Retail Store Construction: 7 Do’s and Don’ts to Keep in Mind

Construction of a physical retail store in today’s ‘online’ and competitive landscape can be a bit tricky. Fortunately, equipped with the right guidance and fail-proof strategies, you can make your shop a welcoming place for customers. In the US, 81% of Gen Z consumers prefer to discover the latest products in stores, and more than 50% say browsing in stores helps them unplug from technology. To make your store a successful business brand, note these 7 retail construction dos and don’ts.

What Is Retail Construction?

The term ‘retail’ refers to selling goods to the public solely for use or consumption rather than resale, which happens at wholesale. Commercial retail construction services involve constructing or renovating a store, shopping mall, restaurant, or other commercial spaces meant for consumers.

Such projects require special attention as retail construction companies have to comply with zoning and environmental regulations, and create a safe and accessible space, all this while following their clients’ marketing guidelines. Hiring an experienced retail construction contractor helps to tackle these complex challenges and turns the construction process into a smooth ride.

Retail Store Types:

Using different combinations and permutations, retailers have brought various types of retail stores to attract customers. However, it’s crucial to know which retail category your store best fits in for launching a solid merchandising plan to multiply sales and retain customers.

Some of the retail store examples are as follows:

1. Speciality Store
2. Department Store
3. Supermarket
4. Convenience Store
5. Discount Store
6. Off-Price Retailer
7. Big Box/Superstore
8. Hypermarket
9. Catalogue Showroom
10. Factory Store
11. Warehouse Store
12. Franchisee

Retail Store Construction Dos:

A successful brick-and-mortar business is all about focusing on curb appeal and customer experience. Be mindful of these ‘dos’ that will provide your upcoming retail store with an edge over your competitors.

1. Investing More in Store Design

Effective store design can increase sales by 40% or more.

Retail store design helps to narrate the brand’s story, educate consumers about its goods and services, and makes the displayed items desirable. The first impression is the last impression. Avoid placing too many fixtures, products, or signage on the ‘decompression zone’ that is the entrance. Instead, arrange a few mood-pleasing exhibits to give that area a clutter-free look.

Include your company’s branding, themes, and style in your store’s overall interior design. Adding minimal yet memorable decorative items will help visually maximize the space of the room. Discover different trends in retail design with your retail construction company. The right general contractor will create the ideal retail store layout based on your merchandise, target customer behavior, and square footage available.

2. Prioritizing Accessibility

Accessibility is a crucial factor in providing an inclusive customer experience.

In the US, around 61 million adults are living with disabilities. As a retailer, it’s your responsibility to ensure every customer entering your store gains equal access to all services and products as everyone else. In fact, a survey conducted in the UK found that specially-abled customers have £11.75 billion worth of spending power. Excluding them would be a huge loss from a business point of view.

While designing the space, consider these creative solutions to remove common obstacles:

• Broad doorways and aisles that are easy to navigate in a wheelchair
• Install elevators, ramps, and grab bars
• Accessible restrooms, clear signage to indicate locations of key areas
• Placing Braille signage next to regular signage
• Offering a broad range of product sizes

3. Leveraging Visual Merchandising

What and how customers see your products and services significantly affects their purchase choices.

Visual merchandising is a tried-and-tested marketing strategy that works wonderfully to stimulate shoppers visually and capture their attention. Make use of window displays and mannequins to highlight your top products, discounts, and brand personality. Put up legible and concise signage to communicate promotional advertisements.

When grouping products in-store, arrange them in retail store fixtures by color scheme, use, size, and price. Another tip is to display products at eye level, where customers buy more in comparison to the bottom and upper shelves. Most people walk to the right, known as the ‘invariant right’, hence, place carts and exclusive products to the right of the store.

Collaborate with an interior designer to create a store layout according to your merchandising needs.

4. Incorporating Technology

Future retail construction projects are expected to integrate new tech innovations.

Today, retailers are adopting wireless payment methods and cashier-less shopping. You can use portable scanners and tablets to make purchases, check inventory, and perform other processes effortlessly. Also, check if there are enough charging stations installed during store construction.

Digital displays and signage are excellent ways of giving an interactive experience for customers. If budget is not an issue, include smart vending machines with touch screens, or motion, voice, and facial recognition technology to increase personalization. Generate QR codes for handing out product information and instructions.

5. Hiring The Right Project Team

The success and failure of a retail construction project depend on the professionals it hires.

