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A New Factor for Retail: Lab Stores
Pictured: 7-Eleven store with “The Simpsons” cross-promotion
Experiential retail continues to be the name of the game. But how does a company determine what will work with consumers?
According to a recent JLL article, the answer can be found in lab stores. Lab stores offer “an experimental space in which a retailer can test new products, services and technologies in a controlled environment.”
JLL’s 2024 Experience Matters survey stated that 67% of shoppers said they preferred shopping in person. As such, “a lab store gives consumers an added layer of personalization and interactivity that they won’t find in your traditional brick-and-mortar store,” the article said.
Lab stores come in a variety of formats:
Internal spaces allow employees to create new ideas and sometimes invite consumers in for beta testing before launch.
External “stores of the future” are where consumers come to shop while video cameras, sensors, and other research tools track behavior.
The article discussed the following examples of lab stores:
Starbucks. The company’s internal lab at Hacienda Alsacia in Costa Rica provides hands-on and virtual learning opportunities for employees, students, researchers and industry leaders. Hacienda Alsacia is Starbucks’s global headquarters for agronomy research and development. The internal lab will offer a place for innovation and scalable solutions.
Gap Brands. At the company’s San Francisco headquarters, hybrid labs for Old Navy, Gap, Banana Republic and Athleta brands are being used to test new technologies, analyze consumer experience and encourage product innovations.
7-Eleven. The convenience store introduced its “Evolution Store” concept in 2019. These serve as experiential testing locations where students can try the latest products. The retailer continues to tweak product assortments and experiences based on consumer behavior and feedback.
The JLL article noted that “continuous test-and-learn solutions are the only way for a retailer to remain truly competitive.” Retailers also need to focus on innovation that will add to consumer experiences. As such, lab stores will become increasingly helpful.
