“As agentic commerce evolves, the physical store becomes even more critical as a space where technology and human interaction converge. Retailers who can balance AI-powered personalisation with meaningful human connections will define the next era of retail excellence.”
Fighting talk from the latest in-store retail media research in the US carried out by Interpublic Group and global experiential agency Momentum Worldwide, which attempts to link the interest in in-store retail media and how AI is driving shoppers – and they may be on to something.
According to the study, 77% of shoppers will add unplanned items to their basket when exposed to in-store retail media, while 79% of shoppers will consider a new brand when they see some form of in-store marketing. In fact, 48% of shoppers told the researchers that they notice in-store media “always” or “often”.
Now, a big chunk of this is free give aways and samples, but there is growing evidence that digital in-store media is also increasingly helping consumers decide what to buy. The data also challenges the notion that product discovery is an online phenomenon and points to how stores still have a big role to play in not only the purchase decision, but increasingly the journey to any purchase.
“We’ve quantified what great retailers have always known intuitively: the in-store environment drives significant unplanned purchases when properly activated,” says Amie Owen, Global Chief Commerce Officer at IPG Mediabrands. “The opportunity for brands is huge.”
Know your role
What is particularly enervating is that stores and in-store retail media are both playing a part within the increasingly agentic commerce world that we live in – and with brands and retailers trying to pull the two together, stores play a very distinct role in the process, finds the study.
Interestingly, despite years of digital transformation, the study finds that 60% of consumers appreciate that in-store and online shopping serve different purposes, with only 31% wanting in-store to feel more like online experiences.
“Shoppers are telling us they don’t want a blended experience,” says Carly Johnson, SVP, Group Director Strategy, Experiential Commerce at Momentum Worldwide. “The 63% who shop to fulfil emotional needs at least some of the time are looking for something that digital alone can’t provide.”
While the research shows 47% of shoppers are likely to purchase products recommended by AI shopping assistants, 30% express concern about losing human interaction in the shopping experience.
“Even as AI transforms shopping, the human element of in-store remains irreplaceable,” adds Owen. “The most successful retailers will be those who leverage technology to enhance rather than replace the human connection.”
