Strategic Store Design is Critical to Meet Anticipated Increases in Holiday Traffic

It's not news that the global pandemic has continued to complicate both back-of and front-of-house operations for retailers, but the holidays are coming, nonetheless. Several factors will serve to increase the pressure on physical retail locations this year.

There's an increased desire to shop in stores and to shop earlier. Consider:

• 47 percent of consumers plan to shop in-store during the holiday season (an increase of 8 percent from 2020); and
• 40 percent plan to shop earlier than they did in 2020 because they anticipate shortages, long shipping times, and unexpected supply chain challenges related to COVD-19.

Whether in-store or online, both types of traffic will bring anticipated higher spending for the fourth quarter — up 7 percent compared to the same period in 2020.

To compete, retailers need to facilitate all types of transactions while balancing opportunities for discovery, brand experience, and the realities of availability. While this may sound like an overwhelming task, combined store design and operational planning can increase the chances of a successful season.

Forces Complicating Holiday Planning

Supply/availability is fraught with challenges. Almost every point in the supply chain has issues. Materials shortages and production delays, increased freight prices, and reduced space on containers and ships create inventory shortages.

There's also a marked labor shortage. "The Great Resignation" has resulted in companies across industries struggling to attract and maintain workforces this year. "The number of unfilled retail jobs spiked from about 750,000 before COVID-19 hit the country to 1.1 million this July, leaving employers racing to staff up for the holiday season, the critical few months in which most chains make a disproportionate share of their annual sales."

Areas of Focus

When these challenges converge, it may be difficult for retailers to know where to start. Health and safety? Enhanced or altered holiday store layouts? BOPIS/curbside optimization? The answer is yes to all. There are a few key store experience design thoughts that will help smooth out this season's complications.

Plan for and Optimally Orchestrate All Transaction Types

BOPIS

• Ensure designing/implementing your in-store BOPIS flow doesn't disrupt regular traffic flow.
• Clearly mark designated pickup areas with signage that directs participating shoppers there quickly.
• Carve out adequate storage for an influx of orders that will be waiting for pick up.
• Think through queuing so that a burgeoning line won't block entrances, exits, checkout or shopping areas.

Curbside

• • Curbside "guest-facing processes" should guide shoppers to the right location and have detailed and correct pickup information.
    • During online/mobile ordering, ask shoppers for vehicle information at checkout. Be sure that information is accessible to associates filling orders.
    • Provide shoppers with details on the pickup protocol and a code linked to their order to ensure that the customer gets the correct products.
    • Signage needs to direct to a true curbside location or designated spaces. Clearly mark those areas with signage that advises how to "check in."
  • On the retail operations side, ensure that the right products go into the right vehicles — the first time.
    • Provide for order accuracy. Ensure that in-store curbside management areas organize the products in a way that makes it easy for staff to locate orders.
    • Use order codes as a backup/means to double-check orders match to the right car.

Prioritize Wayfinding, Organization, Updated Information

"Sixty percent of shoppers have faced out-of-stock products in the last three months. Only 13 percent say they waited for an item to come back in stock; about 70 percent switch retailers or brands instead." Battle the tendency for shoppers to go elsewhere in two differing ways. First, place greater emphasis on the customer experience by displaying the most sought-after items prominently. Have clear and easy-to-see signage to communicate the offerings and educate your associates so they have a good grasp of where things are located. Second, consider the best ways to provide ongoing updates on out-of-stocks, expected restocking timing, etc. Make a plan for real-time stock and item updates on your online and mobile sites and use pre-printed signs that allow for "filling in the details" on the product status to help update availability timing or suggest alternative items.

Make it Simple for Shoppers 

For those shoppers that won't be in your stores, find ways to make holiday offerings more broadly available (if your inventory and logistics permit). Whether it's BOPIS, taking an online number to secure a place in "line," or extended days of availability, take the excitement of the deals and make them COVID-19 friendly. Be strategic about where you're placing your goods (and your shoppers) to drive impulse sales and create excitement in-store.

• Purposefully combine items that often sell well together near one another. This makes it easier to complete a gift and improves the odds of increased spend.
• Keep impulse-friendly options (e.g., stocking stuffers, holiday candy, etc.) near checkout to capture a waiting audience.

Proper queuing will be even more critical with potentially longer wait times, less patience, and added discomfort due to masks, crowds and anxiety to name a few. Consider unified queues, allowing guests to maintain distance, providing shoppers with items to browse for those well-placed impulse items, and reducing people standing in your walkways.

In summary, brick-and-mortar retailers are under immense pressure as shopper volume increases, inventory decreases, and expectations remain for stores to orchestrate superior shopping experiences and multiple buying paths. Without question, this is no small task. However, with a focused effort to think through each part of what's coming this holiday, you can be prepared for long lines, new delivery and purchase methods, and hopefully garner your share of the anticipated increased spending.

Lise Wilson is vice president, retail strategy at Miller Zell, which helps companies design their retail stores in ways that will make consumers want to spend more.