How to Increase Store Foot Traffic without Compromising Retail Security

The 21st century posed a major conundrum for the retailers: how to fight online competition and

improve brick-and-mortar store performance, and how to increase retail foot traffic without

compromising store security and safety measures.

According to the Retail Pulse report released by RetailNext, retail sales and foot traffic in U.S.

physical locations declined by 7.7 percent in January 2015 compared to the same period in 2014.

“The fiscal year closed with the same retail trends, with traffic and sales being down. The

conversion was very consistent, up .2 percentage points, and average transaction value (ATV)

and sales per shopper were essentially flat,” said RetailNext’s head of business analytics Chitra

Balasubramanian in a recent interview with PYMNTS.

An increased number of customers results in a heavier workload for loss prevention teams,

which makes it more challenging to prevent shoplifting and eliminate employee theft. Criminal

activity might only take a matter of seconds, and retailers must respond quickly and effectively

by providing maximum protection. Most important is to prevent store losses by deterring

shoplifting and other theft attempts.

Responsible store management must proactively put an efficient store security plan in place, as

failing to protect people and assets could have severe impact on business success. Traditional

CCTV surveillance technologies work well, but in today’s reality these measures are not enough.

The most effective way to safeguard assets against all kinds of negative scenarios is to equip

retail stores with out-of-the-box store security solutions.

Retailers Have to Adopt Technology

Forward-thinking store managers fight shrink both internally and externally. To deter employee

theft, they might install clear-door employee lockers secured by code-managed or RFID-

managed electronic locks to store employees’ personal belongings. Store managers can audit the

content of the lockers at any time. This enhanced store security deters internal merchandise theft

by providing extra visibility and protection.

Shoplifting by customers is on the rise. Traditional approaches to prevent shoplifting include

Electronic Article Surveillance (EAS), Acousto-Magnetic (AM) source tagging, anti-high-theft

solutions like product “safers”, wraps, etc. But resourceful retailers can take other steps that can

provide a unique experience for their customers without sacrificing store security by installing

package lockers.

Customers place their purchases in clear-door lockers located at the store’s entry point, or in the

back of the store where there is typically less traffic. This serves a dual-purpose by offering

storage for the customer while increasing foot traffic in these store areas. Customers lock the

locker door with a self-selected 4-digit code. When customers return after shopping and unlock

the lock to get their possessions, the locker becomes available for the next user. This allows the

customers to avoid carrying around heavy shopping bags with items that they have purchased in

other stores. From the store’s perspective, checking in bags at the entrance adds an additional

store security measure while increasing consumer confidence.

Neha Mallik, the Senior Content Producer at MobStac, advises providing ‘add-on’ services.

“Services such as “click-and-collect” that enable customers to pay online and collect their

purchases are a huge hit among shoppers,” he claims. Online purchases can be stored in personal

lockers in the store, with the customer receiving a personal code by e-mail when the product is

available. When the customers arrive to collect their purchase, they then enter the code to open

the locker door and pick up their merchandise. This hybrid shopping experience allows

customers to try on the item they have purchased online while in the store and returning it if it

doesn’t fit.

Some might argue that retailers should focus greater attention on their e-commerce business with

more customers being converted into online buyers. However, recent statistics show that even

millennials make most of their purchases in traditional stores.

“To me, the most optimistic data point in our study is the high ranking given to optimizing stores

as a major channel. It is called out as a challenge, but the good news is that most retailers now

realize that physical stores are not a weakness but a valuable asset…” claims Jeff Roster, the vice

president of industry market strategies-retail for Gartner. “To convert stores from being a

weakness into becoming valuable assets will likely require a technology makeover that includes

such items as mobile loyalty apps, beacons, digital signage and a host of other solutions that are

now emerging and being experimented with.”

With Knowledge Comes Power: Know Your Customer

In-store shopping and e-commerce have more in common than what some might think. These

previously separate business models started to blend with the birth of an omni-channel approach.

Many consumers are accustomed to the convenience of online shopping and expect their in-store

experiences to be fast and problem-free. The number one reason why consumers still prefer

physical shops to online shopping is the ability to walk in and get what they need immediately.

Some companies, such as Apple, for example, have blended the ease of online electronic

payment with the comfort of in-store shopping.

There are no cash registers in their stores, and sales reps handle transactions on smartphones.

Mid-sized chains such as Urban Outfitters and Anthropologie are equipping their stores with

mobile devices to allow for instant purchasing experience. These are additional attraction points

for the customers to visit the stores.

Keith Carpentier, Senior Business Development Manager at Tensator, Inc., advises: “Create an

in-store experience – from story-telling to service excellence. Online retailers offer fast service,

styles, sizes, availability etc. but they can’t offer a memorable experience or immediate

gratification. Retailers can capitalize on creating an immersion ambiance that appeals to all

senses, today’s mobile savvy culture and values the customer’s time. Offering entertainment,

next-gen digital signage/interactivity, in-queue merchandising and sleek, elegant queue

management will go a long way in bringing in customers and retaining them.”

