Retail Excellence

Many people ask what a store transformation is and what it does. Well, for Kristina Egyed of Lala Decor, it meant turning her store inside out and achieving an average of 20% increase in sales per transaction and 16% increase in units per transaction consistently month after month since she decided to "transform" her store in early March.

In the heart of Deep Cove, an eclectic home decor store called San Pedro was ready for a change. A change in its market demographics called for a merchandise revamp, and thus a new name, a new look, a new store. First, the layout was analyzed. How did people walk and shop the store? Are they penetrating all the way back or are they boomeranging? This is followed by fixture placement - as with most owners, the cry of "I don't have enough room" is universal. Hence, spatial intensity was reviewed and a new strategy was implemented. Next, Kristina wanted to ensure that each customer bought more than one item. This meant organizing her categories to ensure that each section is flanked by a complementary category. For example, the previous set-up had serene bath products next to funky gifts while dinnerware was placed adjacent to rugs. To encourage multiple sales per transaction, aromatic bath products along with Asian decorative accessories created a dynamic serene section. This promoted each category while creating greater impact as one enters the store. To capitalize on rug sales, furniture, mirrors and coordinating accessories were grouped together, thereby encouraging the sale of each item.

Cross merchandising between categories not only promoted purchase from each section but also provided a smooth flow from one area to the next. Both the dinnerware and linens section had obvious multiple selling potential, thus the usage of items from each category in creating focal points. This resulted in not only selling linens in sets, but also related dinnerware.

To top everything off, one of Kristina's great selling allies is signage. Organizing the store by creating boutiques within the shop made shopping fun and easy. However, supplementing this with category and point of purchase signage further advanced the atmosphere of fun and most of all, promoted her retail image and identity.

The original layout failed to propel people deep into the store due to tight fixture placements. Tall fixtures were also blocking the view of the rest of the store, therefore missing opportunities to influence eye movement and thus achieving full penetration. Categories were not grouped tightly, therefore one may find same category items in different parts of the store. Each category is encircled in a specific colour to depict is before and after locations.

The new layout created an easier flow from the entrance all the way to the back of the store. This racetrack layout provided an opportunity to create mini shops within the store, hence allowing us to create small 'atmospheres' that delivered a much fuller shopping experience. The new category layout also ensured that adjacent sections complemented each other. Strike zones were utilized by introducing new categories that although may not necessarily complement the section across, ensured the best relation. For example, locating the kids section across from the bath and kitchen section allowed mothers a watchful eye on their children while they played around the area.

Upon closer examination of the new layout and category adjacencies, one may comprehend the reasoning behind the relocation. For example, clothing used to be located at the back of the store flanked by pottery, glass and fun gifts. The new layout places clothing close to jewelry and fashion accessories to encourage multiple sales. Fun gifts are located close to bar ware and men's gifts. Large furniture items are placed at the back of the store along with rugs, mirrors and other home accessories.

The advantage of this layout is that it allows the store to simply move one section in a different location as needed. For example, if they have new furniture and would like to promote this, they can move it up closer to the windows, along with the mirrors and other accessories. It encourages moving merchandise around the store thereby giving the perception of always something new.

BEFORE: Entrance Immediately upon entry, this presentation failed to effectively convey the store's image, target customer and the merchandise selection. Stone plaques, stationary and Asian home accessories adjacent to each other did not create the impact needed in this prime location.

AFTER: Entrance Creating a new aromatic bath boutique that is flanked by Asian home accessories promoted a peaceful and serene atmosphere that invited customers to see, smell and touch. This setting created experiential shopping by delivering a relaxing and at the same time exotic ambiance.

BEFORE: Linens Section Originally located by the storefront window the colourful linens section presented an attractive category. However, the image conveyed to passers-by is limiting and invited only a small segment of the target customer. The presentation style also failed to encourage multiple sales because items were merchandise by item (e.g. all pillows together, all table mats together, etc.) instead of by family or coordinates.

AFTER: Linens Section Creating a new aromatic bath boutique that is flanked by Asian home accessories promoted a peaceful and serene atmosphere that invited customers to see, smell and touch. This setting created experiential shopping by delivering a relaxing and at the same time exotic ambiance.

Kitchen and home furnishings