Retailers: Sell the Tactile Experience

Though final numbers aren’t in, it’s estimated that online sales rose to 16% of the expected holiday revenue for the 2012 season. What can retailers do to continue to entice buyers to their brick-and-mortar stores? Sell the tactile experience, the one thing you can’t get in the cyberworld.

Of course there’s something to be said for feeling home goods and trying on clothes, but more retailers are adding culinary experiences to their list of offerings. Tommy Bahama’s flagship store on Fifth Avenue offers tropical print shirts as well as a restaurant in a cruise or resort style setting. 13 of its stores offer similar dining experiences. 97 stores do not. The 13 combination stores generate two and a half times the sales per square foot than the apparel only locations! The food is neither a loss leader nor marketing gimmick. Tommy Bahama’s dollars per square foot measurements rival Coach and Lululemon Athletica.

The food isn’t cheap, especially when compared to fast-food you’ll find at some big box retailers. Rather the food service is in line with the brand’s upscale lifestyle positioning.

Urban Outfitters offers lamb and striped bass at Terrain home and garden store in Westport, Connecticut. UO has found that offering food doubles the time shoppers spend browsing! Banana Republic offers cocktails at shopping events for its VIP customers. Ann Loft has occasional Friday happy hours. J.C. Penney plans to add juice bars and coffee shops. (Will this be too little too late for the struggling retailer?)

Is this a new idea? In the 1900s many department stores had restaurants or tearooms. Perhaps you’ve heard of the classic Chicago Walnut Room at Marshall Field’s (now Macy’s). What about the Zodiac restaurant at Neiman Marcus in Dallas. Nordstrom has offered food for many years with more than 200 eateries and coffee bars.

Today’s consumers are enticed by culinary experiences, evidenced by the popularity of shows like Top Chef, the growth of Farmer’s Markets around the country, and simply the fact that we can’t eat on the Internet. Food has become bigger and bigger in entertainment value. The warning? Don’t lose a guest over a poor meal. Remember that your customers view all your services and products on an average. One bad meal and they might not ever shop with you again even if the $98 polo shirts were their favorite.

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