 |
| The Bon-Ton Stores is preparing to liquidate its assets Charles Krupa/ AP images |
Department stores seem to be closing faster than ever. Although department stores have been historically successful, there has been a rapid decrease in their popularity in the recent years. While some department stores are facing bankruptcy, there are still some notable stores that have been able to with stand this decrease in popularity, and stay relevant in today's society.
Studies have focused on what is considered effective in persuading consumers to shop at a store. Based off of the research, I narrowed one of the most important marketing techniques department stores have, down to nonverbal communication within the store.
Proximity
Personal space can influence the retail experience and the decisions each buyer makes. Nonverbal communication plays a role in if the buyer will voluntarily consume the product or not. For example, space and floor plans in organizations and the amount of space used has a correlation on how much a person is willing to spend. A department store must understand floor layout in order to effectively market to their customers. For example, a layout with the perfume section at an entrance is effective because it uses the nonverbal tactic "smell" as an inviting cue to come into their store.
Website Layout
Research also indicates that the way the department stores present themselves online has a correlation with effective marketing. For example, Macy's brand still has around 700 stores, but are scrambling to offer more exclusive merchandise and expand online. Clear website layouts help the consumer navigate through their products in a way that helps the customer make buying decisions without feeling overwhelmed by an unorganized website. According to research, clear layout and variety of selection on the website can reduce the customer’s search cost for quality information of experience goods.
Nonverbal communication is a highly researched topic, and many department and retail stores are aware that they need to market to consumers, so there is a gap in research on what effectively works. Department stores are facing financial problems, and if they don't switch things up online and in-store, in order to keep up with today's society.
Are there only two main factors contributing to the success of a store? I wonder if department stores will be able to make the kinds of changes you suggested, or if this is a natural evolution toward online shopping and away from the importance of malls/apartment stores.
ReplyDeleteDid you find any information why today's current population doesn't favor large department stores? Even thirty years ago, large department stores were booming places that attract many groups of customers. What trends have caused today's population do not find these stores attractive enough to buy their goods?
ReplyDeleteThis comment has been removed by the author.
DeleteI am on the same thought process as Christian! I think online shopping is/was a game changer in the popularity of department stores. Before, one would stop in a Herberger's or JC Penny's to get everything they needed for back to school shopping. Now, it's a few simple clicks on Amazon and there is no need for social interaction. confrontation, or fear of a product running out. Online shopping has become quicker, cleaner, and much more approachable than large scale department shopping.
DeleteIn addition, the newer, younger generations, ourselves included, have been raised in the digital age. We really didn't know a time without technology. We are used to instant gratification and response without even having to leave our living room. I think this is a large subject to consider when one is discussing the relation of age and the collapse of department stores.
How do you think these concepts relate to other types smaller stores? Do you think malls or shopping centers could utilize better structures as well? What made you most interested about this specific topic?
ReplyDeleteAlso, further research, I think it would be really cool to look at the set-up of Ikea versus other department stores as Ikea's design is incredibly unique and could be an important example to research.
I agree with you on how online shopping has radically changed how people shop. With stores having online sites and there being sites like Amazon and Zappos where all of their products are online. Do you think small business floor plans completely differ from big business ones, or do they hold many similarities?
ReplyDelete