The Best Design Strategies Top Retailers Are Using To Win According To Research By The Imagine Group

(MENAFN- GlobeNewsWire - Nasdaq) MINNEAPOLIS, July 25, 2024 (GLOBE NEWSWIRE) -- The data doesn't lie-when buyers are shopping, they're still spending nearly 85% more in physical stores than they are online.1 In turn, retailers are reimagining their brick-and-mortar experience. How? With thoughtful consideration of traffic in their environment, strategic décor experimentation, intelligent value-based offerings, and innovative theft mitigation techniques. Let's take a deeper look at the most influential trends popping up in these four areas.

In-store Traffic: More is More

The search for ways to bring customers inside your store is never-ending, right? Optimal store location, broadening product variety, and pricing strategies are solid traditional tactics, but these strategies are just a small part of what retailers are using to keep people coming back week after week.

Another factor at play? Size. Consumer preferences have transformed retail environments from large areas designed for one-stop shopping to more compact, efficient spaces; store sizes are the smallest they've been in 17 years.2 This underscores the urgent need for a more nuanced approach.

Consider this:

• Store footprint size:
  • When designing retail spaces, whether large or small, it's crucial to consider the unique dynamics of each. For smaller spaces, special attention should be given to traffic patterns and the shopping journey, ensuring a smooth flow and an engaging customer experience. Unlike larger format stores, where expansive layouts can guide customers naturally, smaller spaces require strategic planning to maximize efficiency and create a welcoming atmosphere. By carefully designing the layout and considering customer behavior, retailers can optimize their footprint, no matter the size, to enhance the shopping experience.
• Data informs success:
  • Foot traffic analysis makes every step count. Understand how your buyers shop with the use of data, and you'll be empowered with the intelligence you need to optimize your store layout and product placement, both in-store and through out-of-home advertising.
  • People-tracking technology is making it possible for retailers to analyze shopper behavior and measure the impacts of merchandising efforts. This enables you to learn who your high-value customers are, how they behave, and how to reach them, extending your insights to include their interactions with out-of-home marketing.
• Wayfinding eliminates confusion:
  • No matter the size of your footprint, the last thing you want is a customer who leaves or avoids returning because it was too difficult for them to find what they needed. (And nearly 70% of shoppers rank ease of finding what they want as crucial to a convenient shopping experience.3) Make navigation easy with eye-catching signage that points the way.
• Layout tells a story:
  • More and more stores are modernizing their layouts to be more aligned with the shopper's journey and how they use products synergistically-think about putting fresh fruits and vegetables with the ready-to-eat meals. Consider how your customers think and how your store layout could reflect their behavior, ultimately leading to better purchasing decisions.
• Displays draw the eye:
  • Tighter format spaces can be a positive game-changer, allowing you to showcase your best assets based on locale. Imagine Studio, Imagine's internal creative concepting and rapid prototyping team, develops clever solutions like dimensional hanging signage or integrative floor graphics, which can be impactful elements when downsizing your footprint or simply trying to make the most of a smaller shop where floor space is a hot commodity.
    

Try this:

• Navigation helpers. Aisle markers and an optimized layout with gondolas, fixtures, and displays make the customer journey more intuitive.
• Sensorial experiences. Visually vibrant materials that exude texture and delight the fingertips appeal to the senses in a fresh, unexpected way. Think fabric, think lighting, think drama. Soft signage and backlighting are a stunning combination that magnetizes attention. Another winning combination? Out-of-home, digital, and interactive displays play extremely well together and frequently result in traffic hotspots.
• Cross-merchandising curations. Set up visually appealing vignettes and collaborations at store entrances to excite shoppers and spark curiosity at first sight.
  

Experience Begins with Experimentation

Experiential design has been on retailers' radar for years, but pushing the envelope to arrive at what consumers want most these days-authenticity-is what really pays off. It is increasingly important that the experience allows various ways for customers to engage, from simple QR scanning to full interactive trial and educational moments.

