DSW lures millennials with nail salons in stores

Bloomberg

Nothing like a fresh pedicure to show off a new pair of sandals. At least, that’s what DSW Inc. is banking on as it tries to accelerate shoe sales by adding nail services inside more of its stores. The retailer said it’s adding nail salons to five shoe stores this year in Washington, Austin, Texas; and Dublin, Ohio. DSW began testing the concept in 2017 in two locations in its headquarters city of Columbus, Ohio.
Offering a broader range of goods and services is the name of the game in retail as consumers demand more experiences as they shop.
And drawing in millennials is key to that strategy, according to DSW Chief Executive Officer Roger Rawlins.
He said while millennial women make up about a quarter of the company’s customer base, they have accounted for half the patrons at the nail salons.
“You’ve got to develop differentiated experiences to ultimately retain and attract customers,” Rawlins said in an interview. Those experiences, he said, need to be ones “that cannot be duplicated in just a digital environment.”
Full-service manicures start at $30 and pedicures at $49. Some locations will offer waxing services, and beverages. Salon customers can earn points in the company’s rewards program. The salons are run by W Nail Bar, also based in Columbus.
All of this pampering leads back to DSW’s strategy for selling footwear. Almost a quarter of the time, a salon patron buys a pair of shoes, which Rawlins called a “home run.” Those patrons spend about 60 percent more on footwear than they did before the company added the salons, he said. “In the retail world, that’s magic,” he said. “You’re getting more visits, you’re getting a higher share of wallet and we’re retaining more of these customers because of the relationships we build.”