When it comes to boosting your bottom line, retail sales play a key role. Retail sales have a high margin, so they have always made a significant contribution to the overall profit of the spa business. While inflation has put pressure on retail sales, the National Retail Federation (NRF) is optimistic. In its annual forecast issued end of March, the NRF projected retail sales will grow between 4% and 6% in 2023. [1]
NRF president and CEO Matthew Shay said, “In just the last three years, the retail industry has experienced growth that would normally take almost a decade by pre-pandemic standards. While we expect growth to moderate in the year ahead, it will remain positive as retail sales stabilize to more historical levels. Retailers are prepared to serve consumers in the current economic environment by offering a range of products at affordable prices with great shopping experiences.”
Also of note, while retail sales slipped in February – 0.4% after jumping a revised 3.2% in January - shoppers spent more online and at electronics stores, health and beauty stores and food retailers, according to the Commerce Department retail sales data.[2]
Keep retail sales strong
To boost your retail sales, you will want to do the following:
Offer the right products: Make sure your products are what your customers want to buy to satisfy individual needs, at the same time providing you with a profit. Products need to be priced at a level that makes it possible for customers to buy them and gain value at the same time. Some products you would like to offer may be too high for your customer base. Offer specials and discounts – buy one get one for half off, for example – to make pricing more attractive. Make sure your customers know about your products through your website, social media channels, email mail marketing, and signage throughout your establishment.
Be informative: The retail experience needs to be informative. Shoppers want more information about products in the store to help them make the best buying decision and that information must be consistent with information they can source online.
Maximize merchandising: Shopping is aided is by attractive displays and windows. There is a lot of art and even science that goes into creating a display that attracts the eye and holds a customer’s attention. If your retail displays are not attracting enough attention and sales, consider the following:
- Every good display needs a focal point or main item or feature you want the customer to see.
- Good lighting helps to attract customers. It makes products stand out and enhances colors.
- Customers are drawn to colors. Use bright colors as focal points.
- Location matters. In addition to creating a retail space near the entrance. Also consider display areas in your treatment rooms and even along highly trafficked hallways areas.
- Take advantage of the various holidays or seasons to create a theme around retail offerings.
- Keep things fresh by changing your displays routinely.
Get your team onboard: Your team is critical to the success of your retail effort. Work closely with team members to ensure that your team meets customers’ needs and expectations and strives to give the best service all the time. To do that:
- Have a plan and share it with your team.
- Manage your team with facts and information. Make decisions based on information and analysis.
- Reward and incentivize your team. A motivated team is the first step to ensuring happy customers.
While treatments are what brings in clients, retail should not be a stepchild. There is an enormous profit opportunity in retail offerings. Make retail a significant part of your revenue.
[1] NRF Press Release, “NRF Forecasts 2023 Retail Sales to Grow Between 4% and 6%,” March 29, 2023. https://nrf.com/media-center/press-releases/nrf-forecasts-2023-retail-sales-grow-between-4-and-6
[2] D’ Innocenzio, Anne, “Retail sales dip in February after buying burst In January,” Associated Press, March 15 2023. https://apnews.com/article/retail-sales-inflation-economy-consumer-d6c196bd068d441d7c87d70d945e8fdf