Retailers Are Having an Identity Crisis — Here Is the Business Solution

The retail sector has hit a significant turning point, where customers keep buying online, but now with an additional feel of digital fatigue. People get tired of the endless scroll through product pages and sterile platforms.

Recent research from AIScreen suggests that ‘retailtainment’ — the strategic merging of retail and entertainment — can increase store visits and sales by 30%. With the experiential retail market projected to reach $543 billion by 2035, we are witnessing a transition in consumer behaviour. People are no longer looking to buy; they’re more interested in special moments and experiences.

For entrepreneurs, the question is how to use retailtainment to re-energise the customer base and grow in profits.

Sign up for Entrepreneur’s Franchise Bootcamp, a free, 5-day email course on how to find and invest in your first profitable franchise — no business experience required.

1. Gamified loyalty

Traditional loyalty programmes often feel like a chore as most of the collected points sit unused in a digital wallet. To fix this, businesses should redesign these programmes as they have a high potential to engage and retain users.

Challenge-based rewards and tiered achievements create a sense of anticipation. Use progress bars and social leaderboards to tap into a customer’s natural desire for progress. The goal is to make the customer feel as if they are in a game they want to win.

Brands that add gamification report a 47% rise in engagement and a 15% increase in brand awareness. In the retail sector specifically, conversion rates can jump by 50% through these gamified loyalty programmes.

Starbucks Rewards reached over 34 million active members in 2025, with 41% of U.S. sales now coming from loyalty members who spend 3X more and visit more frequently than non-members. For example, their gamified campaign ‘Double Star Days’ offered a chance to earn twice the usual stars to be spent later, thus creating an urgency and an increased flow of customers.

2. Social shopping

Online shopping is usually a solo thing, but it doesn’t have to be. The concept of ‘Social Shopping’ turns buying into a collaborative event. By creating platforms where people can shop together in real time, brands can bring back the social feel of a real shopping mall, but right from the comfort of your sofa.

When customers share suggestions and discuss products through live feeds or group chats, the likelihood of a purchase increases. Statistics show that 85% of consumers involve friends or family in their shopping journey via direct messages or live events. This shared environment gives shoppers the reassurance they want before hitting ‘buy’ and makes the whole experience feel more human.

The Chinese platform Pinduoduo popularised the ‘team purchase’ model, where users unite into groups to unlock lower prices. This model has traveled to Europe — the Blidz startup also adapted the same approach for local markets. By rewarding users for bringing their social circle into the shop, these brands lower their customer acquisition costs while making the shopping experience more entertaining.

3. Educational hubs

As for physical stores, they have quite an opportunity while trying to attract people offline. To fight digital fatigue, they can offer something the internet simply can’t: real, hands-on experiences.

Creating a place where people can learn and try things gives customers a reason to show up. And the demand is there: 81% of consumers worldwide say they’re happy to pay more for a better in-store experience.

Workshops and masterclasses help people actually understand how to use your products and get more value from them. The key is consistency, so these events become something people look forward to. And if the space looks good on camera, guests get a certificate, they’re probably going to make your workshop viral through social media.

Lululemon is a great example. With in-store yoga classes and wellness talks, their shops feel more like community hubs than retail spaces. That approach builds real loyalty – people visit not just to buy, but because the experience itself is worth the trip.

4. Social commerce

A strong social media strategy is more than product photos in your social media. It starts with a mindset shift: think like a content creator first, and a retailer second. This involves creating diverse content formats for each platform: short-form videos for TikTok, high-quality imagery for Instagram, catchy texts for Threads.

The real goal is simple: make buying feel effortless. When the whole journey from discovery to checkout can happen without leaving a social media profile, friction disappears. Add micro-influencers with trusted audiences into the mix and you get something traditional ads often miss: authenticity.

Millennials and Gen Z are set to drive over 60% of global social commerce spending. Even more, 67% of TikTok users say the platform has influenced them to order something they weren’t even going to buy.

5. Community-centric events

Finally, the best way to wake up a bored customer is to start building a real community. Trust is a massive deal, influencing 62% of shoppers when they decide where to spend. Think of teaming up with local makers, charities or cultural organisations for pop-up events, or find any other events that bring people together. It’s also worth looking into ambassador programmes, featuring your actual customers, who genuinely live your brand’s values.

Retailtainment is a direct response to a massive shift in what people actually care about. By focusing on gamification, social interaction, education, and community, businesses can turn fatigued users into active participants. At the end of the day, the future of retail isn’t just about the sale itself — it’s about everything that happens around it.

Sign up for the Money Makers newsletter to get weekly, expert-backed tips to help you earn more money — from real people who founded and scaled successful businesses. Get it in your inbox.

The retail sector has hit a significant turning point, where customers keep buying online, but now with an additional feel of digital fatigue. People get tired of the endless scroll through product pages and sterile platforms.

Recent research from AIScreen suggests that ‘retailtainment’ — the strategic merging of retail and entertainment — can increase store visits and sales by 30%. With the experiential retail market projected to reach $543 billion by 2035, we are witnessing a transition in consumer behaviour. People are no longer looking to buy; they’re more interested in special moments and experiences.