Physical Retail’s 80/20 Rule Is Rapidly Changing. Is Your Shop Ready?

The 80/20 rule for brick and mortar shops intended stocking their shelves with 80% fundamentals and 20 percent items which would surprise and delight shoppers. E-commerce altered that balance. With a click on your device, you can immediately order everything from toilet paper to toiletries, underwear to everyday wear. To drive shoppers into stores, retailers will need to give outside-of-the-box experiences, educational opportunities and highly engaged sales personnel. There is nothing simple about physical retail .

Stores have become showrooms

We touched on this in prior posts, but we can not stress enough how shops find themselves turning into showrooms. The prosperous new physical retail version provides experiences that can not be replicated via e-commerce. That might include personalization, super support and on site technology (think augmented and virtual reality).

These showrooms are heavy on human interaction. While there’s a good deal of hype about automatic voucher, there is also a recognition that clients like talking to educated people about what to buy. And guess what: those knowledgeable, trained sales flooring consultants are fabulous at upselling. The problem? In the huge majority of shops, shoppers socialize mostly with sales partners at checkout — the specific wrong place for an upsell. You ought to find ways to reach clients while they are still in buying mode and primed to hear new ideas.

And it has new ideas which are driving today’s brick and mortar sales.

Big on schooling

CVS, the nation’s largest drugstore chain, is diving big into in-store health care education. It only won preliminary approval to merge with health insurance Aetna. (CVS’s deep movement into health care is a means to battle online pharmaceutical sales, notably by Amazon.) To this end, CVS is encouraging clients to use the CVS MinuteClinics to handle health problems, including diabetes, blood pressure and weight, in addition to flu and colds. While lots of the merger attention has been on prescription medication, CVS is concurrently working on the promotion of holistic solutions.

We know that sleep, a nutritious diet and hand washing can decrease illness. To drive home the point about the benefits of sleep, the merchant is going large with screen. Can’t-miss giant Zs are topped with sleep aids, from nutritional supplements to sleep masks. Since there’s no single solution that suits everyone, CVS is tapping into the personalization trend — you select the best option(s) for you.

These health”Discovery Zones” are big, inviting spaces, and five decades back, it would have been unthinkable to devote as much square footage, particularly in the non-luxury industry, to tumultuous display. CVS can also be amping up signage and screen to direct shoppers and make their purchase decisions easier — by being enlightening, CVS makes shopping more convenient and instantly gratifying, in a manner that surfing a site never can. When you’re sleep deprived or seeking to ward off a cold, you need solutions here and now.

CVS is also maximizing information signage on its attractiveness”fashion wall” to highlight new releases and market brands. Good-for-you and diet-specific foods — high-protein, low-fat, sugar-free, fermented, all-natural, non-GMO — are given a shout-out with shelf tags. CVS’s plan is to utilize shelf stags strategically throughout all stores, not only in the food aisle, to help clients choose what is best for them.

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Eileen Fisher’s retail mecca — “ohm’s” that lead to “ahs”

The icon of chic, sustainable, comfortable clothes, could easily use all its floor space for sale. However, as part of its Making Space community-centered retail experience, the brand is trading in revenue fittings for workshops and local events. When customers walk into the shop, they are asked to write on cards they are”making space” for. As one client said,”I’ve always thought of this company as being about more than clothing. Creating meaningful impact is in the center of it.”

Compared to CVS’s oversized aesthetic, Eileen Fisher is keeping to its minimalist ethos. Instead of cram in a more t-stand with yummy sweaters and wraps, the merchant is making space for community and experience, developing a retail mecca for body/clothes, mind/meditation and soul/artisans. Floor displays highlight the way to repurpose worn clothing, and story boards enlighten shoppers about fabrics, applications and artists. It’s the type of high-touch, high-emotion experience which you can only get in person.

REI — actual experience in-store

REI has ever embraced the 80/20 rule in its own shops. The business has assembled high-touch private interaction into its earnings DNA, with some of the most educated, well-trained floor staff I have encountered (they turned me on wool socks for our family’s hiking experiences and had me carried with everything I need for our foray as new kayak owners), together with their highly enlightening in-store signage. It is a special experience each time I walk — because of its individuals. I know someone will direct me and share their profound understanding. I walk out more than satisfied — I walk out thrilled. And I seldom walk back in to return a purchase.

But successful specialty retailers such as REI are evolving. “If you are specialization, how do you distinguish?” Inquires REI CEO Jerry Strizke, Today, newer REI stores are turning earnings distance over to community area, and the Washington, D.C., flagship (the co-op’s fifth) features in-store classes and equipment shops that flow into common areas so that visitors can be moved and thrilled by new info. “…community, experiences, and doing it equally online and in-store,” says Stritzke,”You could argue that is old-school retail strategy, but it is still relevant.”

Inspired legacies, evolving in-store strategies

We have highlighted three heritage brands — REI has existed since 1938, CVS since 1963, and Eileen Fisher since 1984 — who are reacting to what shoppers want now: both physiological in-store anddigital online choices.

For these brands and a lot more, the choice to move away from decades of standard floor space utilization was likely fraught with heated debate, but survival is not about simple choices.Too many in mortar and brick abide by the mantra to squeeze every dollar from the retail floor. These examples show you could drive sales by bringing people together — sellers with sales advisers, shoppers with like-minded fans, shoppers that are on a journey to discovery. There is a synergy which you create that, in the end of the day, lights up your customer and your earnings.

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