What most brands get wrong about physical retail, with Sandy Hernandez

Amazon can’t do this.

Neither can any website, app, or algorithm. In an age where you can buy anything with one click, Sandy Hernandez is betting on something radical: stores that make you want to stay.

As Founder and CEO of The Retail Muse, she's not just another retail consultant preaching about "experiences." She's the strategist behind the spaces that turn skeptics into believers, proving that physical retail isn't dying, it's evolving.

She recently joined us on Beyond the Register to share insights on designing retail spaces that don't just sell products but create lasting impressions.

Before picking paint colors or display fixtures, Sandy emphasized the importance of understanding your fundamental purpose.

"Think about why you're even building the space," she advised. "What is your objective for having a physical brick-and-mortar location?"

This isn't a trivial question. Physical retail is expensive, so your purpose must be crystal clear. Are you creating a space purely for transactions, or are you building a community hub? Your answer should drive every design decision that follows.

Once you've established your "why," map out the entire customer journey — from how you'll attract people to the space through how they'll interact with your products, and finally, how they'll leave.

Sandy shared the importance of the "peak-end rule," noting that the final moments of a customer's visit must be just as magical as their first impression.

The science is clear: the more time customers spend in your space, the more they're likely to spend. Smart retailers design with this principle in mind.

"You have to think about how you're going to attract more customers to the space, how you're going to get them to spend more in the space, and how you're going to get that revenue stream to continue after they leave," Sandy explained.

This might mean rethinking traditional merchandising approaches. If you're opening a wine store, for example, instead of organizing by varietal or region like everyone else, you might arrange products by food pairings — creating a unique experience that helps customers in a practical way.

Your physical space is a three-dimensional manifestation of your brand. Every element should reflect your identity and values.

Sandy points to Coach as a brand that's successfully reinvented itself through physical retail. Their stores now feature "Rexy," a dinosaur mascot that creates eye-catching window displays outside. Inside, initiatives like "Coachtopia" allow customers to bring in vintage Coach items for redesign or personalization. It’s a live workshop experience that showcases the brand's commitment to sustainability and product longevity.

"The space reflects the brand and your brand identity and also what you stand for as a brand," Sandy emphasized. This alignment creates authenticity that customers can feel.

For new retailers, jumping straight into a permanent location can be risky. Sandy recommends pop-up shops as a lower-risk testing ground.

"You have to de-risk this investment as much as you can," she emphasized. "Testing through markets and pop-ups, store-in-store events... you can use those lessons and insights and feedback to iterate on the products you're actually offering in the store and your customer experience."

Pop-ups come in many forms, from weekend activations to longer-term installations. The right duration depends on your objectives. If you're simply launching a new product, a weekend might suffice. If you're testing a neighborhood for a permanent location, you'll need longer to understand seasonal patterns and traffic flow.

Sandy cautions that the work doesn't end on opening day: "The hard part is once that passes. How are you going to keep those customers coming back? How are you going to attract new customers?"

She recommends planning a calendar of events and programming throughout the year to generate consistent traffic.

When designing a retail space, consider all five senses.

Sandy emphasizes the importance of creating memorable first and last impressions.

"They're going to remember that first moment... so even when you're creating content, you think about the hook, those first few seconds to attract and make an impact on the customer," she explains.

A signature scent can become part of your brand identity. Think of the distinctive smells of Abercrombie & Fitch, Hollister or Auntie Anne's pretzels. Music sets the mood and pace of shopping. Visual elements create immediate impact.

But perhaps most important is the human element: your staff. "That's the other touchpoint that will make or break what you remember about the experience," Sandy noted. "How you view it positively or negatively is your interaction with staff."

Small businesses have a natural advantage when it comes to staff engagement. Employees often know the founder personally and feel connected to the mission in ways that big-box store employees might not.

Still, Sandy emphasizes the importance of proper compensation and training. She suggests unconventional approaches like improv classes to help staff think on their feet and develop sales techniques.

"You just expect the employees to know how to sell," she said. "But actual sales and sales techniques, you need to teach them that."

She also recommends empowering staff to make on-the-spot decisions that enhance customer experience, like Lush and Disney, where employees have the authority to "make someone's day" through special gestures.

If Sandy could recommend just two changes for retailers to implement immediately, they would be:

1. Treat your stores like you're putting on a show. Plan events and programming throughout the year. "It's just to me a no-brainer," she says.


2. Stop making it difficult to shop with you. From locked-up products to restrictive policies, many retailers create unnecessary friction. "People want to spend money with you," Sandy reminds us.

The future of retail belongs to those who create experiences worth leaving home for: spaces that engage all the senses, foster human connection, and make customers feel valued.

By following Sandy's insights, retailers of all sizes can create spaces that don't just sell products but build lasting relationships.

Now that you’ve heard Sandy’s perspective on how creating meaningful, multisensory experiences drives sales, you’re ready to design a memorable physical space that keeps customers coming back.

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