A properly managed market or pantry can earn the equivalent profit of selling one to three additional rooms at your ADR. Every square foot of your lobby has great earning potential and the lobby retail space should be managed and maintained with as much care as a guest room.
For a Highly Profitable Market or Pantry,
Follow The Five Ps of Hotel Retail
Many hoteliers use keystone pricing which leaves money on the table or depresses sales. There must be a strategic pricing plan that delivers at least a 55% volume weighted gross margin for the entire retail space.
A planogram will maximize your merchandisable space based on your guest profile, local fare, and sales data. Having a customized and maintained planogram is critical for your retail success.
Use a shelf management system (SMS) on all shelves (including fridges and freezers) to keep your market looking bountiful, organized, and fresh. It maximizes shelf space, maintains a professional presentation, and displays products in a way that directly appeals to the guest.
Keep your shelves stocked by planning ahead for expected occupancy levels. Orders should be made weekly or bi-weekly, depending on movement (or contact us about our auto-replenishment program). If there are gaps where product should be, guests will assume the market or pantry is not regularly attended to, making items less appealing for purchase.
Product sourcing should be very quick and simple. Utilize a rich e-commerce platform -- one that simplifies shopping, manages the planogram shopping list, and handles credit card or billing terms. Or find a supplier who will do the ordering for you. The siren song of low pricing at the club store works against your goals of earning high revenues and profits.
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