The advent and subsequent growth of online shopping has dramatically altered the way people shop and their expectations of retailers. In a world in which most consumer goods (and services) can be acquired with a few clicks on a smartphone, offering a good product at a reasonable price isn’t enough to stand out.
To break away from the competition and draw people away from online purchases, a successful in-store retailer needs to differentiate itself by offering what its competitors can’t: a unique customer experience. Many Canadian consumers still prefer in-store shopping across all categories noting that consumers are “eager to engage in more lively, personalized shopping experiences that cannot be offered online,” according to a CBRE report.
Some brands have a longer history of focusing intensely on the shopping experience. Luxury stores have supplied champagne and personal shoppers for their high-value clients. High-end sporting goods stores have offered batting cages or golf simulators for customers to try out new equipment. Beauty retailers have offered makeup application to show off their product. But where such experiences were once exclusive to those catering to a wealthier clientele, the practice is spreading among retailers and into the industries supporting them.
Commercial property managers are becoming increasingly creative in their efforts to draw visitors back to many of Canada’s largest malls by introducing new experiences. Yorkdale mall in Toronto, for instance, recently offered an interactive (and Instagram-worthy) Friends activation where visitors could take photos with some of the sitcom’s most memorable backdrops and props.
Developers are also reconsidering how their commercial properties integrate with surrounding communities to create a more holistic environment for shoppers. According to our 2025 real estate summary, “high quality retail is seen as an amenity that draws people to a building. This has led landlords to seek our experiential tenants to anchor a property and draw additional tenants and guess.” For example, The Well in downtown Toronto, which has 320,000 square feet of retail and food service, 1.2 million square feet of office space, and 1,700 residential units, is one of the largest mixed-use developments in the region. This development, a joint vision between RioCan Real Estate Investment Trust (REIT) and Allied Properties REIT, is an example of combining residential, retail, and office space for an integrated development.
The physical shopping experience is not only about enabling consumers to connect to brands, it also provides a seamless end-to-end experience. Technology and the widespread adoption of AI creates an opportunity for retailers to make the in-store shopping experience more customer friendly, optimizes supply chain management, and allows shoppers to connect online and in-person. When properly leveraged, new technology and AI can enhance efficiency, reduce costs, and boost customer satisfaction—ultimately building loyalty and encouraging repeat business. Taking an omnichannel approach will promote a smooth transition from online to physical stores and vice versa. For instance, having a website that allows customers to search specific stores for inventory can justify a trip to the store. For small and medium-sized businesses, integrating AI isn’t always a feasible option. These businesses could consider partnering with online delivery services to help build brand recognition, introduce new audiences to their store and products, and leverage the benefits of their platforms and technology. For example, Instacart, an online delivery company, has introduced an AI tool called “Smart Shop” which makes online grocery shopping more intuitive by analyzing customer habits and dietary preferences to surface relevant products faster.
Still, technology has its limits. No matter how impressive the event or how amazing the environment, the customer experience depends on employees creating a connection between the brand and its customers. Online shopping and automation can deliver a product quickly and efficiently, but customer service in-store must match or surpass their experience online. By investing in the training and development of high-quality front-line employees, retailers can create a good impression that can lead to customer loyalty and positive reviews.
With a strong e-commerce sector and new brands entering the market consistently, retail is an incredibly competitive market. To be successful, you need to innovate quickly or risk losing customers. The shopping journey presents multiple opportunities for retailers to connect to customers, create brand loyalty, and ultimately increase sales, but retailers must adapt to changing consumer behaviour to thrive now, and in the future.
Visit our Industries at a Crossroad hub to read more in this series.
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