How to Generate $2,000 per Square Foot…Ten Steps to Success!

On a recent trip to New York I ventured off Fifth Avenue, Madison Avenue, and Soho – to Brooklyn and the Atlantic Terminal Mall on Flatbush Avenue (not exactly the haute couture centre of the City).

There on the second floor was a Uniqlo store, opened in October 2013, which was nowhere near as “jazzy” as its Fifth Avenue or Soho older brothers’ (or sisters’) stores. But look beyond all the fancy Christmas stuff of the Manhattan store and you’ll observe a lean-mean-merchandising-machine! This store has to be pushing $2,000 per square foot. And here is why.

Lessons Learned from Uniqlo
#1 Choose a Solid Location with Strong Adjacent Tenants
Co-anchor tenants include Target (not a Canadian version!), Burlington Coat Factory, DSW, Victoria’s Secret, and 25 national specialty chains. These are located at a major transit junction in central Brooklyn, so lots of shopper traffic!

#2 Straight Forward Messages are Best
Shoppers are in a hurry, often confused or conflicted, and need simple choices. Make sure your “theme” messages are easy to comprehend and react to!

The entrance and store sign are open and inviting.

The windows tell the “colour theme” story clearly. Shoppers “get it” in the blink of an eye.

#3 The Front 10 Feet Pays the Rent!
The “front and forward” space productivity should be three to four times the rest of the store. You cannot generate sensational sales revenue with an artsy-fartsy display or minimal intensity. Good retailers know and practice this. They load up the front with best sellers.

Just look at Uniqlo’s displays with:
1. Sales associates beside each one
2. Bright, colourful product
3. In depth assortment
4. Fantastic prices on cashmere women’s and men’s sweaters! $59.90

#4 Backup Feature Item In-depth
Part of Uniqlo’s success is single-focused promotional items featured in limited ranges (huge buying clout!). Winter jackets were in big demand at $59.90 and $29.90.
IMG_2212 IMG_2226

#5 In-depth Merchandise Sends a “These Items are Important” Message
“If they have that much of this item – it must be important and popular” is what these walls convey.
IMG_2211 IMG_2217

#6 End-aisles are Great for Add-on Sales of Smaller Accessories
Building high productivity is done using many different merchandising techniques. Every one has to be used!
IMG_2213 IMG_2222

#7 Make the Store a Merchandising Machine with Lots of Impulse Items
Your store gets to $2,000 a square foot by using every space and idea.


#8 What is Your Inventory per Square Foot?
All retailers should use this metric to analyse sales trends in departments and classifications. Uniqlo does not shy away from “using the cube” to showcase assortments and build productivity. All these pictured items have in-depth backup right on the fixture.
IMG_2222 IMG_2221

#9 An Efficient Check-out is Essential
While Uniqlo had long lines at the service desk, they moved quickly.

#10 Lots of Team Members
While almost hidden in the crush of shoppers, there were dozens of uniformed (all in black) staff continuously re-stocking and straightening inventory. This store was managed in an obviously organized and disciplined manner.

Uniqlo’s unique value position is re-enforced by the simplicity of its visual presentation, the commitment to inventory depth, and the efficiency of the shopping experience.


Leave a Reply

Your email address will not be published. Required fields are marked *