Many retail space owners know the benefits of remodeling during hard times. It is frustrating when you barely make enough sales when there are plenty of means to boost your business. Luxury retail spaces are great for businesses all year round, and the best thing is that they always have a continuous flow of customers coming in and going out for the better half of the day. With the number of luxury retail spaces rising in the market, it is best to rethink your plans and make your store stand out from the rest.
In this blog, you will get proven tips and trending luxury retail store design ideas for your next retail remodel.
What is Luxury Retail?
Luxury retail is a segment of the retail industry that sells high-end goods or services, exclusively catering to lavish and elite clientele. Some of the examples of luxury items are haute couture, accessories, expensive automobiles, yachts, wine, high-end real estate, and others. Luxury retail experience primarily has the following characteristics:
- Personalized customer service
- Exceptional quality
- Detailed attention to craftsmanship
- High-end prices
- Unique shopping environment
- Sense of indulgence
- Exclusivity
In the past decades, the demand for the luxury retail industry has significantly grown because of the thriving social media culture. Customers below the age of 40 years make around 50% to 60% buyer share of many luxury retail brands. According to Bain & Co., the global luxury market is projected to grow by between 5% and 12% year-on-year in 2023. The US luxury goods market will be worth $126 billion by 2026.
Tips for Remodeling Your Luxury Retail Space
Here are a few tips you should consider for better remodeling results:
Tip 1 – Choose a Good Team of Contractors to Work With
The team you hire to remodel your retail space will play an important role in the outcome. Therefore, it is important to have a sitting with several contractors to see which one best understands your needs and requirements before remodeling. In addition to that, they can give your ideas a push and provide other alternative suggestions you should put into play. Also ensure that your contractor can meet the deadlines, as every business needs to be up and running as soon as possible. Finally, make sure the team is reliable and has good management capabilities.
Tip 2 – Set a Timeline for Remodeling
It is difficult to host customers during a remodel as everyone, right from customers to contractors to employees will be competing for space. It is, therefore, advisable that you close your luxury retail space for a specific period of time for the contractors to finish their work. You can inquire from fellow retail stores for a rough idea regarding how long it’ll take so that you can settle on a realistic deadline date. A deadline is vital in keeping track of the remodeling process and understanding when exactly it will be prime to reopen the closed doors for business.
Tip 3 – Go for a More Modern Deluxe Look
Remodeling aims to improve customers’ first impression when they walk into your retail space. Outline a couple of designs and remodeling ideas you would want to try out and settle for better props than the previous one. First things first, you need to identify areas that need remodeling and determine what needs to remain and what needs to go. If looking for a complete turnaround, you should try changing the floors, ceilings, and lights for a more modern look.
Tip 4 – Set a Budget
Remodeling doesn’t have to completely tear down your luxury retail space. That’s why it’s important to identify what needs a change and what doesn’t. Some of the things, such as electricity, plumbing, and duct tape rarely need replacements and you could use the previously installed framework instead of new ones. At the end of the day, the aim is to be as much cost-effective as possible. Setting a budget will therefore help keep remodeling in perspective.
Tip 5 – Involve Your Employee Team
Your team of workers is in direct contact with your clients. At one point, they might have heard some complaints from customers which can help in your remodeling ideas and identifying what needs a change. They also play a huge role in deciding the prime arrangements and layout that will best suit your merchandise and enhance your brand identity.
Cost to Remodel Your Luxury Retail Store
The cost estimate for a retail store remodel factors in various aspects like professional fees, materials, labor costs, utilities, and other additional prices. Building large convenience stores will naturally cost more to remodel than smaller boutique stores.
On average, retailers should expect to pay about $200 per square foot. However, talking about luxury retail, business owners better be prepared to develop enormous budgets for implementing their store remodels. The richer the shopping experience you aim to offer, the more expensive the commercial construction will be.
Fortunately, store remodeling has proven to elevate the bottom lines of luxury businesses. Researchers from Monash University’s Department of Marketing found that sales to new customers boosted by 43% to 44% post remodeling, and went up by 10% among existing customers. This means investing in a retail store remodel is an excellent strategy to drive up luxury sales.
Trending Ideas for Luxury Retail Design
In-Store Technology
The popularity of e-commerce and virtual shopping has driven luxury brands to integrate technological features into their physical stores. Your customers can take advantage of AR (Augmented Reality) technology for virtually trying on your products before making purchase decisions. Similarly, consider putting up innovative displays and immersive store experiences with the use of VR (Virtual Reality).
For example, the potential customers of the leading automotive retailer Audi have test drives, evaluate different models, and access inventory via VR connectivity. Luxury beauty brand Charlotte Tilbury provides its customers “magic mirror” to instantly try on 10 different makeup products.
iPads for making transactions, interactive fitting rooms, electronic price tags, and mobile POS systems are other ideas of in-store technology for retail store remodeling.
Sustainability
Retail industry has been under the radar for adding up to the global carbon footprint, and hence, sustainability is customers’ top priority. Many luxury brands are employing natural, sustainable materials in their retail store designs. Add stone, wood, and water features to give visitors the feeling of the natural world.
For example, Under Armour has incorporated LEED elements in their retail stores like sustainable wood, recycled rubber flooring, and concrete floors free of dyes. They are also using controlled LED lighting and energy management systems for greener spaces.
Luxury retailers are also sourcing locally manufactured materials to reduce transportation emissions, and installing energy-efficient lighting and HVAC systems.
Minimalism
The mantra “Less is more” rules the luxury sector. If sleek design and minimalism define your brand identity, then focus more on clean lines, neutral colors, and premium materials while remodeling your luxury retail space. Avoid overcrowding of furniture, decor items, or excess art. Keep the retail store layout spacious, and be consistent with your displays.
For example, if your product shelves are wood-based, then maintain the touch of wood in the counters too. Minimalism is a growing trend in luxury retail design that can attract more customers and drive up sales.
Experiential Retail Stores
Another large trend in luxury retail is creating experiential spaces. Meaning, shops where customers can leisurely spend time and do activities beyond buying. You can build cafes, bars, art galleries, libraries, or game zones in your retail store remodel to engage visitors in a memorable shopping experience.
According to a study by the Harris Group, 78% of millennials prefer to spend on experiences rather than products. Experiential retail provides additional value to customers through exclusive in-store services which in turn, increases brand loyalty. The Los Angeles store of the skateboarding brand House of Vans includes an art gallery, a skate shop, and a studio for free art workshops.
Conclusion
Remodelling a luxury retail space is a great opportunity to align your business with today’s customer preferences. While planning the store remodel, establish a clear budget and timeline, gather input from staff, and thoughtfully schedule business downtime to ensure their visitors’ comfort. Buyers in the present times expect a unique shopping experience combining the convenience of digitization and the sophistication of luxury retail.
FAQs
Is it cheaper to remodel an existing retail store or build new construction?
Remodeling a luxury retail store is usually substantially less expensive than building from the ground up and a lot faster too.
What are the main benefits of store remodels?
The essential benefits of remodeling your luxury retail store are that it creates an inviting shopping atmosphere, attracts more customers, and drives up business sales.
Can I use an interior designer for my store remodel?
Yes, you can. Either you hire an independent interior designer or partner with a design-build retail contractor that completes both construction and design work under one contract.
Relevant Resources:
- Retail Store Construction: 7 Do’s and Don’ts to Keep in Mind
- 6 Powerful Reasons To Hire A Retail General Contractor
Constructive Solutions, Inc. is a full-service commercial construction company serving San Francisco and Bay Area.
Whatever your vision, we have the resources, experience, and insight to make your concept a reality, and a space where your business can flourish.
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