Retail Image

Week 5

Leaning Objectives
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 retailers image

Figure 1: Elements of a Retail

Image

18-3

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Atmosphere
The psychological feeling a customer
gets when visiting a retailer
Store retailer: Atmosphere refers to
stores physical characteristics that
project an image and draw customers
Nonstore retailer: Atmosphere refers to
the physical characteristics of catalogs,
vending machines, Web sites, etc.

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Visual Merchandising

18-5

A proactive,
integrated
atmospherics
approach aimed to
create a certain look,
properly display
products, stimulate
shopping behavior,
and enhance physical
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Figure 2: Shopping at Prada

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Figure 3: The Elements of

Atmosphere

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Exterior Planning

18-8

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

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Alternatives in Planning a Basic Storefront

18-9

Modular structure
Prefabricated structure
Prototype store
Recessed storefront
Unique building design

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Alternatives in Planning a Basic Storefront

Modular structure: a one-piece rectangular or

square that may attach several stores
Prefabricated structure: a frame built in a factory
and assembled at the site
Prototype store: used by franchisors and chains to
foster a consistent atmosphere
Recessed storefront: lures people by being
recessed from the level of other stores
Unique building design: a round structure, for
example
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Store Entrances

How many entrances are needed?

What type of entrance is best?
How should the walkway be designed?

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Store Entrances
How many entrances are needed?
Many small retailers have only one entrance. Department stores
may have 4 to 8 or more entrances. A store hoping to draw both
vehicular and pedestrian traffic may need at least 2 entrances

What type of entrance is best?

The doorway can be revolving; electric, self-opening; regular,
push-pull; or climate-controlled.
Entrance flooring can be cement, tile, or carpeting.
Lighting can be traditional or fluorescent, white or colors, flashing
or constant

How should the walkway be designed?

A wide, lavish walkaway creates a different atmosphere and mood
than a narrow one.

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General Interior

Flooring
Colors
Lighting
Scents
Sounds
Store fixtures
Wall textures
Temperature
Aisle space
Dressing facilities

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In-store
transportation
(elevator, escalator,
stairs)
Dead areas
Personnel
Merchandise
Price levels
Displays
Technology
Store cleanliness

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General Interior
Flooring can be cement, wood, linoleum, carpet, and
so on.
Bright, vibrant color contribute to a different
atmosphere than light pastels or plain white walls
Scents and sounds influence customers mood.
Store fixtures can be planned on the basis of both
their utility and aesthetics. Pipe, plumbing, beams,
doors, storage rooms, and display racks and tables
should be considered part of interior decorating.
Wall textures enhance or diminish atmospherics.
The customers mood is affected by the stores
temperature and how it is achieved
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General Interior
Wide, uncrowded aisles create a better atmosphere
than narrow, crowded ones.
Dressing facilities can be elaborate, plain, or
nonexistent.
Multilevel stores must have vertical transportation:
elevator, escalator, and /or stairs.
Light fixtures, wood or metal beams, doors, rest
rooms, dressing rooms, and vertical transportation can
cause dead areas for the retailer. Solution: mirrors are
attached to exit doors, vending machines are located
near rest rooms, ads appear in dressing rooms, etc.

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General Interior
Polite, well-groomed, knowledgeable personnel
generate a positive atmosphere.
The merchandise a retailer sells influences its image.
Price levels foster a perception of retail image in
consumers minds; and the way prices are displayed is
a vital part of atmosphere.
A store with state-of-the-art technology impresses
people with its operations efficiency and speed
Keep the store clean

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Store Layout: Allocation of Floor

Space

Selling space
Merchandise
space
Personnel space
Customer space

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PLANOGRAM

Store Layout: Allocation of Floor

Space
Selling space is used for displays of merchandise, interactions
between salespeople and customers, demonstrations, and so
on.
Merchandise space is used to stock nondisplayed items
Personnel space is a set aside for employees to change clothes
and to take lunch and coffee breaks, and for rest rooms.
Customer space contributes to the shopping mood. It can
include a lounge, benches and/or chairs, dressing rooms, rest
rooms, a restaurant, a nursery, parking, and wide aisles.
Planogram is a visual presentation of the space for selling,
merchandise, personnel, and customer. It also lays out in-store
placement. May be hand-drawn or computer generated.

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Product Grouping Types

18-19

Functional product groupings

Purchase motivation product groupings
Market segment product groupings
Storability product groupings

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Product Grouping Types

Functional product groupings: display merchandise by common end use.
A mens clothing store might group shirts, ties, cuff links, and tie pins,
etc.
Purchase motivation product groupings: appeal to the consumers urge to
buy products and the amount he or she is willing to spend on shopping. A
committed customer with time to shop will visit a stores upper floors; a
disinterested person with less time will look at displays on the first floor.
Market segment product groupings: place together various items that
appeal to a given target. A womens apparel store divides products into
juniors, misses, and ladies apparel. A music store separates CDs into
rock, jazz, classical, R&B, country, etc.
Storability product groupings: may be used to for products needing
special handling. A supermarket has freezer, refrigerator, and roomtemperature sections. A florist keeps some items refrigerated and others
at room temperature, as do a bakery and a fruit store.

