In the ever-evolving world of hotel lobby design and higher than high consumer expectations, creating retail spaces that not only serve guests' needs but also drive revenue and brand vision is critical and requires intelligent retail design that begins with data and ends with ridiculously successful retail - and very happy shoppers!
Transforming underutilized spaces in high traffic common areas into vibrant, revenue-generating, self-service retail markets has never been more valuable to hotel guest experience and lease up rates, retention for multifamily residences.
However, too many brands and developers go straight to A&D or interior design agencies who focus purely on the aesthetics of retail rather than the Science behind it.
SUCCESSFUL RETAIL IS A BALANCE OF ART + SCIENCE!
All retail design should begin with a thorough analysis of the following key data points:
- Guest or resident profiles
- Desired product stations to meet guest and resident on-property needs
- Top selling products specific to those factors
- Emerging snacking trends that can't be ignored
- Technology Strategy
1. Guest / Resident Profile
Where is the store located? Who is using this space, what do they need, how do they buy, how much do they spend? Defining these elements can often be derived by the location, daily rate, lease rate, or basic demographics of those who use the retail outlet. GenX or GenZ? Cash preferred or tap pay types? Budget conscious or indulgent minded?
2. Product Stations
What core categories will be offered and how much space should be allotted to each? Are we offering hot beverage, will there be Pet needs, should grocery be included? What about those in-a-pinch personal care items or chargers and electronics? Dedicating adequate linear inches of space to shelving or significant square footage to offer key categories that draw in shoppers will wow them with the forethought and convenience, which results in revenue!
3. Best Selling Assortments
What are the best sellers within those Product Stations? What size, flavor, format turns the fastest, earns the most profit, and creates amazing retail experiences? Using actual sales data from hotel lobbies or multifamily community markets is critical to avoiding slow moving product or high shrinkage rates due to loss or expiration. Our Hotel Retail and Multifamily Playbooks are a great place to start.
4. Emerging Trends
What are the hot snacking trends that cannot be ignored even if they don't outsell the best sellers? Protein, plant based, socially responsible companies, and so many sparkling, flavored, specialty waters are those special touches that may not turn as fast as Snicker's or Doritos but often have a higher ticket price and a larger impact on experience.
5. Technology Strategy
It isn't grab-and-go if you have to grab and go wait in line for a cashier, front desk associate, or other team member to complete the sale for you. Offering self-service pay stations is an absolute must to nailing the science side of the equation. Be sure to plan for ethernet and power at ADA height in retail designs.
Be sure the Retail Point of Sale (POS) you choose has integrated inventory, automated replenishment, and revenue and product performance reporting to maintain ease of operation for the property manager. Seek a Retail Management System rather than just a POS, and you get all the bells and whistles needed to maintain the Science you put into your design.
The Importance of Data-Driven Retail Design
Good design is so much more than just aesthetics and pretty countertops; it is a balance of art and science.
it is about creating a space guaranteed to entice guests and residents through data-driven product assortment and merchandising strategies. By comparing Best Sellers data in Community Markets and Hotel Grab-and-Go Markets to IRI and national snacking data, a profitable, high velocity assortment of top sellers and emerging trends will drive revenue at the highest rates.
By strategically placing data-proven products, optimizing traffic flow, and utilizing every linear inch effectively to generate profit as a key metric, a well-designed retail space encourages guests and residents to browse and make purchases, significantly boosting your incremental revenue and overall satisfaction.
Sound like more than you want to tackle? Reach out to our design team.
It's what we do for the top hotel brands and CBRE's in the world!
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