Staying Competitive in a Changing Market

A large new store has just opened up down the street from your store. The perception of lower prices, a contemporary look and the novelty of being the new store in town make losing customers a likely scenario for you.

Does this sound familiar to you? The question is what should you do now? The new store did a lot of legwork to identify the area as a viable business location. The answer - take advantage of the situation! The new store will bring additional customers to your trading area.

Sometimes, you need to ask yourself who you are and what you want to be. Are you considered the healthcare professional in town; does your store reflect this? Are you an organic guru? How does your store relate to customers? If the majority of customers come to your store for the prescription department, you must offer the professional services of a modern healthcare facility. Services to consider are disease state management, patient counseling stations and compounding. If you specialize in organic food and products, you need to be a source of knowledge for your customers – their “go to” spot to get questions answered. Often these types of services get overlooked at newer stores. You need to capitalize on your uniqueness.

Once your store identity is defined, a store layout needs to be developed. Traffic flow becomes the priority along with security, increased in-store time and four-corner penetration. Proper traffic flow will guide the customer through the store in a predictable manner. What is your main draw? Use that as your store anchor. Impulse and demand departments are placed along the way with impulse products in heavier traffic aisles for maximum visibility, and demand departments in less traveled aisles to force the customer to the center of the store. Other departments, such as a card and gift department or home health care may also be used as draws, which help to create the four-corner penetration to increase customer in-store time thus resulting in maximizing sales. Workstation placement with an emphasis on employee efficiency and security should also be incorporated into the layout.

The transformation to a professional image should begin to take hold. Now décor design, proper lighting and signage will create a shopping environment that invites customers into your store and brings them back time and time again. Store design influences purchases. It is a critical component of generating income.

Entertainment, or as it’s been called in the industry “Retailainment,” plays a major role in where we shop, eat and even go on vacation. The Disney Stores, Nickelodeon Stores, Rain Forest Café, the entire city of Las Vegas and even McDonald’s have a form of entertainment. They have all created an image of where to play, eat and shop. They did it for one reason and one reason only, to generate income. Your store is no different. Children’s play rooms, Internet accessibility for customers and consultation areas all bring customers into the store along with proper lighting, flooring, wall treatments and signage. These things build an image that is customer friendly and create a shopping environment that maximizes consumer appeal and creates shopability.

The image you create along with the relationships you develop are why people come to your store and insure that they will continue to come back in the future.

Contact us at Newsletterinfo@gladson.com
View the Gladson Newsletter Archives