New Retail Concepts: Non-grocery Channels

January 2015

As competition from internet retailing rises, store-based retailers are increasingly innovating in order to differentiate themselves from the online offer and maintain consumers’ interest. They are focusing more on engaging with consumers, using technology in store and enhancing the shopping experience by offering “retailtainment”. This briefing offers an overview of the store concepts from non-grocery retailers seen in 2014, assessing their strengths and their potential for success.

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Consumers respond to innovative retail concepts

Innovative and original concepts attract interest from consumers. Opportunity existing for any retailer prepared to bring novelty and fresh ideas to the high street. Niche/small and independent players particularly can benefit from this strategy.

Manufacturers become retailers

Being present online gives manufacturers the opportunity to distribute their products directly to consumers without dealing with third party retailers. Pop-up stores represent another way for manufacturers to market and distribute their products directly. This offers manufacturers full control their brand image and the opportunity to create a lifestyle concept for consumers.

Retailtainment to attract consumers to stores

Special access, free events and other retail entertainment functions give consumers more reasons to visit stores. This approach has proven very successful in attracting customers back into shops. It is convenient and provides plenty of opportunities for brand building, customer nurturing and client feedback in an enhanced offline shopping environment.

Technology links the non-store and store-based channels

In an increasingly connected world, the evolution of multi-channel retailing is one of the ways retailers are adapting to a new generation of consumers. Multi-channel will continue to grow as part of retailers’ offer.

Stores offer added services to differentiate themselves from internet retailing

Bricks-and-mortar retailers must offering more than just their products to counter declining footfall and the rising competition from internet retailing. Extra in-store services, special events and any number of other strategies are being trialled to encourage consumers to shop off-line.


Key findings

Engage with consumers

Direct-to-consumer marketing via pop-up retail
A retail format aiming to reach new consumers
A powerful marketing tool rather than a source of direct revenue
Samsonite RED pop-up store in Singapore
Maybelline kiosk in UAE
Comptoir des Cotonniers in France
Renova pop-up store in Portugal
Barbie concept store in the Philippines

use technology in store

Attract consumers to the shops while offering convenience
A way for retailers and brands to engage with consumers
Netherlands De Bijenkorf virtual fitting room
Hervis Future Store fitting room in Austria
Xtep Experience Store in China
Shiseido make-up simulator in Japan
Argos tablets in the UK
Karstadt’s in-store online shopping terminals in Germany
PlayTMN devices in Singapore

Entertain shoppers

Offering more than a shopping experience
Offering more than retail can reverse trends
Sanlian Taofen 24-hour bookstore in China
Cécile et Jeanne Bar a Bijoux in France
Capitol Mall in Macedonia
The Plearnary shopping mall Watcharapol in Thailand
Majid Al Futtaim large-scale Monopoly in UAE
Zamok Retail and Entertaining Centre in Belarus

What’s next?

Key to successful new retail concepts


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