Top Consumer-Driven Retail Trends: Foot Traffic Technology and Charging Lockers

Let’s take a closer look at the contemporary buyer’s persona. The most frequent brick-and-

mortar stores’ visitors are baby boomers. For this group, traditional Point of Purchase (POP)

installations close to the register (POS) will likely to be enough to increase sales. These may be

new products, special offers, or special events promotions, seasonal or holiday sale items, placed

in bins at the entrance, or in check-out areas. Why does POS work? Because according to

statistics, half of buying decisions are classified as impulse buys made while people are in the

store shopping for other items. This is a major plus for the traditional stores which can increase

foot traffic just by making smart decisions to attract customers with the highest purchasing

power.

By the next decade, however, the Millennials will displace the baby boomers as the biggest

consumer buying group, generating a projected $1.4 trillion in spending by 2020, according to

Accenture research. Barbara Thau, Forbes Business Reporter, points out that the Millennials

“have been stereotyped as digital addicts tethered to their social networks, laptops, tablets, and

smartphones, who prefer shopping online to old-fashioned brick-and-mortar stores. But a survey

of 100 Millennials by Advertising Age taken on the streets of New York City, revealed some

lifestyle and shopping habits that belie the clichés. Retailers and brand marketers would be wise

to take note, as the preferences of this buying group will dominate purchasing decisions for

decades to come.”

According to Forrester Data, older millennials (ages 27-35) started to splurge on luxury in 2015,

unexpectedly spending twice as much as the younger millennials (ages 18-26), compared to 1014

when they spent almost evenly on purchases. 84% of Millennials rely on the product reviews by

other consumers, which have more impact on what Millennials buy than opinions from their

friends and family.

This is why merchants who want to reach millennials, the largest group of smartphone users, will

have to invest in mobile. To create personalized shopping experiences, innovative stores now

track a customer’s phone movement, and then use mobile-enabled foot traffic technology to

gather and analyze data on how its owner moves around a particular location.

In other cases, a sophisticated GPS-integrated tracking system detects when the customers are in

close proximity to the store, and sends a text message to the phone owners alerting them that, for

example, a special one-day offer is available in this store. Retailers use this technology to

analyze peak traffic behaviors in stores and then re-configure product displays, store security,

store layout and landscape. As some lagging stores report, just boosting average shopping times

by five minutes, resulted in an additional $25 million in annual sales. Knowing where, when and

why customers are shopping can help business owners and managers better understand customer

behavior and make smarter choices about how they allocate their resources to boost sales by

increasing the quantity and the quality of Customer Points of Attraction in the stores. They mine

data, analyze data and deliver a more optimized experience for customers.

To make sure customers are able to continuously use their phones and other electronic devices

without wearing out the batteries too quickly, retailers are installing charging stations and

providing free Wi-Fi in stores. “That will keep millennials browsing and buying in style,” says

HRC Advisory’s COO Farla Efros.

A high-end charging locker, a security solution with the latest locking technology, developed for

the retail industry, is gaining popularity fast. One of the examples of how the charging lockers

improved store functionality and increased number of customers is the success of a new phone

store in Santa Monica, which was opened in 2015. The store experienced an immediate increase

in foot traffic in the center of the store floor, where the management has strategically placed the

charging stations with enhanced store security options. The customers can put their electronic

devices in sophisticated personal lockers with clear doors, lock the doors by using the self-

selected four-digit code, then browse the store shelves, talk to sales representatives, make

purchases, while waiting for their phones to be charged. This way, they spend much more time

inside the store and are more likely to make a purchase. It is not a trade secret that the way you

treat your customers has a direct impact on your sales. The above mentioned Santa Monica store

has happier customers now, judging by the avalanche of positive social media posts made by

visitors during the store opening week.

In-store and online, customers have more choices where to shop than ever before, so business

owners need to gain a better insight into planning, advertising, and store security. To address low

foot traffic, retailers have to adopt an e-commerce mindset. Not so long ago it used to be enough

to ask people “How did you hear about us?” to measure the effectiveness of a promotion. Today,

as shoppers’ habits evolve, asking this question is not sufficient anymore. Online browsing helps

shoppers create holiday wish lists while walking through the mall provides shopping ideas.

Among the top reasons why shoppers would rather go to a store than shop online during the

holiday season is being able to actually see the product.

As Dr. Olga Perdikaki from Texas A&M University indicates in her recent study, “Attracting

shoppers to stores and converting the incoming traffic into sales profitably are vital for the

financial health of retailers.” Maintaining a safe and secure environment for people who shop

and who work in a store is the number one priority for store management.

Mila Adamovica is a Marketing Communications Specialist with Digilock. She can be reached at

Mila.Adamovica@digilock.com