Retail Dos and Don'ts

Have you ever visited stores that fire up your shopping mood while others leave you cold regardless of their merchandise appeal? What is in these stores that drives customers to buy? As an avid proponent of store atmospherics for many years, the power of an effectively merchandised store to bring in increased sales never ceases to amaze me. Appealing displays, well-lit focal points and enticing scents that propel me to their space peak my interest. However, what excite me are the "cold" stores where the power of an effective retail environment remains untapped. My mind races to examine possible layouts that will yield the most customer penetration. My fingers begin to itch to rearrange the merchandise presentation and visual displays that will maximize both silent and active multiple selling.

But what is store atmospherics? According to the Dictionary of Retailing and Merchandising, atmospherics refer to "external factors from the environment that are designed to establish a specific mood, image to stimulate sales. This includes the store's layout, architecture, colours and other sensory inputs." I firmly believe that store atmospherics is all these but must also encompass good service. After all, interception (interaction between customers and store associates) ultimately sets the mood and greatly affects a retailer's image.

Effective atmospherics communicates the store's identity and utilizes every opportunity to promote its products through visuals such as focal displays and attractive presentations that not only beg to be touched but also take into account human physiological needs and tendencies. It also engages the customers' supporting sensitivities- i.e. the sense of hearing, touch, smell and taste. Successful stores are easy to shop. This means a well-organized merchandise category layout that follows logical sequencing and adjacency plans. Store Atmospherics bring fun and excitement in the shop. More importantly, it makes the job of selling and delivering exceptional service much easier.

In this regular column, we explore retailing Dos and Don'ts. This will provide you with opportunities to view your own store in a different light and discover new ways to present your merchandise. Ultimately, our goal is to increase your sales. So let us know when you have applied one of the strategies featured here and yielded desirable results in your store. We'd love to hear success stories.

POWER WALLS

What are power walls and what do they do? Power walls are effective tools that retailers can use to attract customers into their store or propel them towards the back thereby increasing the amount of penetration. Any wall can become a power wall. When a single theme or dominant story is displayed, this results in a compelling merchandise presentation that captures customers. Most stores designate walls adjacent to the entrance as power walls because it allows them to effectively convey their primary story. Back walls also make a great power wall to entice customers further inside the store.

A variety of merchandise type may be used to build power walls. Near the entrance, fashion retailers usually display the season's new arrivals. This conveys the store's image, intended customer and the store's prominent merchandise story. A bookshop may use this wall to display the top 10 bestsellers or new releases. Large format value retailers and home/hardware stores display seasonal merchandise such as lawn and garden products during the summer and festive accessories during the holiday season. There are endless applications for power walls. The key for retailers is to tap into this "power" to increase capture and conversion (sales).