Although brick-and-mortar retail has been around for decades, the recent boom in e-commerce has created a host of new opportunities for enhanced omni-channel experiences that combine the world of the physical and the world of the virtual.
In 2024, here are five of the most significant innovations that are already bridging that gap.
Virtual fitting rooms
Retailers are now offering virtual fitting rooms that allow customers to try on clothing items virtually before making a purchase. This innovative technology bridges the gap between physical and online retail by providing customers with a more personalized and convenient shopping experience.
A key example of this comes from online fashion platform, Zalando who introduced a virtual fitting room, last year, where customers can try on select items to check for size and fit. As part of the experience, customers create a 3D avator by entering their height, weight and gender, which can then be used to try-on a select range of items.
Augmented reality shopping experiences
Augmented reality technology is being used by retailers to create immersive shopping experiences for customers. By overlaying digital information onto the physical world, customers can interact with products in a virtual environment before making a purchase.
For instance, Al-Futtaim Automotive recently became the latest brand in the UAE to enhance its ‘phygital’ offering with the launch of an immersive and interactive virtual showroom.
The company said it was aiming to remodel the automotive retail experience and meet the needs of more experiental-focused consumers by instantly transporting customers into a spacious virtual showroom displaying a variety of car models. Now, instead of waiting for customers to come to their showroom, it can take the showroom to its customers wherever they are, and this is planned with multiple roadshows this year.
Click-and-collect services
Many retailers are now offering click-and-collect services, allowing customers to order products online and pick them up at a physical store location. This innovative service combines the convenience of online shopping with the immediacy of in-store pickup, bridging the gap between physical and online retail.
In Ireland, IKEA and Tesco recently teamed up to expand mobile pick-up points across the country, enabling customers to pick up their IKEA orders from their local Tesco store carpark for free if the order was over a ceratin amount. Additonally, petrol retailer Applegreen and Marks & Spencer announced it was trialling a new M&S Click & Collect service in four Applegreen stores in the first such roadside service from a major retailer.
Interactive displays
Retailers are incorporating interactive displays into their physical stores to engage customers and enhance the shopping experience. These displays allow customers to interact with products in a hands-on way, blurring the lines between physical and online retail.
Plama Spetsova, Head of Online at Bath & Body Works, Alshaya Group recently noted that experiential shopping will continue to become more prevalent, going beyond traditional shopping. This might include all type of pop ups, live demonstrations, interactive displays and entertainment options which makes visiting the store a much more memorable and enjoyable experience.
Mobile payment options
Mobile payment options such as Apple Pay and Google Wallet are bridging the gap between physical and online retail by allowing customers to make purchases using their smartphones. Additionally, mobile payment options linked to loyalty programmes are helping to further connect stationary retail with the online marketplace. For instance, German retail chain, Kaufland recently enhanced its digital advantage programme, the Kaufland Card, enabling its users to collect loyalty points online and redeem them when shopping both online and in stores.
