CHAPTER 18 ESTABLISHING AND MAINTAINING A RETAIL IMAGE

CHAPTER 18: ESTABLISHING AND MAINTAINING A RETAIL IMAGE

Chapter Objectives • • To show the importance of communicating with customers and to 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 © 2013 Pearson Education 18 -2

Figure 18 -1 a: Positioning and the Polaris Fashion Mall © 2013 Pearson Education 18 -3

Figure 18 -2: Elements of a Retail Image © 2013 Pearson Education 18 -4

In Seconds… A shopper should be able to determine a store’s ü Name ü Line of trade ü Claim to fame ü Price position ü Personality © 2013 Pearson Education 18 -5

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. © 2013 Pearson Education 18 -6

Visual Merchandising A proactive, integrated atmospherics approach aimed to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior © 2013 Pearson Education 18 -7

Figure 18 -3: Costco © 2013 Pearson Education 18 -8

Figure 18 -5: The Elements of Atmosphere © 2013 Pearson Education 18 -9

Exterior Planning • • Storefront Marquee Store entrances Display windows Exterior building height Surrounding stores and area Parking facilities © 2013 Pearson Education 18 -10

Alternatives in Planning a Basic Storefront • • • © 2013 Pearson Education Modular structure Prefabricated structure Prototype store Recessed storefront Unique building design 18 -11

Store Entrances • • • © 2013 Pearson Education How many entrances are needed? What type of entrance is best? How should the walkway be designed? 18 -12

Figure 18 -7: Apple Store © 2013 Pearson Education 18 -13

General Interior • • • © 2013 Pearson Education • 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 18 -14

Figure 18 -8: Kiev Store Interior © 2013 Pearson Education 18 -15

Store Layout: Allocation of Floor Space • • © 2013 Pearson Education Selling space Merchandise space Personnel space Customer space 18 -16

Figure 18 -9: How a Supermarket Uses a Straight (Gridiron) Traffic Pattern © 2013 Pearson Education 18 -17

Figure 18 -10: How a Department Store Uses a Curving (Free-Flowing) Traffic Pattern © 2013 Pearson Education 18 -18

Product Grouping Types • • © 2013 Pearson Education Functional product groupings Purchase motivation product groupings Market segment product groupings Storability product groupings 18 -19

Straight Traffic Pattern Advantages ü An efficient atmosphere is created ü More floor space is devoted to product displays Disadvantages ü People can shop quickly Impersonal atmosphere ü Inventory control and security are simplified More limited browsing by ü Self-service is easy, thereby customers reducing labor costs Rushed shopping behavior © 2013 Pearson Education 18 -20

Figure 18 -11: Web Site Design © 2013 Pearson Education 18 -21

Curving Traffic Pattern Advantages ü A friendly atmosphere ü Shoppers do not feel rushed ü People are encouraged to walk through in any direction ü Impulse or unplanned purchases are increased © 2013 Pearson Education Disadvantages Possible customer confusion Wasted floor space Difficulties in inventory control Higher labor intensity Potential loitering Displays may cost more 18 -22

Approaches for Determining Space Needs Model Stock Sales-Productivity Approach Ratio l Determines floor l Assigns floor space necessary space on the to carry and basis of sales display a proper or profit per merchandise foot assortment © 2013 Pearson Education 18 -23

Interior (Point-of-Purchase) Displays • • © 2013 Pearson Education Assortment display Theme-setting display Ensemble display Rack display Case display Cut case Dump bin 18 -24

Figure 18 -12: Neiman Fashion Show © 2013 Pearson Education 18 -25

Online Store Considerations Advantages ü Unlimited space to present Disadvantages assortments, displays, and Can be slow for information dialup shoppers ü Can be customized to the Can be too complex individual customer Cannot adequately display threeü Can be modified frequently dimensional aspects ü Can promote crossof products merchandising and impulse Requires constant purchasing updating ü Enables a consumer to shop in More likely to be quickly exited without purchase © 2013 Pearson Education 18 -26

Figure 18 -13: Shopping Cart © 2013 Pearson Education 18 -27

Community-Oriented Actions • • • Make stores barrier-free for disabled shoppers Show a concern for the environment 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 © 2013 Pearson Education 18 -28

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