1 Chapter 5 Visual Merchandising & Displays Faiza

2   Retail Image?   Significance of Retail Image   Positioning and Retail Image Retail Image

3 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 Atmosphere   The psychological feeling a customer gets when visiting a retailer – –Store retailer (brick and mortar format): 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, social media etc.

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

7 What VM does?   Enhances the Shopping experience   Is a Communication Tool   Supplements creation of right environment   Helps customer make buying decisions

8 The Elements of Atmosphere

9 Exterior Planning   Storefront (structural alternatives)   Signage   Marquee   Store entrances   Display windows   Exterior building height   Surrounding stores and area   Parking facilities

10 Store Entrances   How many entrances are needed?   What type of entrance is best?   How should the walkway be designed?   Does it create shoppers’ interest?

11 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

12 Allocation of Floor Space   Selling space   Merchandise space   Personnel space   Customer space

13 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

14 Interior (Point-of-Purchase) Displays - Basis   Assortment display   Theme-setting display   Ensemble display (cross merchandising)   Rack / Case display   Off – Shelf display – –Cut case / Dump bin – –Self supporting stacks / pallets

15 Shop Displays   Window 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

16 Making the Shopping Experience More Pleasant

17 The Shopping Cart’s Role in an Enhanced Shopping Experience

Direct Marketing replaced by online and social mediums 18

19 Challenges   Clicks vs. footfalls generated   Transformation into buying from among the clicks   Online Presence and Issues   Online Store and Issues

20 Online Store Considerations Advantages   Unlimited space to present product assortments, displays, and information   Can be customized to the individual customer   Can be modified frequently   Can promote cross- merchandising and impulse purchasing   Enables a shopper to enter and exit an online store in a matter of minutes Disadvantages   Can be irrelevant to masses   Can be slow for less internet savvy shoppers   Can be too complex   Cannot display three- dimensional aspects of products well   Requires constant updating   Authenticity and Credibility issues   More likely to be exited without purchase

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

22 Characteristics   Online Store Front   Visual Density   Online Merchandising   Online Pricing

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

24 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 25