EDGE-UP’s lime-green and jet-black 260-square-foot open- air kiosks are not run-of-the-mill barbershops. They are sleek, trendy and eye-catching. There is also an expansive seating area with lime-green chairs and white tables. “Our kiosk really speaks for itself,” Sanchez says. “We don’t even have to stand outside the kiosk.” The company has spent less on marketing and promotions,
EDGE UP
Location, location, location If your business is one that provides such experiences, being locked into a residential setting with a freestanding storefront, where the customer base rarely fluctuates, might not always be a good thing. “You can go through the 70,000 to 80,000 people who live in that neighborhood within a few years. You’re only going to paint so many ceramic items. You need a large enough population with enough fresh water flowing into the business,” Mooslin says. A few years ago Mooslin spotted the potential in malls and now chooses to open up in those locations first. With this business shift he relies less upon aggressive tactics to solicit pedestrians and more on mall advertising that bring customers in. He also works hard on cultivating a bright, fun and colorful storefront as most specialty retailers do. “A mall parking lot is full of different people every day,” says
Mooslin, who targets wealthy mothers as potential customers. He intentionally seeks out spaces near high-end retailers—such as Chico’s, Pottery Barn or the Disney Store—where moms shop, as well as restaurants and movie theaters. However, even if the business is tied into a clearly defined demographic, marketing to all should not be forgotten. Norins suggests this rule of thumb when scouting locations: “Go with the busiest location of the mall. Choose the highest traffic location.” When EDGE-UP co-founder Percy Souder Jr. walked into
Westfield Culver City, a mall in southern California, and saw a leasable space he immediately knew it would be perfect. Although a seasoned owner of barbershops in the region, the other locations clung to convention: they were in freestanding storefronts, not in a large shopping center. “The natural way of thinking is to put together a nice location, do great hair and people will come to you,” says co-founder Tyhese Sanchez. “However, why not put something in the middle of a place where people are [already] going instead of having them come to you?” EDGE-UP services close to 2,000 clients a month between two locations—in Westfield Culver City and Westfield Covina. “There’s no comparison,” Souder says, to his earlier ventures. “It’s a different animal.”
98 Specialty Retail Report n Winter 2013
relying instead on mall traffic. Strategically, the EDGE-UP kiosks are placed on the ground floor (to receive heavy traffic flow) and near retailers that share a demographic: the Finish Line, Target and Best Buy for example. “It’s very low overhead, and lower overhead compared to a storefront,” says Sanchez.
Reasonable rent? Another attraction to be in a shopping center? Potentially lower rents. “There are many more specialty retailers selecting malls because the price for space has come down,” Weir says. She has seen everything from shoe repair to community colleges, even yoga studios, signing leases inside malls. “Some of these developers have so much space available that they can turn it into classrooms.” This opens the door for specialty retailers who are quite new
to the business and itching for opening day at their first store. “It’s a huge opportunity for an entrepreneur to come in to the mall and get started,” says Norins. “Right now mall rents are the lowest they’ve been in the last six years.” Mooslin, of Color Me Mine, agrees. “We’ve been able to find
great mall locations at affordable rents.” Yet even with all the extra space to select from, there can be challenges in making the shift from a traditional storefront to a mall. Being in full display meant EDGE-UP couldn’t just replicate its previous model, where casualness might have trumped cleanliness. Before, any clutter or disarray, no matter how minor, could easily hide behind an entryway and reception desk. In a mall they are right out in the open where every piece is visible. Other changes: hiring more stylists during a shift and staying open later as well as on major shopping days (to coincide with the mall’s hours). Three large digital-display screens are built into the design of each EDGE-UP kiosk. These screen video advertisements from other mall retailers, creating another revenue stream for EDGE-UP.
Marketing works Many service providers inside malls rely on social media to get the word out regarding specials and events. Piggybacking on mall-sponsored social-event marketing creates even more reach and usually costs nothing. Many malls even publish newsletters for customers or send out email blasts. Connecting with the marketing or events coordinator for the mall puts you on their radar. “The retailers should approach the
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