Increasing store traffic and sales per square foot October 18, 2007Posted by David Dirks in Building Foot Traffic, Increasing Your Profitability, Sales Tactics.
One way to increase store traffic, regardless of how small or large your square footage, is to create a bargain bin and go deep. Select slow selling inventory, or buy low-cost but popular utility items and place them in a well noted area DEEP WITHIN YOUR STORE. Make people have to walk through the entire store to get to your ‘bargain bin’. Make sure every time you advertise, you mention your bargain bin. Bargain bins can add value only if the merchandise is priced well but not below cost. They work if you constantly add to the bin, keeping it fresh with new product.
Your goal is to make sure that each customer has a chance to see other high-margin items or ‘sale’ items on their way to the bargain bin. The combination of picking up more sales per customer and moving low margin merchandise at high volumes mean more overall profit for you.
The key is to make your bargain bin worth making the trip for. It should take on a life of its own. I’ve been to many retailers who create the bargain bin but forget to keep the inventory full and fresh. What you have then is nothing for anyone to get excited about. People want to know that there is a possibility of ‘discovering’ some exceptionally well-priced merchandise in that bin. The search for the customer almost becomes more fun than buying the product itself.
I don’t care what business you’re in, you can do this and be on your way to increase both your store traffic and sales per square foot. Oh, and if you do it right, you’ll improve your profitability too.