For the past two years,
A.R.E. has moderated an
about one of the most
essential, yet often
overlooked or poorly
measured, aspects of
return on investment.
What’s holding you back?
It could be the tight schedules
often associated with new store
rollouts and redesigns. Perhaps it’s
the arguable idea that designers
aren’t good at numbers. Or the
number of variables that could
impact your calculation puts you o;.
Add to all that the expense and
time necessary to ;nd out whether
design decisions pay, and you get
what has become standard in the
retail industry: too many decisions
based on what ;ts the budget, and
too few based on what sells product.
Here’s A.R.E.’s ;rst attempt to
provide you with a toolkit to help
you decide how to approach your
Where's the ROI?
This information is also posted on
www.retailenvironments.org and our
LinkedIn group, Retail Environments Network.
We want your feedback and ideas so that we can continue
to add tools as measurement technology advances.
can be very simple:
Gain from Investment minus
Cost of Investment, divided
by Cost of Investment. The key
number to know—and work to
increase—is Gain from Investment.
PROS: May piggyback
on current security
the data requires
personnel, time, etc.
PROS: Systems are well-established; measures
go beyond sales
CONS: May not give
details on dwell time
Sales (register receipts)
PROS: Easiest to implement;
CONS: Sales are in;uenced
by many factors that are
unrelated to store design
or ;xtures, including
merchandise mix, advertising, weather, etc.