1. Fashion Merchandising Lecture three Visual Merchandising

2. Learning Objectives Understand the use of visual merchandising as a promotional tool used by retailers to attract and entice consumers to become a customer.

3. COMPONENTS THAT MAKE UP THE STORE ENVIRONMENT Store Image And Productivity Visual communications Retail identity Graphics POS signage Store planning Space allocation Layout Circulation Store Design Exterior Design Ambience Lighting Merchandising Fixture Selection Merchandise presentation Visual merchandising

4. What is visual merchandising? The presentation of a store and it’s merchandise in order to sell the goods and services of the store It is their silent salesperson!

5. Visual Merchandising consumer’s final decision vital communication

6. What are the benefits of good visual merchandising? Creates interest Attracts customers Ease of selection for the customer Promotes stock Maximises sales Creates a desire to buy Creates a suitable store ambience Can reinforce corporate identity

7. Projects a store image Win confidence, to give the customer faith in the store and product Assist in add-on sales Monitor stock levels Shows how product is used Communicates to the customer What are the benefits of good visual merchandising?

8. Visual merchandising Is at the heart of retail design – the fine art of persuasion Includes window and displays but also takes in the entire in-store environment It may go even further into the realms of graphics, audio-visual media, point of sale (POS) material, all the way to the store as the total embodiment of the brand – the 3D brand

9. Floor Layout retailers need to identify areas that will maximise sales for the store

10. There are three spots: Hot Spots Warm Spots Cold Spots

11. Floor Layout Merchandise in most stores can be broken down into the following components * Best sellers* Speciality goods * High profit items* Seasonal lines * Basic stock* Advertised lines * Problem stock* Others * Impulse lines Each component can be strategically placed to enhance sales

12. Best sellers In the best position possible to give the greatest opportunity to sell Prime position within its classification

13. High profit items Position within their classification Know what they are (all staff) Position close to best sellers (consider supermarkets and how they position generic products close to leading sellers)

14. Basic stock Position within their classification Prime position Readily available position Never hidden

15. Problem stock Never give problem stock your best selling positions. Problem stock should be identified quickly and dealt with quickly

16. PROFIT BUILDERS Profit margins are high but sales turnover is low Adjust space allocation focusing on quality of space rather than quality in order to increase sales Consider rationalising range of products in category STAR PERFORMERS Sales turnover and profit margins equal or exceed targets Allocate large amounts of goods quality space Consider increasing product assortment within category SPACE Low profit margins and low sales turnover Reduce space or eliminate product TRAFFIC BUILDERS Products have a good sales turnover rates, but profit margins are small Place close to higher profit/impulse purchase goods. Use to pull customers through store Work on improving margins. Consider introducing own-label variation

17. Impulse lines Easily accessible and in high traffic areas (ie POS, entrance, or in major traffic aisle). Rapid turnover

18. Speciality goods More complex product requires more explanation in selling features and benefits Positioned away from main traffic area

19. Seasonal lines Relate to merchandise affected by season Usually given a high traffic area as limited time to sell

20. Advertised lines With related classifications Highlighted If to draw attention to other merchandise then it should be visible but not best aisle or fixture Opportunity for additional sales

21. Other factors No hard and fast rules in merchandising only helpful guidelines Practical factors can change positioning of items such as –Size of product –Security –Constraints with fixtures and available space

22. Dominance displays Attractive displays have a centre of attention or dominance Without a dominant display feature, the shopper’s eye will be attracted elsewhere A display element (eg red) or display component (eg merchandise) is made dominant by subordinating all other elements and components Dominance within a display allows the retailer to emphasize a single promotional message or focus on a direct purchase incentive

23. The ‘classification dominance’ display allows a retailer to show that it has a very deep assortment of merchandise within a classification or category

24. Proportion The effective arrangement of parts of displays in terms of the display elements –Colour: the extent of darker colour to lighter –Line: the layout of small object to large objects –Texture: the area of differing surfaces –Shape: the amount of open space to closed space

25. Grouping the display arrangement Grouping display arrangement is organising display merchandise into interesting, pleasing and stimulating patterns Haphazard arrangement of merchandise can substantially reduce a display’s effectiveness Selection displays are simple arranged in some well- organised fashion, but special merchandise is frequently presented in one of four definite arrangement patterns: –The pyramid –The zigzag –The step –The fan arrangement