Another shift? Private labels. What used to simply be a way for customers to get a better deal has now started winning on quality, cost, and shopper perception. Private label growth has skyrocketed over the past few years, and now 53% of retailers expect private labels to be their number one growth driver in 2024.4

Consider this:

• Pop-ups are powerful:
  • With 55% of consumers reporting that they visit pop-ups because they enjoy finding unique products and 80% of global retail brands reporting that their pop-ups were successful, the potential of these mini-stores is palpable.5 Break away from the status quo with these experimental playgrounds that give you the power to test new products, pricing, and merchandising ideas-all while exciting shoppers with something different.
• End-to-end journey:
  • A customer's intention and decision-making start well before the physical retail experience according to Andy House, Sr. Creative Director of Imagine Studio. The way forward is to take a holistic, dynamic view of who customers are and what motivates their behaviors-and to treat them as more than just buyers. Experimentation with QR portals into product lifestyle that allows for interactivity, personalization, and ultimately connection with an immersive in-store experience could provide a holistic recipe.
• Partnerships create synergy:
  • Target and Missoni. Home Depot and Pinterest. Dunkin' Donuts and Saucony. KFC and Crocs. The best collabs yield something greater than the sum of their parts and have the potential to create buzz, build trust and credibility, connect with new markets, and skyrocket sales.
  • Collaborations are particularly effective with Gen Z and Millennial consumers, with 60% reporting that they've purchased special edition releases.6
• Be yourself-and tell people about it:
  • Bring your customers along on your sustainability journey with authentic, loud-and-proud insights into your operations and green efforts that build trust and engagement.
    

Try this:

• Curate content creation. Pop-up shops-both in-store and stand-alone-double as user-generated (and oh so influential) content studios that invite customers to share their experiences with others.
• Flex your design. Customize spaces with striking design elements that adapt to the space they occupy seamlessly and flexibly. Lean into layering, lighting, and layout, and you'll elevate your interior while staying within your budget.
• Incorporate attention-grabbing features. Textures, patterns, or organic shapes can make a lasting impression by adding visual interest and depth to a space. They can draw your eye where you want it to go and pull your shoppers to your display.
• Be larger-than-life. Using giant elements can give you more bang for your buck, as shoppers can see your display well before they approach it. Capturing attention requires genuine effort, and these sophisticated designs will continue to evolve and become even more marketable.
• Elevate retail experiences through premium materials. Fabric can drape, move, and capture light like nothing else. It can immediately elevate a space and make it feel more luxurious all while being cost-effective, durable, and easy to implement.
  

Driving Loyalty: Value is Essential-and Complex

Evolving economic conditions inevitably impact consumer priorities as well as their perception of value. When it comes to the 75 million 25-to-40-year-old consumers who make up the largest demographic group among current generations-Millennials-83% of them favor brands that align with their personal values, prioritizing ethical consumption over price.7 While price matters, so does how a buyer feels about purchasing items; this is where other factors come into play. The outlook of one's health and well-being are playing increasingly important roles on buying habits explains Robert Grimmett, Sr. Vice President of Imagine Studio. It's vital that brands and retailers communicate their global and ethical missions behind their products and services.

Consider this:

• Time is on your side:
  • Convenience is the key to the ultimate resource-time. Across demographics, 82% of shoppers disclose that convenience is extremely important to them while shopping; that's why today's modern heroes are products and services that provide convenience and give time back.8
• Health and well-being are top-of-mind:
  • With 82% of consumers reporting that wellness is a top priority in their everyday lives, foods and other products that support physical, mental, and emotional well-being are consistently measured to be more valuable than less expensive items that don't.9
• Promotions have power:
  • Differentiate your private label offerings with packaging and displays that speak volumes. Shoppers' price sensitivity opens up the opportunity for you to flex your promotion prowess and position your private-label brands front and center-especially when it comes to more mature product categories.10

Try this:

• Loyalty programs. 80% of consumers revealed that they purchase more frequently from brands after joining their loyalty programs. Not only that-they're spending 12-18% more than they are at other non-membership stores. And if that's still not compelling enough-3 out of 4 shoppers will switch brands for a better loyalty program.11 With all this in mind, how can you simplify the journey to rewards? Use thematic visual marketing elements on store windows, at the entrance, on shopping carts, and at checkout. Enhance these touchpoints with QR codes or interactive displays that offer instant sign-up options, exclusive promotions, and reward tracking, making it easier and more engaging for customers to join and benefit from your loyalty program.

