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Establishing and Maintaining a Retail Image

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1 Establishing and Maintaining a Retail Image
Chapter 18 Establishing and Maintaining a Retail Image RETAIL MANAGEMENT: A STRATEGIC APPROACH, 10th Edition BERMAN EVANS

2 Chapter Objectives To show the importance of communicating with customers and examine the concept of retail image To describe 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 To discuss ways of encouraging customers to spend more time shopping To consider the impact of community relations on a retailer’s image

3 Figure 18-1a: Positioning and Retail Image

4 Figure 18-1b: Positioning and Retail Image

5 Figure 18-2: Elements of a Retail Image

6 In Seconds… A shopper should be able to determine a store’s Name
Line of trade Claim to fame Price position Personality

7 Atmosphere The psychological feeling a customer gets when visiting a retailer Store retailer: atmosphere refers to store’s physical characteristics that project an image and draw customers Nonstore retailer: atmosphere refers to the physical characteristics of catalogs, vending machines, Web sites, etc.

8 Visual Merchandising Proactive, integrated atmospherics approach to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior

9 Figure 18-3: Shopping at Prada

10 Figure 18-5: Elements of Atmosphere

11 Exterior Planning Storefront Marquee Store entrances Display windows
Exterior building height Surrounding stores and area Parking facilities

12 Alternatives in Planning a Basic Storefront
Modular structure Prefabricated structure Prototype store Recessed storefront Unique building design

13 Store Entrances How many entrances are needed?
What type of entrance is best? How should the walkway be designed?

14 Figure 18-7: How a Store Entrance Can Generate Shopper Interest

15 General Interior Flooring Colors Lighting Scents Sounds Store fixtures
Wall textures Temperature Aisle space Dressing facilities In-store transportation (elevator, escalator, stairs) Dead areas Personnel Merchandise Price levels Displays Technology Store cleanliness

16 Figure 18-8: Eye-Catching Displays from M&M World

17 Allocation of Floor Space
Selling space Merchandise space Personnel space Customer space

18 Figure 18-9: How a Supermarket Uses a Straight (Gridiron) Traffic Pattern

19 Figure 18-10: How a Department Store Uses a Curving (Free-Flowing) Traffic Pattern

20 Product Grouping Types
Functional product groupings Purchase motivation product groupings Market segment product groupings Storability product groupings

21 Straight Traffic Pattern
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 behavior

22 Figure 18-11: Piggly Wiggly’s Open Traffic Design

23 Curving Traffic Pattern
Advantages A friendly atmosphere Shoppers do not feel rushed People are encouraged to walk through in any direction Impulse or unplanned purchases are enhanced Disadvantages Possible customer confusion Wasted floor space Difficulties in inventory control Higher labor intensity Potential loitering Displays may cost more

24 Approaches for Determining Space Needs
Model Stock Approach Determines floor space necessary to carry and display a proper merchandise assortment Sales-Productivity Ratio Assigns floor space on the basis of sales or profit per foot

25 Interior (Point-of-Purchase) Displays
Assortment display Theme-setting display Ensemble display Rack display Case display Cut case Dump bin

26 Figure 18-12: L.L. Bean’s Online Storefront

27 Online Store Considerations
Advantages Unlimited space to present assortments, displays, and information Can be customized to the individual customer Can be modified frequently Can promote cross-merchandising and impulse purchasing Enables a consumer to quickly enter and exit an online store Disadvantages Can be slow for dialup shoppers Can be too complex Cannot display three-dimensional aspects of products well Requires constant updating More likely to be exited without purchase

28 Figure 18-13: Making the Shopping Experience More Pleasant

29 Figure 18-14: The Shopping Cart’s Role in an Enhanced Shopping Experience

30 Community-Oriented Actions
Make stores barrier-free for disabled shoppers Show a concern for the environment by recycling trash and cleaning streets Support charities Participate in anti-drug programs Employ area residents Run sales for senior citizens and other groups Sponsor Little League and other youth activities Cooperate with neighborhood planning groups Donate money/equipment to schools Check IDs for purchases with age minimums

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