1. CHAPTER 18: ESTABLISHING AND MAINTAINING A RETAIL IMAGE

2. 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

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

4. Figure 18-2: Elements of a Retail Image

5. In Seconds… A shopper should be able to determine a store’s Name
Line of trade
Claim to fame
Price position
Personality

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.

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

8. Figure 18-3: Costco

9. Figure 18-5: The Elements of Atmosphere

10. Exterior Planning
Storefront
Marquee
Store entrances
Display windows
Exterior building height
Surrounding stores and area
Parking facilities

11. Alternatives in Planning a Basic Storefront
Modular structure
Prefabricated structure
Prototype store
Recessed storefront
Unique building design

12. Store Entrances
How many entrances are needed?
What type of entrance is best?
How should the walkway be designed?

13. Figure 18-7: Apple Store

14. 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

15. Figure 18-8: Kiev Store Interior

16. Store Layout: Allocation of Floor Space
Selling space
Merchandise space
Personnel space
Customer space

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

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

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

20. 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

21. Figure 18-11: Web Site Design

22. 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

23. 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

24. Interior (Point-of-Purchase) Displays
Assortment display
Theme-setting display
Ensemble display
Rack display
Case display
Cut case
Dump bin

25. Figure 18-12: Neiman Fashion Show

26. 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

27. Figure 18-13: Shopping Cart

28. 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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