Human Touch Wins: Emotion beats transaction in Retail

By Neale Petersen

August 18, 2025

Retail

Emotional connection drives sales more than discounts or loyalty points.
Immersive experiences convert casual visits into lifelong loyalty.
AI supports growth, but human interaction builds brand love.

Human Connection Is the Future of Retail

‍In today’s fast-paced, tech-driven world, it’s not the product or price alone that drives success, it's the emotional connection between people. While AI and analytics play a vital role in modern retail, the most memorable and profitable shopping experiences come from human-to-human moments that transform transactions into something more. Hylton Bannon, MD of Toy Kingdom and Build-a-Bear shares immersive retail in the experience economy.

Retailers like Build-A-Bear, Toy Kingdom, and even digital giants like Netflix and Disney have tapped into this powerful truth. Here's what we can all learn:

Key Messages and Lessons from Retail Innovators

1. Emotion Over Transaction

People don’t just shop—they seek experiences.
Build-A-Bear's success is tied to its “heart ceremony,” where kids place a warm heart into their bear. It’s this ritual, not the bear, that customers remember.
Emotional rituals create meaning that AI or automation cannot replicate.

2. Talk to Customers—Don't Just Track Them

When AI failed to explain a sales spike in Stellenbosch, Build-A-Bear found the answer the old-fashioned way: by talking to customers.
The insight? Female students wanted Build-A-Bear experiences for Valentine’s Day. AI missed it—human curiosity didn’t.

3. Play Is Powerful—At Any Age

Adults crave play too. Lego is now the top-selling item in global old-age homes.
Kidult (adult toy-buying) is the fastest-growing segment in toys.
Creating fun, nostalgia, and interaction boosts engagement and spend—regardless of age.

4. Immersive Retail Builds Loyalty

Toy Kingdom turned its least enjoyable customer touchpoint—paying—into a delight.
Their playful cash desks let children crawl, nap, and play while parents transact.
This transforms a pain point into a joyful moment—and earns repeat visits.

5. Experience Outperforms Discount

Disney’s biggest profit doesn't come from merchandise or movies—it comes from physical experiences.
Emotional connection creates loyalty far more effectively than loyalty points or discounts.

6. Netflix Goes Physical

Recognizing its lack of emotional and sensory connection, Netflix is launching 10,000sqm “Netflix Houses.”
These aren’t amusement parks—they’re experience hubs for play, dining, and reenacting stories.
It’s proof that even digital-first brands need physical emotion.

7. Theatre Creates Magic

Every team member can be an actor in your brand story.
From asking playful questions (“Who makes the most tires?” – spoiler: Lego) to interacting with grandparents, every exchange is a chance to connect.

8. Basket Size Is Tied to Emotio

In Toy Kingdom, basket size is larger when grandparents shop instead of parents.
Why? Grandparents buy emotionally. They say “yes” more often.
The emotional state of the customer—and who they’re with—shapes spend.

9. Your Team Is the Magic

It’s not about the most beautiful shelves or best products.
It's about the human behind the counter making your child feel seen.
That’s why a sulky teen becomes a loyal Old Khaki fan—because of one helpful assistant.

The Takeaway for Retailers

‍The brands and malls that win the future won't be those with the best technology or cheapest prices. They'll be the ones that make customers feel something - joy, nostalgia, connection, and play.

Action Points for Retailers and Brands

Design for emotion, not just efficiency.
Train your team to connect, not just serve.
Rethink retail theatre. How can your store entertain, educate, and engage?
Use AI to cut costs, but use people to add value.
Audit your touchpoints. Where is the magic missing?

Final Thought

‍Retail is not dying, it’s evolving. The human connection is your most valuable asset. In a world driven by digital speed and data, the biggest competitive edge is still empathy.

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