Nicole Lam: H&M Sells Inside Their Changing Rooms

I can definitely understand how imposing a new system of in-changing room transactions may eliminate the extra time customers spend in store due to long lineups, especially during the holiday season, but I can’t help but wonder if the expected benefits of this strategy will actually outweight the risks/costs of creating and using it?  As Nicole stated, there are evident additional personnel costs, as well as social-media costs that follow this proposition.  The opportunity cost of reducing the time these customers spend in the store is that they are less exposed to the merchandise H&M has to offer.

Nevertheless, I can say first hand that when I am in a store like H&M that has a very large inventory, I am usually not going to want to spend the time to see every single item the store has in stock that day anyways.  During the holidays, we have one objective; and that is to get in, and get out having purchased everything that we “need.”  Allowing customers to purchase the items that they happen to like in the changing room makes it easier for H&M to reap the benefits of impulse transactions.

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