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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

2 Why is it sometimes difficult for a retailer to convey its image to consumers?
Image is created by many factors and relies on consumers’ perceptions. In addition, uncontrollable elements can inflate or deflate a store’s image.

3 Figure 18.2 The Elements of a Retail Image

4 In 3 Seconds… A shopper should be able to determine a store’s Name
Line of trade Claim to fame Price position Personality

5 Figure 18.4 The Elements of Atmosphere
Atmosphere - The psychological feeling a customer gets when visiting a retailer

6 Visual Merchandising and Gap
The proactive, integrated approach to atmospherics taken by a retailer to create a certain “look,” properly display products, stimulate shopping, and enhance the physical environment.

7 Which aspects are uncontrollable by the retailer?
Exterior Planning Storefront Marquee Lighting Store entrances Display windows Exterior building height Surrounding stores and area Parking facilities Traffic congestion Loitering Which aspects are uncontrollable by the retailer?

8 Figure 18.6 How a Store Entrance Can Generate Shopper Interest

9 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

10 Miss Sixty Dressing Rooms
Italian denim in up-to-the-minute washes and styles “retro-futuristic store” Stores worldwide [US=NY, San Fran, Miami, OC, and LA; Can=Montreal] Dressing rooms in what looks like big-top circus tents Vintage furniture and wallpaper give off a feeling of excess, Tinseltown style. It's a “very glam setting” Atmosphere: Hip Source:

11 Figure 18.7 Eye-Catching Displays from Toys “R” Us

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

13 Part 7 - Case 1 Discuss the implications of Underhill’s statement that “converting nonbuyers to buyers is largely dependent on store design and display.” Should an upscale retailer interpret Underhill’s research differently than a low-end retailer? Explain your answer. Paco Underhill’s main thesis is that since so many consumer purchases are unplanned, retailers should attempt to design the store so as to facilitate purchases, get consumers to spend more time in the store, and to facilitate the purchase of complementary items. Mr. Underhill feels that a store seeking its inventory may not take into account products that appeal to different age groups, females, and minorities. Should an upscale retailer interpret Underhill’s research differently than a low-end retailer? Explain your answer. Upscale retailers still need to be sensitive of the needs of different age groups, the importance of the female market, what waiting times consumers view as acceptable, and the value of entertainment. An upscale high-fidelity components retailer may seek to increase a shopper’s time in the store through an espresso bar, critiques of a classical pianist’s latest album, the sale of top-of-the-line speakers and components, and sound rooms where shoppers can listen to different components. A low-end high-fidelity retailer may seek to increase a consumer’s time in the store through having a salesperson suggest complementary merchandise, describing the different features of DVD players, and having all DVD players displayed.

14 Allocation of Floor Space
Selling space Functional product groupings Purchase motivation product groupings Market segment product groupings Storability product groupings Merchandise space Personnel space Customer space Selling space is the area in a store designated for displaying merchandise, interaction between sales personnel and customers, demonstrations, and so on. Merchandise space is the area in a store designated for nondisplayed items to be kept in stock. Personnel space is that area set aside for employees to change clothes, take coffee breaks, and so on. Customer space includes a lounge, benches, dressing facilities, rest rooms, and so on.

15 Figure 18.8 How a Supermarket Uses a Straight (Gridiron) Traffic Pattern

16 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

17 Figure 18.9 How a Department Store Uses a Curving (Free-Flowing) Traffic Pattern
Food retailers and discount stores should not use a curving (free-flowing) layout. The curving arrangement could confuse customers, waste floor space, and involve high labor intensity. Rather, straight traffic flow should be utilized. Customers will be able to shop quicker, inventory control is simpler, and labor costs are lower due to self-service.

18 Figure 18.10 Piggly Wiggly’s Open Traffic Design

19 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

20 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

21 Figure 18.12 Making the Shopping Experience More Pleasant

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