my ability to create engaging content that resonates across generations. Throughout the summer, I also contributed to Instagram content creation and gathered quality information to deliver thorough and informative content for readers. This experience has helped me deepen my knowledge about marketing. While also providing me with valuable insight into working in a professional environment.
