If you’re interested in increasing your pro shop revenues, you might take a few tips, and significant inspiration, from the Texins Activity Centers--corporate fitness centers for the current and former employees of Texas Instruments, Inc. (TI), that are managed by the Health Fitness Corporation (OTC Bulletin Board: HFIT). Each of them has a thriving pro shop.
A successful retail operation in a mall--a J.C. Penney’s, for example--might generate $150 in sales per year, per square foot. Since they opened their doors in March 2000, the four Texins pro shops--situated in Texins centers at corporate headquarters, and at TI facilities in Dallas, Plano, and Sherman, Texas--have averaged $897 per square foot! And, for their first year, ending February 28, they reported $593,316 in total revenues.
So what’s their secret?
“I think we’re successful because we operate much like a student union at a college,” says Chris Hull, the executive director for the centers. “We try to think ‘out of the box,’ with respect to what we stock, our inventory, our relationship with vendors, other services we offer, the way that we market ourselves… We try to provide what people want and need--not just what health club members might be thinking about.”
Activity center members may stop by to pick up towels, swim caps, goggles, or athletic clothing or shoes, but they’re also likely to be tempted by the extensive assortment of non-fitness items, which also attracts other TI employees. They can buy TI-logo goods (e.g., pens, pencils, coffee cups, and badge straps), and tickets to any imaginable event. “We sell tickets for plays, movies, concerts; for Six Flags, Sea World, Hurricane Harbor, and the Mesquite Rodeo; and for Texas Rangers, and Dallas Cowboys and Mavericks games,” notes pro shop Manager Lisa Ross. “Tickets are our biggest seller.”
The shops have also contracted with a local firm for film development, so shoppers can have their photographs developed and waiting for them in 24-36 hours. “For members and employees, that’s a big plus,” notes Hull, “because it saves them an extra stop on the way home.”
The Texins shops have mastered, and improved upon, some of the basic tenets of retailing (a large variety of relevant merchandise; well designed and maintained shops; professional presentation) --to score impressive profit numbers. But, more importantly, they’ve also done a great job of promoting the activity centers. “Our pro shops draw a steady stream of visitors into the centers, which has had a huge effect on membership sales,” reports Hull. “What better way to market our product than to have prospects stopping by--to buy--each week?”
John R. Halbrooks is the associate editor of CBI and can be reached at j.halbrooks@laissez-faireinc.com.
