design:retail - September/October 2019 - Trion3

Photo:
iStock.com/fiphoto
Photo:
iStock.com/fiphoto

According
According to
to Retail
RetailNext,
Next,94%
94%of
ofretail
retailsales
salesare
arestill
stilloccurring
occurring
at brick-and-mortar
brick-and-mortarstores,
stores,yet
yetfoot
foottraffic
trafficisisdeclining
decliningat
atan
anannual
annualrate
rate
of 15%
15% and
andhalf
halfof
ofthe
thecustomers
customersare
areshowrooming.
showrooming.

In order to combat
combat the
the alarming
alarmingdecline
declinein
inthe
thenumber
numberof
of
store visits, retailers
retailers need
need to
to motivate
motivateconsumers
consumersto
toget
get
out of their chairs and
and go
go to
to the
thestore.
store.Retailers
Retailersneed
needto
to
focus on giving shoppers
shoppers what
what they
theycannot
cannotget
getat
athome,
home,
in an environment
environment that
that entices
entices them
themto
tomake
makethe
thejourney.
journey.

By
Byunderstanding
understandingthese
thesekey
keyfactors
factors(both
(bothcurrent
currentand
and
emerging),
emerging),Shop!
Shop!will
willwork
worktowards
towardsthe
thecreation
creationofofROI
ROI
standards
for
store
redesigns.
Shop!
is
working
collabora-
standards for store redesigns. Shop! is working collabora-
tively
tivelywith
withkey
keyindustry
industryplayers
playersfrom
fromthe
theretailing,
retailing,branding
branding
and
store
design
industries
to
create
these
standards.
and store design industries to create these standards.

Making
Making those
those changes
changes require
require resources
resourcesand
andresources
resources
require
ROI
justification,
yet
there
are
no
definitive
require ROI justification, yet there are no definitiveindustry
industry
standards
for
measuring
the
results
of
the
investment.
standards for measuring the results of the investment.
Measurements
Measurements that
that are
are available
availableare
areoften
oftenfraught
fraughtwith
with
caveats,
varying
by
sector
and
oftentimes
neglecting
caveats, varying by sector and oftentimes neglecting
intangible,
intangible, but
but significant,
significant, costs
costsor
orbenefits.
benefits.

In
In2014,
2014,Shop!
Shop!worked
workedwith
withEWI
EWItotogain
gainaabase
baseunder-
under-
standing
of
the
ROI
on
retail
design.
The
research
standing of the ROI on retail design. The researchwas
was
concentrated
on
stores
with
physical
remodels
affecting
concentrated on stores with physical remodels affecting
aavariety
varietyof
ofshopper
shopperinfluencing
influencingfactors.
factors.The
TheEWI
EWIteam
team
cross-
referenced
the
data
from
the
various
projects
cross-referenced the data from the various projectsand
and
gathered
gathereddata
datathrough
throughaasurvey
surveyofofcurrent
currentretailers.
retailers.The
The
surveys
surveysfocused
focusedon
onunderstanding
understandingthe
theretailers'
retailers'motiva-
motiva-
tions,
goals,
and
expectations
of
a
store
redesign,
tions, goals, and expectations of a store redesign,asaswell
well
as,
identifying
the
various
scopes
of
each
project.
as, identifying the various scopes of each project.

At
At the
the same
same time,
time, projects
projects must
mustinclude
includecommitment
commitmentto
to
credible,
attainable
ROI,
a
goal
that
is
often
credible, attainable ROI, a goal that is oftenaabattle
battlewith
with
uncertainty.
uncertainty. This
This is
is driving
driving discussions
discussionsbetween
betweenretailers
retailers
and
their
vendors.
Discussions
revolve
not
and their vendors. Discussions revolve notonly
onlyaround
around
identifying
identifying the
the experience
experience goals
goalsand
andexecution
executionplan,
plan,
but
also
around
the
results
the
retailer
but also around the results the retailercan
canexpect
expectto
to
gain
from
the
investment.
gain from the investment.
To
To aid
aid in
in the
the calculation
calculation of
of ROI,
ROI, Shop!
Shop!seeks
seeksto
tounderstand
understand
key
ROI
variables,
considerations
and
methodologies
key ROI variables, considerations and methodologiesfor
for
the
the industry.
industry.

2017 Shop! ROI Standards: Store Redesign
2017 Shop! ROI Standards: Store Redesign

Building
Buildingoff
offthe
thefindings
findingsfrom
fromthe
theEWI
EWIPaper
Paperpublished
publishedinin
2015,
2015,Shop!
Shop!endeavored
endeavoredtotofurther
furtherunderstand
understandthe
thecurrent
current
ROI
measurement
habits
in
the
retail
industry.
Last
ROI measurement habits in the retail industry. Lastfall,
fall,
Shop!
conducted
a
survey
with
key
players
in
retail,
store
Shop! conducted a survey with key players in retail, store
design,
design,and
andfixture
fixturemanufacturing.
manufacturing.

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design:retail - September/October 2019

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