Common Pitfalls of Operating a Retail Apparel Store And How To Avoid Them

Thinking of opening a retail apparel store? It's an exciting and lucrative industry that allows you to connect with customers on a daily basis. If you have a knack for fashion and enjoy building relationships with new people, this is the industry for you. But like all retail industries, there are some unique hurdles that new owners need to be aware of. In this blog post, we're going to reveal some of the most common pitfalls of operating a retail apparel store and how to avoid them.

Pitfall #1) Not Selecting a Niche

Arguably, one of the biggest mistakes new apparel store owners make is not selecting a niche. Unless you're a massive retailer with an established and well-branded business, chances are you won't experience much success -- if any -- taking the 'general' route.

A more effective approach to the retail apparel industry is to choose a niche. You can read more about retail apparel niche selection in a previous blog post here, but some ideas to consider include:

• Teen apparel
• Swimsuits
• Men's big & tall
• Baby clothing
• Suits
• Trend

Pitfall #2) Not Creating a Business Plan

Launching a successful retail apparel store begins with the creation of a structured business plan. Regardless of your store's niche, you should take the time to create a business plan which details your goals, objectives, finances, and overall strategy. If you need help with your business plan, don't be afraid to seek assistance from a professional CPA.

A business plan is important for any business, but it's especially important for the retail industry. Having a written business increases the chance of approval when applying for loans. If you need a capital to help get your apparel store up and running, bring your business plan to banks and financial institutions. Doing so shows lenders exactly how you plan on running your business, which ultimately makes them feel more comfortable lending you capital.

Pitfall #3) Too Much Shrink

Shrink is defined as the loss of product between the manufacturer and point of sale. For instance, if a shirt gets knocked under a shelving unit or some other fixture where it's ruined by dirt and dust, it's counted as shrink. Allowing your store's shrink to spiral out of control can take a huge toll on its profits, which is why it's important to constantly work on identifying and reducing shrink in apparel stores.

Equipment Checklist For Starting a Retail Apparel Store

Thinking of starting your own retail apparel store? If so, you'll need to purchase the right equipment to store and display product. Apparel stores are unique in the sense that they require specific fixtures, such as mannequins, which aren't found in other stores. Overlooking this critical step could send your business tumbling downwards long before it even opens. For a checklist of essential fixtures and equipment necessary to start a retail apparel store, keep reading.

Rolling Racks

Arguably, the single most important type of equipment for starting a retail apparel store are rolling racks. As the name suggests, these are mobile racks with wheels that can be moved around the store as you see fit. Rolling racks are incredibly versatile, allowing apparel store owners to display shirts, jeans, pants, dresses and practically any other garment that works with a traditional hanger.

So, how many rolling racks do you need for your retail apparel store business? There's really no easy answer to this question, as it depends on the size of your store, type of apparel you offer, store layout, and your professional goals. With that said, I recommend new apparel store owners create a detailed floor plan to determine exactly how much space they have available. Look at your store's blueprints and choose a location for all of your store fixtures.

Mannequins

Of course, mannequins are another essential piece of equipment for retail apparel stores. You can hang garments on rolling racks all day long, but nothing compares to the realistic figure and frame of a mannequin. Customers can see how a particular garment looks on the human form thanks to the use of a mannequin, which naturally encourages a greater amount of sales.

The only real downside to using mannequins is their space requirements. A single full-sized mannequin will take several feet of valuable real estate in your store.  And using too many will limit the available space for rolling racks and other key fixtures, so try not to go overboard with your store's mannequins. Strategically placing a couple in your window display and scattered throughout your store should suffice.

Other Equipment Necessary To Start a Retail Apparel Store:

• Track lighting (particularly helpful when used in conjunction with mannequins).
• Slatwall or gridwall.
• Garment bags.
• Cash registers.
• Security tags for high-dollar garments and accessories.
• Hangers (you'll need plenty of these).
• Body forms
• Signs

How To Display Product In a Retail Apparel Store

One of the biggest hurdles faced by retail apparel store owners is trying to effectively display their product so customers can easily see it. Storing and displaying product incorrectly will make it more difficult for customers to see, which then results in fewer sales. And unlike most other retail stores, you can't place apparel on a shelf and call it a day. To maximize your store's effectiveness, you must think outside of the box when it comes to displaying apparel and accessories...

Mannequins

Using mannequins is arguably the single most effective way to display and showcase apparel in a retail store. They allow customers to see firsthand exactly how a particular garment looks when worn on the human body. Rather than placing clothes on the shelves where customers are forced to guess what they look like, you can set up some mannequins in your store with popular garments. The bottom line is that each and every retail apparel store should invest in some mannequins. It's the best all-around method of display for retail apparel and accessories.

