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One Stop Shop. Marketing Policy Winter Term By: Elizabeth Akinsanya And Spencer Haag . Article: The Rise of the Retailer- Restaurant .

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one stop shop

One Stop Shop

Marketing Policy

Winter Term

By: Elizabeth Akinsanya

And Spencer Haag

article the rise of the retailer restaurant
Article: The Rise of the Retailer- Restaurant

This article found in businessweek highlights well known retailers such as Tommy Bahamas, Urban Outfitters and Nordstrom expanding into the restaurant industry

Retailers are opening bars, restaurants, offering special events where food and beverages are provided

In every example of retailers providing food the article shows how the food they are providing properly represents their brand and that the price is appropriate

Tommy Bahama's provides Island styled items on the menu

Walmart features fast food restaurants within their superstores

marketing ploy or profit generator
Marketing Ploy or Profit Generator?

Offering signature food and beverages will attract new customers into the store, although was that the purpose?

Tommy Bahamas says that it was not a marketing gimmick or a loss leader, its 13 combination restaurant-stores generate two and a half times the sales per square foot of the apparel chain's 97 regular locations.

Restaurants generate 12% of their $452 million annual revenue revenue.

online shopping
Online shopping

Using food and drink to lure customers into stores

Ann's Loft has offered occasional friday happy hours

Banana Republic has offered cocktails at exclusive shopping events for their best customers as a way of introducing new products

During the past holiday season online shopping was predicted to be 16% of the $586 billion spent.

Traditional merchants want to slow the change to online shopping so they can provide an in store experience

With TV shows such as Bravo's Top Chef, evidence shows that consumers are hungry for the a meal alongside their shopping

Traditional retailers hope that food will make a shopping experience memorable


Has offered food for many years

Currently operates 7 different kinds of in-store restaurants

Total of more than 200 eateries and coffee bars

Has tested operating a contemporary diner called Sixth & Pine

-Nordstrom is taking the restaurant business to the next step



People get to eat and drink before/after/while shopping to create the shopping ultimate experience


Tapping into an unknown industry


Able to attract customers into stores, can capitalize on the full sale and impulse buying (as opposed to online shopping that they can not influence)


If not executed properly it can result in loss of retail customers

the risk
The Risk

Tommy Bahama's president, Doug Wood, says that there is a major risk in aligning the brand with food.

“You have the opportunity to lose a guest with every single meal, and they'll look at that meal as an extension of every product you sell, so to fail is to fail big, It’s the difference between ‘I just bought this Tommy Bahama shirt, and I don't like it as well as the other ones I have,’ vs. ‘I just had a meal, and I got sick, and I'm never going to go back again, and I'm not going to buy their clothes,’ It’s challenging to operate, but if you execute it right, it’s magic.”


What do you guys think about adding restaurants to retail stores?

What about bars?

How would shopping while having a few drinks change the way you shop?

Is this a good idea?