10 Proven Ways to Increase Retail Sales

Although the economy shows promising signs of improvement, retail consumers remain relatively cautious, creating challenges for businesses as they work to attract and retain customers. The most successful retailers are responding by revamping their strategies for capturing consumer attention, for example, by reimagining store layouts, personalizing promotions, and leveraging technology to deliver products to customers more quickly.

This article explores the top strategies retailers can use to foster deeper connections that build brand loyalty, drive more sales, and increase the odds of long-term success.

What Are Retail Sales?

Retail sales are the total revenue generated from selling goods or services to customers in a given period of time. Sales for retail companies, including online stores and brick-and-mortar shops, encompass a wide range of products. These include durable goods that are expected to last for years, such as furniture, appliances, and cars, as well as nondurable goods like food, clothing, and toiletries that tend to have a shorter shelf life. Meanwhile, some offer services such as installation, maintenance, and repair for the products they sell, as well as customer support and consultation to help customers get the most out of their purchases.

The U.S. Census Bureau closely tracks retail sales on a regular basis, since these figures act as a critical economic barometer, offering a timely measurement of consumer spending and a snapshot of the economy’s health. While a surge in retail sales is often considered a sign of strong consumer growth, a sudden drop may indicate an economic slowdown.

Key Takeaways

• Retailers have various opportunities to implement an assortment of sales-boosting strategies, from optimized pricing to personalized in-store experiences.
• Businesses should prioritize seeking feedback from satisfied customers, as consumer reviews can significantly increase conversion rates.
• Allowing customers to complete transactions quickly, whether by leveraging self-checkout kiosks or using one-click purchasing systems, can help businesses boost sales.
• Inventory management software helps companies forecast demand by tracking sales data, trends, and customer behavior and giving sales teams the information they need to close deals quickly.

10 Ways to Increase Retail Sales

In 2024, with interest rates easing and inflationary pressures softening, consumer spending is expected to rise, coming closer to the annual increase in spending the U.S. saw prior to the COVID-19 pandemic. The National Retail Federation forecasts that U.S. retail sales will grow between 2.5% and 3.5% over 2023 figures, totaling as much as $5.28 trillion—which aligns with the 10-year average annual sales growth of 3.6% pre-COVID.

That’s good news for retailers, including many that have struggled through some lean years when consumers tightened their budgets on nonessential purchases, such as luxury goods, vacations, and restaurant outings. As consumers’ spending power strengthens, retailers should consider implementing the following 10 strategies to take full advantage of opportunities to increase their sales.

1. Create a Compelling Brand Story

A well-crafted brand story can set a retailer apart from competitors by building a strong emotional connection with customers to shore up their trust and loyalty. To create a compelling narrative, retailers could:

• Tell an authentic brand story: A 2023 survey by Asendia shows that 65% of consumers are more likely to shop with retailers they consider authentic, and 73% are more loyal to authentic brands. How can businesses express authenticity? They can share their truth in blogs, videos, and social media posts—and disclose not just their companies’ victories but also their struggles and failures, as well as their values and goals. A natural cosmetics company might declare that its products aren’t tested on animals and that the business relies on plastic-free packaging, for example, to show that the brand is committed to ethical and sustainable practices.
• Promote your local brand: Retailers that emphasize their local roots appeal to customers who are eager to support area businesses. By doing so, these customers help their communities thrive and foster a sense of belonging and pride. For example, a gourmet cheese store that sources its ingredients from nearby farms or a gift shop that sells soaps, jewelry, and other handmade items created by local crafters might promote the fact that they’re supporting the local economy. This can go a long way toward building a strong connection with the community, which often translates into more sales.

2. Enhance the Customer Experience

With consumers expecting near-instant gratification today, it’s important for retailers to continually improve the customer experience to encourage repeat business and positive word-of-mouth recommendations. To enhance the customer experience, retailers can:

