Through a special arrangement, what follows is a summary of part of a current article from Private Label Buyer, presented here for discussion.
Supermarket remodeling can start at $50,000 and climb to $500,000 per location depending how much work is done. The upside -- sales in a remodeled store can increase as much as 40 percent over the course of several years, claims Christopher Studach, director of design for King Retail Solutions, a retail design company.
"Most stores see a seven to 10 percent increase in sales within a year when they do an upgrade," he said.
A remodel can be also sharply lower operating costs thanks to installation of more efficient lighting, heating and cooling equipment, he notes.
To make sure any remodeling investment is spent wisely, retailers should consider creating a logical plan for overall store layout and then sweat the remodeling small stuff such as where to put private label products, what types of lights to use to make them look enticing for passing shoppers and even what kind of shelf tags will best grab shoppers' attention without making the shelves look overly cluttered.
Laying out a store consists of not only knowing what color schemes or what type of décor to use, but also how to place products on the shelves. Better lighting alone can help a store increase its sales by a few percentage points, according to Ken Stevens, vice president, information technology, for H&H Industries.
Once the store layout and lighting choices are made, stores can start thinking on a more macro level -- where should private label products be located to maximize sales?
One way to attract consumer attention is by using a color shelf strip that matches the color of the product's packaging to help draw attention to the product, said Mr. Studach. By using the strips, retailers can be assured they're following the design of planograms. Another bonus to using image strips is the fact that when an item is out of stock it can quickly be reordered and restocked in the right place every time.
Private label retailers should also look at promoting more cross-merchandising in the store, said Dan Phillips, project manager and designer for Phillips Enterprises, a marketing firm. "Giving consumers the chance to test your products helps them make up their mind."
Using advanced technology is also helpful in laying out a store diagram and providing a schematic of where items should go to help retailers.
Undergoing a remodel can be well worth the investment to keep customers excited about shopping the store. Simple changes such as lighting can help retailers accomplish two things: save on energy costs and properly highlight their private label products.
"The very process of remodeling generates enough excitement to spark sales," said Mr. Studach.