Despite the rapid growth of e-commerce in China, physical retail continues to evolve. During our recent research trip across mainland China and Hong Kong, we visited a range of retailers to explore how stores are being reimagined. 

What became clear throughout these visits was that the retailers that stood out were not necessarily those with the newest technology. Instead, they were the ones that understood how physical stores can deliver something online channels cannot: a sense of place, discovery and human connection. 

Here are four ideas that stood out. 

Designing stores that celebrate local identity  

This Wellcome nostalgia concept store located at Prosperous Garden in Hong Kong is designed as a culture icon in the community. From the moment we arrive, the store transports shoppers back to old Hong Kong. Vintage televisions, antique radios and old-fashioned vacuum flasks are displayed throughout the entrance, while deliberately aged posters and nostalgic décor create plenty of photo opportunities that celebrate the city's past. 

Beyond its visual appeal, the store continues to function as a genuine neighbourhood supermarket. Around half of the sales floor is dedicated to fresh produce, meat and frozen foods, and during our visit we saw many elderly residents shopping for ingredients for that day's meals. Alongside everyday essentials, the store also features a dedicated section of popular Hong Kong souvenirs for visitors. 

What makes the store concept successful is that it doesn't treat nostalgia as decoration alone. Instead, it transforms a routine grocery shopping trip into a cultural journey while continuing to serve the needs of the local community.  

Retail media bringing products into everyday life through context 

Our visit happened to coincide with the FIFA World Cup, and the event was highly visible across many stores. 

As many matches were broadcast late at night in China, retailers consistently grouped together products associated with the viewing occasion. At one Freshippo store in Shanghai, beer, snacks and beef jerky were merchandised alongside televisions, instantly recreating the experience of relaxing on the sofa and watching a match with friends.  

Another eye-catching example was imported Norwegian salmon displayed next to a life-size cut-out of Erling Haaland, making the product's origin immediately recognisable. Chinese retailers are quick to embrace trending topics and internet culture, making in-store displays more relevant, playful and shareable.  

These displays helped shoppers visualise how products fit naturally into real-life occasions. By creating immersive and relevant shopping moments, retailers encouraged impulse purchases in a way that online channels struggle to replicate. 

Making grocery shopping a family experience 

One retailer that stood out during our trip was Sam's Club in Futian, Shenzhen. The store attracts predominantly family groups, with grandparents, parents and children often shopping together. Unlike many warehouse clubs in North America, the store featured an impressive number of sampling stations throughout the food hall. Families could stop to taste new products, discuss their favourites and make purchasing decisions together, turning grocery shopping into an opportunity to spend quality time together. 

This experience is reinforced by Sam's highly curated assortment and the strength of its private label – Member's Mark. Many products have been developed specifically for local tastes. Signature items such as Swiss rolls, mochi, roast chicken and low-GI nuts reflect Chinese consumer preferences, including less-sweet flavours and growing demand for healthier choices. These products have become destination items that many members specifically visit the store to purchase. 

Winning with thoughtful details 

As product ranges and private label offerings become increasingly similar across retailers, customer experience is becoming a more important point of differentiation. 

At the entrance, shoppers are welcomed with free lockers, alongside dedicated pet crates that provide a practical solution for customers shopping with pets. Rather than simply allowing or banning pets, the store offers a thoughtful compromise that makes shopping easier for everyone. 

Inside the store, magnifying glasses are attached to many shelves, helping older shoppers read ingredient labels more easily. Selected products are accompanied by information boards explaining their ingredients and key features, making it easier for customers to make informed purchasing decisions. 

Near the checkout area, customers can access a seating area equipped with microwaves, handwashing facilities and complimentary lemon tea. There is also a blood pressure monitor, with reading glasses and disposable alcohol wipes provided free of charge for anyone who needs them. 

These features may seem small individually, but together they create a shopping experience that feels genuinely customer-centric. Yonghui demonstrates that great retail is not only about offering the right products, but also about understanding customers' everyday needs and designing stores that make shopping more comfortable, inclusive and enjoyable. 

Looking ahead 

While online retail continues to evolve at pace, our store visits showed that some of the most exciting innovations are happening inside physical stores. 

From immersive store design and context-driven merchandising to family-focused experiences and thoughtful customer service, the most successful retailers are giving shoppers reasons to visit that extend far beyond simply buying groceries. As online convenience continues to grow, it is these memorable, human-centred experiences that will help physical stores remain relevant in the years ahead.