• Personalize in-store services: By leveraging customer data, retailers can provide tailored experiences that resonate with customers, offering perks such as exclusive discounts, early access to new products, and personalized in-store consultations. A clothing store might leverage interactive technology to help make recommendations to customers, for example, by implementing smart fitting rooms that suggest complementary accessories to go with a new outfit or allow customers to request different sizes or colors of garments without needing to leave the fitting room.
• Create a positive atmosphere: Consumers are likely to browse longer—and buy more—when they enter stores imbued with a nice ambience, such as soft lighting, complimentary color schemes, soothing music and even pleasant scents. In fact, the market for scent marketing was valued at $3.3 billion in 2023 and is expected to reach $6 billion by 2032 as more businesses recognize that attractive scents can influence consumers’ emotions and nudge them to make purchases.
• Speed up the buying process: Nothing discourages sales quite like long lines and cumbersome purchase processes, but technology can make the buying process faster and easier. In stores, self-checkout kiosks enable customers to scan and pay for items without cashier assistance. Online, one-click purchasing systems that securely save payment details allow customers to complete transactions quickly, without the need to enter payment information repeatedly.
• Offer free delivery to your store: Free shipping was the first consideration for 82% of online shoppers in choosing retailers, according to a 2023 survey by Digital Commerce 360 and Bizrate Insights. In addition to free home delivery, retailers can benefit by offering free ship-to-store options. This approach lowers shipping costs by consolidating orders into fewer shipments, while driving store traffic. Shoppers appreciate the store pickup option, too, as it lets them save on shipping costs and examine products in person before taking them home. Plus, many customers wind up spotting and purchasing additional items while they’re retrieving their online orders.
• Encourage recommendations: Retailers should consider sending follow-up communications to thank people for their purchases and to seek product recommendations. Companies may even want to reward customers by offering exclusive perks or discounts for recommending certain products on social media sites. By encouraging voice-of-the-customer input, retailers can create a positive feedback loop, allowing satisfied customers to recommend a brand’s product, which can not only make customers feel valued and heard but also lead to improvements that enhance the experience for both new and existing customers.

3. Optimize In-Store Layout and Visual Merchandising

By making the most of their in-store layouts and product placements, retailers can create a pleasant shopping environment that not only attracts customers but encourages them to make more purchases. To create a visually appealing space, retailers should:

• Optimize product display and placement: Where and how stores display products can significantly influence buying decisions. Placing complementary items next to each other—for example, dress pants on a table next to a rack of blouses—can help customers complete an outfit. Plus, positioning must-have staples, like bread and milk, near the back of a grocery store requires patrons to walk by other product displays, which might tempt them to pick up additional items. End-of-aisle displays are also considered prime real estate for highlighting eye-catching products.
• Leverage the checkout counter: The candy bars, small toys, and soft drinks that are often located in and around the checkout line are not there by accident, as these items can sway impatient children—and adults—to make last-minute impulse grabs. Managers might also want to train staff to suggest complementary items, such as batteries to accompany a flashlight purchase, as well as highlight promotional offers, such as buy-one-get-one-free snacks, all of which can turn the checkout counter into a sales-boosting engine that augments overall revenue.
• Understand customer movement: A well-designed layout ensures that customers can easily navigate the store, find the products they need, and enjoy their browsing time. Retailers should analyze customer flow patterns and use that information to make the most of their store layouts. For instance, they can direct traffic in a way that gives high-demand and high-profit items maximum visibility, reduces crowd bottlenecks, and encourages customers to spend more time comfortably shopping.

4. Leverage Data-Driven Insights

By analyzing data on customer preferences, purchasing behavior, and sales performance, retailers can make informed decisions about their product offerings and pricing strategies to better meet customer expectations and increase sales. For example, companies can:

• Analyze point-of-sale (POS) data: Culling the information collected during customer transactions at the point of purchase provides key data that helps retailers promote popular products and adjust pricing based on demand, all with the goal of improving sales. POS data can give businesses a better handle on customer preferences, so they can create targeted marketing campaigns and personalized recommendations, for instance, by offering consumers coupons that reflect their shopping habits.
• Improve inventory management: Failing to accurately predict inventory can be costly for companies—businesses lose sales when popular items are out of stock, and they pay extra storage fees when they overstock. Leveraging data can help retailers regularly hit the mark on ordering the right supplies in the optimal quantities. Implementing inventory management software helps companies accurately forecast demand on the basis of historical sales data, seasonal trends, and real-time customer behavior. Plus, the technology can automatically reorder products as needed. A grocery chain, for example, might use predictive analytics to forecast demand for perishable items based on weather patterns and customer demand, helping to reduce waste and maintain freshness.
• Determine peak hours: Businesses can leverage data to pinpoint patterns in customer traffic and sales occurring because of a variety of factors, including the day of the week, the hours of the day, and the time of year. Once a retailer identifies its busiest hours and days, the business can use this information to build staffing schedules, price products, release timely marketing campaigns, and, perhaps, run specific promotions during quieter times to maximize sales.

