GLOBAL UPDATE
RETAIL REIMAGINED
At the Omni Nashville Hotel , locally inspired merchandise such as Col . Littleton leather goods anchor the retail space .
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It has long been accepted that restaurants , bars and spas can be key factors in establishing a hotel ’ s overall brand , but increasingly retail space is becoming part of that equation .
The concept is not new for Omni Hotels & Resorts , Dallas , but it is growing in importance . During the past year , Omni has essentially doubled its retail volume via hotel acquisitions , explains Vice President of Operations Jon Hunter , prompting the creation of a new centralized retail division . Today , Omni offers approximately 100 retail outlets as part of its properties . Although some , especially in resorts , are leased spaces , Omni manages most of them , and Hunter says all of them are profitable .
“ Retail is as much about branding your location and your hotel as anything you do there ,” Hunter notes . “ If you can brand your retail to match your product and your demographic , you find success in sales volume .”
All about ‘ activation ’ According to Hunter , a key idea behind Omni ’ s retail success is “ activation ” — the addition of unique elements besides merchandise that might attract guests . In many of Omni ’ s suburban and convention hotels , for example , the Morsels retail concept features various merchandise around a coffee shop .
“ Before Morsels , sales in a retail store probably never exceeded the cost of labor ,” Hunter says . “ Once we changed the concept to Morsels , you ’ re creating a tremendous amount of foot traffic . In addition to coffee sales , you now have increased retail sales , which then turns the operation profitable .”
SLS Hotel at Beverly Hills in Los Angeles employs a similar strategy . The 2,500-sq-ft ( 232-sq-m ), Philippe Starck-designed Regalo at SLS opened in 2008 as part of The Bazaar by Jose Andres . Managed by the hotel , the boutique benefits from retail partnerships with brands such as Assouline Publishing , D . L . & Co and Kiki de Montparnasse .
Although SLS does not refer to “ activation ,” there is plenty besides merchandise alone to attract shoppers to Regalo . “ Regalo at SLS brings high design to Beverly Hills with a ‘ shop without walls ’ concept ,” says Xavier Moulin , general manager , SLS Hotel at Beverly Hills . “ The floating emporium adds to
8 HOTELS March 2014 www . hotelsmag . com