The ROI of Store Design, Part One: Branding
Retailers continue to grapple with an increasingly complex question: what is the true ROI of store design? While the term is widely used, it’s rarely approached with the depth it requires. ROI, at its core, is about connecting a range of inputs to business outcomes—then using that insight to guide future investment. In the retail environment, where branding, design, operations, and customer behavior are deeply interwoven, isolating any single factor is unrealistic.
Rather than viewing “ROI of store design” as a standalone metric, it’s more accurate to see it as a composite result—a culmination of multiple forces working together. This first installment focuses on the ROI of retail branding. The next parts will explore space planning and, later, the importance of design integrity during rollout.
Why Retail Branding Is Crucial for Store Design ROI
Branding is far more than a visual identity—it’s the foundation of a retailer’s relationship with the customer. And it’s increasingly being measured, not just intuitively, but strategically.
The 2024 Store Design & Experience Survey by Retail TouchPoints provides timely insight into how today’s retailers are approaching the issue:
- 61% are aligning material decisions with corporate sustainability goals.
- 63% are investing in multi-purpose technologies to improve both associate and customer experiences.
- Design investments are expanding beyond the sales floor to include stockrooms (36%) and exteriors (33%), highlighting a more holistic brand experience.
These statistics reflect a broader trend: retailers are thinking about ROI as part of a total brand experience, not just a sales-per-square-foot calculation.
Why ROI in Branding Isn't a Simple Formula
Despite rising interest in ROI measurement, there’s still no universal formula. And for good reason, as retail doesn’t operate in a vacuum. A merchandising fixture, logo update, or new flooring can’t be evaluated in isolation. Retailers can’t attribute a change in sales to a single design tweak without also accounting for supporting elements like promotions, staffing, layout, and even neighboring product categories.
Retail Branding is part of a retail ecosystem, and its ROI must be considered in context. For example, increased wine sales might impact cheese sales next to them. Isolating one variable while ignoring others leads to misleading conclusions.
Branding in Action: ExtraMile Case Study
A compelling example of brand-driven design ROI is the multi-phase work KRS completed for ExtraMile — a joint venture between Chevron and Jacksons Food Stores, with over 800 locations across the western U.S.
Facing increased competition and evolving consumer behavior, ExtraMile needed a transformation to better engage its core audience—primarily younger, value-driven male shoppers. KRS was brought in to lead a comprehensive rebrand that addressed both aesthetic expression and strategic performance.
The work focused on aligning the store experience with ExtraMile’s five brand pillars:
- Extra Efficiency
- Extra Appreciation
- Extra Value
- Extra Effort
- Extra Convenience
Private Label Branding: Mile One Coffee
As part of the brand evolution, KRS developed and launched Mile One Coffee, a proprietary coffee concept that served as a brand-within-a-brand. KRS not only designed the merchandising and signage but also developed custom graphics and packaging for various coffee blends.
This initiative delivered more than just incremental revenue—it built an ownable experience that helped differentiate ExtraMile from competitors and deepened its connection with customers.
The ROI of Design with Purpose
The new store concept delivered on multiple fronts: customer satisfaction, employee engagement, and franchisee enthusiasm. Stores began attracting more diverse, younger customers that reflected changing western U.S. demographics, while employees reported that the new layout improved their ability to serve guests more effectively.
This case underscores that ROI in store design isn’t about one element—it’s about a system. ExtraMile’s success was rooted in the alignment of physical space, private-label innovation, and a clearly communicated brand promise.
How to Measure ROI from Retail Branding
Branding’s impact is best understood through holistic performance indicators, such as:
- Immediate and sustained sales lift
- Increases in foot traffic
- Growth in unique and return customers
- Visit duration
- Average transaction size
Social and community engagement metrics
Retailers should test, measure, and refine their efforts continuously. A/B testing can provide insight into what resonates. Flexible strategies allow for the brand to evolve alongside customer expectations, competitive shifts, and broader market trends.
The key is not to assign credit (or blame) to a single element—like a new paint color or signage font—but to evaluate how all components work together to move the needle.
Key Takeaway
A strong brand is a strategic asset. It’s not just a look or message—it’s a customer promise delivered through every detail of the retail environment. When retail branding is consistent, customer-centric, and adaptable, it pays dividends in both performance and perception.
Branding can’t be calculated in isolation, but its impact is real—and measurable—when viewed as part of the larger retail experience.
Frequently Asked Questions
Q: What is the ROI of retail branding in store design?
A: Branding ROI in retail refers to the measurable return on investments in brand identity, store visuals, messaging, and customer experience. This includes increased sales, foot traffic, and customer loyalty.
Q: How does branding influence customer behavior in retail stores?
A: Strong branding helps shape how customers perceive and interact with a store, encouraging longer visits, larger purchases, and repeat visits. It builds emotional connection and reinforces trust.
Q: What metrics help measure the ROI of branding in store design?
A: Key performance indicators include immediate and sustained sales lift, foot traffic, return customer rate, visit duration, average basket size, and brand engagement online and offline.
Q: Can a store redesign really improve sales?
A: Yes, especially when it amplifies the emotional and experiential aspects of the brand. KRS’s redesign for ExtraMile, including scalable design and the Mile One Coffee program, helped attract new customers and re-engage loyal ones.
