Retail has suffered a severe decline in the past decade, and it's not hard to see. Since 2010, thousands of retail shops have shut down due to competition from e-commerce shops, bankruptcies, and the lingering effects the financial meltdown has on the retail landscape.

Retail is not dead, even though there are challenges. Brands are realizing that customer loyalty is a key component of their ability to retain and attract customers. Experiential retail is what many believe it means.

Buxton's 2019 Retail and Real Estate Outlook reveals that experiential retail offers a better customer experience than traditional shopping and allows customers to interact with brands in new, often more powerful ways.

Companies that can engage customers and get to know their needs will win.

That traditional retailers can be more competitive in the digitally crowded marketplace by creating unique and innovative experiences.

This shift is more than just grabbing more foot traffic for retailers. This shift is also driven by customers who are looking for convenience and want to shop locally.

Although it can be difficult for retailers to integrate all of these needs into one location, some brands are leading this charge in delivering these experiences to their customers.

Technology Offers Convenience

Many people continue to want access and convenience.

Successful retailers constantly look for ways to reduce friction points during the shopping experience. Amazon Go as an example and Home Depot as another.

This technology-savvy retailer is helping customers make brick-and-mortar shopping easier by allowing them to use their smartphones. As a result, they can shop online with just a few clicks and avoid long lines. This is evident in self-checkouts, curbside pickup, and cashier-less shops.

Customers Care About Buying Local

Another important factor is the locality. Consumers are looking for unique services and products in their local area. Consumers also desire unique products, services, and experiences that they don't find elsewhere.

Nike is a great example of a retail brand that combines local love with technology. The first Nike Live concept store in Los Angeles was opened by the global apparel and footwear retailer in 2018. It's a hyperlocal, tech-infused hub built around the preferences and needs of local Nike+ members who use the app to track and train their running.

The store features L.A.-themed merchandise, a lounge area, and local style specialists who are familiar with the market's needs. The tech side is where convenience shines again. Store customers can send SMS text messages to schedule pickups or return items curbside.

Memorable Moments

Consumers want to have memorable experiences such as shopping.

Consumers will feel more loyal and satisfied if they spend a few hours at a special event in their store. Stores can also benefit from the social media attention and word-of-mouth that it can bring.

Retailers are opening destination stores to cater to consumer needs. Lululemon's new Chicago store as an example. There are two floors of retail for men and women, several studios for group exercise classes, meditation rooms, and even a restaurant.

Lululemon is a destination for more than just shopping. It's also a way to interact with the community and create great experiences along the way.

Retail may see slower growth in the future. However, retailers will need to adapt to changing consumer shopping habits. Brands that are focused on retail experiences will be able to capture the hearts and wallets of their customers.