The role of technology in experiential retail

Andrew Haines • March 26, 2026

With the rise of eCommerce, technology has already transformed shopping habits. It’s impact on physical retail has been just as profound.

 

Many retail institutions have been forced to enter administration and images of abandoned storefronts paint a bleak picture. In recent years, many have advocated for brands to focus on their online presence and move away from physical locations altogether. 

 

In contrast to this pessimistic outlook, physical retail has undergone a resurgence. Customers aware of the limitations of online have started to seek real-life experiences and connections instead. And it’s a trend that looks set to continue; in fact, 81% of Gen Z prefer to shop in-store.[1]

 

What constitutes the in-store experience has also evolved. When virtually every item imaginable is available at the click of a button, regardless of personal preference, brands need to offer something special to entice customers away from their screens and onto the shop floor.

 

Experiential retail provides that reason to visit – and technology makes it all possible.

 

Brands can now curate multisensory spaces that prioritise providing a memorable experience, one that is immersive and interactive, and makes the financial transaction feel secondary.

Technology in action

 

Retail technology is most effective when it’s used intentionally. 

 

The possibilities are virtually unlimited, but just because the tools are available doesn’t mean that every brand should strive to implement cutting-edge tech into their stores for the sake of it. 

 

And when every pixel on a digital display consumes energy and contributes to the store’s carbon footprint, the impact of each tech solution deployed needs to be carefully considered and implemented with purpose.

 

That said, technology can play several roles in experiential retail spaces including:

 

  • Interactive and visual displays
    Serving a dual purpose, interactive displays can inspire and inform customers while also enabling them to complete tasks more easily. Whether it’s a touchscreen directing customers to in-depth content related to the latest collection or a customisation tool to allow personalisation, these displays complement visual installations, which serve to create a distinct store atmosphere or tell the brand’s story.

 

  • Bespoke fragrance
    Scent is one of the most effective ways to evoke a memory or create a recognisable atmosphere. Stores can use one single scent throughout the store to create a signature brand fragrance or curate in-store zones, using different scents to elicit desired responses.

 

  • Sonic landscaping
    Creating a sonic landscape in-store is more complex than simply building playlists of licensed music, although any track played should reflect your brand identity and be geographically relevant. A truly immersive sonic experience incorporates evocative audio that adds interest: think the rush of a waterfall or calming birdsong in spa waiting areas or hotel lobbies. 

 

  • Augmented and virtual reality
    Augmented reality or AR has entered the experiential retail space, for the most part, by offering virtual try on. This technology has been embraced by beauty and apparel brands who know their customers are motivated by a try before you buy experience. There’s no need for a beauty emporium to worry about wasted product or health and safety concerns when customers can simply try on each shade of lipstick or eyeshadow virtually and still buy with confidence.

 

  • App integration
    With 60% of customers[2] who make a purchase through a mobile app likely to make at least one more purchase, brands have a good reason to incentivise downloads. By pairing the app with the in-store experience, they can capitalise on digital insights by offering targeted promotions, loyalty programs, and more.

   

Efficiency vs. Enjoyment

 

In the competitive luxury market, brands must balance investment in experiential retail with discreet technological advances that streamline operations, improve customer service, and increase margins.

 

Headsets can be used to deliver on-demand product knowledge to associates, machine learning can predict footfall and stock requirements, and app integration can provide customers with a personalised experience that inspires loyalty.

 

Maximising the moment

 

Technology is most impactful when it is used to create a memorable moment.

 

“When it comes to technology in the luxury space, less really is more,” explains Jonathan Wharrad, VP Global Retail Brand Experience at Mood Media. “Hyper-specific and personalised experiences bring more value than simply investing in tech for tech’s sake.

 

“If a brand wants to incorporate digital displays, for example, it’s important to remember that the content is equally as important as the number of pixels on offer. It’s not just wallpaper, every display should serve a purpose.”

