News

Future of shopping: Retailers shifting focus to creating experiences

Sears, Lowe's, and Toys "R" Us are three of the chains that were once major forces in retailing that have now either filed for bankruptcy or closed stores this year.

Despite these tough times for brick and mortar stores, not all of them are waving the white flag as we approach the busiest shopping season of the year.

WATCH BOSTON 25 NEWS

UNTUCKit, which started as an online retailer selling shirts, is bucking the trend and opening physical stores.

RELATED: Women entrepreneurs set up shop in the Seaport's She-Village

"We’ve basically gone from three stores to almost 50 stores in the course of two years, so where a lot of other retailers are closing, we're expanding, and we continue to grow our online business as well," said Victoria Zani, manager at the chain's store in Boston’s Copley Place.

UNTUCKit's focus is on creating a unique experience for shoppers.

"We make it a very friendly environment," explained Zani.  "We serve samples of bourbon and whiskey every day. We have water for our customers if they want it."

However, something is missing from the store: a cash register.

With technology developed by Boston-based ‘NewStore’, all the transactions are handled on iPhones. Associates cruise the store with their devices, helping customers right at the racks.

"We are making it so you don’t have to work to shop anymore," said Phil Granof, chief marketing officer for NewStore. "If you want to buy online, pick up in the store;  if you want to come to a store and not stand in line; if you want to be checked out instantly;  if you want to have an associate know who you are before you come in, or even do you want to be talked to; all that data is within the retailer now.”

>> Stores aim to be top toy retailer amid absence of Toys R Us

Retailers like Sam's Club and Amazon are taking it to the next level by creating stores without cashiers. Customers fill their carts and baskets and scan products with their phones as they go.

Babson College marketing professor Lauren Beitelspacher believes stores are going to have to head in one of two directions to survive. "There’s hyper convenience or experience, and I think that retailers really have to play in one of those pools to be successful."

Despite seeing malls like the Silver City Galleria in Taunton where all the anchor stores will soon be gone, Beitelspacher doesn’t think the internet will put every store out of business.

"I think that the old model of retail is no longer appealing to anyone, but I do think there will always be, especially around the holidays, the excitement of going to the store, of touching things, of getting those special deals."

Research shows that younger shoppers are more focused on experiences. Some malls are having success replacing those anchor tenant positions with entertainment options, like rock climbing and bowling, and even grocery stores.

>> 5 ways new tech will change your holiday shopping experience this year