Kaitlin Honea
Why do department stores put perfume and makeup near the entrance,
and the bathrooms as far from an entrance or exit as possible?
Most department stores are not set up in a way that most consumers would find logical. The fragrance and cosmetics counters are nearly always located at the closest proximity to the entrance as possible. Most consumers would predict that stores would use this prime location for a department that lures a target group that does not typically enjoy shopping in retail stores, such as men or children. Placing perfume and cosmetics near the front seems somewhat counter-intuitive because it typically only attracts women. Another anomaly of department location is the placement of the bathrooms. Consumers shopping in the mall often have to stop to use the restroom. If department stores wanted to attract shoppers with their convenient bathrooms, wouldn’t they place them near the front of the store?
Using economic thinking produces several different potential answers for these questions. Cosmetics and fragrances typically have the highest mark-up out of all products sold in department stores. Because their marginal profit is so high, department stores have a high incentive to place them close to the front in order to attract as many buyers as possible. Being next to the entrance also ensures that most shoppers will have to pass the counters twice: on their way in and on their way out. The relatively low cost of these items also explains why department stores are willing to give free makeup consultations, and why the perfume ladies are so aggressive when trying to get buyers to try a free sample.
Another explanation is that perfume and cosmetics rarely go on sale. This can be explained by two reasons: partly because cosmetic trends last so much longer than fashion trends; and partly because when women find a shade or perfume that they love, they tend to purchase it for years to come. Since these items are nearly always sold at retail price, there is rarely a need to rearrange for sales or do large inventories in these departments. This ensures that the front of the store always looks immaculate and upscale.
It also seems contrary that department stores would place bathrooms in locations that are far away from every entrance and exit. Most buyers need to stop by the bathroom at least once during a shopping excursion, and department store bathrooms are a cleaner, more sanitary alternative to the public restrooms. It would thus seem logical for department stores to put them near entrances in order to lure more shoppers into their stores. There are several possible explanations for this. By placing restrooms further into the store, shoppers are forced to walk past several departments. This makes them more likely to stop and shop, or for something to catch their eye.
Secondly, department stores can prevent shoppers from coming into the store solely to use the restroom by creating the added cost of the long walk. Consumers must decide if their time is better spent using the unpleasant, but centrally located, public restrooms or walking the far distance to the more luxurious department store bathrooms. This opportunity cost is different for every individual. By increasing this cost, stores can keep their bathrooms cleaner and cut down on maintenance. The third possible reason would be to cut down on shoplifting. By placing restrooms further away from exits, perpetrators have a further distance to walk with their stolen goods and are more likely to be caught.
By using these principle ideas, the locations of many other departments can be explained. Toys are always in the back so that parents must be dragged by their children through multiple departments, which increases the probability of another purchase. Upscale luxury items are typically on the highest floor. This means that shoppers who are willing to make the most expensive purchases and spend the most money must walk past nearly everything else in the store. These locations are not done arbitrarily, but rather by using economic thinking.
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