The only real downside to using mannequins in a retail apparel store is the amount of space they require. If your store is somewhat small, you might not have enough room to store a dozen or so mannequins. However, you can use something like a half-sized body form rather than a full-sized mannequins. Doing so will allow you to showcase apparel items without taking up as much space as a full-sized mannequin.

You don't have to limit yourself to only displaying apparel on a mannequin. Think outside of the box by venturing into accessories as well. For instance, you can compliment the look of your mannequin by accessorizing it with items such as a handbag, hat, shoes, scarf (perfect for fall and winter seasons) and even a watch. The more realistic and lifelike your mannequin is, the more of an effect it will have on shoppers.

Hanger Costumers

An alternative to traditional mannequins is to display your store's apparel using hanger costumers. If you don't know what these are, let me explain: basically, hanger customers are large free-standing poles metal poled equipped with a single hanger on top. You place garments on top of the hanger to showcase them in a similar manner as a mannequin. Of course, hanger costumers are much smaller and lighter than actual mannequins, which is why so many stores used them.

What To Do With Damaged Clothes In a Retail Apparel Store

If you run or manage a retail apparel store, you are almost certain to come across damaged product at one point or another. Whether it's a stain, bad seam, torn fabric or a basic manufacturing error, damage is bound to occur. And unfortunately, you cant -- or at least you shouldn't -- sell damaged product for the same price as your normal items. So, that leaves the question: what should I do with damaged clothes?

Discount It

One idea is to place all of your damaged clothing items on a separate discount rack for customers to purchase. As long as you are transparent and let the customer know about the design flaws and damages these products contain, this shouldn't be a problem. In fact, most customers will be more than happy to purchase slightly damaged clothes at a discount price. It's a win-win situation for both the store and the customer; you are able to move the product while still producing revenue, and the customer is able to take advantage of a discount price for the item.

When placing damaged apparel items for sale in your store, make sure they are clearly marked with the appropriate display. Customers who purchase the item without realizing it's damaged may grow irate when they discover the flaw later. To prevent this from happening, clearly label the product with a sign stating "damaged" and make a note regarding the flaw on the price tag.

Return It To The Merchant

Another option is to contact the merchant to see whether or not you can return the damaged product. If the product arrived at your store already damaged, the merchant should allow you to return it. Of course, most merchants won't accept products that were damaged after arriving at your store. If you haven't done so already, pick up the phone and give them a call. The short amount of time it takes for a phone call will reveal the merchant's stance on returning damaged product. In some cases, the merchant may even pay for your return shipping, which is a huge benefit that ultimately results in higher store revenue.

Donate It

A third option is to donate your store's damaged product to local charity center. Rather than tossing your damaged clothes in the trash, take them to a charitable donation center around your area.  Doing so will give you the satisfaction knowing that you are helping others who are less fortunate. In addition, you can typically receive a tax-deductible receipt for your donation.

4 Surprising Facts About Fashion Mannequins

In the world of retail fashion and apparel, mannequins are the single most effective marketing tool available. Their primary purpose is to convey how a garment or outlook will look on the human form rather than a clothes hangers. It's oftentimes hard, if not impossible, to judge how certain clothes will look once they are worn. Thankfully, mannequins are designed to tackle this problem thanks to their human-form construction. Here, we're going to reveal 4 surprising facts about fashion mannequins.

#1 - Invented In The 1800s

You might be surprised to learn that fashion mannequins were originally invented and used in Paris back in the 1800s. Shop owners would use mannequins made of paper-mache to display garments to customers. Although they certainly weren't as durable or versatile or the models seen today, they still offered an effective way for stores to display their garments. Paper-mache mannequins stuck around for quite some time before being replaced by higher-quality models made of various materials including Styrofoam and plastic.

#2 - Garments on Mannequins Sell 40% Faster

It's no secret that garments sell faster on mannequins, but most store owners underestimate just how fast they sell. According to a recent study, garments sold 40% faster when they were placed on a mannequin rather than a rack or shelf. This is a surprisingly high number that's hard for store owners to ignore. By displaying your garments on mannequins, you could essentially boost your sales and profits by a significant amount.

If there's a particular garment in your store that's simply not selling as fast as the rest, perhaps you should place it on a display mannequin to help push it. Even if it's out of season, garments will naturally sell faster when they are on a human form.

#3 - Not Limited To Women's Apparel

Some store owners are stuck in the mindset of only using mannequins to display women's apparel. While they are certainly effective at displaying and marketing women's clothing, they can also be used for men's clothing as well. Don't limit yourself to just one gender. Take full advantage of your mannequins by using them to display both women's and men's apparel.

#4 - Mannequins as Weapons

Would you have guessed that mannequins were once used as weapons in the military? The ancient Chinese military used them to draw the attention of their opposing combatants. Soldiers would see the mannequins from a distance and believe they were real people.