Behind every well-designed retail store is an experienced, talented, and reliable team of builders. Search for a competent retail construction project manager who will handle the development process, coordinate team members, and execute overall project management. Select an architect and interior designer having adequate experience in completing retail store projects similar to yours.

Most importantly, hire a reliable retail general contractor. Interview numerous contractors, and check their credibility, past projects in the sector, retail construction services they are offering, and safety records before selection. In addition, your selected retail construction company should have specialized subcontractors and quality sources of supplies and equipment.

6. Efficiently Using Retail Space

Thoughtfully managing the store space leads to maximum use of the area and develops a navigable traffic flow.

One common concern among retailers is how to maximize their retail spaces, especially small ones. It’s a smart idea to paint lighter colors such as white, cream, and neutral shades which will produce the illusion of an open, spacious space. Align the retail store’s furniture elements at a distance from one another for an easily navigable traffic flow.

Rather than building tiny exterior windows, add larger transparent windows, making the shop welcoming and naturally brighter from the inside. If you are constructing your retail space from the ground up, you will have a lot of freedom to design an effective floor plan, storage space, and overall layout. Discuss with your retail construction contractor various strategies for implementing the appropriate retail store layout.

7. Taking Advantage Of Point Of Sale (POS)

POS refers to that section of the store where customers make the buying transaction.

Recent industry reports show that over 87% of US shoppers make impulse buys. The point of sale is the ideal place to promote ‘impulse buys’ like drinks, snacks, toys, bottled water, etc. Strategically place discounted products near the checkout counter. Along with sale prices, creating urgency with a limited-time promotion is the perfect driver of impulse buying.

Another way of attracting customers is by putting up eye-catching signage matching your brand theme. Remember, going overboard by being too pushy or promotional can negatively affect the store’s reputation.

Retail Store Construction Don’ts:

Retailers make multiple mistakes when building a store which jeopardizes their capability to attract and retain customers. Below are 7 ‘don’ts’ to avoid when designing your retail space.

1. Installing Poor or Wrong Lighting

Retail store lighting is a fundamental aspect that can make or break your sales.

This is a common blunder found in retail construction. Several retailers employ low-quality lighting for cost-saving, which results in more loss than profit. As a result, the wrong illumination compromises the appearance of your products on display.

Flashy and harsh lighting can potentially discomfort the customer’s eyes and affect their mood. However, add spotlights to certain displays around the space to attract extra attention to them.

2. Overcrowding The Retail Space

One of the biggest customer complaints about retail design is inefficient space management.

Overcrowding your store produces an uneasy feeling among customers that can change their decision to purchase. Narrow, twisted aisles and corridors can create a ‘butt-brush effect’, preventing shoppers from exploring the store. Such insufficient traffic flow makes the space cramped and even encourages people to exit.

This is a consequence of improper planning in retail construction. Have a clear idea about the amount of stock you will keep in your store and build enough space to accommodate it. Make it a point to consult your designer about space management.

3. Adding Inappropriate Shelving

Selection and positioning of shelving units are essential for convenience and safety.

Shelves, display tables, and racks if wrongly positioned can lead to dangerous accidents or even lawsuits. Avoid shelving that is too high for customers to reach or is unsuitable for specific goods. Adding multiple variants of shelving and rack systems will provide a cluttered look to the store.

During retail design and construction, be mindful of the space allotment and positioning of retail store fixtures. Explore different types of shelves such as wire shelving, gondolas, freestanding shelving, wall shelving, pegboard shelving, etc. Choose only those that match your products.

4. Having A Lack Of An Interesting Theme

The aesthetic theme of your retail store design will help it stand out among other competitors.

The aesthetics of any space has the power to influence the mood of the people inside it. Building the same cookie-cutter store will create a dull retail environment. Instead, come up with a pleasant theme that reflects your brand’s personality. This will offer the customers a unique and memorable shopping experience.

For example, an old-world market may be an excellent choice for a grocery store. The themes of health, safety, and sustainability can work well with tech, clothing, or nutrition brands. It is also necessary to focus on the social and leisure environments within the building, other than the architectural quality and layout.

5. Keeping Unstable Displays

Fragile displays carry the risk of product damage and customer injuries.

Avoid disorganized, unstable display elements while designing your retail store to prevent product damage and injury to customers. Many retail spaces are stuffed with too many products, poor organization, and numerous shelving products.

As a result, the entire display is fragile enough to crumble down with one touch, which may cause injury and product loss. Hence, invest in stable, neat displays and fixtures that can show your products clearly to customers.

6. Not Conducting A Detailed Inspection Of The Retail Space

Missing a thorough inspection of a space beforehand can lead to hidden issues later.

