Thinking of giving your store a fresh new look? We’ve got you covered.
Despite the initial costs, renovating a store can offer big returns. According to a new study in the Journal of Marketing at Monash University, retail sales get a nearly 50 percent boost when a shop gets a new look
Retailers must keep their appearance modern, fresh, and in line with that of competitors. As the in-store experience continues to have high relevance, the look, feel, and mood of a firm’s retail or service environment can contribute to the brand and ultimately, its profitability.
Research revealed that sales to new customers increased on average by 43 to 44 percent after remodelling, and those to existing customers go up by seven to 10 percent.
We looked at the top six reasons retailers chose to renovate their stores, and the value it added.
1. Enhance brand image
Consumers are increasingly conscious of the impact that brands and products have on themselves, others and the environment. Brands that can authentically align to the social, ethical and dietary movements their customers care about will have an edge. According to Tiffany Cook, president of WE Communications, brands must strive to build an emotional connection with customers. Making a physical change to your store can vastly improve its reputation with the buying public.
2. Boost customer satisfaction
Most customers lend their support to businesses that provide them with enjoyable shopping experiences. According to the research from Monash University, sales from new customers after a store renovation were significantly higher than those for existing customers. Higher sales to new customers were primarily due to the fact that more new customers were drawn to the altered store, and subsequently visited more often. For most consumers, remodelling enhances perceptions of not only the service itself but also psychological responses and purchase behaviour.
3. Stand out from competitors
Renovating your store conveys that you’re moving at a successful pace. You can make great strides in outshining your competition by modernizing your place of business. With the advance of modern technology, and the changes in the way contemporary consumers buy and consume food, keeping up to date with the latest payment solutions and food offerings is crucial to staying ahead of the game. By renovating your store to meet these needs, you can be assured that you’ll stand out from other competitors.
4. Make effective use of space
Sometimes product sales suffer simply as a result of the way they are being presented to customers. Rearranging your product displays can help to transform the look of disorganization into one of pristine professionalism. New shelving, lighting and signage can work wonders when trying to reorganize the space in your store.
5. Improve Employee Performance
A renovation is successful when it makes work easier and more enjoyable. Fresh colour and design are proven to inspire new ideas and increase enthusiasm amongst staff. Renovations also help open up cramped spaces into more airy workable layouts giving the impression of more space, helping to maximize employee interaction with each other and customers.
6. Opportunity to create an event
Launching a new store and creating an event for the whole community is a great way of building a memorable customer experience tied to your business, which is crucial in the contemporary retailing industry. According to Forbes, 89 percent of companies compete primarily on the basis of customer experience. Today, consumers don’t just want to buy products, they want a great customer experience too. Launching a new store with an event is a great way to drive traffic to your shop and put your business on the map.