Sector Spotlight: Digitizing the In-Store Experience in Grocery vs. Fashion

As digital transformation accelerates across the retail landscape, grocery and fashion stand out as the two most influential in-store shopping categories. While 64% of consumers prefer to buy perishables in person and 48% choose to shop for fashion items in-store, the way each sector leverages digital innovation is as distinct as their products and customer journeys. This deep dive explores how grocery and fashion retailers are reimagining the in-store experience through technology—highlighting key innovations, sector-specific strategies, and cross-industry lessons for retail leaders.

Why In-Store Still Matters

Despite the rapid growth of e-commerce, in-store shopping remains a cornerstone of retail. Survey data shows that 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. These factors are especially critical in grocery and fashion, where sensory engagement and fit are paramount. Younger generations, particularly Gen Z, are even more likely to seek out in-store experiences like pop-ups, product demonstrations, and interactive displays, underscoring the enduring value of physical retail.

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 ensures inventory accuracy—a top concern for 43% of consumers—and 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: Technologies like 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.

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: Cross-Sector Insights

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.

Relevant Links

• The Shopping Experience Survey: Insights on Consumer Preferences for In-Store and Omnichannel Retail
• Sustainability and the Shopping Experience: How Eco-Conscious Consumers Are Shaping Retail
• Realidades Regionales del Retail: Implicaciones para Ejecutivos en América Latina (LATAM)
• Les réalités régionales du retail en Europe : Comment la transformation digitale et les préférences d’achat façonnent l’avenir du commerce (Europe)
• Regional Retail Realities: How Shopping Preferences and Digital Transformation Differ Across Markets
• The Shopping Experience Survey: Insights on Consumer Preferences for In-Store and Omnichannel Retail
• Realidades Regionales del Retail: Implicaciones para Ejecutivos en América Latina (LATAM)
• Realidades Regionales del Retail: Implicaciones para Ejecutivos en América Latina (LATAM)
• Sector Spotlight: Digitizing the In-Store Experience in Grocery vs. Fashion
• Sustainability and the Shopping Experience: How Consumer Priorities Are Shaping Retail
• Regional Retail Realities: How Shopping Preferences and Digital Transformation Differ Across Markets
• Les réalités régionales du retail en Europe : Comment les préférences d’achat et la transformation digitale redéfinissent l’expérience client (Europe)