Study Shows That Store Renovations Lead To Increased Sales
At Synergy Merchants, we’re well aware that Canadian business owners have numerous ways to grow their businesses. Advertising is an obvious one as getting the word is always important. Expansion is another great candidate for ensuring business growth. Opening a new location always earns a brand a bigger customer base. Store renovations are also popular choices for business owners who are looking to invigorate more interest in their shops.
In fact, store renovations have a history of helping business owners boost their sales. They’re well known for enhancing the overall images of companies and even spiking the enthusiasm of the employees who work for them. However, studies have shown that one of the biggest benefits of renovating a store is that it leads to an increase in sales. This has been evidenced by a 2014 study published in the Journal of Marketing.
As reported by Brett Smith on redOrbit.com, the study found that remodelled retail spaces can boost sales by as much as 50 percent. Tracy Danaher, a professor of marketing at Monash University in Australia, authored the study. She highlights the importance of the in-store experience for customers, noting how the appearance of a retail space can motivate people to spend money.
“The in-store experience continues to have high relevance; retailers must keep their appearance modern, fresh, and in line with that of competitors,” she is quoted as saying, “The look, feel, and mood of a firm’s retail or service environment are unique and crafted purposefully to contribute to the brand and ultimately, its profitability.”
And while the study notes a difference between the impact of store renovations on both the existing and new customers of a store, evidence suggests that they both increase their spending. Thanks to a remodelling, sales to existing customers can rise by 7 to 10 percent while sales to new customers can increase by 43 to 44 percent.
“New customers’ perceptions of the retail environment—including its atmosphere and layout—were much higher than those of existing customers,” added Danaher, “They also perceived significantly greater service quality and higher levels of customer satisfaction. However, for all customers, remodelling not only enhanced perceptions of the store’s layout itself, but also changed psychological responses and purchase behaviour.”
At Synergy Merchants, we have a lot of experience working with Canadian retailers who have used their merchant cash advances to afford major renovations to their stores. Each one of them has reported great success following their remodelling ventures. With a fresh new start at impressing their target audiences, our clients have discovered that store renovations are great ways to bring more customers through the doors.
“Store remodelling is expensive, so managers must weigh the benefits against the costs,” Danaher states in Smith’s article, “It might take a couple of years to recoup the outlay, but the encouraging returns shown in the study should prompt managers to view remodelling as a strategic marketing investment rather than a necessity to endure every decade.”
If you’re considering renovating your store, but need to attain some extra working capital in order to afford the process, please don’t hesitate to contact Synergy Merchants to learn more about our unique merchant cash advance program. We encourage you to speak with one of our licensed funding specialists to get a free, no obligation quote!
Getting your hands on the money you need to renovate your store is easier than you think. Give us a call at 1-877-718-2026 or email us at firstname.lastname@example.org.