What are Modern Apparel Stores?

Studies show that a majority of purchases are done in person. Customers appreciate the experience of visiting a store and leaving with a product. Since the rise of technology, going to a physical location is no longer the only means of purchase. But in 2016, brick-and-mortar retail was valued at approximately $292 billion in the United States alone. With this, it’s obvious to see the importance that brick-and-mortar businesses still have in the world of retail.

One aspect of the brick-and-mortar institutions that attributes to this massive revenue stream is the apparel store. Apparel stores are store locations that specialize in the selling of apparel to their customers. These stores sell shoes, clothing, jewelry, or the like. For example, Lululemon specializes in selling yoga and activewear to its customers. By doing this, they have been able to create a brand that is now known worldwide. Further, Lululemon isn’t alone in the industry. Companies are consistently making names for themselves by taking advantage of the apparel store’s benefits.

A major benefit for businesses who have an apparel store is the markup percentage. Apparel production costs very rarely align with the cost customers see at the register. The more well-known a brand is, the more they are able to markup their goods. With an average markup being around 50%, it makes sense for business to promote themselves through branding to further their name to take advantage of this. Second, it requires very little licensure to start an apparel store. Therefore, it can be an easy way for businesses to get traction before expanding into different aspects of retail.

One major downside is shrinkage or theft. With an apparel store, product is out for the public to look through and try on before purchasing. Unfortunately, there are those who will take from the store floor. This is something that the company must consider. Aside from theft which may seem unavoidable, another downside is the consistently changing styles in the world of apparel. If a company is not up to date on the changing trends of the market, they could miss out on a large amount of revenue. Changing styles however, are combatted by a stylist, someone who is probably already on staff.

Apparel stores provide the same level of convenience and experience as other brick-and-mortar stores. They allow the experience of visiting the store while also allowing customers the chance to try on the goods they intend to purchase. With apparel, the way something looks online, may be completely different than it is fits or looks when the customer is wearing it. Because of this, it is very unlikely that they will ever be phased out of the shopping process.

Businesses who are looking to expand themselves to different aspects of the retail market should look at the apparel store as a means of entry. Apparel stores, if executed correctly, allow for a large amount of revenue with very little drawbacks. Furthermore, with the markups that are an integral part of apparel stores, exponential growth is easily attainable. With proper brand building, markups, and stylistic choices, businesses can use apparel stores to grow at a good rate.