26. Balance a retail display should exhibit a sense of equilibrium or balance each part of the display has equal visual weight Balance can be achieved in either a formal or informal sense Form and balance is created when both sides of a display are exactly alike in terms of type, size, colour, shape and placement of merchandise Each side is a mirror image of the other side

32. Some tips for visual merchandisers... Less is more Apples with apples Visual cues Change your displays Consider lighting Focus your display

33. Store layout Grid Free form Boutique

34. The grid layout Makes sure shoppers covers as much of store as possible Easy to install and maintain Boring and regimental More often associated with ‘pile it high, sell it cheap’ discount buying

35. The free flow layout Different shapes,sizes, Height of fixtures/fittings Tries to stimulate shoppers to take their time browsing Shoppers can browse in any order they choose Does not use available space as efficiently as grid layout Can look chaotic

36. The boutique layout Perception is one of a number of discrete, separate spaces Typical in dept stores (lots of departments/concessions) Useful when a high level of personal selling is required, or merchandise range is limited This layout surrounds the customer, most of which is displayed on or on wall fixturing In larger stores, a definite walkway or ‘race track’ is incorporated

37. Be wary of where you position fixtures and the impact this might have on traffic flow £

38. The boutique layout Be wary of where you position fixtures and the impact this might have on traffic flow £

39. The boutique layout Be wary of where you position fixtures and the impact this might have on traffic flow £

40. Use of customer walkways in large stores

41. Store layout Customer traffic can be directed around a store Most shoppers are right handed and naturally prefer to turn to the right Important to identify where high-density areas are and whether they match high- turnover areas If the goods are in the wrong place, they won’t sell

42. Store layout Primary and secondary points are used to pull the customer around the store or to ‘shop the full shop’ Lighting, signage, photography and even popular products (KVIs) help the customer shop the full shop The more you see, the more you buy

43. Working with colour The reason why colour is so important is that people like colour It appeals to their emotions and contributes to a more attractive environment

44. Colour in merchandising Causes people to buy on impulse Improves the appearance of merchandise Provides variety, contrast and harmonising colours that will create interest Has immediate and emotional impact

45. Colour in merchandising Can enhance the appearance of specific products Helps to create sales Improves profitability Creates an atmosphere which appeals to customers

46. Colour psychology by putting the same colour next to one another it makes it easier on the eye to compute what it is looking at

48. Working with colour The eye tends to concentrate automatically on the biggest object Colour schemes should not be out of date Need to be aware of trend colours and look to see what other retailers are doing

50. Colour blocking has always been Left To Right

51. And Light to Dark when working with a multitude of different colours

52. Working with colour In the modern era, retailers are looking to keep their store environment varied Colour along with displays allows us to offer that change in environment so customers think that there is always something new and exciting going on

54. Colour blocking can also be a useful strategy…

55. Vertical colour blocking

56. Store image and atmosphere The image and atmosphere of a store is a sum of the physical elements of interior and exterior design, and the layout and displays that create an environment and ambience that consumers find attractive The store’s exterior offers an opportunity to communicate with the customer Clues about the store are often absorbed without our knowing it

57. Window displays

58. Window display

59. The senses Sight –the general look of the store can either lift the spirit or underwhelm the shopper –use of colour stimulates the shopper Sound –soft music may relax shopper –loud music may reinforce a stimulating, vibrant atmosphere that sets out to excite Smell –Perfume can help build image and prestige

60. Lighting

61. To summarise - Floor Layout When deciding on product placement, identify areas that will maximise sales Assess traffic flow – where people walk most and where they walk least Identify hot, warm and cold spots

62. Best sellers –In the best position possible to give the greatest opportunity to sell –Prime position within its classification High profit items –Position within their classification –Know what they are (all staff) –Position close to best sellers

63. Why is VM important? 80% of purchases are impulse Customers make the final decision to buy in the ‘last 3 feet’ Store layout and presentation can make +/- to your business of 40% Customers shop horizontally, not vertically! Once the customer has purchased one item, it’s easier to sell an additional item

64. Some final useful tips Keep to the motto, apples with apples Don’t be all things to all people Don’t clutter Do keep it simple Change it regularly Link the activity inside your store