RETAIL IMAGE

The Big Three!

Retail stores have 3 distinct aspects:

Merchandising (whatever you put in them) Operations (whatever employees do) Design (meaning the premises)
-Paco Underhill; Envirosell

Objectives of the Store Environment

Get customers into the store
Serves a critical role in the store selection process The store itself makes the most significant and last

impression

Once they are inside the store, convert them into

customers buying merchandise

The more merchandise customers are exposed to that is

presented in an orderly manner, the more they tend to buy buy more merchandise than planned than to get a new consumer to come into your store

Bottom line: it is easier to get a consumer in your store to

Terms
Image how a retailer is perceived by customers and

others
Positioning how a firm devises its strategy so as to

project an image relative to its retail category and its competitors

Social media refers to online technology tools that

allow vast numbers of people to easily communicate with one another via the Internet and mobile devices. Through social media, messages, audio, video, photos, and other multimedia communications are possible.

In Seconds
A shopper should be able to determine a stores
Name Line of trade

Claim to fame
Price position Personality

Elements of a Retail Image

Objectives
How a retail store image is related to the atmosphere
it creates via its exterior, general interior, layout, and displays; and to look at the special case of non-store atmospherics

Atmosphere (atmospherics)
The psychological feeling a customer gets when visiting a retailer
Store retailer: Atmosphere refers to stores physical

characteristics that project an image and draw customers Non-store retailer: Atmosphere refers to the physical characteristics of catalogs, vending machines, web sites, etc.

Visual Merchandising
Includes everything from store display windows to aisle width to the materials used for fixtures to merchandise presentation to housekeeping, lighting, music, posters, graphics, props and colour of walls. How all of these elements are visually organized and how often they are rotated within the retail space encompass visual merchandising. Aimed to create a certain look, properly display products, stimulate shopping behaviour.

Visual merchandising is not just important to the individual retailer, but also to the shopping centers in which they are located.

The Elements of Atmosphere

1. Exterior Planning
Storefront the total physical exterior of the store itself.

It includes the marquee, entrances, windows, lighting and construction materials. With its storefront, a retailer can present a conservative, trendy, upscale, discount or other image.

1. Exterior Planning
Marquee a sign that displays the stores name. It can be

painted or a neon light, printed or script, and set alone or mixed with a slogan (trademark) and other information.

1. Exterior Planning
Store entrances number of entrances is determined:

Small stores have one entrance. Store drawing vehicular and pedestrian traffic need two entrances (one for pedestrians, another near the parking lot).

Doorway can be revolving, self-opening, push-pull.

1. Exterior Planning
Display windows Two purposes: (1) to identify the store

and its offerings and (2) to induce people to enter. Decisions include the number, size, shape, colour and themes of display.

By showing a representative merchandise offering, a store can create an overall mood. By showing fashion or seasonal goods, it can show it is contemporary. By showing sale items, a store can lure price-conscious consumers.

1. Exterior Planning
Exterior building height

Disguised building height part of a store or shopping center is beneath ground level. Such a building is not as intimidating to people who dislike a large structure. Non-disguised building height the entire store or center can be seen by pedestrians.

Surrounding stores and area Overall area image rubs

off on individual retailers as people have a general perception of a shopping center or a business district.
Parking facilities potential shoppers may never enter a

store if they drive around for parking. Customers may rush in and out of a store to finish shopping before parking meters expire.

2. General Interior
Flooring can be cement, wood, linoleum, carpet, etc. A plush,

thick carpet vis--vis a concrete floor creates different kind of atmosphere.

Colors bright, vibrant colours contribute to a different atmosphere

than light pastels or plain white walls.

Lighting can be direct or indirect, white or coloured, constant or

flashing. Teen-oriented apparel boutique might use bright colours, a maternity dress shop could use pastel colours and indirect lighting to form a different atmosphere.
Scents and Sounds Restaurant uses food aromas to increase

peoples appetites, cosmetics store uses an array of perfume scents to attract shoppers. Beauty salon plays soft music or rock, slow tempo music in supermarkets encourages people to move more slowly.

2. General Interior
Store fixtures - Planned on their utility and aesthetics. Pipes,

plumbing, beams, doors, storage rooms and display racks and tables are considered part of interior decorating. An upscale store usually dresses up its fixtures and disguises them. A discount store might leave fixtures exposed because this portrays the desired image.

2. General Interior
Wall textures Wall textures enhance or diminish atmospherics.

Prestigious stores often use raised wallpaper. Department stores are more apt to use flat wallpaper, while discount stores may have barren walls.
Temperature No air-conditioning can shorten a shopping trip.

Image is influenced by central air-conditioning, fans, or open windows.

Aisle space Wide, uncrowded aisles create a better atmosphere

than narrow, crowded ones.

Dressing facilities (trial rooms) For some apparel shoppers

dressing facilities are a factor in store selection. Can be elaborate, plain, or non-existent.

