The Art of Merchandising

Is your boutique peaking your guest's interest and generating a profit? If you answered no, it's time to assess your boutique's effectiveness. Calculate your profit per square foot and your volume per guest.

A profitable boutique takes planning, managing and tracking. The following 7-steps will help you create an attractive and a profitable boutique!

1. Inventory Management

Check your merchandizing mix performance.
Run reports to identify your product mix performance. This report should be generated by product, by brand and by type to identify your best, medium and low sellers. Then, identify the most and least popular price point to determine how much your guests are willing to spend on products and merchandise.
Who within your spa is responsible for inventory management and boutique performance? Identify that person and outline their responsibilities.

2. Selecting Your Merchandising Mix

Your merchandising mix should include items other than skincare, hair, and nail products. Your mix should include items to continue the spa experience at home and other fun and unique items that guests don't find in a typical retail outlet. Product Mix Suggestion: If you use it during the experience, you should sell it —

Relaxation Lounge

Many spas offer some type of food and beverage within the relaxation area. Items such as tea, dried fruits, energy bars etc. It's wise to sell the items you offer. When people like things they try, they will buy them. Use shelf talkers to explain the benefits of each item you offer your guest. Sell the tea they drink, sell the energy bar, and mixed nuts or dried fruits. Try www.whitelion.com Order and receive free shipping!

Pedicure

When a guest receives a pedicure, instead of placing the flimsy flip flops on their feet, sell them the beautiful flexflop instead. www.flexflop.com

Rituals

When you use essential oil as a ritual in the treatment room, sell the oils in the boutique.
Mood Enhancements
When you burn candles, sell the candles. www.exoticrecovery.com

Changing Lounge

If you have showers in the changing lounge, use the shampoo, conditioner, shower gel, moisturizer that you sell within the facilities. Many spas make the mistake to use inexpensive products in the showers and then sell a different product in the boutique. That is a big disconnect. It might cost you a little more, but in the long run, you will sell a lot more products.

3. The Art of Merchandising

When you display products, attempt to tell a story. Show the professional treatment and the home care that goes with it. Do the same for body products.

Use props such as bowls, cups, trays, frames, accessories, etc. to ad interest to the shelf.

Identify products' natural ingredients & purchase them at local grocery stores, florists, etc. Incorporating these natural ingredients/elements will add unique ambiance and great character to your display area.

Items such as leaves, botanicals, apples, pears, oranges, chamomile, lavender, herbs etc. This will add interest to the merchandize.
Reserve one shelf for your promotion or monthly special.

Don't overcrowd shelves. Practice "less is more".
Rotating your merchandise is essential. It gives the impression that you have new items even when you don't.

Testers are essential to selling products. Most people like to touch, smell, and feel products. Make sure you give them the opportunity. Department stores generate substantial amount of sales with the sampling model; you can too! 

4. Point of Purchase Items
Place irresistible items near the check out area so guests can grab and ad to their ticket. POP items need to be $20 or less.

5. Discovery Station
Placing a discovery station in either the relaxation lounge or in you boutique area provides you with opportunity to introduce particular items to your guests. Allow them to discover and learn about a particular product and treatment. Change it biweekly or monthly.

6. Revenue Generation
How much revenue are you generating from your boutique?

Retail Revenue Calculation:
a. By Square Foot

Total Retail Revenue / Total Boutique Square Footage = Retail Revenue per Square Foot

b. By Volume per Guest

Total Retail Revenue / Total Number of Guests to the Spa = Retail Volume per Guest (RVPG)

7. Setting Your Boutique Goals
Decide how much volume you would like to generate form your spa boutique and expand upon the above 6 steps.

Mistakes to Avoid:

  • Products behind locked doors
  • No spa boutique or limited retail area
  • No product display or visuals in treatment rooms
  • No pre-packaged items, POP or to-go promotions
  • Unorganized, too much clutter or not enough products
  • Not managing your inventory properly

By Dori Soukup, CEO InSPAration Management

Should you need additional information or assistance in improving your merchandising within your spa, contact InSPAration Management at [email protected]

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