Why Store Renovation Is Crucial to Customer Loyalty

Use our retail store renovation checklist as a template for your renovation plans 

Do you ever dread shopping? You know you need to go to the store, but you just don’t want to do it. You’re thinking about the crowds, the cramped aisles, the clogged parking lot, and the standing in line. You don’t want to go – but you have to. 

Your retail store cannot afford to be on the “dread” list. 

And this is exactly why store renovation is crucial to customer loyalty. 

Retail today is not what it was in 2021. People expect more from stores. People want more than shelves of products.

They want a high-touch experience. They expect to be supported, engaged, and even entertained. This cannot happen in a store with retail fixtures and millwork from 2021 or earlier. 

And with the fight for customer attention at an all-time high, it’s imperative your retail store gives people what they want. 

How Store Renovation Enhances Customer Loyalty and Engagement

Customer perception is everything for brick-and-mortar retail. Customers need to know they will get more from visiting your store in person than from shopping online.

This excerpt from a study on the benefits of store remodelling on same store sales growth sums up the human reaction to store remodelling and renovation:

Sales to new customers increased by 43 to 44 per cent after remodeling, and those to existing customers went up by seven to 10 per cent.

“We found sales for new customers were significantly higher than those for existing customers after remodeling, and this difference persisted for a year,” Professor Tracey Danaher said.

“Higher sales to new customers were primarily due to the fact that more new customers were drawn to the altered store, they spent more each time they visited, and they subsequently visited more often.”

“It is vital that retail firms understand how remodeling the store layout influences customer perceptions and purchase behaviour,” Professor Danaher said.

On the surface, store renovation is about new lighting, signage, and layout, but in reality, it has deep impacts on customer loyalty and engagement:

  1. Improved Customer Perception: a fresh and new retail interior signals to loyal and curious customers that the brand is invested in keeping people happy and fulfilling their needs.

    Example: a clothing brand store renovation features only recycled and upcycled fixtures and millwork. This focus on sustainable remodelling promotes the brand’s commitment to eco-friendly retailing and manufacturing.

  2. Modern Visual Merchandising: new lighting, colors, signage, window displays, fixtures and millwork, and technology upgrades create a more welcoming, engaging, and relaxing in-store experience.

    Example: a large local grocery store with a bare bones design featuring a dark interior, narrow aisles, and outdated checkouts had the best prices in town but lacked a loyal customer base. A three-month renovation project transformed the shopping experience. 

    The wider aisles, in-store shopping technology, a coffee bar, self-serve take-home food stations, bright colors, and rest areas replaced the “discount” feel of this grocery store with that of a modern high-end grocery store. This renovation paid off, attracting new customers and building a devoted customer base.

  3. High-Touch Personalized Experiences: bridging the gap from online to real-life shopping, personalized shopping experiences go a long way in helping customers feel seen and heard.

    Example: a clothing store catering to young people aged 18 – 30, renovated the store to include a dedicated shop-in-shop area featuring rotating brands based on seasonal and cultural events. This shop-in-shop area includes digital displays and kiosks, making it easy for customers to share their in-store experiences on social media.

  4. Improved Store Layout: because customers expect more than shelves displaying products, your store layout needs to evolve. Updating your store layout to better support and optimize the new customer journey can result in improved sales, longer store browsing times, and a sense of community.

    Example: Barnes & Noble recently made headlines for its new approach to retail store design and installation, giving each store its own look-and-feel – based on location, customer demographic, and reading interests. A primary feature of most of the renovated stores is modular shelving to allow for a flexible design based on in-store events, product features, and customer interests.

  5. Updated Store Design: because the idea of what a retail store is has changed in the past three years, the design must also follow. Today’s shoppers are much more in-touch with personal identity, wanting a sense of belonging, and seeing themselves represented by retail brands and their stores.

    Remember, store design includes everything in your store – lighting, fixtures, seating, customer service and support, signage, checkout, music, color, and more. 

    Example: all LEGO stores in the U.S. and Canada are certified as KultureCity® Sensory Inclusive™. KultureCity is a nonprofit organization dedicated to accessibility in public spaces for people with non-visible disabilities and sensory needs.

    Neurodivergent customers of LEGO stores in Canada and the U.S can use sensory bags containing fidget tools, noise-reduction headphones, strobe reduction glasses, visual cue cards to help them with non-verbal communication, and a badge that identifies them as a KCVIP.

Your retail store exists for your customers – so give them a real-life shopping environment they look forward to.

6 Questions to Ask Before Remodelling Your Retail Store

Remodelling your retail store is not a small endeavor. 

Before you begin a renovation project, discuss these questions with your marketing, branding, and sales team – and retail installation and design partner:

  1. What are our goals with a retail store renovation?
    Identify clear goals for this retail project.
    Potential goals and targets could include: improved customer experience, updated and refreshed store design, increased sales, enhanced brand identity, modernized store layout, or incorporating new retail technology.

    The more specific your goals are, the easier it is to focus your renovation project and define a clear image of what your remodeled store should look and feel like.

  2. What is our budget and timeline for the remodel?
    How much do you want to spend? How much can you realistically afford? What are your target start and completion dates? How long can you afford to be closed? When is the best time in your sales cycle to close and relaunch?

    The earlier you partner with retail design, installation, site survey, warehousing, construction management, and logistics experts – the smoother this phase of the renovation project will be.

  3. What are customers telling us about our current store design? What do they want?
    Take advantage of customer surveys and real-life conversations with customers to learn what they like, dislike, and want to see in your store.

    Incentivize customer participation in focus and feedback groups with special store reveal sneak peeks and promotions. Doing this reinforces with customers that you do care about them and are trying to give them what they want.

