Merchandising for $ale$ Damian Skretta Manager, Packaging & Merchandising April 2007

Retail Credentials - Over 30 years merchandise experience - Manager & District Manager - Category Manager/Buyer - Director, Corporate Brands – developed and designed merchandise and packaging, end cap and shelf displays, ads and promotions

Merchandising for $ales what we will cover - In store definitions - What is Retail Merchandising - You are the key - Universal Truths in Merchandising - Store layout recommendations - Do you want a sales increase - Signing; clip strips, displayers, BSC web site - Summary information

Definitions End cap – Promotional display at the end of each gondola. This is valuable retail space for promoting merchandise – NOT to be used for basic displays Basic Stock Item – Daily staple item to be carried and never out of stock – top sellers producing above average sales volume Off-Sale – Item in stockroom, but not on display on sales floor Off Shelf Display – End cap, dump bins, auxiliary display – large bulk display – not on side counter

What is Retail Merchandising? …the management of inventory to ensure the most advantageous display of fast & slow moving items, and to maximize sales per retail sq. ft. Includes: - Inventory assortment planning - Sales floor design - Product presentation: visual merchandising and display - Pricing - Signing

You are very important to our goals!! - Sell more SKILCRAFT/JWOD merchandise - Increase factory production - Increase the number of jobs for people who are blind - You are the last contact with our customers! - Now that we have commercial-type packaging, let’s take advantage of it with our displays

Universal Truths in Merchandising Time proven fact or procedure, encompassing all of retail merchandising, proven to help achieve specific goals in inventory control, sales and profit.

Universal Truths in Merchandising - Sales do not just happen, you make them happen by concentrating on basics in everyday merchandising. - Invited guests = customers

- Out of Stocks cause our customers the four Dis’s 1. Disappointed 2. Dismayed 3. Disgusted 4. Disappear Universal Truths in Merchandising

- 80/20 Rule - Off-Sales is a cardinal sin of retail - New items drive sales – must feature them; can not have customer try to find them – easy impulse sale. - Cross selling increases sales “Want fries with that.” – standard practice Universal Truths in Merchandising

- Can’t sell pegboard – goal-max sales/sq ft. - Can’t afford to be out of basic stock – overstock on slow seller - Know your merchandise – product knowledge pays off in sales Universal Truths in Merchandising

- Easier to make a good selling item better than a poor selling item good. – these are promotional end cap candidates - Concentrate on what produces sales – only so many hours in a day – work smart, prioritize - Well displayed is half sold – ends and side counters Universal Truths in Merchandising

- Signing Sells – draws customer attention to what you want to point out to them; market research shows this results in 5-20% more lift than normal - Impulse items increase total market basket - One item ends are the most effective sales producers. Mass display of the best items = customer confidence – “Selling psychology” Universal Truths in Merchandising

- No permanent basic displays on end caps! – Rotate merchandise selection - Shelf location is very important - Best sellers at eye level - Can never sell too much – know what sells; never be out - Eliminate the “Sales Prevention” area of your store merchandise operation Universal Truths in Merchandising

- If the customer can find it; they will buy it! They came to your store to buy - Merchandise display by selling merit – example 3 ring binders - Walking by an empty display without taking any action = manager approval - Maintain shelf display consistency – label counters Universal Truths in Merchandising

Store Layout Recommendations - Category Flow - Smooth and easy to shop; basics in stock. - Side Counters – - Full and faced - Shelf edge marking; same item; same location - Never out of a top seller - Rotate stock, fresh look - Categories displayed vertically and together - Eye level – basic items you want to sell the most - Most space for best items = selling merit - No Off-Sales - Pegged merchandise above shelved items - Larger items on base

Store Layout Recommendations - Adjacencies – - Pencils next to pens - Writing pads together - Added Impulse sales items

Do You Want a Sales Increase? - Best use of signing - Making use of Clip strips - Using any available Sales Sheets - Using available product displayers - Keeping your people informed - Reviewing information on bscsales.com

Signing – End caps 8.5” x 11” and Side Counters 3.5” x 5.5”

Signing - Wall Banners 1.5’ x 4’

Clip Strips

Displayers

BSC Web Site Communication Information

Summary - Merchandising for $ale$ - Stop by Vendor Fair display booth #400 & #402 - Questions:/Comments: Damian Skretta Phone: (703)