Retail Branding: The Good and The Bad

How important is branding for a retail store? Your image is your brand, and whether your retail branding is an asset or a liability depends on how you design it, develop it, and nurture it.

 Branding is the process of using logos, tag lines, and marketing to get your store to become a local "household" name. We all know how branding works even if we don’t know that we do. But, is branding a plus for your retail business or a liability?

When you think of certain products or companies, a picture begins to form in your head. Take, for instance, Nike. “Just do it” comes to mind. That is the result of product branding. Now, if you hear a brand name and it conjures up an image of poor customer service the last time you visited, that is also a result of branding but a negative one. Think of the U.S. Postal Service here. Their "brand" became so tainted it affected even the employees- some of whom "went Postal".

The big corporations are so big because their marketing included making their products a household name. They found a product or service that everyone could use and made it indispensable through creative advertising and marketing. Everywhere anyone looked, they saw something that represented the brand so the product was fresh in their mind.

In this world, a new product is developed practically every day. Inventors and business people are looking for the next big “thing” to hit the market. All you have to do is look at companies like Nike, Pepsi, Coca-Cola, and Disney to know that if you can sell one product reliably, others will follow.

People are more likely to buy from you if they can associate your store with a positive brand. When you do not have a branded reputation, it is a toss up. Customers could pick you or someone else depending on what kind of mood they are in that day.

That is not the kind of business we want to do.

Branding is a total package for any business and that includes independently owned retail businesses. Giving poor customer service does not inspire loyalty. Using a logo that doesn’t really say much about your store won’t steer people to your business, no matter how great a product selection you may have. Compatibility and consistency are important when it comes to branding.

On the downside, if even one customer gives you a bad report, it could label your brand with a negative name. When using branding the business name, logo, stationery, customer service, marketing tools, and merchandise selection and assortment have to coincide with your company’s mission and ideals. Wanting to be known as the “best organic soap shop in town” will go down the tubes if you start stocking soap products with additives when high demand in the market causes vendors to ship late or erratically.

Branding can be a retail business’ best friend if done right. Customers will sing your praises to others and business will increase. On the other hand, let a part of the branding strategy get lax and it could spell disaster for   your reputation. An example of this may be the offering of sales or coupons by luxury retailers who panic when sales and traffic become soft.

A great little "Do it youself" planner for developing and maintaining your store brand and image, is this workbook by Miki Hicks. Check it out! 

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ABOUT THE AUTHOR: James Hallman has over 40 years in retail management, both corporate and entrepreneurial. For the last 18+ years, he has operated The Hallman Company, a retail consultant agency based in Atlanta, Georgia. The Hallman Company specializes in bringing best-of-class services to best-of-class specialty retailers. Services include inventory planning with pre-calculated open to buy, and team management training.