Industry Spotlight: Grocery and Fashion—How Digital Transformation is Redefining In-Mall Experiences
In an era where digital and physical retail are converging, grocery and fashion stand out as two of the most resilient—and innovative—sectors driving in-person shopping. As malls seek to reinvent themselves as vibrant community hubs, these industries are leveraging digital tools to transform the in-mall experience, blending convenience, personalization, and engagement in ways that set new standards for retail. This spotlight explores how digital transformation is reshaping grocery and fashion in malls, and what lessons mall operators and retailers can draw from their journeys.
The Enduring Power of In-Mall Shopping
Despite the meteoric rise of e-commerce, in-person shopping remains a cornerstone of retail. Recent consumer surveys reveal that 92% of shoppers still prefer to buy certain items in-store, with groceries (64%) and fashion (48%) topping the list. The reasons are clear: the ability to see, touch, and try products, the immediacy of taking items home, and the desire for a memorable experience. For younger generations, in-mall visits are also about discovery, social interaction, and immersive experiences—factors that digital alone cannot replicate.
Grocery: Precision, Convenience, and Seamless Fulfillment
Grocery retailers are at the forefront of operational innovation, using digital tools to streamline both the customer journey and back-end processes:
- Digital Shelf Management: Grocers are deploying digital shelves that monitor inventory in real time, enable dynamic pricing, and reduce out-of-stocks. This ensures customers find what they need, when they need it, and allows for rapid updates based on demand or promotions.
- AI-Powered Recommendations: In-store digital screens and audio systems use AI to deliver personalized product suggestions, while retail media networks enable targeted in-store advertising. These tools help grocers replicate the personalization of online shopping in a physical environment, driving both engagement and incremental sales.
- Frictionless Checkout: Technologies like scan-and-go, cameras, and RFID are making it possible to eliminate traditional checkout lines. Some grocers are experimenting with hybrid models, such as self-selecting produce but picking up pre-bagged non-perishables, to further reduce friction. The goal: let customers shop at their own pace and leave the store without waiting.
- Omnichannel Fulfillment: Options like BOPIS (Buy Online, Pick Up In-Store), curbside pickup, and micro-fulfillment centers are now standard. Leading grocers integrate real-time inventory data across web, mobile, and in-store systems, ensuring customers can choose how and when to receive their purchases. This flexibility is a key driver of loyalty and repeat visits.
A leading North American grocer, for example, expanded its express click-and-collect service to put 75% of the population within 10 minutes of a pickup location, demonstrating how digital can extend a retailer’s reach and convenience.
Fashion: Personalization, Engagement, and Experiential Retail
Fashion retailers face a different set of challenges—fit, inspiration, and emotional connection. Their digital strategies reflect these priorities:
- In-Store Navigation and Wayfinding: Mobile apps and digital kiosks help shoppers locate specific items, check availability, and even build shopping lists before arriving. This reduces frustration and makes the experience more efficient.
- Augmented Reality (AR) and Immersive Experiences: AR-enabled apps allow customers to visualize products—such as clothing or accessories—on themselves or in their environment. This not only boosts confidence in purchase decisions but also reduces returns, a major pain point in fashion retail.
- Interactive and Socially Responsible Displays: Fashion brands are using interactive installations, like recycling bins that reward sustainable behavior, to engage customers beyond the transaction. These experiences foster emotional engagement and brand loyalty, especially among younger, values-driven shoppers.
- Omnichannel and Unified Commerce: Fashion retailers are integrating online and offline data to offer seamless experiences. Whether it’s reserving items online for in-store try-on, accessing personalized offers, or enabling easy returns across channels, the focus is on removing barriers and making shopping as fluid as possible.
Retail Media Networks: A New Revenue Engine for Malls
Mall operators are uniquely positioned to harness the power of retail media networks (RMNs)—digital advertising platforms that leverage first-party shopper data and in-mall digital assets. By integrating digital marketplaces, loyalty programs, and in-mall experiences, malls can:
- Capture and unify shopper data from online and offline touchpoints
- Enable targeted advertising on digital screens, apps, and personalized communications
- Drive footfall and engagement through linked promotions and events
- Provide closed-loop measurement, tracking the full customer journey from ad exposure to in-mall purchase
For example, a major U.S. grocer partnered with Publicis Sapient to build a custom RMN, resulting in 15x revenue growth and 360° customer insights. These same principles are now being applied in the mall context, creating new high-margin revenue streams and enhancing the value proposition for tenants.
Lessons for Mall Operators and Retailers
The digital transformation journeys of grocery and fashion offer several key lessons:
- Tailor Technology to the Customer Journey: Understand the unique needs of your sector—whether it’s speed and accuracy in grocery or inspiration and fit in fashion—and deploy digital tools accordingly.
- Bridge Physical and Digital Seamlessly: Integrate inventory, fulfillment, and personalization across all channels to meet customers wherever they are.
- Invest in Experience, Not Just Efficiency: Use digital to create memorable, engaging, and even playful in-mall moments that can’t be replicated online.
- Prioritize Data and Integration: Unified commerce depends on breaking down silos and leveraging data to deliver relevant, real-time experiences.
- Embrace Retail Media Networks: Malls can unlock new revenue streams and deepen tenant relationships by building data-driven media platforms that connect brands, retailers, and shoppers.
The Future: Connected, Personalized, and Human
As grocery and fashion retailers continue to innovate, the in-mall experience is becoming more connected, personalized, and human. Digital tools are not replacing the physical store—they’re enhancing it, making shopping more convenient, engaging, and rewarding. For mall operators and retailers, the path forward is clear: embrace digital transformation not as a one-size-fits-all solution, but as a tailored strategy that puts the customer at the center of every experience.
Ready to reimagine your in-mall experience? Connect with Publicis Sapient to explore how digital innovation can drive value for your business and your customers.