The store of the future: from highly stocked sales channel to experience provider

Retailers are developing their physical stores by prioritizing the creation of an experience over traditional sales. Successful brands integrate this with their omnichannel approach. They create an immersive and shareable customer experience that inspires consumers. A majority of consumers also seek this: around sixty percent of them expect to have an experience in the physical store of the future.

From our research, it appears that a shop that provides an experience consisting of four elements can increase sales when they are combined:

1. Offer an integrated omnichannel approach.
2. Prioritize the customer experience.
3. Create an immersive and shareable customer experience.
4. Ensure that the customer is inspired.

Retailers need to adjust the inventory in stores to customer preferences. As a result, product interaction becomes more important than the convenience of delivery from the store. Currently, 94 percent of retailers have more than three-quarters of their products available in physical stores. This is expected to decrease. By 2030, it is possible that 25 percent of retailers will no longer have inventory in physical stores.

Will technological development naturally lead to unmanned stores? In the PwC Retail Monitor 2024, retailers and consumers argue that employees will remain the heart of the store. Customers see personal advice as one of the most important functions of the store of the future. At the same time, a majority of consumers believe that self-checkout should be possible everywhere in the future. With the technological foundation in place, qualified personnel can make a difference for customers.

In 2030, consumers expect their shopping experience to be personalized, with on-demand product information, including information about sustainability (ESG). Retailers must continue to develop their blended offerings - think of a coffee bar in a bookstore - and improve the customer experience through personalization.

So, will everything move online? The physical store business is expected to remain as many future products will be promoted and purchased within the stores. But customers seek new and unique in-store experiences to complement the efficient shopping experience in e-commerce.

The PwC Retail Monitor is an annual data-driven research conducted among more than fifty European retailers in various industries. The retailers' vision of the future of the store is combined with customer data to provide a comprehensive view of insights into the retail industry. In our research, we interviewed retailers from the DELIVER network about their experiences, ambitions, and vision for the future.