One Stop Shop Marketing Policy Winter Term By: Elizabeth Akinsanya And Spencer Haag
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? 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 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
Nordstrom 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
SWOT Strengths People get to eat and drink before/after/while shopping to create the shopping ultimate experience Weaknesses Tapping into an unknown industry Opportunities 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) Threats If not executed properly it can result in loss of retail customers
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.”
Opinions? 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?