2. General Interior
In-store transportation (elevator, escalator, stairs) multi-

level stores must have vertical transportation. Escalators provide shoppers with a quiet ride and a panoramic view of the store.
Dead areas awkward spaces where normal displays cannot be set up.

It is not possible for such areas to be deployed profitably or attractively.

Mirrors are attached to exit doors.

Vending machines are located near restrooms.

Ads appear in dressing rooms. Escalators let shoppers view each floor, and sales of impulse items go up

when placed at the escalator entrance or exit.

Personnel Polite, well-groomed, knowledgeable personnel

generate a positive atmosphere. Ill-mannered, poorly groomed, uninformed personnel engender a negative one.

2. General Interior
Merchandise Top-line items yield one kind of image, lower-quality

items yield another. The mood of the customer is affected accordingly.

Price displays The way prices are displayed is a vital part of

atmosphere.
Upscale stores have few or no price displays, rely on discrete price tags,

and place cash registers in inconspicuous areas behind posts. Discounters accentuate price displays, show prices in large print and locate cash registers centrally, with signs pointing to them.

Technology Store with state-of-the-art technology impresses

people with its operational efficiency and speed. One with slower, older technology may have impatient shoppers.
Store cleanliness No matter how impressive the exterior and

interior, an unkempt store will be perceived poorly.

3. Store Layout: Allocation of Floor Space

Selling space used for display of merchandise, interactions between salespeople and customers, and demonstrations. Merchandise space used to stock non-displayed items. E.g. at a traditional shoe store, this area takes up a large percentage of total space. Personnel space set aside for employees to change clothes, to take lunch and coffee breaks, restrooms. Because retail space is valuable, personnel space is strictly controlled.

Customer space contributes to shopping mood. Can include benches, chairs, dressing rooms, restrooms, restaurant, nursery, parking and wide aisles. Discounters skimp on these areas.

3. Store Layout: Product Grouping Types

A stores offerings are next classified into product groupings.
Functional product groupings display merchandise by

common end use. A mens clothing store might group shirts, ties, cuff links, and tie pins; shoes, shoe polish; T-shirts, shorts, socks; suits; sports jackets and pajamas.
Purchase motivation product groupings appeal to the

consumers urge to buy products and the amount of time he or she is willing to spend on shopping. A committed customer with time to shop will visit a stores upper floors; a disinterested person with less time will look at displays on the first floor.

3. Store Layout: Product Grouping Types

Market segment product groupings place together various items that appeal to a given target market. A music store separates CDs into rock, jazz, classical, R&B, country, and other sections. Storability product groupings used for products needing special handling. A supermarket has freezer, refrigerator, and room-temperature sections.

3. Store Layout: Determination of Traffic Flow Pattern

A Supermarket uses a Straight (Gridiron) Traffic Flow it places displays and aisles in a rectangular or gridiron pattern

Straight (Gridiron) Traffic Pattern

Used by food retailers, discount stores, drugstores, hardware stores and stationery stores. Advantages:
An efficient atmosphere is created. More floor space is devoted to product displays. People can shop quickly. Inventory control and security are simplified. Self-service is easy, thereby reducing labor costs.

Disadvantages:
Impersonal atmosphere. More limited browsing by customers. Rushed shopping behaviour.

3. Store Layout: Determination of Traffic Flow Pattern

A Department Store uses a Curving (Free-Flowing) Traffic Pattern it places displays and aisles in a freeflowing pattern

Curving (Free-Flowing) Traffic Pattern

Used by department stores, apparel stores.
Advantages: A friendly atmosphere is presented.
Shoppers do not feel rushed and browse around. People are encouraged to walk through the store in any direction or pattern. Impulse or unplanned purchases are enhanced.

Disadvantages:
Possible customer confusion. Wasted floor space. Difficulties in inventory control. Higher labour intensity. Potential loitering. Displays often cost more.

3. Store Layout: Determination of Space Needs

Model Stock Approach
Determines floor space necessary to carry and display a proper merchandise assortment. Used by apparel stores and shoe stores.

Sales-Productivity Ratio
Assigns floor space on the basis of sales or profit per

square foot. Highly profitable

product categories get large chunks of space. Used by food stores and bookstores.

3. Store Layout:
Mapping Out In-Store Locations department locations

are mapped out.

What items should be placed on the first floor, second floor? Where should impulse products and convenience products be situated? Where should space-consuming categories such as furniture be located? How should associated product categories be aligned?

Arrangement of Individual Products

End-aisle display

positions, eye-level positions, checkout counter positions are most likely to increase sales for individual items. Least desirable display position is often knee or ankle level as consumers do not like to bend down. All stores place smaller impulse-type purchases near cash registers as customers often make last-minute purchases while waiting on line to pay.

3. Store Layout: Adjacency

Firms now use planograms to assign space. A planogram is a visual (graphical) representation of the space for selling, merchandise, personnel, and customersas well as for product categories. It also lays out their in-store placement. A planogram may be hand-drawn or computer-generated.

