With the fast-paced nature of retail, businesses must constantly innovate to keep up with customer expectations. And boy have customers' expectations changed significantly in recent years!
As people's needs continue to evolve, so must the spaces where they shop. It’s all about crafting environments that attract, engage and retain customers leading to higher sales, customer loyalty and sustained brand growth.
I’ve put together 4 key ways that retail customer expectations have changed from a Gen Z perspective and some examples of brands nailing it for inspiration.
Craving authenticity
In today’s consumer landscape, the craving for authenticity is stronger than ever. People want more than just products; they seek brands that align with their values, tell genuine stories, and offer real connections. This shift in consumer behaviour has been amplified by social media, where transparency is increasingly demanded, and traditional marketing strategies are often met with skepticism. Customers are no longer content with superficial branding; they want to see the faces behind the companies, ethical decisions being made, and how businesses are contributing to the community and environment. This desire for authenticity has become a driving force shaping the future of retail. Here's who I think is doing this well:
Glossier
Glossier has redefined beauty retail with its highly interactive and community-driven approach. The company’s physical stores, like the ones in New York, London and LA are designed as immersive, Instagrammable spaces where customers can test products and connect with the brand’s ethos of inclusivity and natural beauty. Glossier is known for listening to its community, often creating products based on customer feedback. This level of customer engagement has fostered a strong sense of authenticity and brand loyalty.
From creative and spectacular store design, incredible customer service and community building in-store, Glossier's stores go beyond a transactional environment, they provide a space for customers and community to authentically connect.
Aesop
Aesop’s stores are famous for their unique design, often reflecting the local community and culture of each location. This attention to detail and local authenticity makes each Aesop store a one-of-a-kind experience. As a brand, Aesop is very transparent in communication about ingredients and sustainability efforts. The brand's in-store experiences are localised, making it feel personal, intimate, fostering authentic customer relationships.
Aesop's newly opened store in Rotterdam does a great job at authentically fitting in to the neighbourhood and connecting with locals.
This space is designed as a homage to comforting ambience experienced when visiting a relative in the Dutch countryside and they used local makers to craft it.
2. Personalisation
It's a no-brainer, everyone is more likely to enjoy their shopping experience when the environment is designed with their needs and preferences in mind.
People expect hyper-personalisation in their shopping experience, whether online or in-store. They value tailored recommendations, loyalty rewards and customised communication.
Retail spaces are increasingly incorporating technologies like AI and data analytics to provide personalised recommendations, customised experiences, and even personalised product displays. However, I think there is still some magic with the old school.
Liberty London's The Fragrance Lounge
I absolutely love the personalisation in Liberty London’s new The Fragrance Lounge – which has no screens or anything digital visible. Use of technology and data is incredibly important, but also having a chance to have a break from it in-store and being present is invaluable.
The Fragrance Lounge is Liberty's new concept that brings a new way to experience perfume. Here, visitors can relax, enjoy a range of special services and discover their very own signature scent as well as explore The Noseum, an interactive wall of noses by sculptor Tasha Marks.
The experience is personalised with:
a concierge team that takes people on a journey through scent, where they will be paired with a perfume directly suited to them
the bottle of perfume will be gift wrapped and engraved
3. Community-Centric Spaces
The pandemic has fostered a desire for human connection. To tap into this, retailers should shift towards creating a sense of community. By incorporating communal areas, offering local products, or hosting events that bring people together, retailers can foster a deeper connection with their customers.
Madhappy LA
Clothing brand Madhappy is cultivating community with their LA flagship that opened in late 2023. The space blends retail, events, arts and hospitality to truly connect and engage with their audience.
The beauty is in the details! To create a community-feeling in-store they have:
a conversation pit in the centre of the space that provides a living room feel
a cafe ‘the pantry’ and plenty of room both inside and outside for visitors to enjoy a matcha and sweet treat
as well as a multimedia ‘Local Optimism Space’ that showcases audiovisual experiences.
Honestly how could you walk away from this fabulous experience without a hoodie as a souvenir!
Community-centric spaces are more than just a place to shop - they become gathering points where people can connect and share experiences, creating a lasting bond between the brand and its customers.
4. Sustainability and Wellness
Customers are becoming more and more environmentally conscious, and this provides a great opportunity for retailers to connect with these beliefs. Wellness is also a big trend with great opportunity around creating spaces that are comfortable and stress-free to promote a sense of calm and well-being while shopping.
From energy-efficient lighting and eco-friendly materials to biophilic design elements like greenery and natural lighting, stores can create spaces that align with the values of today’s consumers.
Innisfree Seoul
Korean cosmetic brand Innisfree have opened a relaxing biophilic-driven Seoul flagship. Innisfree use large rocks and foliage throughout to bring in a natural element. They also have a café and seating area that really encourages customers to relax and take their time, creating a stress-free shopping environment.
Overall, it feels like there is a lot going on in the world and people are really craving genuine experiences, personalised interactions and spaces that reflect their values.
It reminds me of the boom in craft everything following the GFC, people are reevaluating what is truely important to them.
In world where so much is changing and people are busier than ever, retail spaces are evolving to become more than just places to shop - they are becoming hubs for community, wellness and authentic connections with others.
Retailers that prioritise the needs of their customers are not only creating environments where people feel seen and understood, they are fostering deeper relationships with their communities. By focusing on authenticity, personalisation, and a commitment to sustainability, brands can build lasting connections that go beyond transactions, nurturing trust and loyalty in the process.
At RX Group, we're at the forefront of designing retail environments that adapt to these changing needs, creating spaces that are not only functional but also engaging, sustainable and personalised. By staying ahead of the curve, we help our clients create retail spaces that resonate with customers and stand the test of time.
Ready to transform your retail space? Get in contact here.
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