In an effort to bring more shoppers into stores, companies are developing community spaces to host events and build brand affinity. Activewear companies like Lululemon and Athleta have been early adopters, adding on-site fitness studios, but major retailers like Nordstrom are dabbling, too. Nordstrom opened a small-format space in Los Angeles in 2017 — which it uses for periodic pop-ups and events —and plans to open more in 2019.
"In-store experiences can include educational courses on product adjacent topics (such as a culinary course at a home goods store), product evaluation seminars, brand-sponsored community events, entertainment, and more," the analysts wrote in the report.
As consumers flock to direct-to-consumer and online-only companies in droves, brick-and-mortar brands are looking to cash in on shoppers that need help with returns. CB Insights hypothesizes we'll see more efforts like the Kohl's and Amazon partnership that allows shoppers to return Amazon purchases at Kohl's locations.
At the same time, analysts said to expect to see a rise in startups like Happy Returns, which allows online retailers like Everlane to give consumers the option to drop off items at "return bar" kiosks.
Analysts said to expect to see the use of indoor drone and camera vision technology, which allow retailers to better track inventory in real time. Companies like Kohl's, Walmart, and Brooks Brothers are already using these programs to improve efficiency.
"Inventory management is critical as retailers optimize across channels," the analysts wrote. "Stores need accurate, real-time inventory data in order to serve customers quickly."
A significant number of apparel companies have already added interactive screens to their physical stores, but CB Insights analysts said to anticipate this to be the new normal. These displays, whether in the form of augmented-reality dressing rooms or mere screens for browsing products, are essential in collecting consumer data.
As mobile technology becomes more advanced and interactive, thanks in part to the rise of 5G cellular capabilities, consumers will continue to see more mobile integrations in stores, like QR-tagged mannequins and mobile pay.
"In-store mobile engagement is becoming a useful tool for both customers and sales associates," the analysts wrote in the report. "Retailers are leveraging customers' mobile phones as a way to interact with a physical store."
While only a select few retailers like Adidas and Nike have mastered the art of in-store custom 3D printing, analysts said this will be commonplace by 2030.
"If executed successfully at scale, customized goods could garner a level of customer satisfaction and brand loyalty that most retailers have yet to realize," the analysts wrote in the report.
After Amazon Go demonstrated the ability to operate a store entirely on automated checkout — thanks to a mix of camera vision, shelf sensors, and RFID technology — there has been a rise in shops replicating this grab-and-go concept.
"Automated checkout technology is a way to reduce friction by cutting out the hassle of long lines at the register," the analysts said. "As tech giants like Amazon introduce this technology to the masses, smaller retailers will need a way to compete. Automated checkout startups may be one way to do that."
CB Insights said to expect a rise of micro-fulfillment centers, or "tiny, urban warehouses that autonomously fulfill online orders via robotic technology" in major cities. The analysts said these centers will play an integral role as a growing segment of the population moves to cities, citing a United Nations report that found that more than two-thirds of the global population will live in cities by 2050.
"By squeezing warehouses into dense urban areas and cutting down the distance to customers, retailers can reduce the cost of last-mile delivery," the report reads.
While Alphabet's Waymo has already made significant progress with its self-driving cars, other startups like Nuro, Starship Technologies, and Udelv have cropped up to provide fulfillment options for retailers. Though these vehicles still have to pass extensive regulatory protocols, the analysts said they will likely be an option to help both companies and consumers cut down on delivery costs.
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