3 Cost Effective Store Formats Brands Should Seriously Consider

Aug 24, 2016 — Faai Steuer
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You may already know that brick-and-mortar is not dead, in fact it is alive and transforming. The physical store is growing and evolving into to something that serves a higher purpose for retailers and brands. 

A physical location can help to build customer relationships, gain brand recognition in a crowded digital landscape and drive website traffic.

They can also accelerate growth for e-commerce brands such as Indochino. By having a physical location, customers can be measured for custom suits and at the same time have an opportunity to touch and feel the fabric before completing the customization of their suit in-store or online.

Having a physical presence doesn’t need to break your bank, especially if you are a startup. Here are three ways you can increase your physical presence. 

 1. Pop-up stores

Pop-up stores have come a long way. Today pop-up stores have evolved into an increasing variety of formats as brands experiment with location, duration, and collaboration. It is a great way for brands to acquire new customers and spur short term sales. Pop-up stores allow brands to apply the scarcity tactic by limiting time availability and creating a sense of urgency. This store format can give you a high return on investment because you can capture demand driven by temporary spikes in traffic, such as special events and seasons. 

2. Store-within-a-store

This concept is not new, but has gained momentum in the last couple of years in a smaller format beyond the traditional format such as a department store. For example, a mobile kiosk in a supermarket or a juice bar in a clothing store. The great thing about this format is that you can borrow traffic from those retailers. There is less cost and commitment than opening a permanent store. You can also use it as a pickup location for your online store, and at the same time, build brand awareness among new traffic coming through the store.

3. Shop on wheels

The benefits of having a store on a truck are obvious. It can go anywhere, and the overhead is much lower because you don’t have to pay for renting the space. Mobile stores are a great way to drive marketing and brand awareness, and in turn, increase website traffic. You can use this opportunity to survey locations for opening a permanent store and receive face-to-face feedback from customers. A shop on wheels can also be used as a fulfillment center for an omnichannel customer who would like to order online and pick up the product in person.

Depending on your goals, business model and your level of investment, you may find one of these options suits your business more than the others. 

Curious about how a POS solution would fit into these store formats? Check out our infographic on the evolution and future of POS below. 

 

See Infographic

Topics: Retail Operations, Customer Experience, Retail Marketing

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