Retailers are making changes quick, hustling to keep up with ever-changing consumer demands. It’s no surprise that some bad information gets mixed in among the recommended strategies for retail success.
Retail brands want to make decisions that move their company forward, but sometimes the insights and concepts recommended by one entity don’t align with the advice coming from a different corner of the industry.
It’s tough out there in the real world, but help is on the way. Read on to learn about two busted retail myths that will simplify your strategy and save you from making grave retail mistakes.
Promotions Are Overrated
Almost every major retailer runs promotions to bring in shoppers. In the past few years, they’ve ramped up that spending across the industry, hoping that better deals with bring in additional shoppers.
But research from Nielsen has dispelled the notion that these promotions pay for themselves: According to the organization, almost 60 percent of promotional dollars aren’t made up for by subsequent sales.
The reason? One-time promotions don’t create loyal shoppers. Successful strategies will drive multiple in-store visits from consumers, instead of one-time trips where they come only to take advantage of a promotion. Reliance on promotions to bring in shoppers is a recipe for plummeting revenues.
Size Matters — But Not The Way You Think
Nielsen notes that over the past 10 years, the average size of a retail store has shrunk from 13,500 to less than 13,000 square feet. Stores are getting smaller, and shoppers are getting happier: They tend to prefer smaller spaces with more manageable sales floors and easier checkout processes.
Retailers face a need for seamless omnichannel selling that combines the convenience and ease of smaller stores with the online inventory options available through e-commerce. Consumers rarely shop exclusively in stores or online — they alternate between both, and retailers should build an infrastructure suited to this behavior.
By spending less on promotions, optimizing your retail space, and building a strong omnichannel platform, retailers can avoid common pitfalls and start creating a store for the future.