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Figure 4: How a Supermarket Uses a Straight

(Gridiron) Traffic Pattern

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Figure 5:
How a
Department
Store Uses a
Curving
(FreeFlowing)
Traffic Pattern

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Straight Traffic Pattern

Advantages

An efficient atmosphere is created Disadvantages

Impersonal
More floor space is devoted to product
displays
atmosphere
People can shop quickly
More limited
Inventory control and security are simplified
by
Self-service is easy, thereby reducing browsing
labor costs
customers
Rushed shopping
behavior

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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

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Disadvantages
Possible customer
confusion
Wasted floor space
Difficulties in
inventory control
Higher labor
intensity
Potential loitering
Displays may cost
more

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Approaches for Determining Space

Needs
Model Stock Approach

Determines floor
space necessary
to carry and
display a proper
merchandise
assortment: Exe.
Apparel stores
and shoe stores

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Sales-Productivity Ratio

Assigns floor
space on the
basis of sales or
profit per foot:
Exe. Food stores
and bookstores

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Interior (Point-of-Purchase)
Displays

18-26

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

An assortment display exhibits a wide range of

merchandise. The customer is encouraged to feel, look at,
and/or try on products. Exe. Greeting cards, books,
magazines, and apparel.
A them-setting display depicts a product offering in a
thematic manner and sets a specific mood. Retailers often
vary their displays to reflect seasons or special events.
With an ensemble display, a complete product bundle
(ensemble) is presented rather than showing merchandise
in separate categories (such as a shoe department, sock
department, pants department, shirt department, and
sports jacket department)

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Interior (Point-of-Purchase)
Displays

A rack display has a primarily functional use: to

nearly hang or present products. It is often used by
apparel retailers, housewares retailers, and others
A case display exhibits heavier, bulkier items than
racks hold. Records, books, pre-packaged goods,
and sweaters typically appear in case displays
A cut case is an inexpensive display that leaves
merchandise in the original carton.
A dump bin is a case that holds piles of sale
clothing, marked-down books, or other products
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A NONSTORE-BASED RETAILING
PERSPECTIVE
STOREFRONT = HOME PAGE
Thus it is important that the home page:
Prominently show the company name and indicate the
positioning of the firm
Be inviting
Make it easy to enter the store
Show the product lines carried
Use graphics as display windows and icons as access points
Have a distinctive look and feel
Include the retailers E-mail address, mailing address, and
phone number
Be highlighted at various search engine

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A NONSTORE-BASED RETAILING
PERSPECTIVE
General interior
The general interior also involves these elements:
Instruction about how to use the site
Information about the company
Product icons
News items
The shopping cart
A product search engine
Location of physical stores
A shopper login for firms that use loyalty programs and
track their customers

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A NONSTORE-BASED RETAILING
PERSPECTIVE
Store Layout
Has to component: the layout of each
individual Web page and the links to
move from page to page

Displays
Web retailers can display full product
assortments or let shoppers choose form
tailored assortments.

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A NONSTORE-BASED RETAILING
PERSPECTIVE
Checkout Counter
Online shoppers tend to worry more about the
security and privacy of purchase transactions
than those who buy in a store
Online shoppers often have to work harder to
complete transactions like, enter the model
number and quantity, and credit card number,
shipping address, etc.
Online shoppers may feel surprised by shipping
and handling fees, if these are not revealed until
they go to checkout
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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 crossmerchandising and impulse
purchasing
Enables a consumer to shop in
quickly

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Disadvantages
Can be slow for dialup
shoppers
Can be too complex
Cannot adequately
display threedimensional aspects
of products
Requires constant
updating
More likely to be
exited without
purchase

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Encourage Customers
to Spend More Time Shopping
Tactics are:
Experiential merchandising
Solutions selling
Enhanced shopping experience
Retailer co-branding
Wish list programs

Encourage Customers
to Spend More Time Shopping
Experiential merchandising
is to convert shopping from a passive
activity into a more interactive one, by
better engaging customers.
Exe: Barnes & Noble bookstore chains are
both famous for book and poetry
readings, signings, and presentations,
along with comfy chairs and in-store
cafes to keep customers reading.

Encourage Customers
to Spend More Time Shopping
Solutions selling
takes a customer-centered approach
and presents solutions rather than
products.
Exe: Many supermarkets sell fully
prepared, complete meals that just have
to be heated and served. Thus, it solves
the problem of Whats for dinner?
without requiring the consumer to shop
for meal components.

Encourage Customers
to Spend More Time Shopping
Enhanced shopping experience
means the retailer does everything possible to
make the shopping trip pleasant and to
minimize annoyances.
Exe: setting up wider aisles so people do not feel
cramped; adding benches and chairs so those
accompanying the main shopper can relax;
using kiosks to stimulate impulse purchases
and answer questions; having activities for
children; opening more checkout counters

Encourage Customers
to Spend More Time Shopping
Retailer co-branding
whereby two or more well-known retailers
situate under the same roof (or at one Web site)
to share costs, stimulate consumers to visit
more often, and attract people shopping
together who have different preferences.
Exe: McDonalds in Wal-Mart stores, Starbucks in
Barnes & Noble stores, joint Dunkin Donuts and
Baskin-Robbins outlets, and Amazon.com
featuring Target and Toys R Us as partners at
its Web site.

Encourage Customers
to Spend More Time Shopping
Wish list programs
a technique borrowed from Web retailers
that enables customers to prepare shopping
lists for gift items theyd like to receive from
a particular store or shopping center.
Exe: Marshall Fields, customers can print out
a Christmas registry at an in-store kiosk; J.C.
Penny already includes holiday registries on
its in-store kiosks and encourages shoppers
to sign up at the store or online.

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
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Donate money/equipment
to schools
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Check IDs for purchases

Discussions
1. Define the concept of atmosphere. How does
this differ from that of visual merchandising
2. Which aspects of a stores exterior are
controllable by a retailer? Which are
uncontrollable
3. What are meant by selling, merchandise,
personnel, and customer space?
4. Present a planogram for a nearby clothing
store.

Discussions
5. Develop a purchase motivation grouping
for an online bookstore.
6. Do you agree with upscale retailers
decision not to provide in-store shopping
carts? What realistic alternatives would
you suggest? Explain your answers.
7. Present a community relations program
for a local bakery