Retailers use entertainment to build shopper loyalty

Gap Inc. created the role earlier this year and hired Pam Kaufman, a former Paramount executive, to lead its entertainment, content and licensing platform. The company has since launched major campaigns, including a partnership with the band Just Your Type, and built on last year’s ads featuring girl group Katseye.

“Beloved brands have value beyond the products they sell,” Kaufman told CNBC in a statement. Consumers identify with and trust those brands, she said, making authenticity essential when a company extends into entertainment. Gap describes its approach as “fashiontainment,” combining retail and entertainment to connect with consumers.

CEO Richard Dickson said at the Goldman Sachs Global Consumer and Retail conference in September that Gap aims to put its brands at the center of culture and cultural conversation. Before joining Gap, he was president and chief operating officer of Mattel, which drew major box-office success with its “Barbie” movie, based on a long-running property.

Bryan Eshelman, who leads the retail practice at consulting firm AlixPartners, said shopping habits changed after Covid. For many consumers, shopping has shifted from a task to an entertainment activity. Retailers are responding with in-store experiences and media campaigns featuring exclusive content, he said.

Community can help build loyalty, Eshelman added, as retailers seek to offer a sense of lifestyle or belonging beyond their products. Branded entertainment is not new: Procter & Gamble helped coin the term “soap opera” in the 1930s, and companies have long used media campaigns to attract customers. Experts say social media, content creation and short-form offerings have raised audiences’ appetite for new and original material.