What: An opinion piece on how hospitality is helping retail being more relevant to current customers’ needs.

Why it is important:  At IADS we believe that more department stores should embrace hospitality codes, in order to provide a more differentiated and own identity.

Retail has evolved from conventional brick-and-mortar shops to immersive store experiences, aiming to create emotional connections with shoppers through engagement. This trend of interactive brand experiences has become the new norm, leading brands to expand their ecosystem with service-based third spaces and innovative store formats, blurring the boundaries between retail and hospitality.

Luxury brands, like Dior and Jacquemus, are at the forefront of leveraging lifestyle to elevate their equity and desirability. They design exclusive spaces and collaborations that offer customers unique ways to engage with the brand through hospitality services. For example, Jacquemus partnered with Indie Beach restaurant to create a branded beach in Saint Tropez, reflecting the brand's identity and driving footfall to its summer pop-up store.

Department stores are also evolving into lifestyle destinations. Selfridges stands out by offering high-end dining options, hosting events year-round, and creating engaging activations like the recent Barbie Dreamhouse experience. In Europe, Galeries Lafayette launched a Wellness Gallery, dedicating an entire floor to wellness services, providing a holistic shopping and self-care experience.

Retailers recognize the importance of creative initiatives to boost brand engagement and visibility. They draw inspiration from the hospitality industry, incorporating branded cafés, spas, lounges, and events to fulfill customer needs and elevate their brand's equity and perceived value. Although the ROI may not be immediate, these service-driven approaches enhance a brand's desirability and competitiveness.

How hospitality is influencing retail