Gondola & End cap

Floor stacking units

Alligator

4-way browser

Dump bin

4. Interior (Point-of-Purchase) Displays

It is the only mass medium executed at the critical

point where products, consumers and the money to purchase all meet at the same time.
Each point-of-purchase (POP) display provides

shoppers with information, adds to store atmosphere and serves a substantial promotional role.

4. Interior (Point-of-Purchase) Displays

Assortment display exhibits a wide range of

merchandise.

With an open assortment, customer is encouraged to feel, look at, and/or try on products. E.g. apparel, book store, food stores. With a closed assortment, the customer is encouraged to look at merchandise but not touch it or try it on. E.g. Computer software, DVDs, jewelry is usually kept in closed glass cases that employees must unlock.

Theme-setting display depicts a product offering in a

thematic manner and sets a specific mood. Retailers vary their displays to reflect seasons or special events.

4. Interior (Point-of-Purchase) Displays

Ensemble display a complete product bundle

(ensemble) is presented rather than showing merchandise in separate categories (such as a shoe department, sock department, pants department, shirt

department, and sports jacket department).

E.g. a mannequin may be dressed in a matching combination

of shoes, socks, pants, shirt, and sports jacket, and these

items would be available in one department or adjacent departments.

4. Interior (Point-of-Purchase) Displays

Rack display has a functional use to neatly hang or

present products. It is often used by apparel retailers, housewares retailers and others. This display must be carefully maintained because it may lead to product clutter and shoppers returning items to the wrong place.

4. Interior (Point-of-Purchase) Displays

Case display exhibits heavier, bulkier items or

expensive, costly items than racks hold.

4. Interior (Point-of-Purchase) Displays

Cut case an inexpensive display that leaves

merchandise in the original carton. Dump bin an open assortment of roughly handled items that holds piles of sale clothing, marked-down books, or other products. Both cut cases and dump bins reduce display costs and project a low-price image.

Merchandise Display Planning

Shelving flexible, easy to maintain Hanging mainly for apparel Pegging small rods inserted into gondolas or wall systems

can be labor intensive to display/maintain but gives neat/orderly appearance tables; creates high fashion image

Folding merchandise folded and stacked on shelves or

Stacking merchandise stacked on shelves, base decks of

gondolas or flats; easy to maintain and gives image of high volume and low price into baskets or bins; highly effective for softlines (socks, wash cloths) or hardlines (grocery products); creates high volume, low cost image

Dumping large quantities of small merchandise dumped

Nonstore-Based Retailing Perspective

Nonstore-Based Retailing Perspective

Storefront for a Web retailer is the home page
Indicate that the retailer is involved with social media. Be listed at various search engines. Be inviting. A virtual storefront must encourage customers to enter. Make it easy to go into the store. Show the product lines carried. Use graphics as display windows and icons as access points. Include the retailers E-mail address, mailing address, and phone number.

Nonstore-Based Retailing Perspective

General interior Colours run the gamut from plain

white backgrounds to stylish black backgrounds. Some firms use audio to generate shopper interest. It involves these elements:
Instructions about how to use the site. Information about the company. Product icons. News items. The shopping cart (how orders are placed). A product search engine. Locations of physical stores (for multi-channel retailers). A shopper login for firms that use loyalty programs and track their customers.

Nonstore-Based Retailing Perspective

Store Layout a web retailers store layout has two

components: the layout of each individual Web page and the links to move from page to page.
Web companies often have a directory on the home page that

indicates product categories. Shoppers click on an icon to enter the area of the site housing the category (department) of interest. On pages that require scrolling down, best-sellers usually appear at the top of the page and slower-sellers at the bottom.

Nonstore-Based Retailing Perspective

Displays web retailers can display full product

assortments or let shoppers choose from tailored

assortments.
This decision affects the open or cluttered

appearance of a site, the level of choice and possible shopper confusion.

Nonstore-Based Retailing Perspective

Checkout Counter a Web checkout counter can

be complex:
(1) Online shoppers worry more about the security and privacy of purchase transactions than those buying in a store. (2) Online shoppers often work harder to complete transactions they carefully enter model number, quantity, shipping address, E-mail address, shipping preference and credit card number. (3) Online shoppers may feel surprised by shipping and handling fees if these fees are not revealed until they go to checkout.

Nonstore-Based Retailing Perspective

Advantages
Unlimited space to present

Disadvantages
Can be slow for dialup shoppers Can be too complex Cannot adequately display three-

assortments, displays, information

Can be customized to the individual

customer
Can be modified frequently Can promote cross-merchandising

dimensional aspects of products

Requires constant updating More likely to be exited without

and impulse purchasing

Enables a consumer to shop in

purchase

quickly

Community-Oriented Actions

Make stores barrier-free for disabled shoppers Show a concern for the environment Employ area residents Run sales for senior citizens and other groups Sponsor youth activities Donate money/equipment to schools Check IDs for purchases with age minimums