  4. How can we improve our foot traffic?
    Remember you have about two seconds to grab customer attention as they walk past your store. Focus on an enticing window display that connects and resonates with your target customers. Take advantage of modern graphics and signage to communicate your brand ethos.

    Work with experts in site surveys, planning, and design to understand how to update your store layout and entrance to create a more comfortable and welcoming shopping environment. 

  5. What appeals to us in modern retail design and installation?
    Do your research and spend time in as many stores as possible. Pay attention to the design elements you like and dislike. Observe how customers are behaving and interacting in stores.

    Are they lingering and browsing or rushing in and out? What is the checkout experience like? How do you feel in the store aisles and following the store layout? How does the store make you feel? What is the signage and branding communicating?

  6. Is there a way to use this renovation to attract digital shoppers?
    Shopping is not always a pleasant and welcoming experience, giving online shopping an edge in comfort and convenience. Renovating your retail store with a focus on belonging, engagement, comfort, and support can bridge convenience and comfort gaps.

    Some options include accessible and bigger changing rooms to accommodate people with diverse needs, integrating in-store technology such as interactive product displays, easy-to-use product information kiosks, or mobile point-of-sale systems, hosting in-store events and workshops to provide a personalized experience not available online, and prioritizing customer service and engagement.  

As you plan your store renovation, do not lose sight of why you’re doing this – the customer. 

This excerpt from the Monash University study on the effects of store remodelling, sums it up:

Professor Danaher said store remodeling should be regarded as a marketing investment, designed to retain and attract new customers, similar to mainstream advertising.

“New customers’ perceptions of the retail environment – including its atmosphere and layout – were much higher than those of existing customers. They also perceived significantly greater service quality and higher levels of customer satisfaction.

However, for all customers, remodeling not only enhanced perceptions of the store’s layout itself, but also changed psychological responses and purchase behavior.”

Your Retail Store Renovation Checklist

Use this retail store renovation checklist as a template for your renovation plan and project. 

Pre-Renovation Steps and Strategies

Remember to use our six questions to ask before a store renovation to help streamline the planning and assessment process.

  • Identify your renovation goals
  • Define a budget and timeline
  • Develop store design and installation plans
  • Secure necessary permits and approvals
  • Determine logistics and warehousing of store inventory
  • Communicate with store employees, suppliers and partners, and customers – informing them of how the store renovation will affect them

Essential Elements of a Modern Store Renovation

While there is no definitive list of what a modern store should include, this list is an ideal starting point and can be a conversation starter as you work on your renovation plan.

  • Flexible store layout that can be easily reconfigured for seasonal and in-store events. Take advantage of modular fixtures, displays, and millwork to enhance creativity and adaptability.

  • Integrate technology when it makes sense for your brand, products, and customers. Use technology to address customer pain points and barriers to sale. Can your customers benefit from interactive product catalog technology, self-service kiosks, or can digital signage help you advertise products, events, and in-store promotions?

  • Light, color, space, and store layout bring your products to life.

    Think about how different colors, lighting, and sound appeal to different types of customers. For example, younger shoppers are drawn to brighter colors, while older shoppers prefer muted and subtle colors. 

    Pay attention to how you use light – bright lights may highlight your products, but can overwhelm customers. Play music that appeals to your customer demographic – there’s a reason many grocery stores play hits from the ‘80s and ‘90s…

    Ensure these cornerstones of visual merchandising support all customers, including those who are neurodiverse, hearing or visually impaired, or live with neurological differences.

    Essential design elements include a decompression zone to ease people into browsing, rest areas with couches, wide aisles, and a store layout designed to help customers easily find what they want.

  • Consistent brand identity and clear messaging aligned with your mission and values. People seek out brands they can relate to, that represent their values and concerns, and who help them identify with an aspirational persona or ideal.

    Luxury brands are the perfect example of creating an in-store experience that is high-touch, elevated, aspirational, and personal. Often considered to be destination-worthy, these stores have a very different look-and-feel from a newly renovated mid-luxury or discount brand.

  • Prioritize your customers and supporting their needs. We say this often, but the focus of your retail store needs to be on people and their needs. The newest and most innovative store shelving or high-tech window display does not matter if you neglect the people who seek out your brand and products.   

Post Store Renovation Steps and Strategies

People expect a lot from your remodeled store – make sure you capitalize on this. Clearly communicate to loyal and newly curious customers how your store remodel benefits them.

  • Grand reopening events and promotions. Organize a special sale or event to create excitement and encourage people to visit your renovated store. Use email, texts, and social media to share new store features and design elements.

  • Advertise, promote, and market the store renovation. Remember that renovation and remodelling should be used as a promotional and advertising tool. People are naturally curious and eager to be part of anything new or improved.

  • Customer surveys and feedback. Get engaged with your customers, find out what they think of the new store design. Consider providing special preview nights or events for your committed customer base. 

Above all else, your store exists to serve people. Too often retailers and brands neglect this. The adage “If you build it, they will come,” does not always apply to retail stores.

We like this quote from a recent BBC article about why store renovations are all the rage:

“Retailers can’t sit back and just look for a tide that’s going to raise everybody’s boats. They have to really make sure that they’re stepping out there and doing something different and new to grab the share they can get,” says Michael Brown, of consulting firm Kearney.

At Dynamic Resources, our unique combination of IN-HOUSE offerings makes us your single source provider for all your retail design, renovation, and installation needs. No one understands retail installation better than we do. 

Contact us to learn how we handle any aspect of your business – from an individual installation to a global roll-out.