ICSC European Retail Property School

Retailing Concepts & Visual

Merchandising

10 July 2014Julia Langkraehr, Retail ProfileBerlin, Germany

Visual Merchandising and store design• Considerations• Criteria• Signage• Operational Elements

How to evaluate a store• Store evaluation

Centre image

Temporary Tenants/Commercialisation

Programme Overview

A. Why is Visual Merchandising & Store Design Important?

Retail Visual Merchandising

A. Why is Visual Merchandising & Store Design Important?

1. What is it? a. The senses

b. Sight

c. Sound

d. Scent

e. Touch

2. Presentation at Merchandise

Retail Visual Merchandising

1. Knowledge/Credentials/Experience

2. Technical Criteria

3. Design Criteria

Architect/Designer Selection

1. Who is the customer?2. What is the image?3. How does the store name convey the theme?4. What is the retail story?

Design Considerations

1. Storefront Designa. Storefront Entries

b. Entry Floor

c. Storefront Windows

d. Display Zone

e. Storefront Closure

f. Storefront Colour and Finish Materials

g. Lighting

General Criteria

a) Floorings

b) Ceilings

c) Partitions

d) Finish Materials

e) Floor Plan/Circulation Design

General Criteria - Interiors

f) Fixtures & Merchandise Displays

g) Cash Wrap

h) Light Fixtures

i) Architectural & General Lighting

j) Ornamental Hardware

General Criteria - Interiors

a. Primary Sign Typesb. Secondary Signage Typesc. Types of Signs

1. Panel Signs

2. Blade Signs3. Plaque Signs

Signage

a) Style of Signs1. Fabric or mental Awning Signs2. Individual Letter Signs3. Store Front Glazing Sings4. Exposed Neon/Neon Interior Signs (GET THIS)5. Flags and Banners

Signage

a) Audio Environment

b) Advertising – Brochures & Collateral

c) Policy Signage

d) Pricing/Labels/Hangtags & Display Signage

e) Shopping Bags/Boxes

Operational Elements

f) POS Signage

g) Staff Uniform/Apparel Statement

h) Exit Statement

Operational Elements

a) Traffic Flowb) The Psychology of Selling

How To Evaluate A Store

c) Placement of Fixturing

d) Merchandise Levels

How To Evaluate A Store

Merchandise Philosophy

� Ease of movement around goods, and ease of purchase for customers

� Stimulate the senses: sight, sound, touch, taste and smell

� Cater to the type of shopping: impulse, everyday, distress, special or leisure

e) Visual Merchandising Planf) Colour Blocking

How To Evaluate A Store

� Shape: symmetrical, asymmetrical, composite, grouping

� Design: theme, open, coordinated

� Product Use: subtle, dominant

� Layout: space, shelving, flow of goods and people, fixtures

� Aesthetics: lighting, warmth, colour

g) How to evaluate a store visually

1. How Customers Perceive a Store2. How Presentation of Merchandise Affects Sales

How To Evaluate A Store

2. Evaluating Key Points of a Storea) Store Frontb) Store Windowc) Fixtures

How To Evaluate A Store

2. Evaluating Key Points of a Stored) Lighting/Ambiencee) Environmentf) Colour

How To Evaluate A Store

2. Evaluating Key Points of a Storeg) Cash Wraph) Presentation Tablei) Merchandise

How To Evaluate A Store

2. Evaluating Key Points of a Storej) Store Designk) Signagel) Dressing Room

How To Evaluate A Store

2. Evaluating Key Points of a Storem) Greetingn) Suggestion Sellingo) Follow-through Salesp) Advertising

How To Evaluate A Store

Exercise - Evaluate a Store

a) Store’s Strong/Weak Points and Focus

Store evaluation pointers

Wall elevation

Floor Plan

Floor Plan Sales Area

Centre Image Creation

Sample Page Heading: Arial 26pt Bold

1. Definition

Communicating Image

1. Landscaping2. Architecture3. Signing4. Amenities

Exterior Elements

1. Landscaping

2. Architecture

3. Signing

Interior Common Areas

4. Amenities

5. Maintenance

Interior Common Areas

6. Displays7. Audio Environment: Sound System

Interior Common Areas

Type of commercialisation

Temporary Tenants/Commercialisation

1. Advertisinga. 6-sheet

b. Custom and Outdoor

c. Web pages, social media & mobile media

2. Promotions & Special Events3. Cars/Vehicles4. Photo Booths 5. Web Access6. Wireless Networks7. Cash Points8. Kiddie Rides 9. Sponsorship & Partnerships10. Out Parcel, Parking Area, Roof

Cell Towers & Other Creative Uses

B. Types of Commercialisation

A. Six-Sheet:

• Placed on vacant walls many times in car parks, walkways and entrance to centre

• A standard size bus shelter size poster that is back lit in a frame

• Single Face• Scrolling

1. Advertising

B. Custom & Outdoor

48 Sheet/96-Sheet

• A standard size out door billboard

• Custom

1. Advertising

1. Advertising

B. Custom & Outdoor

Digital and Electronic

• LED Indoor & Outdoor

• Plasma Screen

C. Web pages, social media & mobile media

1. Advertising

• Typically one day to one week• Bring their own stand/kit• No retail sales• Promote a product or service

