Viewing entries tagged
Design Strategy

Portland’s Western Bikeworks reopens after extensive remodel

Portland’s Western Bikeworks reopens after extensive remodel

Published April 17, 2017

by BRAIN Staff

PORTLAND, Ore. (BRAIN) — After six years in its Pearl District location here, Western Bikeworks COO Mike Urness decided it was time to modernize the 10,000-square-foot store in order to up its retail game and deliver the upscale shopping experience Portland shoppers have come to expect. 

Urness worked with retail design firm 3 Dots Design to update the shop's interior.  

“We are just finishing the redesign and build-out of our downtown Portland store and 3 Dots was a huge help — from pulling the store design and layout together to helping us select materials, fixtures and mannequins and then connecting us with excellent suppliers and helping with negotiations, pricing and logistics,” Urness said. 

The remodel included carving out a triathlon-specific zone to house tri apparel, accessories, wetsuits and a complete offering of tri bikes. The tri section is located right near the bike fit area, so that high-end triathletes can easily dial in their perfect bike fit. Western Bikeworks recently acquired rights to triathlon retailer The Athlete's Lounge's name and customer base after it closed in 2016.

“This was an exciting project for us to work on, as Portland has some of the best retail stores in the country. This shop suffered from many of the same challenges that typical shops deal with; confusing sightlines, overwhelming bike presentation, uninspiring apparel sections and lack of signage or graphics,” said 3 Dots Design owner Holly Wiese

“I think customers will be very pleasantly surprised with the new vibe and layout of the store, and I’m confident that Western Bikeworks will start selling more product as well,” Wiese added.

3 Dots Design also reorganized the nutrition category and segmented the store's bike selection to make it easier for customers to shop. 

“To the average customer, a bike is a bike. I have a feeling Western Bikeworks was missing a lot of bike sales due to the average customer feeling overwhelmed and intimidated by the process of selecting a bike,” said 3 Dots Design’s Andy Davis. “We further segmented their collections and called attention to each category by featuring a bike in front of a graphic that clearly defines the end use. We also made a huge improvement in their nutrition category by reorganizing, re-fixturing and bringing in a sampling area for customers to try new products.”

Western Bikeworks also operates a second location in the Portland suburb of Tigard, which it opened in 2015. Urness said he plans to integrate some of the same principles of merchandising, graphics and signage from their main location remodel into the Tigard store.

Bicycle Retailer Minute Makeover Series - Episode 4: Add-On Sales

IndeAfter_43.jpg

Click Here For Episode 4 Video - Add On Sales

By Gregg Frederick

Editor's note: Gregg Frederick, CSE, MBA, is the principal of G3 Development Group, Inc., a consulting service that focuses on engagement through business development, retail development and human capital development. Follow Gregg on Twitter @g3leadership and on Linkedinwww.linkedin.com/in/greggfrederick

A key to growing your profitability is to perfect the art of the add-on sale. Whether in wholesale or retail sales, the most successful salespeople are those who add value to the customer experience by providing the customer with the product they need to enjoy the ride from day one.

As a retailer, providing a superior customer experience (CX) allows you to meet the expectations of today and tomorrow's consumer. The Retail Remodel projects that we've done with Bicycle Retailer, 3 Dots Design and Merchandising Werx have allowed us to create a visual environment that is conducive to creating a superior CX, but at G3 Development Group, we work with the retailer to maximize the CX by training the retailer on ways to engage them in-store and online.

To start on your CX journey, you must define the emotional outcome you want your customer to have when they leave your store. Everything you do and every product you have should have a purpose leading to that outcome. When your products complement the CX outcome that you've defined, you are on your way to maximizing the CX through the add-on sale.

To maximize the add-on sale, the Units-per-Transaction (UPT) calculation should be tracked. You should incentivize your sales staff on UPT goals. For one of our clients, we were able to get UPT from 1.75 to 3.75 in three months with a goal UPT of 4 (for every bike sold, there should be a helmet, lock, bag, cage, pump, lights, shoes, gloves, etc., suggested to go with it). Along with the growth in UPT, we saw an increase in P&A margin of 7 percent!

UPT is so important to us at G3DG, that we've influenced one of our brand clients to create a hang tag with a checklist of aftermarket products listed on them as a reminder to the retail sales person and the retail customer to not forget those high margin necessities that enhance the riding experience, i.e. the customer experience.

