10 Ways Spas Can Give Their Retail Business a Big Boost

Consumers are spending more than ever on personal wellness products, including skincare, and spas like yours are perfectly poised to take advantage of this rising trend. While the majority of your spa’s income comes from repeat business from loyal clients, a strong retail program can significantly boost revenue.

According to a survey of 700 spas performed by the Day Spa Association, 76% of spas dedicate 10% or less of their total square footage to retail operations. Regardless your current retail program, there is probably room for improvement. Making a few simple changes to your spa’s retail operations could make a big difference without significantly affecting your bottom line. Here are 10 simple ways to boost your spa’s retail business.

1. Do a total inventory overhaul.

Your spa’s inventory software is a powerful tool to help you redesign your retail operations. Perform an inventory overhaul, using your inventory software to find out what is and isn’t selling well. Check to see which items you’ve over purchased and consider running a promotion on those items. Be sure to check your inventory level in dollars as well as units so you can analyze your projections and make sure you have the product in stock you think you’re going to need.

2. Ask your customers what they want.

In addition to consulting your inventory records, talking to your customers about what they want can help you optimize your retail operations. Try handing out customer surveys or put a focus group together of loyal clients. Talk to your clients about what kind of skincare products they use most and what products their interested in trying. You should be gathering feedback from clients on a rolling basis so you can make updates to your operations once or twice a year.

3. Increase your e-commerce marketing program.

Online sales offer an excellent opportunity to increase your revenue without affecting your day-to-day operations. Not only should you offer retail products on your spa’s website, but you should actively be driving sales through newsletters and email offers. If you already have an online store, do a thorough analysis to make sure it is working well and easy to use. Your staff should be making product recommendations at the end of every treatment anyway, but for clients who prefer a low-pressure approach, suggesting online sales can be a great solution.

4. Take advantage of vendor connections.

Information is invaluable to any spa owner, so take advantage of every resource you have at your disposal, including your vendors. Vendors can help you learn about rising trends and new products or even give you information about the competition. Try asking what other spas are ordering or see if they’ve noticed any trends in purchasing. It’s a simple step you can take to optimize your retail operations and stay ahead of the competition.

5. Provide value for customers through bundling.

Everyone loves a good deal and offering your customers savings can make them feel more positive about their purchase. Try bundling two or three related products together or offer your customers bulk discounts. In addition to boosting sales, this approach has the benefit of helping you clear inventory that might be taking up valuable shelf space. Be strategic about your bundling offers – be sure to discount your “want” products over your “need” products. For example, you may want to keep essential products like moisturizer at full price but offer bundling discounts for products customers may be interested in trying like serums or spot treatments.

6. Be generous with free samples.

One of the simplest and most effective steps you can take to boost your retail business is to offer free samples. Research shows that offering samples boosts short-term sales, but also affects sales over the long term. In fact, in-store product sampling can improve sales across an entire category, not just for the specific products being sampled. Encourage your staff to offer samples at the end of each treatment, especially for clients who aren’t ready to make a purchase but might want to shop online.

7. Create personalized offers for loyal customers.

Bringing in and keeping loyal customers is all about creating a unique and memorable spa experience. It’s important to keep in mind that this experience doesn’t end, however, when the client walks out the door. Sending out newsletters and promotional emails keeps your client engaged but creating personalized offers can take your retail sales to the next level. Customize your personal offers based on you client’s past purchases for product and treatments to drive repeat business.

8. Educate and upsell your clients.

Your clients can’t buy products they don’t know they need. Education is an important aspect of any spa’s business, and it can be valuable tool for driving retail sales. Train your team to identify the client’s needs and make recommendations without coming across as a salesperson. The more you train your staff to understand and believe in the products themselves, the more effect they will be in upselling clients. Incentivizing your staff to make sales through rewards or commissions can also help boost your retail revenue.

9. Improve your displays and keep products within reach.

First impressions are important, so make sure your retail displays are clean and attractive. A messy display might make customers think you don’t care about your products. Keep your retail products front and center without pushing them into your client’s faces. Keep products within reach so they can be quickly added at the end of a client’s transaction.

10. Give loyalty rewards for retail purchases.

Customers are more likely to make purchases if they are rewarded for doing so. If you don’t already have a rewards program for your treatments and services, consider creating one and be sure to include retail sales in the program. Incentivize clients to make retail purchases by offering special promotions and discounts on top of points that can be redeemed for products.

While it may take some time and effort to overhaul your retail operations, it is well worth it. A multi-pronged approach is your spa’s best chance for success so don’t underestimate the importance of a strong retail program. Follow the tips above to adjust your spa’s retail business and boost revenue.