What GPT’s Retail Report Gets Right About Experiential Retail
- Darren O'Mahony
- 3 minutes ago
- 3 min read
Retail Isn’t Dead. It’s Ready to Be Reimagined
Why experiential design is more important than ever in Australia’s evolving retail landscape.
Let’s get one thing straight. Despite all the noise, physical retail is not going anywhere.
According to GPT’s latest Retail Recharged report, more than 90% of retail growth in Australia will still be fulfilled in-store or through services linked to physical locations like click and collect or direct to boot. That’s not just significant. It’s a reminder that real-world retail matters. A lot.
But there’s a shift happening. What people expect when they walk into a store, shopping centre or activation space is changing. They don’t just want product. They want perspective, purpose and participation.
This is where experiential retail steps in.
The Australian Retail Landscape is Shifting. That’s a Good Thing
Australia is uniquely placed to evolve its retail offering.
The country is seeing high population growth and increased consumer equity. At the same time, it has less retail space per capita than countries like the U.S. or Canada. That means every square metre has to work harder. You can’t just fill a space with shelving and expect people to care.
There is also a growing reliance on omnichannel fulfilment strategies. Customers might order online but still want to engage in person. They want to explore, learn, play and connect. In other words, they want retail that feels like something.
Experience Fills the Gap Between Click and Collect
The digital journey and the in-store experience are no longer separate. People might discover a product online and buy it in-store. Or vice versa. The line is blurred.
So how do brands make that physical moment count?
You give people something they can’t get from a screen.
You turn the act of showing up into something worth remembering.
You create experiences that spark emotion, drive dwell time and start conversations.
That’s the business we’re in at Watch This Space.
The Numbers Are on Experience’s Side
As financial conditions begin to ease—with positive real wage growth and lower inflation expected through 2025—Australian shoppers are regaining confidence. And when that happens, people don’t just want value. They want meaning.
They’re more likely to engage with premium, ethical or immersive experiences. They’ll spend more time with brands that treat them like participants, not just purchasers.
From our experience, this translates to:
• Longer dwell times in stores and centres
• More social sharing from playful, photo-worthy activations
• Higher conversion when people are emotionally invested
• Better loyalty when experiences feel personal and memorable
Real-World Examples. Real Impact.
At Watch This Space, we’ve spent over a decade helping brands reimagine what physical retail can look like.
Montblanc – Interactive Window
We built a 2.5-metre digital replica of their smartwatch, fully controllable via customers’ phones. It delivered personalisation, exclusivity and a 31% in-store appointment rate.
Diamond Exchange – Gesture-Based Ring Try-On
To ease the pressure of trying on high-value jewellery, we created a hands-free try-on experience using 3D hand tracking. It removed friction and boosted dwell time.
A.BCH – Transparent Fashion Storytelling
During Melbourne Fashion Week, we built an interactive table that let guests explore the brand’s entire supply chain. It turned values into something tactile.
These weren’t gimmicks. They were experiences designed to earn attention, build trust and make an impression.
Final Thought. Retail Should Feel Like a Stage
If physical retail is going to thrive in a digital-first world, it needs to become more than a place to shop. It needs to become a place to feel something.
With less space, more competition, and higher expectations, Australian retail is heading into a new chapter. One that is leaner, smarter and more human.
Experience isn’t the cherry on top. It’s the reason people show up.
And it’s the difference between being seen and being remembered.
If you’re ready to create retail that connects, let’s talk.
We’d love to build something people will actually want to walk into.