India’s retail ecosystem is transforming; that being said, traditional retailers are no longer relying on legacy formats alone. Whether it is store design or digital integration, they are actively rethinking how their spaces function and how customers experience them.

Dhiren Chheda, Founder of Dhiren Chheda Associates, shares his on-ground perspectives on how traditional retail is changing, what truly drives store investments today, and where digital fits into the larger retail strategy.

It’s not about spending more, it’s about spending right

Contrary to popular belief, Dhiren explains that traditional retailers are not necessarily increasing or cutting budgets. Rather, they are becoming more intentional about where they invest.

According to him, traditional retailers have understood that certain investments– be it in design, layout, or digitisation- are important to scale. He adds, “They know that they have to do that,” highlighting a clear mindset shift from hesitation to acceptance.

On whether traditional retailers are fully trusting designers, Dhiren believes the answer varies. “That will again be an individual thing; every designer has their own way of thought process,” he explains. However, what remains consistent is the mindset shift among retailers.

Digital screens need strategic placement

Digital interaction in stores is gaining momentum, but Dhiren draws a clear line between visibility and distraction.

He believes digital screens work best on the store facade, where they enhance brand presence and attract footfall. Inside the store, however, digital screens can divert customer attention and disrupt the shopping experience. “Inside, it’s a distraction,” he states.

Sharing an example, Dhiren recalls a large-format store his company opened last year in Cochin. Spanning nearly two lakh square feet, the store had a 600-metre digital screen, but only on the exterior. The interiors are deliberately kept free of digital distractions to allow customers to focus on products and movement within the store.

The gap lies in the data

While discussing the challenges of adding digital touchpoints in the store, Dhiren shifts the focus from screens to insights. “There are no challenges as such”, he says. According to him, while most retailers already have access to ERP data, he points out that there is a growing need for hardware-led solutions that can help collect customer data and analyse the behaviour.

“Just depending on ERP is very normal,” he adds, noting that several advanced hardware options are now available, but are yet to be fully leveraged in the retail ecosystem.

“If a digital screen is being installed, what more data can we get? That’s important,” Dhiren says. Ultimately, technology must translate into actionable insights. “It has to help in the business,” he concludes.

In this context, industry platforms like DDX Asia truly help as they bring together global technology providers, solution architects, media owners, and buyers and showcase cutting-edge technology solutions. While sharing his expectations from the exhibition, he shares, “All kinds of information connected to retail will always help.” He further adds that advanced data analysis is still limited in India. “If such expertise can be brought to DDX Asia, it would be very useful.”