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

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

Figure 18-1a: Positioning and Retail Image

Figure 18-1b: Positioning and Retail Image

Figure 18-2: Elements of a Retail Image

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

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.

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

Figure 18-5: Elements of Atmosphere

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

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

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

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

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

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

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

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

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

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

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