 

Personalisation takes this to the next level, on both an individual and group scale. Driven by social messaging, insights gathered from analysing buying habits, or events such as changes in the weather or daypart, personalisation instantly elevates the luxury in-store experience. Displays can dynamically change, the store’s sonic identity can subtly shift, and different items highlighted to reflect the customer’s buying preferences as if by magic.

 

Spotlight on: Future Stores

 

One way that brands can take experiential retail for a test-run with minimal risk is to try a pop-up store. If you want to create a memorable moment, a store that’s open for a limited time is ideally suited to that mission.

 

Future Stores on London’s Oxford Street is more than just a pop-up; it’s a manifestation of the future of retail, underpinned by cutting-edge technology. Inspired by the dynamic nature of a social media feed, Future Stores is a transformative space that brands can take over to showcase their story.

 

When it comes to technology, it’s a visual playground. A high-definition LED display of over 435 square metres with nearly 170 million pixels and 6700 LED tiles on a single canvas utilises NovaStar’s H15 plus series processors, explicitly designed for fine-pitch LED applications. A custom-design Green Hippo Boreal+ System is set up to deliver stunning visuals that engage the senses and push creative limits to elicit moments that matter.

 

Looking ahead – what’s next?

 

The future of retail may already be here thanks to Future Stores, but technology is moving at break-neck pace and the options available for luxury brands are always evolving

 

Data and analytics will be increasingly important. With sustainability on the agenda for CEOs and customers alike, proving the value of experiential retail and the energy consumption required by the technology that lies behind it will be even more crucial in the coming years.

 

Breaking down barriers between the in-store and online experience will also be high on many brands’ to-do lists. Ideally, everything will be linked. If a customer creates their own shoe design on a company’s website, for example, they should be able to walk into the customisation counter at their local store and know that the in-store team will have that design ready to go.

 

Dynamic targeting linked to a mobile app could track when a frequent customer crosses the threshold into your store and immediately send a push notification for a limited-time offer on their favourite product category – a digitised, personalised upsell.

 

Artificial Intelligence will also have a role to play. Despite its controversies, AI could revolutionise retail supply chains, more accurately predicting trends and ensuring stock levels are in line with those predictions. And that’s not all; generative AI could help to power recommendations by inviting customers to describe their dream product, no scrolling required.

 

The power of partnership

 

Navigating these trends effectively isn’t easy. Not only do they need to have an understanding of the technology, but to use it effectively, brands must appreciate the impact of the content that the technology showcases, the psychological impact it has on customers, and, ultimately, the experience it creates.

 

Each tech tool also works best when used in combination. It’s all about balance. A multisensory blend that can’t be replicated by an eCommerce screen. 

 

Brands need to work with partners who specialise in bespoke solutions, looking at the bigger picture rather than each tool in isolation yet intrinsically understanding the tech behind making that big picture possible.

 

But perhaps more importantly, effective experiential partners always start with content. The best technology in the world won’t make experiential retail work for the luxury market if it’s implemented without careful consideration.

 

It’s a chain reaction; the business case should dictate the content, which in turn determines the technology needed to bring that content to life.

 

Every business case is different, and the response should be too; a brand that is making its first steps into bricks and mortar retail like sneaker-brand Loci (making its physical debut in Future Stores) will need to tell its brand story and bridge the gap between online and real-life, whereas a legacy brand like Burberry needs to stay relevant without losing its core consumer by tailoring its stores to provide personalised recommendations and transaction efficiencies.

