Introduction
Have you ever wondered why a customer goes all the way to rhythm house, planet M to buy a music CD? Retailers should consider the impact of various physical and psychological factors on customer behavior and store functions including employee performance
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The exterior and interior design of a store are some of the key determinants of the retailers image
Store Location
Location decisions cannot be changed once the store has been established Has an effect on the business life cycle Strategic advantage which competitors cannot copy or imitate easily
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Store Location
Criteria to consider include
Population
size and traits Competition Transportation access Parking availability Nature of nearby stores Property costs Length of agreement Legal restrictions
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Trading-Area Analysis
A trading area is a geographic area containing the customers of a particular firm or group of firms for specific goods or services
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Site Selection
Types of Locations The isolated Store
: A freestanding retail outlet located on either a highway
or a street. There are no adjacent retailers with which this type of store shared traffic.
There is flexibility
The hub of retailing in a city. It is the largest shopping area in that city and is synonymous with the term downtown
Some strengths of the CBD CBD
Excellent goods/service assortment
Access to public transportation Variety of store types and positioning suburbs strategies within one area Wide range of customer services High level of pedestrian traffic Many aging retail facilities Declining condition of some central cities relative to their suburbs Nearness to commercial and social facilities cities Relatively poor image of central
Inadequate parking
Traffic and delivery congestion Travel time for those living in the
2. Secondary Business District : an unplanned shopping area in a city or town that is usually bounded by the intersection of two major streets.
3. Neighborhood Business District: an unplanned shopping area that appeals to the convenience shopping and service needs of a single residential area. 4. String: an unplanned shopping area comprising a group of retail stores, often with similar or compatible product lines, located along a street or highway.
The planned shopping center consists of a group of architecturally unified commercial establishments built on a site that is centrally owned or managed, designed and operated as a unit, based on balanced tenancy, and surrounded by parking facilities.
Pedestrian Traffic
Vehicular Traffic
Parking Facilities
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Specific Site
Visibility / Placement in the location / Size and shape of the lot Size and shape of the building / Condition and age of the lot and building Ownership or leasing terms / Operations and maintenance costs Taxes/ Zoning restrictions / Voluntary regulations General location / Specific site
Terms of Occupancy
Overall Retailing
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Store Exteriors
First impression of a customer about a store is formed by its exteriors They play a vital role in attracting new customers and retaining the existing ones The exterior of a store includes its sign board, its entrance, windows, lighting and the color of the building
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Store Exteriors
Can convey various types of images to its target customers- conservative, trendy, rich, discount etc Modular Structure: a single piece of rectangular or a square structure that is attached to many other stores Prefabricated Structure: an external frame that is built in a factory and assembled at a store 35
Store Exteriors
Prototype Structure: the exterior of all the stores of a retailer are the same, to maintain consistency, adopted by most of the chain retailers Recessed Structure: a store where the customers have to walk in a small distance to see the exteriors
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Store Exteriors
Distinct Structure: a unique structure of the building for instance circular, oval or semi circular Several other ways in which a retailer can enhance the store image: by creating fountains, lawns, benches and plants
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Store Exteriors
1. Marquee: A roof like structure, often bearing a signboard, projecting over an entrance, as to a theater or hotel. Also called marquise. Its the most significant because it bears the stores name. a painted sign board or a neon light or a glow signboard. It can be a strong image determinant as it can be subdued and subtle, or 38 flashy and gaudy
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Store Exteriors
2. Entrance: first determine the number of entrances. Ideally a store should have two entrances so as to draw pedestrian (by the front entrance) and vehicular traffic (by rare or side entrance). Both the entrances must be designed differently as they serve different purpose
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Store Exteriors
3. Door types: types of doors that a retailer can select from are regular, revolving, electric, self-opening, push-pull or climate controlled. Once the door is selected the retailer has to select the appropriate flooring for the entrance
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Store Exteriors
4. Walkways: a wide and rich walkway makes a very unique feature of the store image when compared to narrow and congested walkway 5. Display Windows: motivate the customer to enter the store. Provide information. They carry the following benefits
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Store Exteriors
Creating a particular mood by the displayed merchandise Conveying the stores contemporariness Attracting the price sensitive customers by displaying whats on sale Catching the attention of pedestrian by displaying eye-catching goods Show its concern towards society by displaying messages Number of factors to be considered: like number, size, shape, color, theme and the frequency of change in the year
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Store Exteriors
6. Size of the Building: disguised and non disguised, surrounding area including the stores located near by and the parking area 7. Colors and materials: building materials like brick, matte-finished acrylics etc are used at the entrance to create a soothing effect,
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Store Exteriors
steel exteriors project an image of strength while extensive use of glass creates a unique impression of contemporariness, concrete structures project an image of low cost and value based store whereas brick store creates a rather upscale image
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Store Exteriors
8. Theft prevention: involves controlling employee and customer pilferage. Observation of the customers in and out of the store, find ways to monitor them through electronic theft prevention systems installed at the entrances, exits, inventory receiving doors and at the trash disposal corridors
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Store Interiors
The store interiors should be attractive, comfortable and convenient for customers The image projected by the stores interiors should complement the image conveyed by its exteriors, promotional activities, prices and the quality of the merchandise offered
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Store Interiors
Managing space: two major factors that make a store look unique- store layout and the visual merchandise The factors to be considered while taking decisions about store layout are
The value of space Space utilization and allocation
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Store Interiors
Value of space: in terms of
Sales per square foot of floor space Sales per linear foot of shelf space Sales per square foot of exposure space Sales per cubic foot of shelf space The space at the entrance is the most valuable
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Store Interiors
Utilizing and allocating space: needs five types of space in the store
Back room Office and other functional spaces The aisles Service areas Non selling areas of the sales floor Wall space and the floor space
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Visual Merchandising
Helps the retailer create a visually appealing or pleasing shopping environment, which will in turn, increase the sales Also referred to as POP Three major roles
Informing customers Adding value to atmosphere Promotional tool
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Visual Merchandising
Various techniques adopted by retailers for visual merchandising
Idea oriented presentation Style or item oriented presentation Color presentation Price lining Vertical merchandising Tonnage merchandising Frontal presentation
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Visual Merchandising
Three types of display areas: Feature Areas: freestanding fixtures, mannequins, promotional areas Bulk of stock: entire range of stock displayed on gondolas Walls: Bata, Reebook, Adidas
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Visual Merchandising
Fixtures: they carry and display the merchandise
A straight track A rounder A four way fixture A gondola Closed sell or open sell fixture Manufacturer provided fixtures
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Visual Merchandising
Atmospherics: can be described as an environment that stimulates the perceptual and emotional responses of the customers through
Visual communication Lighting Colors Music and Fragrance
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Visual Merchandising
Visual communication
Coordination between signs and graphics and the image of the store Providing information to the customer Using signs and graphics as supporting material Updating signs and graphics Avoiding excessive use of text in the signs Using appropriate fonts on the signs Creating theatrical effects
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Visual Merchandising
Lighting
Highlighting the displayed products Capturing customers mood Ability to mask the unattractive feature
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Store Security
Customer theft: the theft of the merchandise on display in the store committed by entrants into the store, direct theft of the products on display, tampering with the retailers price tag to show a lower price or replacing the original price tag with a lower priced tag.
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Store Security
Customer theft: those who commit this theft either derive a physical or psychological satisfaction
Amateur shoplifters Professional shop lifters
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