Physical retail is no longer just a place for brands to simply transact with their end consumer — it is one of the most powerful spaces to convey brand value and build loyalty, trust and community. From experiential flagships to purposeful pop-ups, stores have evolved into spaces that not only showcase products, but also deepen brands’ relationships with their customers.
However, brands and retailers are operating in an increasingly challenging market as consumers are increasingly discerning on what and where they spend. According to BoF and McKinsey & Co.’s The State of Fashion 2025 Report, more than 40 percent of shoppers in the US, UK and Germany said they spent less on clothing, footwear and accessories in 2024 than the year prior. After years of steady expansion, in-store sales growth is forecast to slow to just 1 to 2 percent across key markets in 2025 — placing an even greater emphasis on retailers’ ability to create value beyond just the product alone.
Consumers instead seek out experiences that feel meaningful, personalised and aligned with their values — the difference between a one-time shopper and a loyal consumer can boil down to how well a brand engages its consumer base through touchpoints like the store environment, to deliver on those consumer expectations.
But satisfaction with core in-store experiences — from the fitting room experience to customer service — remains low. According to The State of Fashion 2025, younger shoppers are 1.5x more likely than their older counterparts to seek styling advice from staff — yet many encounter undertrained teams and inconsistent service. Meanwhile “Silver Spenders” — those aged over 50 — are growing in both size and spending power, yet report the lowest satisfaction with their store staff experience across age groups.
To succeed in this new reality, retailers must rethink the store’s purpose — not just through tech upgrades or efficiency gains, but by reinvesting into the human side of retail and the consumer engagement strategies on display in these spaces. For early stage brands in particular, the question is how to do so with lean teams, limited resources and the constant need to prove return on investment at every turn.
In this third edition of this four-part series, produced by BoF in partnership with Brookfield Properties, we examine how retailers can unlock value by effectively elevating value and authentically creating a sense of loyalty with consumers — and why this is essential to growth strategies. We draw insights from BoF’s proprietary case study, “The Complete Guide to Communicating Value to Shoppers,” as well as exclusive insights from Brookfield Properties’ global portfolio.
In today’s retail climate where consumers are spending more cautiously, price alone rarely secures the sale. What compels a shopper to choose one brand over another — and to pay full price — often comes down to the product itself.
“We always say, ‘What is the reason for [our customer] to buy this?” Holly Wright, co-founder of London-based contemporary label Tove, shared in the case study ‘The Complete Guide to Communicating Value to Shoppers’. “We make sure what we offer [our customer, they] can’t get anywhere else. The cut of it, the drape, all those things. There’s so much work in it that [proves] it’s actually not the same [as a cheaper version].”
As Brookfield Properties observes across its global retail portfolio, brands that lead with clear and well-defined product designs, creativity and function are better able to justify their price point, build repeat customers and attract loyal communities — whether they are selling in a flagship location or testing a pop-up.
“Brands that effectively carve out a distinct position in a market are the ones that successfully communicate value to their customers and establish that vital emotional connection,” says Kirsten Lee, executive vice president of retail leasing at Brookfield Properties, citing activewear brand Vuori as an example.
“Entering the competitive athleisure space, Vuori broke convention by focusing on men’s apparel first — a space that has been largely overlooked by competitors. Rather than launching with women’s leggings, Vuori built credibility with the male consumer and then expanded into womenswear. Paired with high-performance fabrics and innovative design, this strategy created loyalty among modern male consumers who want apparel that fits their lives.”
Indeed, physical retail then offers the space in which consumers can tangibly engage with the unique brand offering — to understand the point of difference within the product itself.
Within Brookfield’s portfolio, seven Vuori stores have opened in the past three years, with more in the pipeline — including Kenwood Town Center, its most recent development in Cincinnati. “This trajectory underscores the enduring role of physical retail — giving consumers the chance, not only to see, but also experience what makes a brand different. Value today isn’t just about price — it’s about distinction,” adds Lee.
The goal is to create something that cannot be easily replicated — a point of difference that resonates both in-person and online.
Even the most distinctive product can fall flat if its value is not clearly communicated. In a crowded market, the way a brand tells its story — in-store, online and every touchpoint in between — shapes how consumers perceive quality and decide whether to buy at full price.
As stated in the case study by Agyesh Madan, co-founder of New York-based luxury menswear label Stòffa: “We benefit the more you [as the consumer] know, because we stand behind the product.” Associates are trained to explain the rationale behind every design choice, for example, using product education as a key lever for building trust and loyalty.
Heritage houses like Hermès and Loewe have traditionally deployed similar strategies at scale — using storytelling to highlight their craftsmanship and brand history, making consumers feel informed and confident within their purchases.
This approach applies beyond luxury. Across Brookfield Properties’ retail portfolio, brands that integrate storytelling into the shopping experience — whether it is signage explaining proprietary materials, in-store demos or well-trained staff who can translate design details into benefits — tend to see stronger engagement and repeat visits, according to the property developer.
