Sport Chalet's Omni-Channel Initiatives Partially Ease 2nd Quarter Burdens
By Anna Rose Welch, Editorial & Community Director, Advancing RNA
Company’s next generation store models and omni-channel strategies work to eliminate division between channels
In the midst of a numerous declines in the second quarter, Sport Chalet experienced a 32.4 percent surge in online sales, suggesting the company’s omni-channel strategies are paying off. Craig Levra, Sport Chalet CEO, acknowledges the declines during the quarter, saying, “Our second quarter had a disappointing start, as sales trends were weak in July and August, but turned positive in September on a comparable basis. Sales trends have continued to improve as we progressed into the fall, and our Team Sales Division is also beginning to move into positive territory.”
One example of this “positive territory” includes the opening of what the company is calling its “Next Generation Store” in Downtown, Los Angeles. The new store not only boasts a wide array of targeted sporting equipment, including cycling, training, scuba, and running gear, but it also aims to highlight the personnel’s expertise through the integration of an Expert Center. At this learning and information hub located at the center of the store, customers can interact with in-store experts on any topic, from best sporting locations to equipment repairs.
Next Generation Store Emphasizes Expertise, Technology
So far, it seems as though this remodeled store was a successful endeavor for the company. Levra says, “Since our opening in June, our next generation store in Downtown Los Angeles has delivered significantly better than average sales per foot and gross margin than the chain as a whole. The flexible store format allows us to continually adapt the highly tailored merchandise mix to appeal to our Downtown customer base, and early results have exceeded our expectations.” Levra is optimistic that the company will be able to implement a strategic remodel program in existing stores and new locations.
In addition to providing customers access to top-notch sales associates in-store, the company has installed iPad systems throughout the store to make it as easy as possible for customers to have access to the Sport Chalet company-wide inventory. This installation is one of several initiatives the company has invested in to provide customers with a seamless omni-channel experience.
Omni-Channel Eliminates Store/Online Channel Boundaries
Over the past year, the company has worked to make the boundaries between online and in-store channels as invisible as possible. Director of business development, Peter Taylor, says, “We started trying to make the website look more like the stores, then we tried to make the stores more like the website. Now we are trying to make the online experience more like the store experience, and the store experience more like the online experience.” Now, in the next generation stores in particular, customers will find in-store displays that include customer reviews and other important information traditionally found online to educate customers before they make a purchase.
The company also understands the importance of segmenting its customers into marketable categories to improve store-customer relationships. For example, in order to better reach out to high school aged sports teams and their fans, the company recently added a new portal on its website that is specifically designed to allow teams to create their own online retail hub. Through these hubs, teams can create individual logo designs, purchase customized goods, and choose from various shipping options, including the increasingly popular “Buy Online, Pick Up In Store” (BOPS) program. Student can even pick up the items at their school. Levra claims that this new offering will ease the school’s burdens by eliminating the confusion of order forms and payments from students. Instead, through a simple and personalized online process, students, parents, and fans alike can order school-spirit-related goods online.
Through these endeavors, Sport Chalet proves it knows the key to being a successful omni-channel retailer involves reaching out and providing various opportunities, while also stepping back and allowing customers to shop how they want to. Considering the spike in online sales during the second quarter, it would seem that customers are and will continue to take advantage of Sport Chalet’s initiatives.
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