Experiential retail trends

Over the past five years, we’ve seen profound shifts in the way consumers interact with brands, driven by rapid changes in technology, economic shifts and an overall feeling of instability in the world at large.

Retail and hospitality, once considered distinct sectors, are increasingly converging. Today, brands are creating immersive, multi-sensory experiences that combine elements of both industries, blurring the boundaries between shopping, dining, and leisure. 

The shift towards convergence transforms the entire approach to consumer engagement. Consumers today are seeking deeper connections with brands that aren’t  just transactional, but extend to experiences that engage the senses, provide value and foster community.

This trend, highlighted by Graphite Design Group’s “2025 Consumer Insights & Retail Future” report sheds light on a significant trend that emerged: a growing push for experiential retail.

Meeting Evolving Consumer Expectations: Convergence of retail and hospitality

As global instability continues, consumers are more drawn to experiences that provide comfort, calm and connection. In particular, Gen Z is focused on finding authenticity in the brands they interact with. The lines between what was traditionally retail, hospitality and even entertainment have become increasingly fluid.

Consumers now expect more than just a place to shop. They want to escape, learn, connect and enjoy. This new mindset is pushing brands to integrate elements from hospitality into retail spaces and vice versa.

The traditional retail model, where shopping was a standalone activity, is evolving into a broader experience that prioritizes social interaction, self-expression, and community. Now, consumers are looking for environments that offer immersive storytelling, experiential design, and the ability to connect with others in authentic ways.

This change is being driven by the desire for more fulfilling, personal and shared experiences — experiences that not only satisfy immediate needs but also evoke emotional connections. Hospitality, with its focus on comfort, engagement and enjoyment is now being integrated into retail to meet these demands.

Retailers, brands, and the designers and strategists who support them have an opportunity to meet these evolving expectations, or risk falling behind. While uncertainty remains, there is optimism about the future of consumer engagement. 

In a recent global survey, 74% of respondents said they feel like they are waiting for something good to happen. The pandemic era shifted priorities away from "hustle culture" toward stability, authenticity and a slower pace of life.

This shift has given rise to "soft living" — defining success through fulfillment and happiness, prioritizing mental and physical well-being, and fostering personal connections. Consumers are seeking feel-good spaces that provide escapism, comfort and opportunities for self- improvement. Key experiential elements include nostalgia, immersion, storytelling and multi-sensory theatrics.

While previously reserved for high-profile flagship locations, these blended experiences are now becoming a mainstay for brands of all sizes and across diverse markets.

Tommy Bahama

Take Tommy Bahama, a prime example of how the lines between retail and hospitality are merging. As a lifestyle brand that embodies the "Island Life" ethos, Tommy Bahama is going beyond the traditional retail model. Through its Marlin Bar, the brand offers customers an experience that combines shopping, dining and socializing.

Customers can “shop, sip, and savor” in a fun, fast and casual setting without committing to a  full service dining experience. This hybrid approach allows Tommy Bahama to reach consumers in a way that feels effortless and aligned with their lifestyle, no matter their location, from beachfront locales to landlocked cities in the Midwest.

Further blurring these boundaries, Tommy Bahama’s Miramonte Resort and Spa takes this brand experience even further, offering guests the chance to live the Tommy Bahama ethos for days, not
minutes.

The brand is now integrated into the rhythms of consumers’ lives, much as a hotel or resort would be, but through the lens of retail. This extended interaction allows for deeper brand engagement, turning shopping into a holistic experience that touches on relaxation, entertainment and community.

Why This Blurring of Retail and Hospitality Matters

What’s happening here is not just a blending of industries, it’s a complete rethinking of how brands engage with their customers. Retail has traditionally been about products; hospitality has been about experiences.

As the two converge, brands are finding ways to offer both simultaneously. Retailers like Tommy Bahama and others who are embracing this shift are not just selling products, they’re selling a lifestyle, a feeling and an experience. And in doing so, they’re building a more loyal customer base.

In a world where the consumer’s attention span is shorter than ever, and their expectations higher than ever, creating a memorable, immersive experience is critical. The boundaries between shopping, dining and leisure are no longer as distinct, and brands that understand this are capitalizing on the opportunity to engage customers in meaningful, lasting ways.

The Future of Retail and Hospitality 

Looking ahead, this convergence will only deepen. As consumers continue to value experiences in addition to products, the role of physical spaces in brand engagement will evolve.

Retailers and hospitality brands will need to create more dynamic, multi-faceted spaces that offer consumers the ability to shop, socialize, relax and connect with others. The success of these spaces
will depend on their ability to be both functional and engaging, with design that makes people feel at ease while offering new exciting ways to experience a brand.

Retailers will no longer just need to be “stores” but rather venues for connection, learning and entertainment. Hospitality brands, on the other hand, will continue to integrate retail and experiential elements to offer more meaningful connections with their guests.

The future is a world where brands blur these boundaries in ways that foster deeper engagement, creating a seamless experience that feels authentic, human and personal.