5. Implement Effective Loyalty Programs

Simply collecting customer data without providing people with any perks is a missed opportunity to encourage repeat business. Retailers should create strong loyalty programs that surprise and delight customers, rewarding them for their patronage, encouraging future purchases, and ultimately boosting customer retention. Highly effective loyalty programs:

• Offer complimentary and paid services: Free offerings that build loyalty might include priority customer support, exclusive sales, and early access to new products. Paid services often provide more substantial benefits and generate additional revenue for businesses, such as membership programs that offer customers free shipping, exclusive products, and access to special events for an annual fee.
• Provide referral incentives: Retailers can offer various incentives to encourage existing customers to spread the word about their experiences. For referring a new customer, for instance, a retailer might give an existing customer an extra discount, free products or services, cash rewards, or subscription upgrades. To encourage engagement, retailers should make sure the referral process is simple and user-friendly.

6. Improve Digital Marketing and Social Media Strategies

At a time when online research plays a pivotal role in consumers’ purchasing decisions, it’s important for retailers to maintain a robust digital presence to reach potential customers through targeted advertising and personalized messaging. Retailers should make sure they are checking the following digital marketing boxes:

• Ensure the store shows up in search results: If a home improvement shop doesn’t rank high in a customer’s online search for new paint, for example, the business may get overlooked. To make sure companies are showing up in a customer’s search results, retailers should start by creating free business profiles in Google, verifying that information about store locations, hours, and services are up to date. In addition, businesses should optimize their websites for local search engine optimization by including location-specific keywords and creating individual pages for each store location.
• Leverage social media: Social media channels provide a great way to not only share interesting content but also engage with customers and encourage direct sales. Retailers can create visually appealing content that puts a spotlight on products in creative ways, such as behind-the-scenes footage and innovative 360-degree-view product displays. In addition, responding quickly to social media users’ questions and concerns sends the message that retailers value their customers. And finally, it’s important to provide a seamless way to seal the sales deal by using platform-specific shopping tools, like Instagram Checkout and Facebook Shops, to simplify the purchasing process on social media channels.
• Ask for reviews: Customer testimonials can significantly impact retail sales. A 2023 Bazaarvoice survey found that when shoppers checked out reviews, businesses saw a 144% lift in conversion rates. What’s more, the increase in revenue per visitor was 162%, indicating that positive reviews encouraged customers to spend more. Retailers can request reviews from happy customers in a variety of ways, including through email, text messaging, in-person requests from cashiers, website pop-ups, and social media sites.

7. Host In-Store Events and Promotions

Shoppers tend to feel more satisfied with their purchases when they know they’re getting a good deal, so providing exclusive promotions is a great way to encourage sales. To highlight deals, retailers can:

• Host an event: Product launches, workshops, and exclusive sales not only attract customers but grant them the opportunity to interact with staff and check out products in person, all of which can enhance a potential customer’s relationship with a brand. A retailer selling workout clothes, for example, might consider hosting yoga classes to build a relationship with fitness-focused clientele and create a loyal customer base while promoting products. Or an electronics retailer might time the release of a hot new video game with an offer to host group playing times to test out the product.
• Offer seasonal sales and promotions: Providing deals at times when customers are eager to make purchases often prompts stronger sales. During back-to-school season, for instance, retailers can capitalize on the crush of students and parents who are preparing for the upcoming academic year by offering discounts on school supplies and children’s clothes. Hosting short-term “flash sales,” such as a 48-hour promotion on flower orders prior to Valentine’s Day, can create a sense of urgency that encourages people to take advantage of deep discounts. And creating product bundles at the holidays by offering discounts on items purchased together, such as smartphones with accessories like chargers, screen protectors, and earbuds, can attract price-conscious customers while allowing retailers to move more stock.
• Use product returns to your advantage: Returned items don’t have to amount to lost sales. Anytime a customer steps into a store or hops on a retailer’s website, even if it’s to send back an unwanted item, that business has an opportunity to tempt the customer to make new purchases. In addition, retailers can encourage customers to opt for store credit, rather than a cash refund, by offering incentives, such as coupons with bigger discounts than the store typically provides or even a small bonus on the returned products, such as an extra 5% credit, which can be used toward new purchases.