 

[1] 2019 survey of 1,500 US and Canadian consumers by A.T. Kearney

[2] AppsFlyer, ‘The State of eCommerce App Marketing – 2024 Edition’

How to appeal to a new luxury customer

April 13, 2026
How to appeal to the new luxury customer Can brands appeal to the new generation of luxury customers without alienating their established base? Mood Media’s Head of Creative Barry McPhillips shares his insights into how both heritage and hypebeast brands are navigating this question and shaping their in-store experiences in response New Generation, New Expectations How do we define today’s luxury customer? The traditional customer base for heritage brands is still a powerful market segment; these shoppers value loyalty, personalised service, emotive in-store experiences, and purchases that make them feel special. But a new generation of luxury shoppers is disrupting the status quo. “Their expectations are very different. More immediacy, more theatre, more drama, more online,” explains Barry McPhillips, Head of Creative at Mood Media. Loyalty is no longer a priority. In fact, the product isn’t even necessarily the most important aspect of a luxury purchase for these customers. They’re more interested in buying into the feeling it gives them. This shift means that the luxury shopping experience has expanded beyond the boutique. It’s no longer just about curating exceptional in-store environments, the customer journey both pre and post purchase is equally important. It also presents a dilemma for brands looking to retain their loyal customers while also engaging the next generation – is it possible to evolve without alienating?

Attracting the next generation of shoppers

By Andrea Duckett • April 1, 2026
How luxury shopping is hoping to attract the next generation of shoppers As luxury retailers look to retain their existing customer base while appealing to new audiences, they are evolving their approach to both their bricks-and-mortar stores and live media experiences. But with Gen Z brand loyalty never guaranteed, will investing in attention grabbing activities be enough to secure the future of the luxury sector? The economic uncertainty of recent years has been challenging for retailers, especially those operating in the luxury space. Richemont (owner of Cartier and Montblanc) saw operating profits drop by 17% year-on-year in the first half of 2025, Gucci’s revenues fell by 25% in the same period, and LVMH group revenues were down 2% in the first nine months of 2024. While engaging existing consumers will be an important part of these brands’ survival strategy, harnessing the spending power of Gen Z will be essential if the luxury industry is to navigate this difficult period and secure future prosperity. Currently aged between 13 and 28, Gen Z is the audience luxury retailers are hoping to attract - and for good reason. Gen Z spending is projected to reach $12 trillion by 2030 and their rate of spending on luxury goods is expected to be three times faster than other generations. But perhaps one of the most interesting stats to look at when considering how luxury shopping can adapt to serve Gen Z shoppers is that in-store mass merchandise and grocery purchases account for nearly 50% of their total spending. Gen Z is truly the omnichannel generation. While digital channels will continue to be an important driver of both online and offline sales, luxury brands are increasingly re-evaluating the role their retail spaces can play in securing the attention – and loyalty – of Gen Z shoppers. Capitalising on the potential of live media – immersive, real-world experiences designed to forge connections with new and existing shoppers – can help brands find the sweet spot between strategy and spectacle.

The impact of digital content and personalised experiences

By Andrea Duckett • March 31, 2026
The impact of digital content and personalised experiences Personalisation is expected to transform physical retail in the coming years, but is anyone doing it right When it comes to adapting digital content to serve a specific audience, there’s a wide gap between ambition and expectation – and customers are more than aware of this discrepancy. In fact, only 23% of shoppers think that retailers are doing a good job when it comes to personalisation.[1] But how can brands bridge the gap? It all starts with understanding customer experience. Content for content’s sake isn’t just a waste of budget, but it also runs the risk of alienating loyal customers. If this sounds familiar, you’re not alone. Several luxury brands are hampered in their efforts to implement digital content effectively; some haven’t built sufficient knowledge of the customer in-store experience, some don’t have buy-in from stakeholders, and some are restricted by budget. Any luxury brand considering using digital content in their retail stores – and potentially personalising that content – should start with four key questions: 1. What is the purpose of this content? 2. In what context will customers experience this content? 3. How will this content impact the customer journey? 4. Does this content complement the store environment? If you don’t have an answer to each of these questions, you’re probably not ready to maximise the opportunity digital content offers. And it is a considerable opportunity; retailers who can effectively leverage personalised digital content in-store are 48% more likely to exceed their revenue goals. So, how can you use digital content effectively?