Visit our other websites:    On CE ... eSP ... Mobile Channels ... ECI news ... rAVe Europe ... Digital Signage News EMEA

Kantar Retail: Ugly Stores Make Successful Stores

E-mail Print PDF

Some of the most successful retail chains have one thing in common, Kantar Retail tells Business Insider-- outlets best described as "ugly," lacking in soft lighting and elaborate displays.

Ugly storeThe analyst gives the examples of the likes of Aldi, Dollar General and Costco. All offer "no-frills shopping experiences," and this allows them to invest the low prices customers really care about. And as a result, such retailers are booming.

"These retailers have very clear value positions that stand out in the marketplace-- that's whats driving their growth," Kantar Retail says.

"Frills" slashed by such retailers include shelving (Aldi keeps products in shipping boxes, reducing shelf stacking time), infrastructure (Dollar General stores feature flourescent lighting and basic metal shelves) and labour (meaning less staff per outlet). The result? The aforementioned stores see more growth compared to fancier rivals, since competitive pricing is what truly brings customers back.

Admittedly the analyst's targets are wholesale food retailers based in the US, but its lessons can be easily applied to the world of European CE retail. Perhaps it will prove the adage is true, and less is indeed more?

Go The Most Successful Stores in Retail Have One Thing in Common-- They're Ugly (Business Insider)