In a retail concept reminiscent of a bygone era where street vendors peddled their wares from carts up and down the streets, the kiosk (a modernized version of those carts) is still performing well and even thriving in some environments.
From the first kiosk’s debut in 1976, the industry has now grown to nearly $2.07 billion in sales, up from $975.9 million in 2006. So why are these mini-retailers so successful?
It requires little investment for entrepreneurs to test new concepts. The arrangements and rents tend to have a short life cycle, which allows merchants to adapt quickly and easily without a lot of up front money. Products can also be rotated very quickly.
There’s no limit to the types of products a retailer can offer. Current kiosk concepts range from hair removal, cell phone accessories, toys and even language learning software.
The staging and merchandising of kiosks is very attractive, catching impulse buyers. The price points also help sales at kiosks. Even if a sale does not result, the seed has been planted for future purchases and the kiosk can act as a marketing strategy.
However, any business should be cautious before deciding to utilize a kiosk concept. While the industry as a whole is doing well, it is all dependent on your strategy, your target (kiosks tend to attract a younger demographic) and your product.
Source: NorthJersey.com, April 2011