Experiential Retail Explained: From Showroom to Show

With 56% of people now preferring to shop online for its speed and convenience, you might be wondering why physical stores are still around. There’s a simple answer: people still want to try things in person, get hands-on with products, and enjoy experiences they can’t get on a screen. That’s why experiential retail is on the rise: a shift where stores offer more than just the items on sale. They give people reasons to walk in, stay longer, and return.

Want to know more? Read on as we discuss the following:

What experiential retail actually means
Why brands are investing in it now and how they benefit
Real-world examples that are working
What this trend means for the future of retail

At the end of this article, you’ll understand why creating a great experience is now just as important as selling the product.

What is experiential retail?

Experiential retail is a strategy where the focus isn’t just on selling. It’s about creating a memorable moment around the shopping experience. It turns a store visit into something customers actively engage with. Instead of browsing passively, shoppers are invited to try products, join activities, or interact with the space meaningfully.

It shows up in many formats:

Pop-up shops that last a few weeks and build hype.
Flagship stores built to highlight the brand story through unique layouts, visuals, or in-store features.
In-store events that include product tastings, how-to workshops, or live demonstrations.
Retail spaces enhanced by technology such as interactive displays, smart mirrors, or virtual try-on tools.

Why experiential retail works

Why are brands investing in experiential retail? Here are a few reasons:

It drives foot traffic and dwell time: When stores offer more than selling their items on their shelves, like demos, workshops, or interactive displays, people stay longer. That extra time increases the chance of discovering more products or making a purchase.
It builds emotional connection and loyalty: Memorable experiences stick. When a shopper feels something in-store, whether it’s fun, excitement, or personal attention, they’re more likely to return, and more likely to trust the brand.
It gives physical retail an edge over online shopping: Online shopping is fast and efficient, but you can’t touch anything, try products in real time, or get help from an actual person. Experiential retail brings back direct interaction, instant feedback, and immediate access to what you need.
It fuels brand storytelling: Experiential retail lets brands show their identity. A minimalist layout can reflect simplicity. A bold, high-energy setup can highlight innovation. Every detail is used to reinforce the brand’s message in a way customers can see, hear, and feel.
It turns shoppers into marketers: People love to share interesting experiences. A clever display, photo-worthy setup, or live event often ends up on Instagram, TikTok, or in conversations, giving the brand more exposure and reach.
It helps collect useful data: Experiential setups often include interactive tools like QR codes, smart mirrors, or product try-on stations that invite customers to actively engage. These interactions don’t just boost interest in-store; they also generate real-time data on what people explore, prefer, or ignore. That insight helps brands fine-tune everything from product displays to marketing campaigns.
It deepens engagement: When people take part in experiential setups (build, test, play, learn), they feel more invested. They’re not just buying; they’re participating.

Real-world examples of experiential retail

Are brands really investing in these types of retail experiences? Here’s what five brands are doing to turn physical stores into places people actually want to visit.

Nike

Nike is one of the world’s leading athletic brands, known for its sneakers, apparel, and gear. Its House of Innovation stores in New York, Shanghai, and Paris are built to let customers design their own shoes, test products in-store, and explore collections using QR codes and app-based tools. Each location includes features like the Speed Shop and Maker’s Studio to create a personalized, interactive experience.

These stores have boosted Nike’s direct-to-consumer revenue, which hit $12.4 billion in 2020, making up 36% of total sales. They’ve also helped Nike stand out from competitors by combining technology, design, and storytelling in ways that drive loyalty, media attention, and repeat visits.

IKEA

IKEA is a Swedish company known for affordable, flat-pack furniture and home essentials. As part of its experiential strategy, IKEA launched sleepover events in stores across the UK and Australia. Selected customers were invited to stay overnight in fully staged bedrooms, complete with movies, massages, and sleep consultations, transforming the store into a real-life sleep environment.

