In the ever-evolving landscape of retail, physical stores continue to be the primary driver of sales, with a staggering 84% of total retail transactions projected to occur within brick-and-mortar establishments this year. To seize a larger portion of this in-store pie, brands must recognize the importance of investing in their non-eCommerce marketing endeavors. This article explores three potent strategies that can significantly augment brand visibility and impact within physical retail spaces.
Strategy 1: Embrace the Digital Transformation of Physical Shelves
The retail environment is rapidly evolving, with physical stores emerging as a prominent media channel. As the popularity of retail media escalates, brands must consider innovative approaches to incorporate a fresh digital perspective into in-store advertising. A notable example of this trend can be observed in the experimentation conducted by prominent retailers like Walgreens, The Kroger Co., and CVS.
These retailers have begun testing digital freezer screens that showcase full-motion video commercials, transitioning seamlessly into physical representations of the products as consumers approach. Kroger has experienced favorable outcomes with these screens and plans to extend the technology to other digital displays such as end-caps, checkout lane coolers, and pharmacies. However, other retailers have faced mixed reactions. Walgreens, for instance, received some backlash from customers who expressed dissatisfaction with the experience on social media platforms.
To successfully adopt this strategy, retailers must explore novel ways to update their in-store media offerings. However, it is crucial to ensure that such digital integrations feel organic and do not disrupt the shopping experience or resemble intrusive pop-up ads.
Strategy 2: Harness the Power of In-Person Events
In-person events provide an excellent avenue for brands to generate awareness and offer consumers the opportunity to interact with their products firsthand. This approach can be particularly advantageous for digital-only brands seeking to establish a physical presence.
A noteworthy instance of this strategy in action is FAO Schwarz, the iconic toy store with a single location in New York City. To promote its collaboration with Target, FAO Schwarz hosted a series of captivating toy demonstrations in Target stores during the 2022 holiday season. This allowed customers to engage with the toys, experience their tactile qualities, and make more informed purchase decisions.
Nike also exemplifies the utilization of physical locations to foster brand affinity among customers. The company leverages its stores as hubs for hosting events such as running clubs, meetups, and fashion shows. By transforming their stores into community-oriented spaces, Nike enhances the overall customer experience and fosters a sense of loyalty and connection.
Incorporating in-person events into retail strategies enables brands to showcase new products, flavors, and partnerships. Moreover, it facilitates human-to-human interactions, which can build trust and strengthen the bond between consumers and brands.
Strategy 3: Embrace the Potential of Digital Kiosks
The allure of free samples and discounts has long captivated consumers. By leveraging digital trial kiosks, brands can merge these elements, effectively transforming store shelves into in-store sampling stations that also dispense coupons to encourage purchases.
Wakefern Food Corp., for instance, has embraced this strategy by integrating Freeosk’s multisensory trial kiosks across 95 stores under their ShopRite and Fresh Grocer banners. Natalie Menza-Crowe, Director of Marketing and Wellness Strategy at Wakefern, highlights the ability of these kiosks to facilitate trial experiences, thereby reducing barriers to entry for products and attracting incremental users to the category. Additionally, the kiosks capture valuable data on shopper activity, enabling retailers to gauge the effectiveness of their campaigns.
Digital kiosks represent a powerful strategy that combines in-store sampling, merchandising, and digital media. Retailers should strategically deploy them, guided by first-party data on shopper preferences, to optimize the promotion of specific products and discounts.
In conclusion, as physical retail continues to dominate the sales landscape, brands must devise effective strategies to enhance their presence within brick-and-mortar stores. By embracing the digital transformation of physical shelves, hosting engaging in-person events, and harnessing the potential of digital kiosks, brands can significantly amplify their visibility, forge stronger connections with customers, and ultimately secure a larger share of the in-store market.