Like it or not, Amazon has mastered the art of a comprehensive shopping experience and you can take advantage of some of their best practices to increase add-on sales. The easiest to take advantage of is their ability to provide great recommendations on related products, also known as "affinity sales."

A well-merchandised store takes advantage of these affinity sales by grouping like items together. For example, create a well-merchandised area for inflation so that during the sales process your trained sales people can walk the customer through the necessities that will make their riding experience seamless, like floor pumps and CO2's. You can also do the same for apparel, helmets, locks, lights, shoes and socks.

We've seen tremendous success at retail using accessory sales packages as a way to create sales velocity around add-on sales. With a three-tier package, you can sell the cycling essentials together (helmet, lock, bottle and cage) at a discount over buying them individually, driving up UPT and gross margins.

Finally, up selling should not just be for the sales staff. The importance of using the service department to drive add-on sales should be a main part of your CX strategy. According to Joseph Michelli, the author of Driven to Delight, the lifetime value of the Mercedes Benz customer is linked to the customer's willingness to maintain a relationship with its service department. For many IBDs, the service department is often an afterthought, but has a huge potential to drive add-on sales through service packages.

According to Forrester Research, 90 percent of sales still come from physical retail locations, but the gap between meeting today's customer expectations at the IBD and what the customer receives online, is widening. With a focus on the customer experience, a highly trained sales staff, focused sales goals that include UPT tracking, and creating sales velocity around service and accessory packages, you will be able to drive your profitability through increased add-on sales.

3 Pro Tips That Show Why Your Retail Space Needs an Effective Signage Package

Why Your Retail Space Needs an Effective Signage Package

The importance of an effective signage package cannot be overstated. According to a survey by Ketchum Research and Analytics, 76 percent of consumers have chosen to enter a store they had never visited before based purely on its signage. Perhaps more importantly, 68 percent of customers admit to having made product purchases after a sign caught their eye.

When considering the effect of signage on your retail space, it is good to remember the ABC's. Effective signage:

  • Attracts new customers
  • Brands your retail space in the minds of customers
  • Creates increased impulse sales

Attracting New Customers

First and foremost, your signage outside and inside your retail space should be designed to draw the eye of passing customers. While it may be difficult to afford a massive marketing campaign to garner customer attention, well-designed signage is both affordable and effective. Unlike other forms of advertising, signage works for you 24/7, piquing customer interest in your products and driving traffic into your store.

Branding Your Retail Space

If your company has a trademark or logo, your signage should contain its image both outside and inside the store. Repeating text and images throughout your store via signage keeps your brand in the minds of your customers. The more consistent your signage is, the better your customers will remember the uniqueness of your retail space. Use your signage to make your brand more visible, more recognizable, and more conspicuous.

Creating Impulse Sales

Studies of retail shopping behaviors indicate that 68 percent of purchases were unplanned during major shopping trips and 54 percent on smaller shopping trips. Clearly, impulse sales account for a large percentage of total sales for a retailer.

Effective signage encourages impulse purchases by drawing the consumer's attention to the areas of your store that you want them to see. An attractive sign is both memorable and enticing. According to the Ketchum study, 68 percent of customers believe that a store's signage is a reliable indicator of the company's products or services. 

What does this mean for retailers? Simply put, your signage establishes your reputation with your customers, at least partially. Customers tend to believe that a company with a poorly designed or unattractive sign is likely to offer an inferior product or unprofessional service.

Location, Location, Location

Effective signage works not only on the outside of the store to bring customers in, but also on the inside of the store as well. In-store signs introduce customers to special products, promote sales, and give customers the information they need to make a purchasing decision on the spot. In-store signage coordinates your brand message throughout the customer browsing experience.

How to Make Your Signage Stand Out

To make the most of your signage, it is important to ensure that it meets the following criteria:

  1. Quality production: The days of hand-written, misspelled signs is definitely over. Modern consumers expect quality signage.
  2. Simple color scheme: While you want your signage to catch the eye, you do not want it to assault the eye.
  3. Easy to read: If customers cannot easily decipher the text and images on your signage, it will lose its effect quickly.
  4. Simplicity of message: Your message should be short and sweet. Longer messages slow down a customer and make impulse shopping less likely.
  5. Proper placement: Your signs should be placed in the areas you want your customers to browse. However, signs should never be placed in such a way that customer traffic is impeded, or merchandise is blocked.

If you follow these general guidelines, your signage will drive traffic to your retail space and promote sales. If you would welcome additional information about how to make your retail space all it can be, please contact us. We will be glad to work with you to promote your store in the best way possible.