The UK campaign drew nearly 100,000 Facebook group members and major press coverage. In Australia, IKEA’s Airbnb-style campaign in Sydney reached an estimated 800 million people through PR alone, with zero ad spend. These sleepovers boosted sales of bedding products, built strong customer loyalty, and positioned IKEA as a trusted brand for sleep and wellness solutions.

Canada Goose

Canada Goose is a Canadian company known for high-performance winter jackets built for extreme cold. To help customers experience the warmth firsthand, the brand introduced "Cold Rooms" in their flagship stores. These temperature-controlled chambers drop as low as -25°C, letting shoppers wear jackets in freezing conditions before deciding to buy.

The Cold Room strategy has improved customer confidence, increased conversion rates, and helped justify the brand’s premium price point. It supported Canada Goose’s global expansion and contributed to a 46.4% rise in annual revenue, with direct-to-consumer sales up by over 120%. The experience also draws media attention and user-generated content, turning stores into destinations and strengthening the brand’s position as a leader in luxury outdoor wear.

Samsung

Samsung is a leading electronics company known for smartphones, appliances, and smart devices. Instead of a traditional store, Samsung 837 in New York City functions as an “experience center” where visitors explore smart home setups, test virtual reality gear, take photos in interactive booths, and attend community workshops. There’s no physical inventory on the floor; the space is designed for discovery, not direct selling.

This approach has helped Samsung boost brand favorability by 85% and increase purchase intent across multiple product lines. While direct sales aren’t the goal, the space strengthens loyalty, builds lasting impressions, and influences how the brand designs its retail stores worldwide.

Eataly

Eataly is a global brand that combines grocery shopping, restaurants, and cooking classes in a single space. Founded in Italy in 2007, each store features pasta counters, wine bars, bakeries, and live kitchens where shoppers can eat, learn, and explore. Cooking schools and food education events are built into the layout, turning every visit into a hands-on cultural experience rooted in Italian cuisine.

In 2023, Eataly reported €656 million in revenue—a 9% year-over-year increase—with North America making up over 60% of sales. EBITDA rose 61%, and the company opened five new stores globally, including locations in New York and Toronto. By turning food shopping into an interactive experience, Eataly has strengthened customer loyalty, increased profitability, and expanded its footprint to more than 50 stores in 15 countries.

The future of experiential retail

The examples above show that experiential retail works. So it won’t be a surprise if more brands start investing in it, meaning the competition to deliver better, smarter, and more memorable in-store experiences is only going to intensify. Here’s what you can expect next, with some of these trends already emerging at a smaller scale:

AI-powered personalization: Retailers are using artificial intelligence to deliver tailored recommendations, smart in-store prompts, and location-based offers. Expect this to become standard.
Mixed Reality (MR) and Immersive Technologies: Augmented and virtual reality are turning store visits into interactive journeys. Shoppers can visualize products in their space, explore virtual showrooms, or engage with immersive brand storytelling, all while staying on-site. These tools will become more widespread and refined.
Community-centric experiences: Workshops, classes, and events are turning stores into gathering spaces. These experiences build loyalty, encourage repeat visits, and help retailers become part of customers’ everyday lives. Retailers will lean into this further to make stores feel more like social spaces.
Sustainability as a core value: Eco-conscious retail design and ethical sourcing are becoming core parts of the in-store experience. Brands are showcasing recycled materials, offering repair services, and telling transparent supply chain stories.
Omnichannel integration: More retailers are syncing online and offline tools — like apps showing live stock or AR previews before visiting the store. Expect this to deepen, making the handoff between digital and physical seamless.
Dynamic store designs: Stores are getting modular, built to shift layouts, host limited-time pop-ups, or transform for events. The goal: keep physical retail fresh, flexible, and worth visiting again.

Conclusion

Experiential retail isn’t just a buzzword; it’s a proven strategy that helps brands stand out, deepen customer loyalty, and drive real results. From immersive flagships to interactive product trials, the brands leading today are the ones making shopping feel like something worth showing up for.

As customer expectations grow, the window to adapt is closing fast. Now’s the time to invest in experiences that connect, engage, and convert, before your competitors do. Get into it now, or risk getting left behind.