Digitizing the In-Store Experience: Lessons from Grocery and Fashion Retail

As the retail landscape evolves, two sectors—grocery and fashion—stand out as leaders in reimagining the in-store experience through digital transformation. Both are top drivers of in-store shopping, with 64% of consumers preferring to buy perishables and 48% choosing fashion items in person. Yet, the ways these sectors leverage digital tools are as distinct as their products and customer journeys. By examining innovations in digital shelf management, AI-powered recommendations, frictionless checkout, and omnichannel fulfillment, we can see how digital transformation is tailored to the unique needs of each industry—and what lessons retailers across sectors can learn.

Why In-Store Still Matters

Despite the rise of e-commerce, in-store shopping remains a cornerstone of retail. According to recent survey data, 92% of consumers prefer to shop for some items in-store rather than online. The top reasons? The ability to see, touch, and try products, the immediacy of taking items home, and the overall experience. This is especially true for groceries and fashion, where sensory engagement and fit are critical. Younger generations, particularly Gen Z, are even more likely to seek out in-store experiences like pop-ups, product demonstrations, and interactive displays.

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 automatically monitor out-of-stocks and enable dynamic pricing. This not only ensures inventory accuracy—a top concern for 43% of consumers—but also allows for real-time updates based on offers, demand, and even individual customer profiles.
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: The adoption of technologies like cameras and RFID is 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.

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. For example, some retailers’ apps show the exact aisle for each product, reducing frustration and making 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.

What the Data Tells Us

Survey insights reinforce the importance of these innovations:

75% of consumers have used a retailer’s app while shopping in-store, with Millennials leading the way.
71% have checked product availability online before visiting a store.
49% say the ability to check in-store stock is the most valuable app feature.
60% are more likely to shop with retailers offering personalized content and recommendations.
73% would stop shopping at a retailer after an unpleasant experience, and 63% would leave over a poor return policy.

Lessons for Retailers

The success of digital transformation in grocery and fashion highlights 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-store 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.

The Future: Connected, Personalized, and Human

As grocery and fashion retailers continue to innovate, the in-store 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 retailers and technology partners, 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-store experience? Connect with Publicis Sapient to explore how digital innovation can drive value for your business and your customers.