What makes for a destination location? How can jewelry retailers develop store concepts that are so appealing to shoppers that customers will travel further distances to visit their stores? Why are specialty stores like jewelry stores especially interested in becoming destination locations?Specialty stores are retail stores with highly segmented product offerings. Jewelry stores are all specialty stores as compared to department stores who may or may not sell jewelry. Shoppers anticipate a greater selection of product when they shop retail specialty stores and it is this same interest in selection of merchandise that drives shoppers to destination locations. All retail jewelry stores have primary marketplaces that may be composed as only a few city blocks to several miles depending on the density of population and number of direct competitors.
As a general statement, local jewelry stores usually sell eighty to ninety percent of the total sales to customers who reside or office in their primary marketplace. The dependence on tourists is an example of a segmented group of customers that can change these numbers on a per store basis. Another example is the number of shoppers who come from outside the primary marketplace. Most retailer jewelers have some customers who reside outside their primary market area. However, stores who can attract twenty percent or more shoppers from outside their primary marketplace are defined as destination stores.
The number one reason why all retail shoppers prefer the stores they shop at is the same . . . selection. It has been that way for over a century! Having the right merchandise is critically important. Destination locations draw shoppers from outside their primary marketplace.
Department stores like Nordstrom are destination locations for many shoppers. That is why some shopping centers are now using Nordstrom as a magnet store. Nordstrom stores can draw shoppers from outside the immediate market area that benefits the entire shopping center besides Nordstrom.
Want to be a retail jewelry store with a destination location? Focus on developing a inventory mix that will attract shoppers from greater distances. What sort of merchandise will that require? Some brands have demonstrated the ability to attract customers from greater distances. It’s all about the merchandise you stock.
Consider the merchandise that does not distinguish your store from other jewelry stores. How is that merchandise not only exposing the store to more price negotiation, but also creating an undifferentiated store brand? How might a store better target segments of customers? Start by reducing the total number of categories carried and offer shoppers a deeper selection of merchandise. Selection is what drives more customers into a store from the primary marketplace and the secondary marketplace. Destination locations offer shoppers more desirable selections of products and are rewarded through the additional foot traffic drawn into the store.Follow JCK on Instagram: @jckmagazine
Follow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine