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Experiential Retail Moves Outside Stores image

Experiential Retail Moves Outside Stores

Experiential retail is expanding beyond stores.

Traditionally, experiential retail has been defined by in-store events such as themed takeovers like Nabisco’s rebranding of the last Blockbuster Video store in Oregon to promote the return of its Oreo Cakesters after a 14-year absence.

But, in recent weeks, retailers have added a new twist to their experiential strategy and stepped outside of the confines of their store locations.

TJX’s HomeGoods chain launched a limited-time promotion this month offering a home replete with its merchandise for weekend rentals at $29 a night in New York State’s Hudson Valley. Goods tied to each weekend’s theme will be available for purchase on the HomeGoods website, which in itself is a major change for an 820-store retailer that previously hasn’t prioritized eCommerce.

And RH (formerly Restoration Hardware) opened RH Guesthouse in New York in September, featuring six guestrooms and three suites carrying nightly rates of $3,500-$7,500 based on a two-night minimum. RH designed and merchandised the hotel in addition to a pair of Gulfstream jets—RH1 and RH2—that will be available for charter later this year along with luxury yachts in the Caribbean and Mediterranean.

“These immersive experiences expose new and existing customers to our evolving authority in architecture, interior design, and landscape architecture,” said RH CEO Gary Friedman. “This leads to our long-term strategy of building the world’s first consumer-facing architecture, interior design, and landscape architecture services platform inside our galleries, elevating the RH brand and amplifying our core business.”

The widening array of experiential retail is emerging at a time when consumers have become very comfortable with making online purchases. The significant growth in eCommerce is forcing retailers to think outside the box in order to convince consumers to return to brick-and-mortar stores (or extensions of them) in an ongoing bid to keep the brand top-of-mind.

The more traditional in-store retail experiences are still going strong, however.

Game developer Atlus is taking over Matte Black Coffee café in Los Angeles for a month-long run (October 14-November 13) to mark the October 21 release of Persona 5 Royal, a title it developed with SEGA for Xbox and PlayStation consoles, Windows PCs, and Nintendo Switch. In addition to themed drinks, the café will carry exclusive Persona 5 Royal x Matte Black Coffee merchandise (hoodie, t-shirt, tote bag) available both in store and online.

Family experience company CAMP, meanwhile, added a Disney Encanto theme to its 6,000-square-foot flagship store in New York featuring one-hour immersive tours and an exclusive capsule collection that includes character-based apparel, jewelry, and books.

“These experiences are increasingly becoming a game of retailers one upping each other, but they are becoming an established way of doing business as they appeal both to brands’ fans and those new to the IP and have the potential for attracting new customers for the retailers,” a licensing executive said. “At a time when retailers have struggled to generate in-store shopping, these [experiences] have all the earmarks of promotions that are here to stay.”

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