In-Store Tech, Sales Driver or Hype? Newport International Runway Group

LONDON, United Kingdom — Against the backdrop of a 22-foot screen playing lush campaign and runway videos, impeccably dressed staff members sit with shoppers at Burberry’s high-tech Regent Street store tapping customer profiles onto their iPads. The flagship is arguably the world’s most technically innovative store and the brand’s much-discussed strategy to integrate the digital and physical worlds has set a bar for retailers everywhere.

But Burberry is by no means alone. Slick digital technology — including the use of virtual mirrors, digital screens, RFID chips and iPads — is fast becoming a feature of store environments across the pricing spectrum, from luxury flagships to fast-fashion emporiums. But do these innovations really make customers spend?

Kate Spade is one retailer investing in the space. Earlier this year, the womenswear brand launched interactive displays across ten of its stores, mainly in the US. The technology encourages shoppers to touch and pick up products from a carefully merchandised table, which then displays content, such as campaign videos and Instagrams of women wearing the products. Kate Spade chief marketing officer Mary Renner Beech says the technology, created by New York-based start-up Perch, provides an engaging experience for its customers. She describes the technology as “cost effective,” but like many tight-lipped retailers, declines to disclose figures. “What I can share is that we believe that technology has to have a purpose,” she tells me. “Sometimes that may be financial or brand equity or sometimes both. Technology should always enhance the brand. The aim was to bring Kate Spade products to life rather than being a sales driver. That said, we’ve been incredibly pleased with the reaction. We have seen positive results by giving customers content.”