Gift shops: do they have a place? Nursing homes can enjoy the same benefits hospitals have experienced for years - Feature Article

Nursing Homes, July, 2002 by Marilyn Nason

the concept of a gift shop in any type of extended-care facility has always been one that raises more questions than answers. In the minds of many administrators, maximum utilization of every square foot of indoor/outdoor space is of utmost importance.

Does a gift shop have a place?

To answer that question, one has to address more specific questions: What will it contribute? Where should it be located? Who should operate/be responsible for it? Should it be outsourced or owned by the nursing home? Should it be open to anyone and everyone? What hours? What merchandise? What sort of pricing?

Most hospitals in the United States resolved all these questions long ago, after it became apparent the gift shops could function successfully under the aegis of the hospital auxiliary (or guild) as part of its already valuable volunteer services. Hospitals realized that operating a gift shop provided a true service to the facility--and made some money, too. Since most hospitals are nonprofits, the revenue from their gift shops became another source of funds that could be earmarked for those items that, though necessary, fell outside the facility's annual budget.

Interestingly, on the service front, hospitals have found that between 80 and 90% of all business done in their gift shops comes from hospital employees, a percentage that has remained consistent over the past two or three decades. This became increasingly important as hospitals grew and located employee parking areas farther and farther away from the facility. Hospital employees tend to wander into the hospital gift shop on their breaks and lunch hours rather than attempting the mad dash to their cars to go off campus to shop/eat/relax. Also hospitals, like nursing homes, operate three shifts 24/7/365, making convenient shopping for "necessities" a potentially around-the-clock opportunity for employees.

Partly in response to the shift problem, smart hospital gift shop volunteers realized long ago that they could become "personal shoppers" for hospital employees for items such as toys, games, greeting cards, books, jewelry, general gift items and limited apparel, such as T-shirts, caps, scarves and personal leather goods.

Unlike conventional retailers, who must woo customers with sparkling displays and an emotionally gratifying atmosphere, a facility-based gift shop is not expected to meet such upscale criteria. In fact, a trip to the average hospital gift shop reveals the KISS (Keep It Simple, Stupid) approach in action. The shop is laid out in basic (if sometimes overcrowded) traffic patterns, with merchandise displayed on plain shelves, gondolas, slatwalls, j-hooks and other commonplace fixtures, with minimal signage. Hospital gift shops promote themselves for the sheer convenience they offer, not to mention the obvious benefits to the institutions themselves.

So, where do nursing homes come in? There is an old adage: "Don't reinvent the wheel." So, why fight it? Visit a hospital gift shop for the answers on what to carry and how to display it sensibly. Recognize that the main reason nursing home employees will come in regularly will be the same as for their hospital counterparts. Centering on the obvious items--candy, gum, soft drinks, coffee and maybe a magazine/paperback rack--start with all or as many of these standard items as possible. However, to draw traffic and promote growth, place them as far away from the front door as possible.

What other items might be offered? Use a standard retailing procedure to find out: Poll prospective customers--in this case, nursing home employees and, to a lesser degree, residents and visitors--using a simple questionnaire. Ask basic questions such as, "If we opened a gift shop here, what would you purchase?" Then list items for them to check off--popular items such as games, puzzles, toys, caps, T-shirts, scarves, umbrellas, mugs and kitchen linens; body care products, such as lotions, hair and face care preparations and shaving kits; and "luxuries," such as books, silk flower arrangements, greeting cards, stationery, etc.

Now that you have some idea what to offer, what is the first step toward creating a shop? Turn to the logical in-house resource, the maintenance and housekeeping departments. Get their input on how to construct and maintain a small shop in the facility. Rest assured, it will be a small one, for the obvious reason that nursing homes, like hospitals, have little unused space to spare.

Where will the new shop procure its merchandise? Again, start with your local hospital gift shop(s)--ask for introductions to their vendors/suppliers. Since you are not generally in direct competition, their help could be fairly substantial.

In running the shop, the rules of conventional retailing apply. The typical demands of any retail operation--everything from staffing, developing shop policies and dealing with theft/pilferage, to periodically re-evaluating each merchandise category to determine if the shop's core customers really want it-must be met by the nursing home gift shop.