Nicola Greenslade
For a long time, it felt like a settled argument: the future was online, and the high street was slowly becoming a thing of the past. But as a digital-first brand that has recently stepped into physical retail, we're seeing a switch that I don’t think many of us expected. People are starting to seek much more than the convenience and choice that online shopping can provide.
This shift is driven by a very human need for connection. We’re seeing a rise in ‘digital fatigue’, especially among Gen Z, the first generation of digital natives to experience non-stop connectivity. This has been linked to them being the loneliest generation, and they are now actively seeking a different way of doing things. They crave interaction, emotion, and more of a reason to buy than simply clicking a button.
The data backs this up and a recent report highlighted that, "despite being digital natives, Gen Z’s in-store spending grew by 27%, outpacing all other generations. Their desire for tactile experiences, instant gratification, and social shopping is reshaping retail." It’s clear the story is no longer about replacing one with the other, but about creating a connection between our physical and digital worlds.
The Rise of the 'Experience Economy'
So, what are customers looking for in this new era of retail? It’s all about the experience. Experiential retail is where many retailers are now focusing to win the rising physical footfall, and in beauty, this is where creativity and technology are working together.
We're seeing it everywhere, from global pop-up tours by brands like Rhode that become viral social media moments, to the immersive and educational showrooms of Diptyque. Technology, more specifically AI, is being used to facilitate shade matching or skin scanning consultations, giving customers instant diagnoses and product recommendations on the spot.
But it doesn’t even have to be that complicated, the simplicity of having a store team, that are highly educated in a broad range of beauty products, who can have an authentic face-to-face conversation with a customer goes a long way. In a market with an overwhelming amount of choice, having a trusted person guide you through a new routine that suits your lifestyle and budget is incredibly valuable and instils a deep sense of loyalty.
At Lookfantastic, we wanted to bring our popular online Beauty Box subscription to life. In our stores, we created a ‘Pick ‘n’ Mix’ concept (6 products for £15) where customers can choose from a curated selection of products. It’s amazing to watch people take their time, discussing choices with friends or our team members, deliberating over new products. It brings a real element of accessible fun and simple interaction to the shopping experience.
Designing for Discovery, Not Just Display
This shift to an experience-led model fundamentally changes how we design our stores. Where the focus used to be on how hard you could make your retail space work with stock, it’s now even more important to plan for experiential space.
This means leaving intentional zones in your layout to host an event or masterclass, planning spaces for customers to try products comfortably, treatment spaces for services and considering how to integrate new technology into the process. In our Bristol store, we built a ‘Make-up Play Station’, and it's consistently the busiest area of the store. People gather there for consultations, to seek advice, or just to try new products. Even though customers aren't shopping directly from this area, we know this is where we naturally see our basket value increase, because they can comfortably and confidently engage with the products and our team.
How IRL Feeds URL
Lookfantastic has always had a focused ‘digital-first’ strategy, and we don’t deviate from that, but our omnichannel strategy is coming more into focus, with physical retail at the forefront. Our stores are the immersive, community-focused home of our brand, and they sit deliberately alongside our online world, enhancing our digital business and in no way replacing it.
Our shop fronts act as a billboard for our brand, catching the eye of millions of potential customers who may never have shopped with us online. The results speak for themselves:
- In our first weekend of trading in Bristol, searches for Lookfantastic in the local area tripled versus the week before.
- In the first six months after our Altrincham store opened, we also saw significant growth in local online sales, with the area growing 23% faster than LOOKFANTASTIC’s core UK & Ireland market. We can see the powerful ripple effect that a physical presence has on our online business.
Of course, creating a seamless link provides challenges. Online, we can switch discounts on and off daily, but in-store, that’s not operationally feasible, so we largely operate a full-price model. We weren’t sure how customers would react, but it hasn't hindered us. Our customers seem happy to pay full price when they know they can try the product, speak to an expert, or experience it during a treatment. This proves that customers are choosing the value of a face-to-face experience, even over online convenience and price. It’s also helping us build a strong, loyal local community, where relationships are built on trust and rapport, not just our pricing strategy.
A High Street Reborn
There have been a number of reports in the last year acknowledging a shift in retail property investment, moving away from office and industrial and back into retail. We now have the lowest shop vacancy rate in the UK since 2020.
As Will Lund, head of retail capital markets at Knight Frank, put it: “With online penetration flatlining and retailers reinvesting in physical space, the narrative around retail has fundamentally changed.” He predicts a return to decade-high investment volumes in 2026. This isn't a fleeting moment; it's a fundamental rebound.
The Future is 'Phygital'
The current focus in online shopping is all about how AI can enhance the consumer journey, from hyper-personalisation to virtual try-on technology. All of this is making online shopping more efficient, experiential and generally exciting , and it will be fascinating to see how it develops.
But will it ever truly give real-life experience and human interaction a run for its money? The THG Commerce Beauty Report 2026 highlights how “Phygital Innovation” is helping to solve the omnichannel challenge, noting that while online channels are expected to drive nearly one-third of global beauty sales by 2030, physical retail will continue to play a vital role in discovery, engagement and creating unique in-store experiences that complement online shopping.
The resurgence of bricks-and-mortar retail shows that while online channels will continue to grow, physical retail remains essential for discovery, engagement, and connection. The future isn't about choosing one over the other, rather it’s about skilfully blending the best of both worlds to create a truly 'phygital' experience.