Stores transform into interactive shopping spaces

What the physical store looks and feels like in the digital era.

In recent years, physical retail spaces have been undergoing constant transformation. The traditional store model, focused primarily on products or services, no longer seems as effective in attracting customers. Today’s consumers are looking for more than just the purchase of a product: they want a unique, interactive experience that adds value throughout the shopping trip. The result? The transformation of brick-and-mortar stores into interactive shopping environments has become one of the dominant global trends in retail.

Changes in consumer behavior are driven largely by rapid technological advancements and the growing demand for personalized experiences. As technology continues to shape the retail landscape, terms like digitalization, CX (customer experience), and omnichannel have become part of the industry’s daily vocabulary. In fact, consumers are 60% more likely to return to a business if the brand successfully delivers an ideal experience at every stage of their shopping journey, blending online and offline channels seamlessly.

The need to transform physical spaces

The rise of e-commerce and intense competition from countless online marketplaces have forced physical stores to redefine their role in the industry. Consumer expectations are evolving, and today, it’s not enough for stores to simply be points of sale. Customers now expect an experience, something online platforms cannot replicate in the same way as a physical space.

Engaging with the store environment and the product itself through innovative tools and practices, receiving personalized advice and recommendations, and participating in in-store activities create a rich set of stimuli that guide customers toward making a purchase. The challenge for retailers is to bridge the gap between the convenience of online shopping and the tangible, immersive experience of in-store visits. The answer seems to lie in new technologies that enhance the shopping experience.

Interactive shopping: how it’s achieved

The merging of the physical and digital worlds gives rise to phygital shopping experiences, a blend of methods and design elements aiming to capture customers’ attention in unique ways. AR and VR lead the way, enabling customers to interact with products digitally. Virtual Reality mirrors, virtual fitting rooms, and other tools allow customers to try products in new ways. Smart devices and IoT sensors can track shoppers’ movements in-store, helping retailers adjust layouts, services, and even product placement. Smart shelves, on the other hand, provide real-time suggestions for complementary or alternative products. All data collected from these devices can be analyzed with the help of Artificial Intelligence (AI) to create personalized experiences, including tailored promotions and discounts.

Gamification has also emerged as a powerful tool to transform and enhance the shopping experience. By incorporating game-like elements such as challenges, rewards, and points, retailers attract customers seeking entertainment in addition to shopping. For example, in 2018, Under Armour created a trivia game to promote exclusive products linked to basketball star Stephen Curry. Participants who answered all multiple-choice questions correctly won prizes or reward points, while some lucky players received collectible signed merchandise or even game tickets. Loyalty programs also fall into this category. Starbucks offers one of the most successful examples: in 2024, with nearly 34.3 million active members in the US, the company saw 41% of its sales generated by loyalty members, who enjoy a 44% retention rate, well above the industry average of 25%, and are 5.6 times more likely to visit a store daily.

QR codes give customers instant access to detailed product information or exclusive offers, while touchscreens create a more engaging environment. Meanwhile, self-checkout systems, contactless payments, and the option to pay online and collect in-store streamline the buying process for speed- and efficiency-conscious shoppers. According to PwC, 72% of Gen Z prefer self-checkout to traditional methods, and 70% choose mobile payment when shopping in stores.

Benefits and challenges

Nearly 75% of consumers are not only more likely to purchase from businesses offering personalized experiences, but they’re also willing to spend 37% more. By enhancing the customer experience, retailers strengthen their brand relationship. In a market saturated with competitors, offering an interactive experience can be a key differentiator, giving an edge to those who invest in it.

However, integrating interactive experiences into physical stores comes with challenges. Advanced technologies such as AR/VR systems, AI, and smart devices involve significant costs, and retailers must be prepared for a period before these investments yield tangible returns. Staff must also be continuously trained in any new technology implemented so they can assist customers effectively, ensuring the best possible experience and providing help when needed.

Strategic implementation

Pilot testing, data-driven decision-making, and strong partnerships form the foundation of success. Before committing to a full-scale transformation, retailers can run pilot programs to assess whether new technologies meet their objectives and resonate with customers. These trials generate valuable data, clarifying customer expectations and helping businesses fully understand their target audience. Once goals and expectations are clear, finding the right partners, suppliers, and technicians specialized in cutting-edge technologies becomes essential to ensure a smooth transition.

The future of retail belongs to businesses that embrace change, leverage technology and innovation, and prioritize meaningful connections with their customers.

For more retail trends, read the “Retail Innovation Report 2024” by Cardlink, a Worldline brand, in collaboration with Found.ation.