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Experiential retail or experiential commerce is a type of retail marketing whereby customers coming into a physical retail space are offered experiences beyond the traditional ones (such as in a clothing store: browsing merchandise, advice from salespeople, dressing rooms and cashiers). Amenities provided may include art (often interactive art), live music performances, virtual reality, cafés and lounges, and large video display walls.
As of 2019, the target market for experiential commerce is chiefly Millennials, who are (supposedly, according to "studies") as a group overall less materialistic than previous generations and prone to spend relatively more of their disposable income on services - for example wellness and gyms. This supposed spending pattern is disputed by the Federal Reserve.
Even where there is a product consumed, such as at Starbucks and its competitors, customers are paying more "because of the experience", not (only) because it might be a better product than at a diner, for example. Apple Stores purport to provide not only a superior product but an "experience" and a "gathering space" or "Town Square" as well.
E-commerce retailers such as Casper, Harry's and b8ta have established a limited number of experiential physical retail locations where customers can view and interact with their products in person.
Such experiential retail spaces are also seen as a response to the reported tendency among Millennials to demonstrate greater brand loyalty than previous generations, who more frequently made purchasing decisions based on price and product interchangeability.
Examples of experiential retail and experiential commerce are:
Experiential commerce encompasses experiential retail but also may be purely virtual experiences or not connected to any semi-permanently or otherwise established space owned by a brand, for example: