ICSC has declared 2024 the year of the store! And for good reason, the retail trends stats are staggering! Now, we know what you’re thinking – “But e-commerce is king, right?” Well, according to a CX Trends Survey, 70% of shoppers visit a brick & mortar retail store weekly and ICSC found that 79% of consumers prefer to shop in store. Clearly, the joy of in-person experiences haven’t lost their charm.
Retailers are leaning into themes of community, engagement, and experience within their physical space. In this article, we will explore why ICSC declared 2024 the year of the store and the retail trends that will shape the future of brick-and-mortar.
The Rise of Wellness Retail
Wellness retail is poised to steal the show in 2024. There is a meteoric rise in holistic retail havens that offer everything from meditation spaces, aromatherapy, stretching and physical prehab, to immersive spa days, faciles and wellness workshops. Imagine a one-stop shop for mind, body, and soul – that’s the kind of immersive experience shoppers will be craving.
The number of wellness retail openings increased by 2.8% in 2023, or about five thousand new stores, based on chain opening data from ChainXY. We are dawning on a new age of wellness, in which self-care and preventative maintenance are increasingly prioritized. This trend reflects a cultural shift towards proactive health management and holistic lifestyles. Wellness retailers have announced growth plans including Squeeze Massage with plans to scale to 500 locations,
Ulta plans to grow to 1300 stores with a focus on a spa-like atmosphere.
As consumers become more conscious of the importance of self-care, wellness stores are poised to thrive, offering a diverse array of products ranging from organic foods to health supplements, fitness regimes and mindfulness programs.
Modern Retail Therapy
Remember when “retail therapy” meant browsing the mall with a pretzel and refreshment in hand? Well, times have changed, and in 2024, it’s all about creating an escape from reality. Think soothing scents, mood lighting, and interactive displays that engage all the senses. Retailers will be transforming their spaces into veritable oases, where shoppers can truly unwind and indulge in some guilt-free pampering.
According to CapitalOne Shopping, 92% of retailers have at least one brick-and-mortar location. This statistic underscores the enduring importance of physical retail spaces, even in an era dominated by e-commerce. Savvy retailers are recognizing that shoppers crave multisensory experiences that can’t be replicated online. For instance, an aromatic cappuccino expertly crafted by a Bluestone Lane artisan barista elevates the morning coffee ritual. Similarly, indulging in a monthly facial with a skilled aesthetician at Glowbar transforms skincare into a luxurious treat.
By creating environments that soothe the and delight the senses, brick-and-mortar stores are positioning themselves as sanctuaries – where customers can escape the daily grind and indulge in a little self-care. From aromatherapy stations to interactive art installations, the possibilities for crafting immersive retail experiences are endless. Retailers who tap into this trend will not only boost foot traffic but also cultivate a loyal following of shoppers seeking a respite from the digital world.
Family Friendly Eatertainment
Forget the traditional “kids’ play area” — in 2024, it’s all about “eatertainment” for the whole fam-bam. We’re talking immersive play zones, gourmet bites, and activities that keep both the little ones and the grown-ups entertained. Who says shopping can’t be a family affair? Get ready to see your properties become the ultimate destinations for quality time and memory-making.
To attract families, brick-and-mortar retailers will need to provide more than just products. In 2024, we can expect to see the rise of family-friendly “eatertainment” concepts, where shopping and dining are seamlessly integrated. Think Top Golf, beers for the adults, chicken tenders for the kiddos and a driving range and putting greens for the inner kid in us all. Another great example of eatertainment is the pickleball craze which has taken the states by store. According to the Sports & Fitness Industry Association (SFIA), more than 13.6 million people played pickleball across the US in 2023, that is a 65% increase from the previous year.
The Rise of Phygital Stores
What happens when you blend the physical and digital realms? You get the “phygital” store – a seamless fusion of online and offline shopping experiences. Think augmented reality try-ons, virtual product demos, and smart mirrors that offer personalized recommendations. It’s the best of both worlds, catering to the tech-savvy shoppers who crave convenience without sacrificing the thrill of in-person browsing.
According to the Halo Effect Report by ICSC, brick & mortar store openings result in a 7% lift in online sales. In addition the online basket ring grew on average 9%. In 2024, we can expect to see more retailers looking to bridge their physical and digital experiences via mobile engagement as well as adoption of technologies like augmented reality, virtual reality, and smart mirrors to enable virtual try-ons in order to create interactive shopping experiences.
Cross-Branded Collaborations
In 2024, it’s all about strength in numbers. Retailers will be teaming up with complementary brands, creating one-stop destinations that offer a little bit of everything. Imagine a fashion hub with a built-in beauty bar and a cozy coffee nook – talk about a match made in retail heaven! These co-branded collaborations not only maximize space but also create a sense of community that shoppers can’t resist.
This trend of co-branded collaborations is a win-win for both retailers and consumers alike. For retailers, partnering with complementary brands allows them to tap into new customer segments and cross-promote their offerings.
- Alo Yoga x Beats by Dr. Dre – Both Los Angeles based brands share a knack for a fashion forward aesthetic meets fitness mantra. So this co-branded partnership satiates their consumers’ fashion and exercise headphone requirement.
- TravisMathew x Ridge – What do you get when you combine TravisMathew golf apparel with the Ridge carbon fiber wallets? Well, you get consumer crossover and create FOMO for a limited time co-branded product.
- Adidas x Peloton – Peloton teamed up with Adidas to introduce a fresh clothing line. This collaborative collection was a timely initiative launched in early 2021 amid the surging popularity of at-home workouts during the pandemic.
These collaborations foster a sense of community by creating a one-stop-shop experience that caters to a variety of consumer needs and interests.
Retail Trends in 2024 Summarized
There you have it, folks — the hottest brick-and-mortar retail trends that’ll have shoppers lining up at your real estate space in 2024. From wellness sanctuaries to family-friendly adventures, phygital playgrounds, and brand collabs, there’s something for everyone.Investing in these experiences for your shoppers will position your retail brand for long-term success. We are just at the beginning of brick & mortar retailers creating a seamless omnichannel experience.
If you made it this far, awesome! Let us formally introduce ourselves. We are Occupier, a commercial lease management software built for commercial retailers, restaurants and franchisees to manage their real estate lease portfolio. We automate the tracking of critical dates, rent financials, lease modifications and any lease data that is pertinent to your business. We take on the tedious lease management task so that your real estate and operations team can focus on the fun and sexy brick & mortar retail strategies growing your business.