Aura Futures flags importance of investing in technology as many UK retailers plan to open new stores

New research by retail experiences brand, Aura Futures, has revealed that, although 49% of UK retailers view lowered consumer spending as the sector’s biggest challenge over the next 12 months, 50% plan to open new store locations during the next two years, with 68% putting their faith in consumer experiences to revive flagging footfall. 

According to the 301 retail managers and c-suite executives surveyed, 58% of their retail sales are still conducted in-store, but declining footfall remains a significant problem.

The research showed that 66% of businesses view attracting Millennials and Gen Z consumers into stores with immersive, physical experiences as the best way to counter declining footfall, with areas of investment falling into five main categories:

• Intelligent digital signage (45%)

• Immersive experiences interactive displays (35%)

• Custom LED displays (32%)

• Sensory marketing (24%)

• Smart content integration company wide content broadcast (24%)

Three in ten of the retailers polled have already implemented experiential solutions using AI, which they hope will not only increase in-store footfall, but appeal to new demographics - something that is viewed as a challenge by 12%. 

As well as using brand experiences to attract new customers, many retailers are using it to increase brand loyalty, something that 91% of survey respondents agreed bricks and mortar stores were vital for. This would explain why they are investing in increasing their number of physical stores by 28% in the next two years.  

Adam Wilson, Chief Revenue Officer at Aura, says: “Our survey further confirms our mindset about the need for digital experience in stores.”

“Many of the retailers in the survey have confirmed they wish to increase in-store footfall and desire to appeal to new demographics. We have proven in the past how interactive, engaging and meaningful digital experiences can assist with this.”

‘Retailers are under pressure in an environment where consumers are spending less, and more of what they are spending is going online. The survey highlights the necessity for retailers to consider investment in new technologies to enhance customer engagement and conversion. Either making current investments fit for purpose or considering it for the first time.”

‘By creating an engaging and enjoyable retail environment, retailers can make their stores a destination, which will drive loyalty - enhancing sales both in-store and online.”