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Hospital gift shops offer a unique opportunity to turn profits. They have constant traffic, a built-in captive audience, and high dollars-per-square-foot numbers. But like all retail stores, they must consider various variables to achieve their goals.
In addition to providing a valuable service for the public, gift shops must keep up with inventory costs. They also must balance their stock with the needs of a changing market. While adding more items is tempting, gift shop owners must be realistic and consider what they can sell and at what cost.
Hospital gift shops are essential fundraisers for their parent medical centers and are often the source of comfort for patients and their loved ones. In addition, gift shop managers are essential in boosting morale and ensuring financial success.
Space planners analyze merchandise categories to ensure dollar-per-square-foot profitability. Sales are often boosted by offering employee payroll deductions.
Financial Management
Hospital gift shops operate in sensitive environments and merchandise to a captive audience. When well-managed, they contribute to a healing culture and provide substantial revenues. To ensure a successful bottom line, managers must be knowledgeable about retailing and hospital financial processes.
A professional gift shop profitability change consultant assists managers in developing user-friendly policies and procedures. For example, a consultant evaluates an institution’s point-of-sale system to determine whether it enables staff to track customer loyalty programs and analyze purchasing trends and high-turnover items.
Hospital gift shops are transforming their image from dusty corners filled with get-well cards and generic floral arrangements to a one-stop shop that serves patients’ and hospital employees’ needs.
Marketing
Hospital gift shops operate in sensitive environments with limited dedicated resources. They offer a captive customer base and substantial revenue for their host institutions. Many managers use a variety of marketing strategies to ensure the success of their stores.
While major sellers at most gift shops are plush, candy/snacks, flowers, and balloons, women’s jewelry and accessories are gaining momentum.
One key marketing strategy is attracting shoppers through special events and programs.
Human Resources
Hospital gift shops operate in sensitive environments with primarily volunteer staff and merchandise to a captive customer base. They are essential revenue-generating programs and often offer a moment of peace amid hospital chaos.
Consultant helps leaders develop a retail philosophy and strategy that addresses customer needs while maintaining a healthy business model.
Inventory Management
Hospital gift shops face unique challenges compared to other retail venues. The stores have a built-in captive audience, must manage inventory to meet demand without overstocking, and have tight margins on quick-turnover items. They also rely on a largely volunteer staff to run the operations and serve customers.
Hospitals must also keep abreast of changing trends in the healthcare industry to provide the right products and services to patients and employees.
The amount of inventory a store carries directly impacts its revenue. For example, a gift shop that sells scented candles may attract fewer customers than one that offers a selection of clothing. This can significantly impact a shop’sshop’s overall profitability.
Marketing strategies are another area that can significantly impact the success of a gift shop. Fortunately, many low-cost marketing techniques can be effective for small businesses. This includes social media, email marketing, and community outreach.
