Traditional retail has hit some road bumps in last decade due to the changing tastes of consumers. The death of the great American mall has been the evidence, if not, the proverbial warning sign. The sign is screaming that if brands don’t innovate when it comes to their retail space, they will join the mall in the grave of past successes. People are forgoing spending their money on another pair of shoes and instead are choosing experiences. This leaves retail with the challenge of how to turn shopping into something more.
People, especially Millenials, are spending their dollars on intangible things such as travel and other various experiences. Ironically, there is one place in-person shopping is still going strong-on vacation. The World Tourism Organization reports that shopping is tied with sightseeing for the number one choice activity during travel.
All of this considered, many brands and retailers are partnering with hotels that have the same demographic as their target consumer. These collaborations have taken the forms of pop-up and permanent shops on the property like Opening Ceremony did at Ace Hotel in New York. Fashionista.com even divulged that designer brands are going as far as even designing the associates uniforms as Narcisco Rodriguez did for Gramercy Park Hotel. By being paired with a hip hotel destination, these brands receive positive association. Even products that are designed for the specific destination can pick up on the souvenir market. It is a PR match made in heaven.
Since shopping has become as easy as a click on an app, brick and mortar has been giving a run for its money. On the other hand, brands are getting creative with how to entice customers to make that extra step through the double doors of their storefronts. If consumers are looking for an experience, well travel and hospitality are the ultimate experience. This makes hotels natural partners for brands and retailers who want to get their product and name in front of a certain clientele.