Are Hotels The New Frontier In Experiential Retail?
As brands look toward the future of experiential retail, there’s a new “experience” on the rise. One that promises not just a way to connect with shoppers and grow loyalty, but could also create an entirely new type of retail flagship. Retail has been going through something of an identity crisis and it’s not hard to see why. Malls are in trouble, America’s over storing problem is coming to a head, and even shopping stalwarts like New York City’s Fifth Avenue are seeing troubling changes as flagships such as Ralph Lauren and H&M close shop and move elsewhere. Brands are trying to connect with millennials in a way that feels authentic and the buzzword of the day is experiential retail. So it’s perhaps not surprising that some are taking personalization to heart and creating entirely new experiences in the form of hospitality. Parachute, Shinola, Muji and Williams-Sonoma’s West Elm are among those opening branded hotels. Amazon, too, has begun exploring a hospitality offering. There’s a growing group of mid-tier retailers eager to capitalize on the travel and tourism industry, which is responsible globally for $2.3 trillion and 109 million jobs worldwide, according to a study by the World Travel and Tourism Council Global Economic and Issues study. Read more at Retail Dive.
