Retailers step out of stores to nudge consumers in

What does a retailer do when escalator branding, hoardings and other forms of advertising fail to attract a big number of footfalls in his store?

Think out of the box, of course.
And many are doing exactly that - by putting a strong focus on activities outside the store premises. To a consumer habituated to in-store promotions, this interface works, retailers say.

Shoppers Stop, the K Raheja Corp promoted large-format lifestyle store chain, has hit upon the idea of live mannequins. The store is using models in groups of eight, dressed in Shoppers Stop merchandise, roaming through high footfall areas within the mall - such as the food court, atrium, etc carrying high-visibility placards, announcing discount sales within the store.

Vinay Bhatia, vice-president, marketing and loyalty, Shoppers Stop, said this initiative has been rolled out 20 days back at three malls - Inorbit in Mumbai, Ansal Plaza at Delhi and Garuda in Bangalore — and going by the good response this could be replicated at other malls in the country, too.

 “This sort of a strategy is directed at the regular mall goer for whom escalator branding, hoardings and other forms of advertising have become staid,” Bhatia said.

The models can interact with consumers, answering questions such as how long the sale will be on within the stores, etc.

Shoppers Stop has been using another out-of-the-store strategy. Here, the chain sets up counters within the high-footfall areas in malls, displaying impulse purchase products such as accessories, perfume testers, etc.

This is like a movie trailer. If one wants to buy any of the stuff on display, he/she has to walk into the Shoppers Stop store.

“Shoppers Stop is generally an anchor tenant in a mall and attracts mall footfalls. Yet, there are some who don’t walk into our stores. These stalls are targeted at this category,” Bhatia said.

Spencer’s Retail, too, has held sales outside its store premises in various cities, including Delhi and Kolkata. These were done, according to sources in the company, to not make money but liquidate stocks and free up working capital.

Recently, in Kolkata, the retail chain’s book retail division, Books and Beyond, held a stock clearance sale outside the store, which drew in footfalls by droves.

A marketing analyst said, “Even if a sale is held to liquidate out-of-season stocks, it can summon brand recall.”

Vishal Retail gets going during the festival season. It sets up tents just outside its stores, displaying fast-moving products, ranging from consumer durables to food items, complete with strategic lighting and music, etc.

“The stores get very crowded during festivals and this can be a turn-off for some prospective customers. The idea is to not to lose footfalls and give every customer a chance to purchase at least something,” Ambeek Khemka, group president, Vishal Retail, said.

At Hypercity, the four hypermarkets run by Hypercity Retail India (owned by the K Raheja Group), some customer activation programmes have been done at mall atrium for new launches.

“These have been successful in driving sales,” Esha Anand, head, marketing and visual merchandising, Hypercity Retail India, said.

She said, “We also map our catchment area and regularly do residential activation like new product demos to inform customers about our latest discoveries.”

A retail analyst with Angel Broking said, “The bigger picture is to increase sales and capture a bigger chunk of the consumer’s wallet.”