Legacy retailer Gap Inc. hired Pam Kaufman as its first chief entertainment officer earlier this year, joining a growing cohort of companies blending retail and entertainment to drive customer engagement following shifts in post-pandemic shopping habits.
Legacy apparel company Gap Inc. created the new role to helm its entertainment, content and licensing platform, bringing in a former Paramount executive to oversee the shift. The brand has since rolled out major campaigns featuring musical acts, partnering with the emerging boy band Just Your Type and building on previous advertising work with girl group Katseye.
Retailers Invest in Entertainment to Build Consumer Loyalty
- Retailers are investing heavily in entertainment and immersive store experiences to capture consumer attention and build loyalty beyond traditional product sales.
- Cross-industry hires, such as former media executives taking top retail posts, are bridging the gap between traditional shopping and media distribution.
- Experts warn that entertainment initiatives must still be supported by strong product fundamentals, transparent pricing, and reliable inventory levels.
Why Did Gap Hire a Chief Entertainment Officer?
The retailer appointed former Paramount executive Pam Kaufman to lead its entertainment, content and licensing platform as part of a strategy the company terms “fashiontainment.” According to Kaufman, the initiative aims to blend retail and entertainment to better align with changing consumer behavior.
“Beloved brands have value beyond the products they sell. Consumers identify with them, trust them and want to be part of their world.”
Kaufman told CNBC in a statement, emphasizing that authenticity is vital for every brand extension.
CEO Richard Dickson expanded on this cultural strategy at the Goldman Sachs Global Consumer and Retail conference in September, noting that brands function as stories where companies act as the storytellers. Dickson previously served as president and chief operating officer at Mattel, where he oversaw the intellectual property integration that brought the “Barbie” movie to theaters.
How Do Consumer Habits Drive Retail Entertainment?
Post-pandemic shopping behavior has shifted away from viewing retail purely as a fulfillment task. Bryan Eshelman, who leads the retail practice at consulting firm AlixPartners, said that shopping has increasingly transformed into an entertainment form.
“Community, at the end of the day, is one of the key ways to drive loyalty, so I think retailers of all types are trying to tap into some sense of community, some sense of lifestyle, some sense of belonging that’s beyond the product that they offer.”
Eshelman told CNBC.
While branded entertainment dates back to the 1930s when Procter & Gamble helped coin the term “soap opera,” the modern rise of social media and short-form digital content has intensified consumer demand for original media offerings. Investment firms point out that capturing audience attention has become a primary challenge in modern retail.
“The hardest thing to find and to get is audience these days.” Alex Michael
said Alex Michael, senior managing director at investment firm LionTree, adding that intellectual property remains the most valuable asset because of its direct attachment to an audience.
Can Experiential Retail Guarantee Sales Growth?
Retailers are increasingly pairing digital content campaigns with immersive physical store experiences. Companies such as Coach and Ralph Lauren have reported notable performance metrics from experiential investments.
| Retailer | Strategy Focus | Observed Financial Impact |
|---|---|---|
| Gap Inc. | Fashiontainment and musical partnerships | New entertainment platforms and content licensing division |
| Coach & Ralph Lauren | Experiential retail environments | Close to 10% year-over-year increases in average basket size (AlixPartners data) |
Despite these integrations, industry analysts caution that marketing campaigns alone cannot sustain poor inventory management. AlixPartners’ Eshelman said that core retail fundamentals remain essential regardless of entertainment investments.
“The basics of having great product in stock at a transparent price that feels like value is not swept away by animatronics.”
Eshelman stated, emphasizing that glitz cannot mask weak product offerings or missing inventory.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
