How to build powerful visual merchandising that lead to greater sales, customer visits and profits
VISUAL MERCHANDISING
The Retail Doctor Group Pty Ltd
LEARNING OUTCOMES
Learning Outcomes
Learning Outcome 1 Understanding visual merchandising, why we do it?
Learning Outcome 2 Understanding floor lay-out and the various merchandise components and their placement.
Learning Outcome 3 Working with colour
Learning Outcome 4 Merchandising Principles
Learning Outcome 5 Displays and Ideas
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ELEMENTS THAT COMPOSE THE STORE ENVIRONMENT
Visual Communications Retail Identity Graphics POS Signage
Store Planning Space Allocation Layout Circulation
Store Image And Productivity
Store Design Exterior Design Ambiance Lighting
Merchandising Fixture Selection Merchandise Presentation Visual Merchandising
DELIVER POINT OF DIFFERENCE SEAMLESSLY
Deliver Point of Difference Seamlessly
Store design and format Appealing and relevant Visual merchandising Your story by categories Line of sight Impact What do you want me to buy? Take the customer on a journey Multi channel (web site)
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WHAT IS VISUAL MERCHANDISING
What is Visual Merchandising
What is Visual Merchandising? It is the presentation of a store and its merchandise in order to sell the goods and services of the store.
IT IS THEIR SILENT SALESPERSON
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To create Interest To attract customers Ease of selection for the customer Promote stock Maximise sales Creates a desire to buy Create store ambience Project 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
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Visual merchandising is at the heart of retail design-the fine art of persuasion.
This includes windows and displays but also takes in the entire in-store environment.
It may even go further into the realms of graphics, audio-visual media, point of sale material, all the way to the store as the total embodiment of the brand - the 3D brand
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FLOOR LAYOUT
Floor Layout
When deciding on product placement and presentation, retailers need to identify areas that will maximise sales for the store. This is done by assessing the traffic flow where people walk the most and where they walk the least.
Hot Spots :
Entrance and payment areas receive the most traffic - product at eye level.
Warm spots :
Secondary traffic areas, just beyond hotspots product just above or below eye level.
Cold Spots:
Generally in far corners of stores - low customer traffic product in very high or very low sight lines.
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FLOOR LAYOUT
Floor Layout
The merchandise in most stores can be broken down into the following components. Each component can be strategically placed to enhance sales Best sellers: High profit items Basic stock Problem stock Impulse lines
Speciality goods Seasonal lines Advertised lines Others
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PRODUCT
Product
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 (consider supermarkets products are positioned close to leading sellers) generic
BASIC STOCK
Position within their classification Prime position Readily available position Never hidden
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PRODUCT
Product
PROBLEM STOCK
Never give problem stock your best selling positions. Prime space is for money making stock Problem stock should be identified quickly and dealt with quickly also.
IMPULSE LINES
Easily accessible and in high traffic area i.e. P.O.S. Entrance or in major traffic aisle. Rapid turnover
SPECIALITY GOODS
More complex product requires more explanation in selling features and benefits Positioned away from main traffic area
SEASONAL LINES
Relate to merchandise affected by the season Usually given a high traffic area as limited time to sell
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PRODUCT
Product
ADVERTISED LINES
With related classifications Highlighted If to draw attention to other merchandise then it should be visible but not on best aisle or fixture. Opportunity for additional sales
OTHER FACTORS
There are 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
Take a critical look at your store and analyse the positioning of YOUR stock!!!!!!!!!
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DOMINANT DISPLAYS
Dominant Displays
Dominance:
Attractive displays have a centre of attention or dominance to which the viewer's eye is drawn and held. Without a dominant display feature, the shopper's eye will be attracted elsewhere and the merchandise message will not communicate effectively. A display element (e.g. red) or display component (e.g. merchandise) is made dominant by subordinating all other elements and components. Dominance within a display allows the retailer to emphasis a single promotional message or focus on a direct purchase incentive.
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PROPORTION OF DISPLAYS
Proportion of Displays
Proportion is 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 number of round object to square objects . Space - the amount of open space to closed space
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GROUPING THE DISPLAY ARRANGEMENT
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 or The fan arrangement
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A BALANCED DISPLAY
A Balanced Display
Balance:
To be an attractive and comfortable experience, a retail display should exhibit a sense of equilibrium or balance between all elements and components of the display. A balanced display is one in which each part of the display has equal visual weight. Balance can be achieved in either a formal or informal sense. Forma/balance is created when both sides of a display are exactly alike in terms of type, size, color, shape and placement of merchandise Each side is a mirror image of the other side. Such displays are usually found to be a more "comfortable" visual experience.
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DOCTORS PRESCRIPTION
Doctors Prescription
Less is more Apples with Apples Visual cues Change your displays Consider lighting Focus your display
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CUSTOMER NAVIGATION
Customer Navigation
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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.
