As consumers’ appetite for new physical and digital experiences continues to grow, innovation is the key to survival for retailers. One of the most effective ways to explore innovation and stay ahead of market trends is through a lab store—the new must-have for retailer experience portfolios. As stated in JLL’s latest Future Vision research, shoppers still want a human touch in their retail journey, and lab stores promise a unique experience in a physical setting.

One of nine formats in JLL Design Solutions’ experience portfolio framework, a lab store is an experimental space in which a retailer can test new products, services and technologies in a controlled environment. Some are internal spaces where employees can develop and test new ideas, and possibly invite customers in for beta testing before launch. Others are external “stores of the future,” inviting consumers to shop as video cameras, sensors and other research tools track their behavior in the new environment. Still others have both internal and public purposes.

For a lab store to succeed, it should be viewed as an investment, not as simply a place to experiment with random ideas. The ideal approach is to follow a clear test-and-learn roadmap, with goals based on a singular focus and progress measured against specific key performance indicators (KPIs) aligned with the strategic purpose. In contrast, a lab store that is disconnected from the consumer journey and fails to provide a great experience that creates return visits will become an expensive indulgence, rather than a potentially lucrative investment.

It’s clear that retail innovation in the physical setting is a sound strategy. In JLL’s 2024 Experience Matters survey, 67% of shoppers in 10 countries said they prefer shopping in person to shopping online. A lab store gives consumers an added layer of personalization and interactivity that they won’t find in your traditional brick-and-mortar store.

Nike Innovation Kitchen

Nike’s Innovation Kitchen is where innovations like the original waffle sole and self-lacing sneakers originated through a process of unconventional problem-solving and iteration. The Innovation Kitchen was designed with a singular focus: to listen to athletes and build them the resources and inspiration needed to reach their full potential.

It’s also a safe space where employees can push the envelope without fear of judgment or failure. With its open format designers, engineers and developers can see each other’s desks, providing more serendipitous opportunities to spark ideas and share thoughts on each other’s work.

Lab stores for four Gap brands

After several years of reducing its brick-and-mortar footprint, Gap Inc. needed a strategy for testing new store technologies, consumer experiences, and product innovations to drive growth. In 2022, Gap unveiled four lab spaces for its Old Navy, Gap, Banana Republic and Athleta brands at its San Francisco headquarters, as well as a “maker studio.” Situated on the ground floor in a tower of 15 floors of flexible, creative office space for Gap associates, the co-lab maker studio gives consumers a peek at creative teams at play. Gap Inc. built the space after benchmarking other lab spaces and identifying which tools were needed for rapid prototyping, innovation and white-space thinking. The space is now used for testing new store technologies, consumer experiences and product innovations.

Amazon Operations Innovation Lab

Situated an hour’s drive from the Italian Alps, Amazon’s Operations Innovation Lab is an internal hub for technological experimentation focused on improving employee working conditions, enhancing the consumer experience, and making Amazon processes more sustainable. Established in 2019 as part of an Amazon fulfillment center, the lab is a testing ground for new sustainable packaging and a training center for Amazon robotics operators. In 2023, the facility added a visitor center, with public tours scheduled to start later this year to allow consumers to take a closer look at the advanced technologies being developed and tested.

With unprecedented and ongoing change in retail technologies and consumer preferences, continuous test-and-learn solutions are the only way for a retailer to truly remain competitive. To be successful, however, a retailer needs a singular focus on innovation that will add value to the experience of employees, consumers or both; clearly defined metrics to track the lab’s success and support data-driven decisions; and a roadmap that guides an ongoing cycle of testing and learning. The secret to successful innovation? A strategy.