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Visual Merchandising Session: Store Design Objectives

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Visual Merchandising

Session: Store Design Objectives

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 2

The next phase of consolidation in the retailing sector will see stores trying to excel in terms of delighting – and pampering – the consumer, by offering not just quality products and competitive prices, but also a visual shopping experience.

Designing Stores – Annamma Oomen

Session Objectives

• What is visual merchandising? • What is the purpose of store design? • How does store design & visual merchandising

address a retail strategy? • How have Indian retailers addressed the

concept of store design?

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 3

• What? – Enhancing the presentation of goods in retail outlets with the

objective of promoting sales

• Why? – Promote the sale of goods

• How?

– Combining products, environments, and spaces into a stimulating and engaging display

– By a team of people, such as senior management, architects, merchandising managers, buyers, the visual merchandising director, industrial designers etc.

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 4

Visual Merchandising

Exercise: Reflect!

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Complete Exercise 1.

Objectives of Store Design

1. Implement Strategy 2. Influence Purchases 3. Ensure Flexibility 4. Control Costs 5. Address Legal Issues

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 6

Objectives of Store Design

1. Implement Strategy 2. Influence Purchases 3. Ensure Flexibility 4. Control Costs 5. Address Legal Issues

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1. Implement Strategy

– Primary objective of store design – Design must be consistent with retailer’s objective – Design must reinforce the retailer’ strategy – All aspects - ceiling, flooring, shelving must reflect

this

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 8

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 9

We just don't sell items. We tell inspirational stories of successful sportsmen to our customers, who very often are looking to be these achievers.

Sanjay Mehra, - General Manager , Nike India.

Objectives of Store Design

1. Implement Strategy 2. Influence Purchases 3. Ensure Flexibility 4. Control Costs 5. Address Legal Issues

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 10

2. Influence Purchases

– Attract customers – Easily locate merchandise of interest – Keep them in the store for a long time – Make unplanned purchases – Provide a satisfying shopping experience

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 11

Did You Know?

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Nike store redesign in the High Street Phoenix mall in Mumbai saw the average customer bill size jump from $52.60 to over $64, post redesign.

Objectives of Store Design

1. Implement Strategy 2. Influence Purchases 3. Ensure Flexibility 4. Control Costs 5. Address Legal Issues

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 13

3. Ensure Flexibility

– Accommodate merchandise changes – Ability to physically move and change components – Ease with which components can be modified

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 14

Objectives of Store Design

1. Implement Strategy 2. Influence Purchases 3. Ensure Flexibility 4. Control Costs 5. Address Legal Issues

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4. Control Costs

• This includes: – Cost of implementing store design – Cost of maintaining the store’s appearance

• Layout, lighting, department location etc. all impact costs

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 16

Objectives of Store Design

1. Implement Strategy 2. Influence Purchases 3. Ensure Flexibility 4. Control Costs 5. Address Legal Issues

7/26/2017 Training Material - Do not circulate - Cpyright ID Mentors 2015 17

5. Address Legal Issues

– Ensure that the design and layout comply with the nation’s laws

– Does the store design ensure accessibility to all? • For example: Are there ramps for the disabled?

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Design Trade Off PROs

• Is the store design exciting?

• Does the store design promote impulse purchases?

• Does the store design allow exploration?

• Does the store design provide adequate space to the customer?

CONs • Will the ambience

increase costs? • Will placement

inconvenience the customer?

• Can items be easily located?

• Is space within the store being productively utilized?

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Exercise: Read & Discuss

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Complete Exercise 2.

Case Study

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Read the following cases: Big Bazaar Westside

Summary

• Design should: – be consistent with image and strategy – positively influence consumer behavior – consider costs versus value – be flexible – comply with the laws of the nation

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Questions?