I recently visited one of Kohl’s mall-based stores. It’s a large shop on two levels, so there is more space and scope to offer a deep assortment and merchandise creatively. Positively, the store was fairly neat; nowhere near as messy as many other Kohl’s I have visited. Unfortunately, it was also extremely lackluster and very difficult to shop. Merchandising is dense. Delineation between departments is poor. Sightlines are bad. Displays are somewhat random. Lighting is poor. And so on. The net result is a very unappetizing shopping experience that does little to entice the customer or make their journey easy. Now, one question I often get asked is: does this actually matter? Does it really damage sales? Fortunately, we track lost sales. And the answer is very clear: yes, it does. Last year, we estimate that poor merchandising and friction in the store shopping experience cost Kohl’s $832 million in lost sales. This is from people either spending less than they intended or forgoing purchases they came in to make. Now, let’s be clear. Every single retailer and store has lost sales. It’s a part of doing business and no one ever reduces it to zero because there will always be something unsatisfactory to some consumer. It is also impossible to execute flawlessly at all times. But, the issue with Kohl’s is twofold. First, as a proportion of overall revenue, lost sales are much higher than for other retailers. Second, the value being lost has increased sharply over the past five years and is still going in the wrong direction. Stores and store experiences matter. Ultimately, they impact the top and bottom lines. That's why it's important to invest in people, places and processes. #retail #retailnews #stores #merchandising #
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