Many retailers have a certain feel to their stores that is uniquely their own. That might include a certain color palette or carefully selected lighting, flooring, and textures to create a certain mood. The layout and the way a store chooses to display its products can be an important part of this design aesthetic, too.
Aside from expanding to include groceries starting in the late '80s, Walmart has never really undertaken a huge redesign. The mostly blue, white, and yellow warehouse feel with one main loop through the store past all the aisles has remained pretty constant for decades.
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And while the retailer has no plans now to create an elegant, luxurious feel, according to Fast Company, it is planning some big changes that will impact how customers can shop in its stores. Let's take a look at the retailer's new design plans, explore the potential benefits, and see what they could mean for retail real estate investors.
It's all about the experience
An increasing number of retailers have been creating in-store experiences for their customers, both to promote brand loyalty and to make in-store shopping feel like a more fulfilling experience.
While e-commerce still only accounts for about 20% of all retail sales, it remains an ever-present threat to brick-and-mortar. That's where experiential retail comes in. Retailers have begun offering things like fun ways to use their products in store, special events customers can learn about by following the brand on social media, and experts who can show them how best to use the products.
And similar to when Walmart recently bought several metaverse-related trademarks, Walmart's foray into experiential retail provides compelling evidence that it's more than a trend. It demonstrates that even a ubiquitous retailer like Walmart doesn't feel that its massive footprint, low prices, or essential retailer status will be enough for its physical stores to stay relevant going forward.
Walmart's redesign will feature curated displays allowing customers to touch, feel, and interact with products they've previously only been able to see packaged up -- think bedding and kitchen displays like you might see in a department store to lure customers off the main loop. In some areas, large smart screens will display reviews and other content related to items customers pick up.
The retailer will also be making more strategic use of QR codes. Customers interested in a heavy item like furniture or exercise equipment will be able to simply scan the code, make the purchase, and have the item delivered. This dramatically reduces the possibility they will plan to order online later but forget or find it somewhere else before they buy it at Walmart. They'll also be able to scan everyday items like clothing and dishes and see other colors, styles, and sizes that may not be in the store and order those on the spot, too.
Expect brick-and-mortar to keep getting more interesting
After so much time inside, people are enjoying getting back out into the world. But retailers still have to make it worth their while. Ordering in your PJs and having everything delivered is just so easy. This redesign means Walmart understands that and is figuring out how to make the in-store experience and e-commerce work together as a team. Going forward, retail real estate investors would do well to make sure their portfolios are filled with brands that are doing the same.
