Faced with tough challenges amid a visible decline in tourist arrivals and retail sales, the retail industry is set to face a “new normal”, unlike in earlier years when the sustained spending of mainland visitors fuelled growth.
With more retailers and shopping centre landlords struggling to increase market share and expand their reach, strategic business thinking and innovative retailing practises could determine which ones are in, and which ones are out.
In such a market, the use of experiential retail has become increasingly popular as retailers and landlords recognise the need to offer hands-on, authentic experiences that will draw shoppers into their stores or shopping centres.
Let’s take a look at some more interesting experiential retail store formats popping up in and around the city:
Sports/athletic apparel: adidas has recently introduced a new format of flagship store in Causeway Bay which, aside from showcasing their sports collection, features a within-store training section – with free workout courses provided by the Adidas training academy.
Lifestyle products: Drone maker DJI will open a 10,000 sq ft flagship store in Causeway Bay to feature examples of aerial photography and conveniently showcase their products.
Crossover: Not limited to a single operator, the experiential retail formula enables many retailers to crossover with others as a means to open up more possibilities and widen the range of retailing experience on offer. For example, Watsons Glam by STEAM is a recently opened hair salon by Watsons – a pharmacist and a hairstylist inside Watsons’ flagship store in Causeway Bay.