Retailers who are tapping into the growth of the “experience economy” by hosting events and providing entertainment in their physical stores have seen annual turnover increase by an average of 14%, new research by Barclaycard reveals.
Shoppers in the UK no longer see the high street as just somewhere to make a purchase. Increasingly they are opting to ‘shop and stay’, spending time – and money – in shops that offer engaging and entertaining experiences.
With consumer spending on experiences and entertainment up 10.5% so far this year, savvy retailers are looking to capitalise on this trend. According to Barclaycard, over a third now host events in-store, such as classes, courses and exclusive sales previews, with 19% planning to start doing so in the next three years.
George Allardice, head of strategy at Barclaycard Payment Solutions, says: “Retailers who take advantage of the opportunities in the experience economy can really reap the rewards. Our research has found that shoppers increasingly want to stay in stores for longer, rather than head home with their purchases.
“With consumer spending on entertainment and experiences increasing by 10.5% this year, there are opportunities across the board for shops of all shapes and sizes to capitalise on this and draw shoppers in with engaging experiences. Those who are already doing so are already seeing the benefits and it’s little wonder that these savvy retailers are planning to increase their investment in their in-store experiences over the next two years.”
To make the most of the opportunity to engage ‘shop and stay’ consumers, it’s important retailers channel their resources into the types of experiences their customers will best respond to. For younger customers especially engaging shopping experiences are paramount.
Demonstrating a marked generational difference in the types of events they’d like to see in-store, 18 to 24 year olds are more than twice as likely as the national average to want their favourite shops to offer in-store celebrity meet-and greets, fitness events (such as yoga classes) and education courses (such as language classes).
In fact, Gen Z shoppers are so experience-oriented that one in six 18-24 year olds report that having in-store events after hours would encourage them to choose one retailer over another – representing an opportunity for retailers to build long-lasting brand loyalty and encourage shoppers back into stores time and again.