8. Leverage Technology and Automation

A growing number of retailers are recognizing that advanced technology can significantly streamline the production, sales, and fulfillment processes, allowing businesses to more easily meet customer demand and boost revenue. In fact, 99% of retail executives in a January 2024 survey by SoftServe expected to see a surge in technology investments during the year, and 94% said technology was a significant means of acquiring new customers. In prioritizing the best ways to gain a solid return on investment from new technology, retailers should:

• Automate retail sales: Implementing tools powered by artificial intelligence (AI), such as chatbots that automatically answer customer inquiries about products, as well as recommendation engines that analyze customer preferences and suggest relevant purchases, can speed sales transactions and provide customers with a more satisfying retail experience. In addition, automated inventory management software can assist by updating stock levels in real time to guarantee that in-demand products will always be available.
• Offer self-checkout: More than 50% of younger shoppers, ages 18 to 44, prefer self-checkout over traditional purchase options, often because they encounter shorter lines and faster transaction speeds, according to a January 2024 survey by NCR Voyix. In addition, self-checkout allows retailers to handle more transactions with fewer employees, reducing their labor costs and freeing up staff to focus on other tasks, such as processing returns and stocking shelves.
• Utilize retail-specific enterprise resource planning (ERP) systems: Retail-specific ERP systems can streamline a range of business processes to improve operational efficiency and support companies’ efforts to increase sales in a variety of ways. For instance, by integrating sales data with inventory management tools, ERP systems can help retailers analyze sales trends and adjust inventory to respond to spikes, as well as slower periods of demand. In addition, retail ERP systems can easily analyze reams of data related to product performance, customer behavior, and market trends. This allows retailers to fine-tune their strategies to increase sales, for example, by automating the delivery of promotions to customers on the basis of purchase volumes and seasonal trends.

9. Optimize Pricing and Discount Strategies

Poor pricing and discount strategies can leave retailers vulnerable to the possibility of losing sales to competitors, which can negatively impact profitability. Yet, pricing products just right—low enough to attract consumers but high enough to increase revenue—is a complex, tricky process. Perhaps that’s why pricing was named as one of the top three priorities for 97% of executives in a 2022 survey by Bain & Company. To make the most of pricing and discount strategies, businesses should:

• Implement dynamic pricing: Dynamic pricing involves setting flexible prices for products and services based on market demands, often amounting to higher prices during periods of peak demand and lower prices at slower times. This can be an effective way to encourage consumers to make purchases during periods of low demand when businesses have excess inventory. A well-timed sale often works; in fact, 62% of shoppers say they hold off on purchasing clothes until they can take advantage of a discount, according to a 2023 study by 2 Visions.
• Offer strategic discounts: Offering discounts at the right time on the appropriate merchandise can capture consumer attention and increase overall sales. For example, retailers can entice consumers to buy in bulk by promoting “buy one, get one 50% off” deals on items like socks, bath towels, and lightbulbs. And restaurants might promote discounted meals during quieter times outside the typical lunch and dinner rushes to motivate patrons to flow in and out of establishments throughout the day.
• Create subscription models: Charging customers monthly, quarterly, or annually for subscription fees on products or services can provide a steady stream of revenue for retailers. For example, a beauty supply company might offer a monthly subscription to customers to introduce samples of new cosmetics and creams, a fashion retailer might send a curated selection of clothes based on customers’ style preferences, and a liquor store might offer home delivery of new wine and beer selections to encourage customers to try new offerings.

