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 18-3: Shopping at Prada

Figure 18-5: 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: How a Store Entrance Can Generate Shopper Interest

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

Figure 18-8: Eye-Catching Displays from M&M World

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: Piggly Wiggly’s Open Traffic 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 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

Figure 18-12: L.L. Bean’s Online Storefront

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 quickly enter and exit an online store Disadvantages Can be slow for dialup shoppers Can be too complex Cannot display three-dimensional aspects of products well Requires constant updating More likely to be exited without purchase

Figure 18-13: Making the Shopping Experience More Pleasant

Figure 18-14: The Shopping Cart’s Role in an Enhanced Shopping Experience

Community-Oriented Actions Make stores barrier-free for disabled shoppers Show a concern for the environment by recycling trash and cleaning streets 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