The Power of Emotions in Retail, Out-Of-Home Activations, and Collectibles
The power, and psychology, of emotions are playing a bigger role in the evolving world of retail. Research shows that emotional factors drive 70% of consumer decisions, while an average of 10 emotional needs influence 86% of purchasing choices. And although joy and delight may capture immediate attention, customers who feel genuinely connected to a brand tend to deliver more value by purchasing products more often and providing higher recommendations. This quarter’s trends report explores how harnessing an understanding of emotional intelligence can help brands convert customers into brand advocates.
Experiential Retail
1. Retail-tainment
Retail-tainment creatively combines shopping with entertainment, transforming stores into destinations that emphasize fun, discovery, and community. For example, McDonald’s built an entire world in some locations with a manga series and anime tie-ins, leaning into projection mapping and theatrical décor to make fast-food dining feel like an event. These immersive experiences generate viral buzz and boost foot traffic through the sale of limited-edition merchandise and collectible items.
Merchandising Takeaway: Transform retail spaces into immersive worlds with engaging installations that captivate customers and create an emotional connection. Spark urgency with limited-edition products and merchandise.
2. Cross-Industry and Brand Collaborations
Strategic partnerships between brands create memorable moments that tap into customer emotions, such as nostalgia and a sense of belonging, while introducing each brand to the other’s audience. Immersive pop-ups combine the different brand worlds to create spaces that encourage social sharing and increased dwell time. Instead of feeling like they’re in a traditional store, customers go on a mood-enhancing journey that taps into their desire for discovery and creativity.
74% of global customers say stores should offer more than products and strive to entertain and engage shoppers”
Merchandising Takeaway: Design collaborative spaces, leverage both brands’ visual identities, consider including Instagram-worthy moments, and make sure both brands get their story told.
3. Sensory and Immersive Retail
Sensory and immersive retail are the most fundamental strategies for experiential retail. Sensory-charged environments allow spaces to offer more than just a utilitarian shopping journey for customers. Instead, they go on an emotionally engaging adventure. Retailers are creating fantasies brought to life through psychedelic color schemes, life-sized props, and interactive experiences. These spaces blend visual spectacle with tactile experiences that encourage exploration and play, which is especially effective for Gen Alpha and Gen Z, who value physical interaction, personalization, and social connection in retail.
Merchandising Takeaway: Activate multiple senses in every retail space. Facilitate emotional engagement through experiential storytelling and immersive design.
Out-of-Home
4. Stunt Boards
Advanced Out-of-Home advertising that leverages 3D formats delivers notably higher brand recall and engagement compared to traditional channels. Displays with dynamic content bring products to life for customers who can’t help but look when passing by. One moment, they’re absorbed in their mobile devices and ignoring static ads around them, and then all of a sudden, they’re gawking at visually striking content that inspires curiosity and awe. That emotional resonance builds stronger brand connections and long-term brand equity.
Merchandising Takeaway: Take advantage of technology like 3D formats to capture consumer attention. Invest in location-based spectacle in high-traffic areas near points of sale.
5. Theater & Live Events
Theatrical formats evoke strong emotional responses with live performances and artistic collaborations. Consumers generally prefer experiences over products and are willing to pay more when those experiences make them feel joy and nostalgia. By bringing together communities from various cultural brands such as music, art, and fashion, activations go beyond traditional marketing by providing genuine entertainment and social experiences that attendees want to share. Product launches can become cultural moments.
Merchandising Takeaway: Throw events that feel like theatrical productions with live performances. Design elements with social sharing in mind, focusing on the overall experience.
6. Third Spaces
Retailers are shifting from pure product sales to creating "third spaces" that offer entertainment, multi-sensory experiences, and social connection. Shopping centers are incorporating playful exploration zones, while brands at their own pop-up festivals offer interactive workshops where attendees have the chance to customize their very own tote bag. These environments prioritize experience over transaction, tapping into emotional drivers that encourage lingering and create positive brand associations across multiple generations.
Merchandising Takeaway: Design retail environments as community hubs with comfortable lounge areas, activity zones, and engaging workshops. Use mood-led design to create memorable experiences.
Strategic Collectibles
7. Collectibles
The collectibles economy has evolved into a cultural movement where certain items are being actively sought out by consumers who prioritize emotional value over function. Collectibles are designed to be collected, often as part of a series or set. Marketers are using figurines, cards, toys, charms, or art prints to deepen customer engagement in existing fan bases. These products counter digital fatigue and appeal to Gen A and Gen Z's desire for self-expression through physical objects.
Merchandising Takeaway: Develop collectible lines tapping into nostalgia and fandom using a limited series approach. Consider sentimentality when creating the collectible experience, focusing on values, memories, and aesthetics.
8. Trade-ables
Tradeable collectibles are specifically intended for trading or swapping. Trading cards, pins, or mini-figures create dynamic markets where emotional and monetary value overlap. The items are valued by strategic relevance and demand, not just rarity, meaning even the more common items can hold high emotional value, which translates to monetary value. Games like Pokémon TCG Pocket emphasize pack-opening experiences and collection pride, tapping into dopamine-driven reward systems that make collecting both exciting and meaningful.
66% increase in global searches for “cards and collectibles.”
Merchandising Takeaway: Design products that vary in rarity to create strategic value. Plan ahead for protective containers or personalized memorabilia to reinforce emotional investment.
9. Blind Boxes
Blind box collectibles add gamification to the purchasing experience through mystery and surprise, as the consumer doesn’t know which item is inside the box until they open it. The strategy encourages customers to share their unboxing on social media and heavily promotes repeat buying. The appeal is boosted when popular intellectual property is licensed, which attracts existing fan bases who speak the language of the brand. Some blind boxes feature limited drops, rare figures, and high resale value, which motivates the community to engage in trades.
LicensingCollabs increased 158% on WGSN's Interiors Feed, spotlighting the importance of licensing partnerships for expanding market reach.”
Merchandising Takeaway: Prioritize the unboxing experience and the shareability of that experience when designing products. Maximize mystery, surprise, and gamification.
Wrapping It Up
This quarter’s trends report highlights how successful brands understand that emotional connection leads to lasting relationships with their audiences. By focusing on experiences over transactions and anticipation over instant gratification, brands can create unforgettable memories that their customers associate with them. And it’s those memories that bring the same customers back again, maybe next time with a friend.
