Establishing and Maintaining a

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Chapter 18

• Establishing and Maintaining a
• Retail Image

RETAIL MANAGEMENT A STRATEGIC APPROACH, 10th
Edition
BERMAN EVANS
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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 retailers image

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Figure 18-1a Positioning and Retail Image
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Figure 18-1b Positioning and Retail Image
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Figure 18-2 Elements of a Retail Image
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In Seconds

• A shopper should be able to determine a stores
• Name
• Line of trade
• Claim to fame
• Price position
• Personality

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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

• Proactive, integrated atmospherics approach to
  create a certain look, properly display products,
  stimulate shopping behavior, and enhance physical
  behavior

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Figure 18-3 Shopping at Prada
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Figure 18-5 Elements of Atmosphere
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Exterior Planning

• 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

• Modular structure
• Prefabricated structure
• Prototype store
• Recessed storefront
• Unique building design

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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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Figure 18-7 How a Store Entrance Can Generate
Shopper Interest
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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

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Figure 18-8 Eye-Catching Displays from MM World
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Allocation of Floor Space

• Selling space
• Merchandise space
• Personnel space
• Customer space

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Figure 18-9 How a Supermarket Uses a Straight
(Gridiron) Traffic Pattern
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Figure 18-10 How a Department Store Uses a
Curving (Free-Flowing) Traffic Pattern
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Product Grouping Types

• Functional product groupings
• Purchase motivation product groupings
• Market segment product groupings
• Storability product groupings

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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

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Figure 18-11 Piggly Wigglys Open Traffic Design
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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 enhanced

• 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

• Sales-Productivity Ratio
• Assigns floor space on the basis of sales or
  profit per foot

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Interior (Point-of-Purchase) Displays

• Assortment display
• Theme-setting display
• Ensemble display
• Rack display
• Case display
• Cut case
• Dump bin

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Figure 18-12 L.L. Beans Online Storefront
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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 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

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Figure 18-13 Making the Shopping Experience More
Pleasant
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Figure 18-14 The Shopping Carts Role in an
Enhanced Shopping Experience
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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