Chapter 18 Establishing and Maintaining a Retail Image

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

Chapter Objectives þ To show the importance of communicating with customers and examine the concept of retail image þ 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 þ To discuss ways of encouraging customers to spend more time shopping þ To consider the impact of community relations on a retailer’s image 18 -2

Figure 18 -1 a: Positioning and Retail Image 18 -3

Figure 18 -1 b: Positioning and Retail Image 18 -4

Figure 18 -2: Elements of a Retail Image 18 -5

In Seconds… ¯ A shopper should be able to determine a store’s * Name * Line of trade * Claim to fame * Price position * Personality 18 -6

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. 18 -7

Visual Merchandising Proactive, integrated atmospherics approach to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior 18 -8

Figure 18 -5: Elements of Atmosphere 18 -9

Exterior Planning ¯ ¯ ¯ 18 -10 Storefront Store entrances Display windows Exterior building height Surrounding stores and area Parking facilities

Alternatives in Planning a Basic Storefront ¯ ¯ ¯ 18 -11 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? 18 -12

General Interior ¯ ¯ ¯ ¯ ¯ 18 -13 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 ¯ ¯ 18 -14 Selling space Merchandise space Personnel space Customer space

Figure 18 -9: How a Supermarket Uses a Straight (Gridiron) Traffic Pattern 18 -15

Figure 18 -10: How a Department Store Uses a Curving (Free-Flowing) Traffic Pattern 18 -16

Straight Traffic Pattern Advantages Disadvantages ¯ 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 ¯ Impersonal atmosphere ¯ More limited browsing by customers ¯ Rushed shopping behavior 18 -17

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 18 -18 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 18 -19 ¯ Sales-Productivity Ratio * Assigns floor space on the basis of sales or profit per foot

Interior (Point-of-Purchase) Displays ¯ ¯ ¯ ¯ 18 -20 Assortment display Theme-setting display Ensemble display Rack display Case display Cut case Dump bin