*Chapter 5Visual Merchandising & DisplaysFaiza

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Retail Image?

Significance of Retail Image

Positioning and Retail ImageRetail Image

*The Elements of a Retail Image

*In 3 SecondsA shopper should be able to determine a storesNameLine of tradeClaim to famePrice positionPersonality

*AtmosphereThe psychological feeling a customer gets when visiting a retailerStore retailer (brick and mortar format): atmosphere refers to stores physical characteristics that project an image and draw customersNonstore retailer: atmosphere refers to the physical characteristics of catalogs, vending machines, Web sites, social media etc.

*Visual MerchandisingProactive, integrated atmospherics approach to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior

*What VM does?Enhances the Shopping experience

Is a Communication Tool

Supplements creation of right environment

Helps customer make buying decisions

*The Elements of Atmosphere

*Exterior PlanningStorefront (structural alternatives)SignageMarqueeStore entrancesDisplay windowsExterior building heightSurrounding stores and areaParking facilities

*Store EntrancesHow many entrances are needed?What type of entrance is best?How should the walkway be designed?Does it create shoppers interest?

*General InteriorFlooringColorsLightingScentsSoundsStore fixturesWall texturesTemperatureAisle spaceDressing facilities

In-store transportation (elevator, escalator, stairs)Dead areasPersonnelMerchandisePrice levelsDisplaysTechnologyStore cleanliness

*Allocation of Floor SpaceSelling spaceMerchandise spacePersonnel spaceCustomer space

*Approaches for Determining Space NeedsModel Stock Approach

Determines floor space necessary to carry and display a proper merchandise assortmentSales-Productivity Ratio

Assigns floor space on the basis of sales or profit per foot

*Interior (Point-of-Purchase) Displays - BasisAssortment displayTheme-setting displayEnsemble display (cross merchandising)Rack / Case displayOff Shelf displayCut case / Dump binSelf supporting stacks / pallets

*Shop DisplaysWindow displays (Exclusive windows, Open windows) Live Displays Marquee Displays Freestanding / Island Displays (Gondola setting) Counter displays Brand Corners End Cap / Power Aisle Displays Cascade / Waterfall Displays

*Making the Shopping Experience More Pleasant

*The Shopping Carts Role in an Enhanced Shopping Experience

Direct Marketing replaced by online and social mediums*

*ChallengesClicks vs. footfalls generated

Transformation into buying from among the clicks

Online Presence and Issues

Online Store and Issues

*Online Store ConsiderationsAdvantagesUnlimited space to present product assortments, displays, and informationCan be customized to the individual customerCan be modified frequentlyCan promote cross-merchandising and impulse purchasingEnables a shopper to enter and exit an online store in a matter of minutesDisadvantagesCan be irrelevant to massesCan be slow for less internet savvy shoppersCan be too complexCannot display three-dimensional aspects of products wellRequires constant updatingAuthenticity and Credibility issuesMore likely to be exited without purchase

*Advantages Cyber space No boundaries Wider spectrum of customers Easy Market penetration Strong Feedback system

*Characteristics Online Store Front Visual Density Online Merchandising Online Pricing

*Pitfalls of e-tailing No ambiance No emotional experience Intangible merchandise Security issues Impersonal Customer Service

*Retail MIS Point of Sale Technology Supply Chain Management Customer Relationship Management HRIS MIS (Exception reports, Interactive Reports, Ad-hoc Reports) Electronic Data Interchange facility (EDI) Concept of ERP systems

Technology reformed / rejuvenated Retailing Processes*