In March 2024, NetChoice published our first in-depth look at the emerging trend of “experiential retail.” But with 80% of customers showing businesses that the customer experience is just as important as products and services, it certainly seems this is more than a trend.
In 2025, NetChoice documented the industry’s shift to experiential retail, highlighting how brands are using immersive experiences to foster genuine human connection and brand loyalty. We explored diverse trends, from the transformation of traditional malls into multi-functional “town centers” and the use of conventions as “live retail laboratories” for testing products, to the integration of “phygital” technologies like AI-powered styling assistants and smart mirrors. Specific seasonal features illustrated these concepts in action, such as Mother’s Day brunches and hands-on workshops that prioritize shared moments over tangible goods.
Is experiential retail here to stay? Where is it headed as brands look toward 2026 and beyond?
What is Experiential Retail?
Experiential retail involves creating unique and interactive experiences for customers in a physical retail environment. The goal is to provide shoppers with a memorable experience, not just a transactional exchange, and it’s becoming a vital strategy for retailers in the modern era.
The conceptual foundation was laid by B. Joseph Pine II and James H. Gilmore in their influential 1999 book, “The Experience Economy,” which advised businesses to orchestrate memorable events for customers, such that the memory itself becomes the product. But the term “experiential retail” wasn’t actually used until it began appearing in retail trade publications in the early 2000s, and it became a buzzword only in the past five years or so.
While digital shopping continues to grow, physical stores remain a cornerstone of the retail landscape. For example, online grocery still accounts for just 13% of total sales. This is why experiences, especially tied to holidays like Valentine’s Day or Mother’s Day, are becoming a key part of the in-store shopping experience.
Here are some exciting ways experiential retail is changing now and in the coming years:
1. Innovation Labs
From 2019 to 2024, Walmart’s Intelligent Retail Lab in Long Island, New York, resided in a 50,000-square-foot Neighborhood Market store. The lab used thousands of cameras embedded in shelves to monitor the store’s efficiency, costs and shopping experience. It pioneered the new high-tech Innovation Labs that are becoming critical to retail success and a novel experience for customers.
Innovation Labs are dedicated teams, spaces or initiatives within retail companies that focus on researching, developing and testing new technologies, experiences and business models to drive the future of retail. These may become more common in 2026 as consumer feedback becomes more incorporated into the actual shopping experience.
Today, Nike’s House of Innovation in New York is a highly immersive, tech-enhanced store designed to showcase the brand’s most cutting-edge products and services and also test them among real consumers. In London, the Samsung KX space in King’s Cross features a range of experiences where visitors can interact with Samsung products in a relaxed environment, providing feedback directly to designers and developers.
2. More than Media Buzz
As shoppers grow wary of gimmicks, the days of splashy pop-ups that exist solely for social media buzz, such as Instagram-worthy backdrops, are fading. In 2026, experiences will be tied more directly to the brand’s mission or be educational in nature. Examples include makeup lessons at beauty stores, weekend workshops at home improvement stores or coding events at tech stores.
REI’s Experiences program, which offered outdoor classes, guided adventures and travel excursions, is a great example. While this program was paused in 2025 for financial reasons, it did help the brand elevate its image among its customers and laid the groundwork for other brands to create similar offerings.
Apple stores host free classes in photography, music production, coding and design, and Home Depot hosts regular DIY and how-to workshops for both kids and adults. Other examples include cooking classes at Sur La Table, hunting education at Bass Pro shops and immersive educational play experiences at CAMP stores.
3. Hyperlocal Opportunities
People are looking to come together again and get to know their neighbors better in-person. According to Digiday, “Brands and retailers are driving engagement with hyper-local, multi-touch strategies.” Expect retailers to find experiences that are more community-based and tailored, with local stores and small businesses curating products and experiences to local tastes, and using AI to figure out what those tastes are. This will look like community collaborations, food tastings or innovative pop-ups.
One brand that has long done this well already is lululemon; the stores frequently partner with local fitness studios to offer classes or with local bakeries to offer treats in-store, and they combine these promotions with exclusive shopping hours or special discounts. Madewell also holds local DIY workshops, makers markets and more. And American Girl stores host unique events in each city where their stores are located, from postcard painting in New York to a children’s dance class with Ballet Chicago.
4. Rewarding Loyalty
Retailers increasingly leverage subscriptions and loyalty tiers to build immersive, ongoing relationships that go well beyond the point of sale. As retail continues to evolve past transactional shopping, we predict a surge in subscription-based experiences that unlock exclusive, in-store discounts and access to workshops, fitness classes, curated events and early product drops.
According to The Subscription Economy Index report, this tool is predicted to reach revenues of $1.5 trillion in 2025.
Nike, for example, offers free membership with app engagement, and members get early drops, in-store event invitations and free workouts. For a one-time lifetime fee, REI Co-op members get member-only sales and exclusive access to workshops and outdoor experiences like kayaking or hiking trips. Sephora Beauty Insiders get free birthday gifts, beauty classes and other exclusive event invitations, and Glossier members can also unlock exclusive surprises, especially as the company builds out its brick-and-mortar locations.
5. Seeking Wellness
The wellness economy’s convergence with retail is transforming traditional shopping spaces into restorative experiences. This convergence reflects a larger cultural shift where consumers don’t just buy products; it matters how they feel while engaging with brands.
Some stores have long used minimal design, calming tones and natural textures to encourage a specific type of response from people while shopping. But now retailers are integrating “calm zones” and wellness lounges into their stores to offer shoppers a place to rest, recharge and reconnect.
Aesop stores are meant to feel like entering a minimalist spa, encouraging customers to slow down and savor textures and rituals. Many stores offer tea; others offer relaxing live music. At the lululemon Mall of America Experiential Store, customers can shop, work out, dine and lounge. Several Nordstrom stores, like those in Dallas and Seattle, have in-store spas. And the Alo headquarters store in LA offers yoga classes, plant-based cafés and infrared saunas.
Meaningful Connections Are Here to Stay in 2026
Physical retail isn’t going anywhere. Forrester predicts a staggering 72% of total U.S. retail sales will still happen in-person by 2028.
Instead, retail is being reimagined as a place to build connections, try out products in real time, give businesses live feedback and understand communities better. Retailers who successfully blend in these meaningful experiences are well-positioned to thrive in an increasingly competitive ecosystem.