This is a highly regrettable and expensive mistake retailers commit. Several retailers only focus on finding a suitable location. In that process, they ignore conducting a thorough inspection of the site to identify any hidden issues.

It is possible that the space may have poorly designed air conditioning units or incorrectly positioned electrical fixtures. This will affect your retail space’s efficiency and design. Repairing such issues later could be time-consuming and costly.

7. Using Unsustainable Materials

Buying and maintaining fancy materials is an expensive affair. Instead, opt for green materials.

In an attempt to enhance the visual appeal of your store, you may end up purchasing high-end construction materials. A major downside to such fancy materials and furnishing elements is that they require frequent maintenance and repair. Without regular maintenance, a brand’s image may suffer.

In the era of green retailing, you will end up contributing to waste production. Prefer sustainable materials like timber, metals, laminated glass, woven resin, pinatex, recycled plastic, aluminum, etc.

The Future of Retail Construction: Bridging the Gap between Physical Stores and E-Commerce

In alignment with today’s ‘phygital’ retail landscape, retailers should focus on optimizing both their physical and online services, creating a seamless multichannel shopping experience.

Here are three effective retail construction strategies to fuse the two forms of retail experiences:

1. In-Store Technology:

• Shop owners with budget restrictions can consider integrating digital signage and indicators into their online platforms.
• Place ‘shopcodes’ next to product displays so that shoppers can scan them using mobile phones and complete their purchases.
• Provide contactless payment options like credit or debit cards, smart cards, and mobile wallets at different POS systems.

2. Buy Online Pick Up In-Store:

Customers who don’t want to wait for delivery, wish to avoid shipping fees, or simply prefer to physically see their purchase will demand in-store pickups. Add a ‘store finder’ feature to your online website or app that allows customers to book products and locate your store for pickups.

3. Interactive Displays

Instead of mundane and confusing product navigation, retailers can amp up their customers’ in-store experiences by placing digital screens. They can use them for –

• Replacing the human workforce with interactive screens that provide vital information like product location, store layout, and opening hours.
• Delivering targeted promotional messages related to specific products.
• Announcing discounts, member programmes, and loyalty reward schemes.
• Narrating brand values, behind-the-scenes, and sustainable practices followed during production.
• Facilitating shoppers the option to handpick from a range of products they want to purchase which could then be delivered to the waiting buyers.

A synergy between e-commerce platforms and physical stores is a prerequisite to future success in the retail industry. Using these techniques in retail design and construction, you will be able to develop an omnichannel strategy to lure modern buyers and increase buyer retention.

Final Thoughts:

Commercial retail construction today faces strong competition from behemoth e-commerce outlets. Though the demand for physical locations has been decreasing, brick-and-mortar retail culture isn’t dead yet. What you require is inspiring merchandise, targeted marketing, unique promotional strategies, immersive store environments, and unparalleled customer service. By following these store construction dos and don’ts, you will build a welcoming retail store that will attract high-revenue sales for your business.

Every retail store project has its own unique challenges. Some business owners will build their storefronts from the ground up, while others will be executing interior fit-outs of existing shops. For smooth retail store construction from idea to completion, hire a quality retail construction contractor.

FAQs

What is the average retail store construction cost per square foot in the United States?

Retail store construction can be divided into two categories, the less expensive to build strip malls and high-end shopping centers. In the United States, the average cost per square foot for building a strip mall is $235, while the average construction cost for retail shopping malls is $303 per square foot.

What are the emerging trends in the retail construction industry?

Technology-driven construction, automation for inventory management, in-store pickups, sustainable store design, and an overall shift towards hybrid physical and virtual shopping are some of the emerging trends retailers can implement for a successful business.

How do I reduce the operating costs of my retail business?

Here are 5 tips on how to save retail operating costs:

• Audit your inventory expenses and replace unnecessary items with more useful ones.
• Use less costly and sustainable alternatives for packaging materials, for example, poly mailers.
• Negotiate with product suppliers to offer you discounts.
• Outsource your retail employees.
• Implement automation systems like ERP (Enterprise Resource Planning) software to perform repetitive tasks.

Why Choose Us?

Constructive Solutions, Inc. has the experience to handle various challenges that come with different retail construction projects. Whether you are planning to build a new structure, retrofit an existing property, or remodel a storefront, our expert team will help you plan and construct your retail space. Contact us today!

Relevant Resources:

The Top Retail Renovation Trends to Look Out for 

Tenant Improvements: How to Make Your Space More Retailer Friendly