Retailers scrambling to pivot to experiential shopping

Find out what strategies mall owners and retailers have been using.

After major upheaval to everyday life during the pandemic and a backdrop of uncertainty, consumers will be more intentional and mindful about consumption choices with an eye on newfound values and motivations. 

Consumers are expected to be more intentional when it comes to purchasing behaviours post-pandemic. Nevertheless, JLL expects a healthy rebound in spending in Asia Pacific across various consumer segments including clothing and footwear as well as household goods in 2023, particularly given that shoppers are keen to release their pent up demand for retail spending after years of mobility restrictions. 

Notably, spending growth for service-related sectors is forecast to outpace goods-related segments, a testament to consumers’ stronger preferences for experiences over material goods.

Here’s more from JLL:

Both mall owners and retailers will look to continue to adjust their business strategies to adapt to these trends in consumer behaviour. Retail landlords have been reimagining their malls to make them more interactive and experience-oriented for shoppers. 

Strategies include the use of innovation and technology to improve visitors’ experiences, such as the deployment of smart displays and smart sensors to provide an immersive shopping experience. Incorporating green space and parkland for a relaxing ambience has been another landlord strategy to draw in shoppers. Mall owners across the region have also been curating tenant mixes towards more experience-based operators, such as food and beverage, entertainment, and health and wellness businesses. 

Retailers will further adjust to an evolving landscape by transforming their physical stores into locations that are more than just a point of purchase. For example, some businesses have injected more experiential elements into the shopping journey by using augmented reality technology, offering personalised service and frictionless checkout. 

Others have focused on enhancing the social aspect of the retail experience by including café or exhibition spaces within their stores, helping to promote engagement. Even for retailers whose core products are physical goods, transforming their stores to be more service-oriented, be it offering a seamless omnichannel experience or providing troubleshooting or repair services, will add tremendous value to their customers and provide a competitive advantage in the marketplace.