For early-stage businesses, this can be achieved without large budgets: concise but compelling copy, seasonal storytelling moments and customer-facing staff who can articulate a brand’s point of difference can make a measurable impact on converting interest into loyalty.
The human experience remains a critical, yet often overlooked dimension in today’s retail landscape. In an era where shoppers can instantly compare fabrics and prices online, knowledgeable sales associates — those who embody a brand’s values — have become a defining factor in how consumers perceive worth.
These associates serve as a brand’s most authentic storytellers. Positioned on the frontline, they bridge the gap between a product’s intrinsic quality and the consumer’s perception of its value. Their emotional investment is invaluable and irreplaceable, transforming transactions into meaningful interactions.
Brookfield Properties is reshaping its physical retail spaces to help its tenants foster richer customer-brand interactions. Its flagship malls and mixed-use developments are curated as experiential destinations where brands can engage consumers in more meaningful and tactile ways. These environments allow for curated, immersive brand experiences where shoppers can connect with products and people — beyond merely the transactional.
“Loyalty isn’t just built at the checkout — it’s built in those moments when customers feel seen, inspired and connected to a brand’s purpose,” says Lee. “That’s why we have been reimagining Brookfield Properties’ shopping centres as platforms for brands to create authentic, experiential touchpoints with their communities.”
Indeed, retail spaces that effectively and authentically reflect brand values speak to evolving consumer behaviours today. An Edelman survey in 2024 found that 84 percent of consumers across all age groups said they need to share values with a brand in order to buy it.
“A standout example comes from fitness activations with our athleisure retailers. At Oakbrook Center in Chicago’s suburbs, Lululemon brought ambassadors for a three-part community workout, including a private in-store event. Customers had the opportunity to engage with the brand in a way that was both aspirational and personal — experiencing the apparel in the exact environment it was designed for.”
Loyalty isn’t just built at the checkout — it’s built in those moments when customers feel seen, inspired and connected to a brand’s purpose,
“Similarly, at our locations on La Cantera in San Antonio, Texas, collaborative events with multiple fitness retailers saw brands invite shoppers to participate in shared activities before entering stores for exclusive offers and experiences. Moments like these transform retail from transactional to relational — fostering emotional connect that keep customers returning.”
A store and its staff are a critical component in conveying a brand’s values — to capture consumer interest and spend. But the human element extends beyond the store: personalised outreach, after-sales service and community-building initiatives reinforce the sense that a brand genuinely cares for its consumers. This emotional investment is often the most powerful differentiator in a crowded market.
Today’s consumer craves connection, meaning and a sense of belonging. This shift is evident in how brands design their shopping experiences to engage and adapt to individual needs.
Take Nordstrom: their associates are trained to understand each of their customer’s preferences, offering personalised styling, tailoring and curated recommendations. For some shoppers, the value comes from customisation; for others, it’s about discovery or simply convenience. In which case, Nordstrom’s store associates adapt the experience to match the individual — reinforcing loyalty and making the purchase feel uniquely tailored.
This approach illustrates how brands leading the way in customer engagement strategies are moving beyond one-size-fits-all offerings. Instead, they are fostering communities by listening to consumer needs and delivering personalised, purposeful interactions that honour diverse desires and priorities.
“Personalisation isn’t only about the product — it’s about the entire experience that surrounds it,” says Brookfield Properties’ Lee. “We work closely with our retail partners to create those meaningful extensions of their brand stories.”
“For Marc Jacobs’ 2025 launch of its ‘Bark Jacobs’ line — where customers could customise leather goods with hand-painted portraits of their pets — we hosted an activation at The Shops at La Cantera that brought the concept to life in a playful, communal way. Shoppers’ dogs were treated to pup-cups in the common area, making the experience as personalised and memorable for the pets as it was for their owners.”
“That mirrored the bespoke spirit of the collection and deepened the emotional connection customers had with the brand. These kinds of activations demonstrate how physical retail can make shopping feel fun, personal and truly one-of-a-kind.”
1. Value is multifaceted and increasingly defined by experience and purpose, not just by price. Consumers in 2025 seek meaningful connections with brands that go beyond the product — whether that be through storytelling, craftsmanship or brand values.
2. Personalised and convenient experiences differentiate brands in a crowded market. From high-touch luxury customisations to efficient mass-market services, brands must tailor experience to more diverse shopper needs — leveraging in-store associates.
3. Physical retail spaces remain critical hubs for engagement and building connections with consumers. The brands that thrive will be those that see physical retail not as a channel, but as a community — one that is powered by people, underpinned by purpose and designed with experience at its core.
Stay tuned for the upcoming articles in this series and check out Brookfield Properties’ www.Retailvisory.com for additional retail insights.