• Lean on private labels. With today's economic challenges, especially inflation rates, buyers are seeking high-quality products at affordable prices. Private labels meet this demand. In fact, 54% of consumers surveyed said that they anticipate buying much more or somewhat more from private-label brands.12 Curate a private brand that aligns with your business model and caters to your customers' needs, offering unique and exclusive products that cannot be found elsewhere. This will not only attract budget-conscious shoppers but also differentiate your store from competitors. By highlighting the unique benefits and superior quality of your private labels, you'll tap into the 60% of shoppers who are increasing their purchase of private-label products year over year.13

• Quick-serve foods. Visibility and accessibility are key when it comes to appealing to the 72% of customers consistently purchasing ready-to-eat meals.14 Another big influence? Packaging. 86% want to be able to see the product before buying it, and 77% want the packaging to be sustainable.15

Shrinkage: Planning is Prevention

However, you add it up, shrinkage is a big challenge for retailers. How can you invite buyers while deterring theft? The best retailers look at shrink cross-functionally. Far from simply a finance problem, an effective shrink prevention plan involves design strategies that mitigate risk without compromising customer experience-and this is at the heart of good merchandising.

Consider this:

• Signage shines a light:
  • Use lighting and thoughtful placement of signage to enhance surveillance coverage, improve sight lines, and reduce blind spots.
• Personalization affects perception:
  • Humanize graphic treatment and messaging to not only connect more authentically with shoppers, but to also create the feeling of being watched throughout the store.
• Displays impact and deter:
  • Use showrooming in the form of curated vignettes and you'll have full view of multiple products and services while eliminating extra stock of SKUs at risk of theft
• Create an emotional response:
  • 75% of the emotional connection consumers make with brands is through experience.16 Behavioral science suggests that the introduction of clever surprises will trigger a more intense emotional response.

Try this:

• Single-row merchandising. By organizing your shelves to release products one row at a time, you'll deter thieves looking to nab entire sections of product at once.
• Motion-sensored elements. Lighting and music triggered by shoppers' presence invite engagement and tell employees nearby that merchandise is being viewed.
• Human tone of voice. Create a store environment where the visual merchandising elements and surfaces where product is placed utilizes a human voice with interesting calls to action.
• Minimize barrier perception. Allow friendly barrier-free access to product trial, touch, and feel while extended sizes and quantities of these items are placed higher or behind designed glass.

The future of retailers' success lies in their ability to adapt to ever-evolving consumer expectations and market conditions. As a retailer, you know that creating a captivating and exceptional shopping experience is essential to driving traffic.

Are you struggling to find ways to inspire customer purchases? A good partner will meet you at the intersection of great design and flawless execution. It may seem challenging to achieve at first, but with a curated environment and strategic design, you can have a store that magnetizes and converts-even amidst evolving consumer expectations and market conditions.

Imagine understands the importance of design that reflects your brand and reaches the right audience for your business. What's more, we design with the end in mind and we're laser-focused on flawless execution.

Ready to see what Imagine can do for your store? Let's go →

Terry Monday
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About Imagine
Imagine is an industry-leading provider of visual communications solutions. As a trusted partner to the world's most successful brands, Imagine designs, produces, and delivers beautifully crafted print and digital solutions that inspire action and get results. From concept to consumer, our end-to-end solutions include conceptual and creative design, pre-media, décor, commercial print, store signage, specialty packaging, OOH, technology, fulfillment, and kitting. Learn more at and .

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