Signs Your Store Needs a Remodel
And Tips To Stay Open During It
According to the National Retail Federation, retail sales have grown nearly 4 percent annually since 2010, with over 1 million retail brick and mortar stores competing with millions more retailers online. As 2020 approaches it is clear that retail will continue to thrive and change. As evidenced by the many stores that have both opened and closed in the past few years alone, retailers need to engage and retain their customers. Have you been considering whether your company should seriously consider investing in a store remodel? Keep reading for some signs that it might be time to revamp your retail space.
How Many Reasons Do Your Customers Have to Visit Your Store?
In modern retail, there are two basic premises that a store needs to focus on: increasing customer visits and increasing the size of each purchase.
A store remodel featuring a new service can increase the reasons for a consumer to enter your store. A prime example of this being done successfully is pharmacy chains. With the increase in need for medical services that fall between the ER and your primary care physician, pharmacies have redesigned many of their stores to provide basic medical services without an appointment. Treating the common cold or giving flu shots gets new and returning customers in the door, while also providing them with more opportunities to buy different odds and ends.
When considering a store remodel, ask yourself: “what do customers come to my store for? What services or products can I provide as a value add?”
Have Sales Stagnated Year Over Year?
According to the US Census Department, retail sales are up about 3.3% on average year over year as of July 2019. This is fairly consistent with what’s been seen in the past during periods of a robust economy. To keep up with inflation and rising overhead, review your numbers. Where do you compare? Does your business fail to meet these numbers? With many products now being quite similar in quality and offering, unique aspects of in-store experience can be game changers. Consider the following:
- Displays at eye level are said to receive 35% more attention than products at other viewpoints. What’s the value of the items you’re featuring here, if anything?
- If there isn’t enough aisle space, many consumers will avoid the aisles out of wanting to avoid physical contact with strangers
- 90% of consumers tend to navigate a store through right turns. What is your store’s navigation like?
Is Your Store Feeling Dated?
In the retail world, first impressions matter. Shoppers will often determine the value and quality of the store within the first 15 feet of entering. They’ll judge it within 90 seconds, much like one may judge a person wearing an outdated outfit from the seventies. Updating signage, utilizing modern technology, and most importantly cultivating an experience, are all expected by current consumers. Nearly two-thirds of consumers want products to be accompanied by visuals, samples, and demos for a sensory experience. Rounding out the experience with appropriate music and aromas will entice them to stay comfortable longer. If you review many of the retail stores that haven’t found success in recent years, oftentimes all it really takes is… 90 seconds. What can you judge from your store in that time?
Making a Store Remodel Work
Monash University in Australia conducted a retail study in 2014 on the impact of what happens when a retail shop is upgraded. It found that retail sales could see an increase of nearly 50 percent when a store has been refreshed. But that doesn’t make it easy. Consider the following to stay open effectively during a remodel.
- Properly communicate the remodel to both staff and customers to manage expectations
- Establish clear barriers to contain construction and ensure safety for everyone
- Contain remodel work to after store hours, if possible. While this may incur a higher hourly cost, it’s also more likely that you’ll retain more sales and be able to complete the project sooner.
- Reward customer loyalty during this period with discounts, enjoyable experiences, or other benefits.
Store Remodels and New Store Sets By SPAR
SPAR is more than a retail merchandising company. We provide retail solutions for store chains and businesses across the globe, including many of the largest retail chains in the United States. We are experts in the planning and execution of store resets and remodels, as well as assembly and installation, merchandising solutions, programmatic services, and more. If you are planning a store remodel and are looking for a team that will put your project first, please contact us at SPAR today!