Retail’s experiential evolution
Retail’s experiential evolution
This article was originally published by BDO USA.
When you think about retail, you probably think about shopping. Browsing the racks, trying items on, perhaps stopping for some lunch or coffee in between and ultimately, checking out new products. But take a moment to picture how this could look 25 years from now: is retail only about shopping, or is there more to the experience?
The rise of retailment
Imagine shopping for a new guitar. Instead of simply walking into the local music store to test out the strings on a few models, you might find that you’re walking into a live music hub. This could include live bands playing while you shop, or even special shows on the weekend, coupled with exclusive promotions or discounts. In an ideal future, music retailers would shift the aesthetic, decorations, or set up of the store to match the artists playing there to create a visually aligned and immersive experience for a specific customer segment. When you’re there, it’s possible - if not likely - there might be sci-fi-like holograms of notable artists, past and present, popping up in the store, where 2D or 3D digital recreations of your favourite singers and guitarists are there while you shop. This technology already exists, so it’s simply a matter of retailers leveraging it on a scale rather than at a well-known music festival.
Does this sound far-fetched? Maybe so, but this future is the very real notion of “retailtainment.” Retailtainment is the concept of blending traditional retail with fun and creative entertainment elements to enhance the consumer experience. This concept goes by several names: retailtainment, immersive commerce and/or experiential retail. But they all refer to the same thing: an enhanced sensory experience for you and all consumers as you shop, which often includes digital and interactive elements.
Blending data with experience
Retailers need to think now about how they’ll merge their in-store and online experiences to meet the shifting expectations of consumers in a world where fun, games, sports, and art will be inextricably linked to traditional shopping. Retailers can get creative and leverage customer analytics and AI to better understand what their audience wants. This means looking at shopping behaviour, customers’ hobbies and interests, and today’s trending products, all of which can be rolled up into a related, immersive experience that promotes the brand.
While the concept of experiential retail is not new, the appetite for it is increasing as more brands begin to implement creative tactics or evolve their strategies to raise the bar. To future-proof, retailers must begin to build immersive spaces that do two things: connect physical and digital worlds and capture consumers’ attention. This will require retailers to leverage customer data analytics, like shopping preferences and apparent hobbies, and then tap into consumers’ imaginations far more than they may have envisioned only a few years ago.
Australian retailers are waking up to the fact that data isn’t just for backend operations, it’s the foundation for designing immersive, personalised in-store experiences that spark loyalty and accelerate conversion.
Consumers want to play, pose and shop all at once
Stores are evolving. Retailers are increasingly realising the importance of leveraging customer behavioural data to build an experience that is both personalised and targeted at driving results. The retailer of the future will need a treasure chest of ideas, often ignited by the data they have access to, such as historical browsing and purchasing data. This data can be used to address every touch point of a customer’s shopping journey in the digital world and provide a unique experience based on real-time intent. But that’s not all, customer data also enables a retailer to add to the in-store shopping journey. Why? Because experiential retail garners consumers’ attention and builds brand loyalty, it attracts new customers as existing ones share experiences through social and word of mouth.
We’ve designed the spaces to fire up creativity and imagination and encourage hands-on play.
Retailers leading the way
We’ve already seen excellent examples of retailers looking to create interactive and innovative spaces.
For example, sports retailer, Rebel has mastered infusing its customer’s hobbies into the experience. Customers can make an appointment in-store to meet with fitness experts to discuss choosing products that help them meet their training goals, and some stores have a football experience zone allowing customers to try out sporting products before buying them.
Mecca’s new Melbourne flagship doesn’t feel like a store, it feels like a statement. Spanning four levels and 1,800 metres, it’s the largest beauty destination in the southern hemisphere, complete with express facials, brow shaping, scent libraries, private consultation lounges and over 200 brands under one roof.
According to The World’s coolest retailers 2025, Mecca is going deeper and proving that retail, when done right, can still feel like magic.
Small steps toward big experiences
For retailers who are not ready to develop a fully immersive experience quite yet, you could consider starting with innovations on a smaller scale. This can include green spaces or gardens in-store that promote conversation and relaxation during the shopping journey. Retailers can also invest in and implement “magic mirrors” or smart mirrors that allow customers to virtually try on products or accessories without ever actually having to step into a dressing room. Meanwhile, smart mirrors within the dressing rooms themselves can also allow customers to request different sizes or pay using the mirror.
To capitalise on these trends and create an experience that will resonate with their specific shoppers, retailers will need to lean into their customer data and leverage today’s digital tools.
Forget football experience zone or holograms – retail magic doesn’t need a blockbuster budget. Even small-scale innovations, like interactive displays or sensory zones can turn heads, spark curiosity, and make your brand unforgettable.
A thoughtful customer experience starts with actionable data
Tools that capture customer behavioural data and then turn that data into actionable insights will be key. Creating a meaningful experience that drives sales simply cannot be achieved without thoughtful data analysis and a deep understanding of one’s customer base.
Couple AI-driven technologies with forecasting tools used at the back end, and retailers can use the insights they’ve learned about customers to order accurate inventory, capitalise on trends, and much more. Only when retailers have deep insights into how their customers spend time outside of the store and what their interests are can they build an exceptionally entertaining store.
For example, a hardware store could use AI to learn from a customer’s recent search on the store’s website or purchases to understand what project the customer may be working on when they come into the store. When customers arrive at the store, AI can offer tailored suggestions - perhaps based on items they’re collecting from an online order or insights from their past shopping habits - for additional products that might be useful for their current project. The store app can then send push notifications to the customer for relevant items and promotions.
Retailers can take the hybrid experience one step further by using Augmented Reality (AR) technology within the store app that places “virtual breadcrumbs” on the floor and guides the customer to the exact aisle with the suggested product.
Turning data into strategic value - are you making the most of yours?
In today’s retail landscape, consumers expect everything to be connected, from personalised product recommendations to immersive in-store experiences. Meeting these expectations starts with understanding your customers deeply: their interests, behaviours, and preferences.
Retailers need robust data analytics and AI capabilities to build truly engaging experiences.
Australian perspective: What this means for local retailers
Retailtainment can take many forms: in-store events, interactive displays, pop-up installations, themed environments, and even brand ambassadors who create live experiences. Music, lighting, scent, and digital signage all contribute to building an emotional connection with the customer. In fact, according to the Australian Centre for Retail Studies, "the specific atmosphere the retailer creates can, in some cases, be more influential in the decision-making process than the product itself.” The goal is to stimulate all five senses and foster an emotional bond that leads to increased dwell time and conversion.
As consumer expectations evolve, retailers that embrace retailtainment are better positioned to stand out in a crowded market. The integration of technology, storytelling, and live experiences can drive loyalty, increase sales, and future-proof the store as a physical space. For Australian retailers looking to stay relevant, the message is clear: products may draw customers in, but experiences will keep them coming back. Retailtainment is no longer optional - it’s the future of retail.
Ready to take your in-store experience to the next level?
BDO’s retail team can help you transform raw data into actionable insights that power smarter decisions, personalised experiences, and measurable results.
Whether you’re enhancing your store layout, refining your product mix, or launching a hybrid shopping journey, we can help you unlock the full potential of customer intelligence to keep you competitive.
