When retail loses footfall and relevance, brands must step in

The figures are clear. According to a forecast by the German Retail Federation (HDE), the number of brick and mortar retail stores in Germany will fall below 300,000 in 2026 for the first time since reunification – to around 296,600. At the end of 2015, there were still approximately 372,000. Nearly 80 percent of retailers report in an HDE survey from this year that their footfall has declined over the past two years. At the same time, e-commerce continues to grow, increasing by 3.9 percent to 92.3 billion euros in 2025, according to HDE.

This shifts the role of physical spaces. It is no longer solely about bringing people into stores. When information, advice and purchasing options are readily available everywhere, these locations must offer something that goes beyond their original function.

Retail cannot win this race

For many products, brick and mortar retail has lost part of its original purpose. This is not because it has deteriorated, rather because consumers can now more easily complete online many of the tasks that previously required a trip to a store. They compare prices, order around the clock and complete purchases in a matter of seconds. Brick and mortar retail can scarcely compete with this convenience. Its strength lies in what only a physical space can offer.

People are not going out less often – just more intentionally than before. They attend concerts, festivals, exhibitions or distinctive stores when they can experience something they cannot find at home. Therein lies the opportunity for brands. A pop-up draws people into a shopping centre, while a brand activation sparks interest and drives footfall into retail stores. Brand experience can therefore give physical spaces a new reason to visit.

Brands must go where people are

Many brands still approach physical presence from the perspective of the store, focusing on point-of-sale, retail space and shelving. However, it is worth looking at where the target audience already spends its time – at festivals, concerts or on the high street. Instead of waiting for people to visit the store, the brand goes to them and builds a bridge into retail from there. Roadshows and mobile brand formats tap into this exact principle. When executed effectively, they are more than just a trade show booth; they combine personal interaction, brand presence and sales. Ideally, they do not replace retail, instead guiding consumers towards it.

Sponsorship must not stop at logos

How this works in practice is demonstrated by a project our agency delivered this summer for Tamaris. The footwear brand sponsored the stadium tour of Helene Fischer and used its space at the concert venue not for traditional logo banners, instead creating a dedicated brand world featuring a glam station. This was accompanied by an exclusive tour shoe limited to just 100 pairs, which was not for sale and could only be obtained through the brand's own loyalty programme.

The idea behind this was to connect the live moment with social content and customer retention, rather than merely buying visibility. A shoe that nobody could buy was designed to make an impact not through volume, rather through desirability and loyalty.

At the Parookaville and San Hejmo festivals, where the audience is young and predominantly female, Tamaris deliberately forewent products to focus entirely on experience and community. A logo creates visibility. An experience brings people into contact with the brand and stays in their memory – even without a direct sale.

It is crucial that such formats do not stop at the experience itself, instead actively incorporating a pathway into retail – for instance through loyalty programmes that re-engage customers later, or via joint activations with local retailers.

Physical space itself must become an experience

This logic also applies to retail locations. An example beyond individual brands is the Stadthof Hanau. The city transformed a vacant Kaufhof department store building into a hub for socialising, culture and retail. There, 21 individually designed stores meet an open agora free from the pressure to consume, alongside art installations that replace vacancy with new purpose. At the BrandEx Award 2026, the project won gold in the “Best Store Concept” category.

The approach can be summed up in a simple formula: experience per square metre instead of sales per square metre. What applies to a high street also works on a smaller scale. Pop-ups and temporary formats create occasions that exist only in that specific place and at that specific time – thereby opening up access to wider offerings.

What matters here is not just whether an experience generates short-term footfall. It might attract attention for three hours. If nothing of it remains the next morning, it has failed to realise its potential. Images, texts and videos are created in seconds today, whereas personal encounters cannot be replicated at will. Anyone who associates a special moment with a brand remembers it differently than they would an advertisement between two social posts. A strong experience therefore not only leaves an impression, it also builds loyalty.

Conclusion: relevance is what remains

Retail provides the physical spaces, while brands bring their communities and the ability to mobilise people. Together, they can give locations new meaning. This requires not simply more brand experiences, rather formats that create a genuine reason to visit and resonate beyond the moment. A photo for Instagram is not enough; memory, personal interaction and brand loyalty are. In this way, brands can turn retail spaces into destinations that people visit intentionally – because something happens there that cannot be found online.