You’ve probably heard about it on TV.
Maybe you’ve overheard some of your customers talking about it.
But what is retail therapy, really?
And more importantly, does it work?
As a business owner, retail might feel anything but therapeutic for you.
The retail industry has changed so much in the past few years, and it takes energy to keep up.
As a going out of business sale consultant firm, we’ve seen how complex the last few years have been in the retail world.
But if you’re not ready to retire from your retail business just yet, read this article.
Investing a little energy into creating a retail therapy experience can revitalize your business and boost your sales.
Let’s take a closer look.
What Is Retail Therapy?
Retail therapy is shopping to make yourself feel better.
After a long day at work, receiving disappointing news, or when they’re just feeling down in the dumps, some people go shopping for a little pick me up.
Some don’t plan to make purchases – they benefit by being out in the world, using their senses to take in new things, or disconnecting from their thoughts for a little while.
Others will set a budget and use retail therapy as a moment to indulge in little luxuries.
Still others may use retail therapy as a time out, focusing on purchases they need but taking their shopping time as a break from daily stresses.
Why Does Shopping Make Us Feel Better?
You might think retail therapy is just about the thrill of getting something fun, shiny, and new, but that isn’t so.
Shopping when you’re blue is about more than just spoiling yourself and being around attractive things – it has real therapeutic benefits.
Retail therapy checks a lot of the boxes that therapists recommend as ways to cope with low mood.
1. It Distracts Us From Life’s Frustrations
Retail shopping is a feast for the senses.
Bright lights, colours, smells and textures all stimulate the mind and nervous system.
This offers your customers something to focus on outside of their daily troubles.
Whether your retail store is minimalist, follows a theme, or is simply a reflection of you, the environment you create can give your customers a world to escape into for a little while.
Keep this in mind as you arrange your store, especially if you’re running an end of season sale.
2. It Gives Us A Dopamine Hit
Dopamine is a hormone that your brain uses to send messages throughout your nervous system.
Doctors use dopamine generating medication to treat people with ADHD and use prescription dopamine to improve heart function and blood flow.
It literally gets your brain working and your heart pumping.
The anticipation of something enjoyable or satisfying stimulates the brain to release dopamine.
Buying a treat to enjoy later, thinking about an indulgence, or filling up a shopping cart can give your customer a little burst of feel good energy.
3. It Gives An Opportunity For Socializing
Even when people shop by themselves, in person shopping gives your customers an opportunity to be around other people.
For parents of young children, shopping can be an opportunity to be around other adults and feel like themselves again.
Many people will head for a specific store when they’re down because of their friendly staff, or because there’s good people watching in that particular area.
RELATED: What To Consider When Picking A Retail Store Location
This is why having helpful, friendly staff is a great tool for how to get customers to keep coming back to your retail store
How To Use Retail Therapy To Improve Your Store’s Sales
Now that we know more about how retail therapy works, how can you recognize and convert this type of retail shopper?
Let’s take a look.
1. Remerchandise Your Store
Think about the layout of your store, and how customers tend to move around.
What draws people in?
What path do they take as they walk through the store?
Where do they naturally stop?
The placement of your merchandise can impact the chances of your customer picking something up and taking it home.
Treat your best selling items as major attractions and organize other products so they’re visible close by.
Create a path for your customer, drawing them to see what you want them to see and encouraging them to move towards the checkout.
RELATED: Why Is Remerchandising Your Store Key To Success?
2. Bundle Your Products With Others
What says retail therapy better than buying something that will cheer you up?
Getting a deal on two things that will cheer you up.
Bundling is a great way to encourage your customers to add complementary products to their purchase.
To bundle your products, find items that go well together and will help your customers feel good.
Think a small aromatherapy candle bundled with some of your bath products, or a watch paired with a matching set of earrings.
Offering an incentive to add an item that will enhance your customers retail therapy experience helps you increase your sales.
Be sure that the incentive is clear to your customers by displaying the items packaged together, using signage, or training your staff to tell customers about the promotion.
3. Know What Your Customers Want And Like
Your customers come to your retail store because they want what you have on offer.
Try to tap into what is unique and popular about your store and your best sellers to get insight into what appeals to your customers.
Do your customers remark on the soothing atmosphere in your store?
If so, consider stocking gift items focused on relaxation or meditation.
Did your most recent shipment of widgets move much faster than other widgets you’ve carried?
Consider things like price, quality, design, style and maybe even scent, to get a better idea of what your customers appreciate.
4. Surround Your Checkout With Lower Priced Impulse Items
When someone is looking for a little bright spot in their day, adding another few dollars to their purchase can be worth it for the extra treat.
If you’re a craft supply retailer, try displaying things like pin cushions, glue sticks, scissors, and other ‘you can never have enough’ items near your checkout.
You can also try catering to the type of customers who come into your business.
If a lot of parents stop in with little ones after school and daycare pickups, keep kid friendly snacks, travel packs of baby wipes, and single juice boxes within reach.
Is your sporting goods store located near a busy office building?
Stock protein bars, energy gel packs, and sport socks by the register for busy professionals who want to fit a workout into their workday.
5. Offer Choice, But Not Too Much Choice
The less time your customers spend thinking about what they’re going to buy, the lower the risk that they will change their minds.
If you have a really great feature item that comes in a dazzling array of colours, put that dazzle to good use in the window display where it can attract customers.
Otherwise, try to keep your displays uncluttered and your customer’s decisions uncomplicated to maintain the retail therapy experience.
Try offering a single type of item at no more than two price points, or one item in three to five colours or flavours.
By limiting options, you avoid creating decision fatigue, which can drive customers out of your store.
Contact Silverman Consulting And Retail Services Today
Of course, all this hinges on your wanting to stay in retail in the first place.
But if you’ve decided it’s time to close your doors, we can help.
We’ll help you run a store closing sale that helps you liquidate as much product as possible, giving you a strong start for the next phase of your life.
Contact Silverman Consulting and Retail Services today – we’re here to help.
Silverman Consulting & Retail Services229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069