The 𝐖𝐇𝐎,𝐖𝐇𝐀𝐓, 𝐖𝐇𝐄𝐑𝐄, 𝐇𝐎𝐖 𝐚𝐧𝐝 𝐖𝐇𝐘 𝐨𝐟 𝐏𝐇𝐘𝐒𝐈𝐂𝐀𝐋 𝐑𝐄𝐓𝐀𝐈𝐋
DTC brands are racing to open physical stores in an effort to diversify and capitalize on the foot traffic that is headed back to brick and mortar stores. In most cases, brands are looking for more affordable ways to acquire customers and build their brands. By following customers to “trending” zip codes like Austin, Nashville and West Palm Beach, brands are banking on increased market share. As a highly active customer, I want these brands to come to my city and my neighborhood.
But, I am afraid many owners and operators are going to be disappointed with their performance because they haven't fully answered the following questions:
𝐖𝐇𝐎 𝐢𝐬 𝐲𝐨𝐮𝐫 𝐭𝐚𝐫𝐠𝐞𝐭 𝐂𝐔𝐒𝐓𝐎𝐌𝐄𝐑?
What are their shopping habits?
What is driving their behavior?
What are their preferences?
What are their product priorities?
How has their lifestyle changed?
𝐖𝐇𝐀𝐓 𝐢𝐬 𝐭𝐡𝐞 𝐏𝐔𝐑𝐏𝐎𝐒𝐄 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐞?
To build brand awareness?
To drive loyalty?
To acquire customers?
To increase revenue?
To gather data?
To test a new concept or brand extension?
To leverage inventory?
𝐖𝐇𝐄𝐑𝐄 𝐢𝐬 𝐲𝐨𝐮𝐫 𝐢𝐝𝐞𝐚𝐥 𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧?
In a high traffic location?
In a mall or lifestyle center?
In a concept-store as a sub-lease?
As a pop-up in a dept store?
What are your best brand adjacencies?
What is the ideal size, layout, format?
𝐇𝐎𝐖 𝐰𝐢𝐥𝐥 𝐲𝐨𝐮 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭𝐢𝐚𝐭𝐞 𝐲𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐞?
With technology, customer experiences, services, additional categories, presentations, pause points, layout, inventory presentation, food and beverage?
𝐖𝐇𝐘 𝐰𝐢𝐥𝐥 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬 𝐞𝐧𝐠𝐚𝐠𝐞 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮𝐫 𝐛𝐫𝐚𝐧𝐝?
Why will they spend their hard earned dollars with you, in your location vs. the unlimited number of alternatives?
There is no right answer to any of these questions, but it is critical they be addressed. When these questions (and many more) are fully vetted, owners and operators can proceed with confidence and deliver an outstanding physical retail store.