Retailers with captive consumers – notably airports and hospitals – used to enjoy a mini-monopoly. The offerings of the shops were limited and the prices were exorbitant. In the late 1990’s, however, airports began to capitalize on their corridors, installing elaborate retail malls and food courts. In some cities, airports even looked to become dining destinations. But hospitals were slow to change. The hospital gift shop continued to disappoint the hopes of shoppers with time on their hands, money in their pockets, and no other retail options.
Now, though, hospital gift shops and pharmacies are starting to realize their larger retail opportunities. Expanding their offerings and bolting on additional services like salons and spas gives hospitals new revenue opportunities. Part of this change is driven by competition among healthcare providers, whose marketing teams actively seek ways to stand out in the marketplace. Online “hospital gift shops” are also grabbing some of the get-well-soon gift business, pushing the brick-and-mortar gift shops into a newly competitive position.
Amy Eagle, writing in Healthcare Facilities Management Magazine, discusses the innovative high-end hospital retail spaces appearing around the country. From relaxing spas to colorful toy stores (like the one pictured here), these retail designs are intended to “distract, amuse, comfort, and soothe.”
The new retail spaces come with a challenge: Where to store all the additional inventory for the expanded retail? Storage space is always at a premium in hospitals; medical supplies and equipment always get first dibs. Space-efficient storage technology – high density mobile shelving, for example – reduces space requirements by 50%, while eliminating much of the shipping packaging commonly found in retail storages areas – packaging which can attract health-compromising pests. It’s a win for everyone – patients, visitors, and hospitals.
The captive consumer, with only a single choice for goods or services, represents the very antithesis of American freedom of choice. While every retailer would be happy to have 100% of the business, they know that competition, although arduous, improves their own opportunities as well as those of their customers. A well-designed space-efficient inventory storage system makes it possible to expand inventory and meet the competitive challenge.
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