Should Increasing Dwell Time Be a Goal for All Retailers?

The Wall Street Journal chronicled how Canada Goose, Coach-owner Tapestry, and Tanger Outlets are adding amenities to encourage shoppers to spend more time shopping in stores in an attempt to increase their chances of conversion.

Among the amenities, Canada Goose is adding VIP lounges, curated displays, and Canadian art to some stores to join its cold rooms that offer shoppers a chance to try on parkas in sub-zero weather. Certain Coach stores offer coffee and cocktails for purchase as well as furniture to relax in. Tanger’s outlet centers are increasingly adding central lawns and entertainment options.

The investments come as WSJ noted that “dwell time,” or how long shoppers spend browsing in stores, has declined in recent years as online shopping has grown and customers look for more experiences to warrant a store visit.

Grant Gustafson, head of retail consulting and analytics at Sensormatic Solutions, which tracks store traffic, told the outlet, “The longer someone is spending in the store, the more likely they are to convert and be turned into a shopper or purchaser.”

Adding free Wi-Fi, background music, and digital signage are also common methods to extend dwell time.

A Path Intelligence study from 2007 involving a shopping center in the UK found that sales can increase 1.3% by increasing dwell time by 1%. However, not much research has been done around which channels benefit from dwell time.

Luxury selling, where a pricy purchase takes more consideration time, is assumed to particularly benefit from dwell time.

In opening its first store in New York City earlier this year, Printemps indicated that it is measuring success by time spent shopping rather than sales per square foot. The French department store chain’s CEO, Jean-Marc Bellaiche, told Business of Fashion, “We want people to hang out and be lost a little here.”

Costco’s sampling stations increase dwell time to support its treasure hunt shopping experience of frequent inventory changes. Analysis of Placer.ai data provided earlier this year to Supermarket News found Costco scoring the largest dwell time among major grocers, at between 37 and 40 minutes, followed by Walmart (32 to 35 minutes) and H-E-B (26 to 27 minutes).

Some c-stores elevating their food offerings, including Sheetz and Wawa, are seeing opportunities to cross-sell or upsell items as customers wait for their food, according to CSP Daily News.

Restaurants, bars, hotels, resorts, and casinos also employ strategies to increase dwell time to drive extra purchases as well as to increase satisfaction and encourage return visits.

The focus on dwell time comes as retailers make other investments, including adding self-service checkout kiosks, to speed the shopping trip.