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LIGHTING
Lighting
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THE 3 SECOND TEST
Suggestion positioning. Once the
customer has already purchased one item, its easier to sell an additional item. Thus apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines.
VIS UAL ME RCH AND ISIN G
27
PRIME SPACE
Focus Wall
The prime real estate in your store is the 20-foot semicircle just inside the front door.
F o c u s
F o c u s
You are here
COLOUR IN MERCHANDISING
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.
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WORKING WITH COLOUR
Working with Colour
Can enhance the appearance of specific products
Help to create sales Improve profitability Very importantly it creates an atmosphere which appeals to customers.
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WORKING WITH COLOUR
Working with Colour
The eye tends to concentrate automatically on the biggest object in the field of view. Therefore you need to think about your prime positions, hot spots, and hotspot display areas in relation to the colour available to you with your product.
Colour schemes should not be out of date. The majority of people ( the mass market) are motivated by inner compulsions rather than rational thought, and therefore they react to trends and seek the same as everybody else.
Therefore you need to be aware of trend colours and look to see what other retailers are doing and read magazines so as to present your product in a manner that the mass market relates too.
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WORKING WITH COLOUR
Working with Colour
Colour Blocking
Colour Blocking has always been Left to Right, Light to Dark when working with a multitude of different colours.
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WORKING WITH COLOUR
Working with Colour
In the modern era retailers are looking to keep their store environment varied. Hence why we frequently merchandise our stores and colour gives us that ability along with displays to offer that change in environment so customers think there is always something new and exciting going on. Colour has that ability to provide that stimulus.
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MERCHANDISING PRINCIPLES
Merchandising Principles
Merchandise Principles for Arranging Stock
Consider your stock Sizing of stock Security Lighting Use of colour Theme Balanced Categories Brands Prices Store layout Hot Spots ~ Cold Spots Prime visual space Fixtures Space Ease of selection for customer New deliveries Promotional activities Is all merchandise represented Strength and weaknesses of last merchandising Flow of colour Flow of product and its adjacencies How store is performing Quality of product Lifestyle OH&S Signage
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VERTICAL COLOR BLOCKING
VISUAL MERCHANDISING
Visual Merchandising
Visual Merchandising
Apples with apples Dont be all things to all people Dont clutter Do keep it simple Change it regularly Link the activity inside your store
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MERCHANDISING PRINCIPLES
Merchandising Principles
Merchandise Principles for Arranging Stock
An effective visual merchandiser has AN EYE FOR DETAIL Look at your work through the eyes of a customer to analyse how effective the product is presented. Am I using that silent salesperson to its best advantage?
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VISUAL MERCHANDISING
Visual Merchandising
Strong statement
Symmetry of layout
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WHERE ARE SALES COMING FROM?
Where Are Sales Coming From?
Store layout Merchandise assortment - hot Spots Area of the store Stock aging / profile Mix
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AS
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IS PL AY
DE
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D E A S
I S P L A Y
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Think of new ways to place stock together to maybe extend the use of colour, or just two colours placed in a display hotspot to attract attention.
Observe current trends by walking around various shopping centres see what colours make an impact, look at other peoples displays. Its a great way to stimulate your own ideas.
With the information presented to you, write down any new ideas you have on your store layout drawing and note any display ideas that have come to mind. It is best to have these ideas on paper so as to refer to them when you next go back to your store!
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STORE DESIGN AND FORMAT
Store Design and Format
Why is this important?
Appealing Lighting Layout Ease of line of sight Impactful What do you want me to buy? Taking the customer on a journey
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STORE LAYOUT AND DESIGN STRATEGY
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STORE LAYOUT
Store Layout
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. Therefore - identify, hot, warm and cold spots
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MERCHANDISING PRESENTATION
Merchandising Presentation
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 (consider supermarkets - generic products are positioned close to leading sellers)
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2. THE UNIQUE BRANDED DIFFERENCE
Merchandising Presentation
Why is it important?
80% of purchases are impulse Customers make the final decision to buy in the last 3 feet Store layout and presentation can make a to your business of 40%! Customers shop horizontally not vertically!
Copyright 2009. The Retail Doctor Group Pty Ltd
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Copyright 2009. The Retail Doctor Group Pty Ltd
Copyright 2009. The Retail Doctor Group Pty Ltd
Copyright 2009. The Retail Doctor Group Pty Ltd
Copyright 2009. The Retail Doctor Group Pty Ltd
Copyright 2009. The Retail Doctor Group Pty Ltd
Copyright 2009. The Retail Doctor Group Pty Ltd
Copyright 2009. The Retail Doctor Group Pty Ltd
Copyright 2009. The Retail Doctor Group Pty Ltd
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THE RETAIL DOCTOR GROUP PTY LTD
Mailing Address PO Box 209 Milsons Point NSW 2061 Phone Fax E-mail Web: | +61 (0)2 9460 2882 | +61 (0)2 9460 3883 | businessfitness@retaildoctor.com.au | www.retaildoctor.com.au
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