Chapter 11 The Importance of Retail

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Chapter 11The Importance of Retail
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Identify the various motivations for tourist
shopping and how they can be met.

• Shopping Motivations
• Nostalgia souvenirs are reminders of the places
  people have traveled.
• Prestige buying local art allows tourists to
  show appreciation for local workmanship and add
  to their personal collections

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Shopping Motivations (cont.)

• Functionality convenience and price of items
  may vary depending on vacation destination
• Gifts tourists buy gifts for family and friends
• Altruistic reasons tourists may buy items that
  benefit people and/or places at the destination

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Shopping Venues

• Souvenir Shops stock items representative of a
  region
• Super Markets
• Clothing Stores
• Malls some have become tourist attractions with
  recreational experiences

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Shopping Venues (cont.)

• Airport Shopping
• Landside located before security checkpoints
  and open to all passengers and visitors
• Airside only accessible to ticketed passengers
• Railway Stations for short distance commuters

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Shopping Venues (cont.)

• Duty-free Shops 30 of all spending on each
  trip is done in duty-free shops
• Craft Villages produce specific types of
  handicrafts
• Museums, heritage sites, wineries and
  distilleries, special events and theme parks also
  provide shopping opportunities.

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Illustrate the impact on salesproductivity
ofLayout and design MerchandisingCustomer
segments

• All segments are interrelated. Strengthening one
  area takes pressure off the others and visa
  versa.

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Layout and Design

• Time
• How much time people spend in a store is an
  important factor in determining how much people
  buy
• Set up should lead customers from one part of the
  store to another, a voyage of discovery
• The more shopper-employee contact, the greater
  the average sale
• The longer shoppers wait in line, the lower their
  impression of overall service

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Layout and Design

• Layout
• Displays should be offset to one side, to be more
  easily seen from an angle
• The reliable zone is the placement area where
  customers are most likely to see the merchandise
• This area extends from slightly above eye level
  to the knee level

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Layout and Design

• People would rather look at people than objects,
  so place advertising near employees
• People travel and react predictably to their
  surroundings
• In North America people tend to walk to the right
  upon entering a store
• Visitor flow should take customers through
  souvenir shops

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Layout and Design

• There will be more sales if shops are near the
  exit
• Keep the transition zone as small as possible
• Average sale per customer increases as more
  customers use baskets

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Merchandising

• Retail Competition
• Resort retailers must compete with major retail
  stores and chains who are increasingly devoting
  more space to golf specific clothing
• Resort shops offer logoed clothing
• The more expensive an item is, the fewer that
  should be put out on the floor

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Merchandising

• Sales can be stimulated if
• The product is the focus
• The surrounding environment needs to account for
  the products final use
• Mini-environments can be created through themes
• Creative merchandising stimulates all five senses
• Similar items should be grouped to create ambiance

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Merchandising

• Leisure shoppers are more inclined to make
  impulse purchases
• Advertising messages must be kept short where
  people are walking fast
• Longer messages can be posted at cash registers

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Merchandising

• Merchandise Placement
• Merchandise should be displayed to the right of
  where customers stand
• Most popular brand should be dead center
• Brand the store is trying to build should be
  placed just to the right

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Operations

• Contact initiated by an employee increases
  likelihood a shopper will buy something
• The most important factor in determining a
  shoppers opinion of the service he receives is
  waiting time
• Adding sound, light and color to the register
  area can ease customers from the anxiety of the
  financial transaction

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Customer Segments

• When shopping, men
• Move faster, spend less time looking
• Look at price tags less often and can be more
  easily upgraded to a more expensive item
• Get a thrill from the experience of paying
• Hate asking for directions

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Customer Segments

• When shopping, women
• Spend more money when shopping with other women
• Are more demanding of the shopping environment
• Older shoppers
• Must have easy to read signs
• See a lot more black, white and red, and a lot
  less of other colors
• Need brightly lit stores

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Customer Segments

• Children
• If stores are not child friendly, parents will be
  deterred to enter
• Make merchandise reachable
• Childproof the store
• Be able to divert the attention of a restless
  child
• Design a good area for children
• Generation X
• Are attracted to the specialty-store environment
  if the merchandise is up-to-date

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The End!