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

Figure 18-1a: Positioning and the Polaris Fashion Mall

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 A proactive, integrated atmospherics approach aimed to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior

Figure 18-3: Costco

Figure 18-5: The Elements of Atmosphere

Exterior Planning Storefront Marquee 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?

Figure 18-7: Apple Store

General Interior In-store transportation (elevator, escalator, stairs) Dead areas Personnel Merchandise Price levels Displays Technology Store cleanliness Flooring Colors Lighting Scents Sounds Store fixtures Wall textures Temperature Aisle space Dressing facilities

Figure 18-8: Kiev Store Interior

Store Layout: 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

Product Grouping Types Functional product groupings Purchase motivation product groupings Market segment product groupings Storability product groupings

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

Figure 18-11: Web Site Design

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 increased 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

Figure 18-12: Neiman Fashion Show

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

Figure 18-13: Shopping Cart

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

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