At Shoptalk Europe, a premier gathering held annually in Barcelona for retailers, brands and industry professionals, the conversation centred on the evolving landscape of modern retail. While topics such as retail media, generative AI integration, omnichannel strategies, social media trends, and cross-border expansion sparked considerable interest, the most widely discussed and impactful theme was the re-evaluation of physical retail spaces. Most participants emphasised the urgency of rethinking brick-and-mortar environments, with many brands and retailers already investing in innovative solutions aimed at enhancing operational efficiency and elevating the in-store customer experience. This focus shift was clearly top of mind across the industry.
Stores are transforming from points of sale into immersive destinations
According to Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded January to February 2025, 54% of connected consumers prefer shopping in physical stores that deliver an engaging, immersive experience. In the post-COVID era, in-store retail has undergone significant transformation – shifting from purely transactional spaces to sensory-rich environments where emotion, interaction, and storytelling take centre stage.
Today, retailers and brands are doubling down on the value of maintaining a physical presence, reimagining their stores as experience hubs designed to forge deeper connections with consumers. A standout example is Netherlands-based beauty specialist Rituals, which has transformed its stores into wellness-centred spaces with offerings like in-store spas – selling not just products, but moments of calm and wellbeing. Similarly, Canada-based apparel brand Canada Goose enhances the in-store journey with its "Cold Room", a temperature-controlled environment that allows customers to test the performance of their outerwear in real conditions.
59% of professionals identified enhancing the customer journey and overall user experience as their top commerce priority for the year ahead
Source: Euromonitor Voice of the Industry 2025
Technology is transforming stores into data-driven omnichannel hubs
Today’s customer journey spans a growing number of digital and physical touchpoints. As these channels continue to expand, brands and retailers are challenged to deliver a seamless, connected experience that not only meets consumer expectations but also offers a curated and relevant product selection. In this landscape, physical stores are playing a more strategic role within omnichannel operations – serving as hubs for optimised inventory management, effective product discovery, and data-driven insights. From ensuring stock availability to analysing foot traffic and search behaviour, retailers are leveraging physical spaces to enhance efficiency and elevate the overall customer experience. In line with this shift, 53% of retail industry professionals surveyed in Euromonitor Voice of the Industry 2024 believed that generative AI will play a significant role in transforming their businesses over the next five years – further enabling smarter, more personalised, and efficient omnichannel experiences.
Fast fashion giant H&M offers a compelling example of how technology can enhance the in-store experience. Using sensor and RFID technology, the brand enables smart navigation, seamless checkout, and real-time inventory tracking – locating out-of-stock items in nearby stores and arranging delivery. This tech-driven approach allows H&M to collect valuable consumer data, optimise store layouts through space density analysis, and refine visual merchandising based on customer behaviour. H&M also tailors its product offerings by analysing external factors like weather, local events, and major concerts such as Taylor Swift or Beyoncé tours, ensuring targeted collections reach the right markets. The result is a more personalised, efficient, and responsive in-store journey.
Technology integration in physical stores goes beyond convenience. Indeed, it plays a critical role in strengthening the entire omnichannel ecosystem. The message from Shoptalk was clear: offline retail is rapidly evolving into a key touchpoint for connection, engagement, and seamless alignment with digital experiences.
Learn how to navigate the future of retail in our strategy briefing, Retail Reinvention: A Framework for Future Growth.