2. Promotions & Special Events

L’Oreal DavidoffKodak

• Car Showroom

• Rock Climbing Walls

• Trampolines

2. Promotions: Other Creative Uses

2. Promotions: Other Creative Uses

2. Promotions: Other Creative Uses

2. Promotions: Other Creative Uses

3. Cars/Vehicles

3. Cars/Vehicles

4. Photo Booths

4. Photo Booths

4. Vending Machines

4. Vending Machines

4. Vending Machines

4. Vending Machines

5. Web Access

• Communication Towers

• In Building Solutions• Site Sharing

What is:• Hot Spots

• Macro Cells• Micro Cells

6. Wireless Solutions

7. Cash Points

8. Kiddie Rides

Well planned and integrated

9. Sponsorship

10. Out Parcel, Parking Area, Roof Cell Towers & Other Creative Uses

• Retail Merchandising Units

(RMUs)• Kiosks• Temporary In-line

stores/shops• Incubation• Out-Parcels

C. New Types of Commercialisation

1. Retail Merchandising Units (RMUs)

1. Retail Merchandising Units (RMUs)

1. Retail Merchandising Units (RMUs)

1. Retail Merchandising Units (RMUs)

1. Retail Merchandising Units (RMUs)

1. Retail Merchandising Units (RMUs)

Definition of a permanent retailer• Over 12 months – typically three to ten years• Sells the same merchandise consistently• Permanent structure

2. Kiosks

2. Kiosks

2. Kiosks

2. Kiosks

2. Kiosks

2. Kiosks

• A vacant store finished with floors, walls & ceiling; that can be temporarily occupied until a permanent merchant can be secured

3. Temporary In-Line Store/Shop

• Usually leased in three, six or nine month terms or for fourth

quarter holiday season

• The License to Occupy agreement is different than that which is used for the common area – in order to cover service and equipment in the store

3. Temporary In-Line Store/Shop

A unique status given to a temporary retailer who:

• Achieves sales turnover high enough to substantiate a permanent retail store

• Possesses the desire to commit to the Centre on a long-term basis

• Complements and adds to the merchandise mix of the Centre or fills a merchandise void

3. Incubation

3. Incubation

Budapest, Hungary

3. Incubation

The RMU, Garden Sundries The Shop, Flutterbyes

Out-Parcel: A vacant piece of land around the Centre or car park• Tent Sales• Car Showroom• Trampolines

4. Out-Parcel & Other Creative Uses

Set Goals

a. Development of Budgeti. Income

ii. Expense

iii. Investment – Capital Equipment

b. What is your focus i. Income

ii. Merchandise

iii. Incubation

E. Developing a Strategy for Commercialisation/Speciality Leasing

Nu

mb

er

of

Un

its

Barrow or Retail Merchandising Units (RMU’s)

a) Retail Units1. Fixturing and Displays2. Sales Personnel3. Lighting4. Signage

Temporary Tenants/Commercialisation

b) Vacant Stores1. Barricades2. Display Windows3. Temporary Tenants

c) In-Line

Temporary Tenants/Commercialisation

Display Windows

Permanent Retailer Expectations:• Does it block the Tenant’s storefront and signage?

• Does it encourage flow throughout the Centre?

Quality & Standards

SRL concepts that promote browsing and increase the Shoppers’ time in Centre

Racetrack Effect

Does it add value to the:

Customer Experience?• Fun and Excitement

Centre Atmosphere & Entertainment-Worth?• Exciting and Attractive

Merchandise Selection?• Easy to Shop

• Attractive• Well-displayed

Questions to Ask?

• Is it in the right location?

• Is it earning maximum revenue?

• Is it taking away from permanent retailers?

Questions to Ask?

Does it add value?

What is the highest and best use of this location?

Where are the appropriate locations in the centre?

Does it add value?

It adds value when it is strategically planned, implemented and

managed. However, if it is not properly implemented, it can detract from the Shopping Centre:

Adds Value

A. Understanding the Players1. IKEA

Cross Border Retailing in Europe

Understanding the Players2. H&M (Hennes & Mauritz)

Cross Border Retailing in Europe

A. Understanding the Players3. Zara (Inditex)

Cross Border Retailing in Europe

A. Understanding the Players4. Mango

Cross Border Retailing in Europe

A. Understanding the Players5. Fnac

Cross Border Retailing in Europe

A. Understanding the Players6. Benetton

Cross Border Retailing in Europe

A. Understanding the Players7. Media Markt

Cross Border Retailing in Europe

A. Understanding the Players8. Fielmann

Cross Border Retailing in Europe

A. Understanding the Players9. Gap

Cross Border Retailing in Europe

A. Understanding the Players10. Wal-Mart, Tesco, Metro A.G., Carrefour

Cross Border Retailing in Europe

A. Understanding the Players11. Other…

Cross Border Retailing in Europe

B. Using only Cross-Border Retailers makes malls “Cookie-Cutter” sameness

Cross Border Retailing in Europe

Class Evaluations

ICSC European Partners

ICSC European Partners

ICSC Global Partner