10. Invest in Comprehensive Staff Training

Employees who receive extensive training tend to be more familiar with a company’s product offerings, equipping them with the information they need to recommend items and provide a more personalized customer service, which can lead to higher conversion rates. Besides, as retailers integrate digital tools into the buying process, employees should be ready to assist customers and troubleshoot problems to improve their shopping experiences. Companies can invest in training programs that:

• Provide product knowledge: Staff should take part in structured training programs to learn the ins and outs of all products, including their most important features, their benefits, and how to use them. Retailers might consider offering employee training through online learning management systems or mobile apps, using video tutorials and interactive quizzes to keep employees engaged. Also, businesses may want to offer staff firsthand experience with products to boost their know-how, allowing them to sample new cookie selections at a bakery, for example, so they can confidently recommend particular items.
• Share sales techniques: In addition to hosting workshops where veteran sales experts and experienced managers share their best selling secrets, retail companies may want to ask employees to engage in role-playing to refine their sales techniques by practicing pitching products and upselling. Similarly, arranging for new employees to shadow experienced sales mentors allows new hires to observe customer interactions and gain valuable tips for closing deals. And businesses may even want to create sales competitions, where employees are rewarded with bonuses or gift cards for using the store’s sales practices successfully.
• Emphasize customer service: Retailers can offer top-notch products, but if they don’t follow this up with excellent customer service, consumers could decide to take their business elsewhere. In fact, 95% of consumers said customer service had an impact on their brand loyalty in a 2022 survey, noting that easy access to digital channels, online self-service options, and professional agents were key factors. To emphasize the importance of providing exceptional customer service, retailers should share customer testimonials about how a great experience led to a large purchase, which can motivate staff to seek higher sales. Also, empowering staff to make in-the-moment decisions to satisfy customers, such as providing a deep discount on damaged merchandise, can help build customer loyalty.

Maximize Every Retail Sale With NetSuite

A growing number of retailers are recognizing the importance of harnessing advanced technology to optimize the customer experience, as well as the many back-end processes that support sales. NetSuite for Retail has financial, order, and inventory management capabilities that allow businesses to get a better handle on their customer, purchase, and stock data across all locations and ecommerce channels. In turn, they’re endowed with real-time performance insights that can be used to help support revenue growth. NetSuite for Retail also allows businesses to automate a multitude of sales functions and reduce manual data entry to speed transactions, providing quick and satisfying customer experiences that encourage future sales.

Meanwhile, NetSuite Financial Management offers retailers an AI-powered, cloud-based platform that delivers real-time visibility into every aspect of their financial performance. The system allows companies to quickly produce budgets and forecasts, ensure compliance with accounting standards and regulatory requirements, and expedite daily transactions. In addition, NetSuite Financial Management automates and streamlines manual processes that needlessly waste staff time. For example, the software speeds the financial close process by automating consolidations and ensuring compliance with accounting standards, tax codes, and regulations—even when a retail business operates in multiple locations. This also reduces the risk of inadvertently reporting errors, while providing retailers with greater access and control over their financial data so they can focus on increasing sales and promoting long-term growth.

Successful retail businesses know that every interaction with a customer presents an opportunity to turn a casual shopper into a loyal brand evangelist. Sometimes, the key to winning over customers is simply making their purchasing experiences easier and more enjoyable. Other strategies retailers can use to accomplish the goal of attracting and retaining customers—while increasing sales in the process—include optimizing their product displays, providing personalized in-store services, implementing effective loyalty programs, and leveraging software to accelerate the sales process. Retailers that keep their eye not only on growing their business but also on building relationships and creating memorable experiences are the ones that are most likely to continue to thrive.

Increase Retail Sales FAQs

How can a retail business stand out?

To differentiate itself from the competition in a crowded market, a retail business should embrace innovative strategies to appeal to its target audience, for example, by fostering strong connections with customers through authentic storytelling. In addition, leveraging technology to fathom customer preferences, analyze sales data, and optimize pricing based on demand can also help a company stand out and earn greater customer loyalty.

How can retailers boost their sales performance?

Sending out attention-getting, time-sensitive promotions can generate interest and drive more foot traffic to stores. Additionally, creating a loyalty program that sends personalized communications about promotions and that rewards customers for their purchases can provide customers with an incentive to return to the store. And once shoppers are there, retailers can boost sales by offering complementary services, such as fashion advice; optimizing the store layout to encourage impulse purchases; and training staff to understand how a company’s products can ease customer pain points, thereby enabling employees to confidently recommend purchases.

What generates more sales?

Retailers can generate more sales by implementing several effective strategies, such as leveraging data-driven insights, setting strategic prices, and promoting products and services. Perhaps most importantly, offering excellent customer service, whether in-store or online, can allow retailers to guide shoppers from browsing to buying to generate an uptick in sales.