Banksmeadow Village

Visual Merchandising
Simple & practical ideas to improve your business
Contents

Foreword 1

Visual Merchandising 2
What is it? 2
Why do we merchandise? 3

Location of Store 4

Store Design 4

Streets and Signs 5

Start from the street level 5
‘Look at me’ signage 5

Window Displays 6
Tips for poster hanging 7

The Entrance 8
Create an inviting entrance 8

In store Merchandising 9
Floor layout/traffic flow 9
Arouse interest 11
Create desire 11
Cause decision to buy 12

Merchandise Display 13
10 key points of display 17
Common errors 17

7 Rules for Selecting Fixtures 18

Essential Tools for Visual Merchandising Kit (toolbox) 18

Sensory Retailing 19

Lighting 20
Lighting types 20

Service Areas 22
Maintenance 22
Welcome to the creative world of Visual Merchandising!

This document has been prepared by the City of Botany Bay Council
with the assistance of the NSW Department of Infrastructure, Planning
and Natural Resources, in conjunction with Village Well for current and
future businesses and retailers located in Banksmeadow Village. The
aim of this Visual Merchandising Handbook is to provide inspiration and
practical ideas to assist business owners in the initial set-up or
maintenance of their existing store. All areas of the physical space are
covered – from the street level to the interior of the store.

Be inspired, let the creative juices flow, have some fun and dare to
transform your business today.

1
Visual Merchandising
What is it?
Visual Merchandising is a term used to describe everything you
see and experience when you walk up to, into and through a retail
environment. Usually we think of window displays when we hear
visual merchandising, but displays are only a small portion of what
visual merchandising means to the store.

Visual Merchandising plays a significant roll in the following:

n Window displays,
n Facades,
n Location of store,
n Store design: colour schemes, floor coverings, fixtures,
n In store displays,
n Entrance,
n Signage/logo/ticketing,
n Atmosphere: smells, sounds, mood of staff, props,
n Lighting,
n In store merchandising of stock, and
n Store upkeep and cleanliness.

A good merchandised store will be worth it’s weight in gold as it will

inspire, excite, educate and stimulate the customer, resulting in
healthy sales and ongoing patronage. Knowing the core of your
business will assist in communicating the story and creating a
more sustainable business.

2
Why do we merchandise?

n To sell by showing and promoting merchandise.

n To introduce and explain new and current merchandise.
n To answer the questions on the use and accessorising of a
product.
n To encourage the shopper to enter the store.
n To establish, promote and enhance the store’s visual image.
n To increase profitable revenue.

n The primary purpose of merchandising is the presentation of

products in a way that causes them to be sold quickly, and at
the highest possible retail margin.
n Secondly, the visual seduction that charms your customer
results in add-on sales.
n The third role of merchandising is the creation of the
merchant’s individual retail image – which relates directly to the
lifestyle of the community and the customer. The targeted
result is ongoing sales and customer loyalty.

3
Location of Store
Location, location, location - is the location suitable to the image
and branding of your store. Is there good visibility? What is your
position in relation to other competitors? Is there ample parking for
the customers?

Location will suggest the market level of your business. Whether it

is on a mainstreet, laneway, arcade or shopping mall, location will
strengthen the success of your store. It is a known fact that corner
sites are the most valuable location, as it will give you the
opportunity to capture different flows of traffic. Knowing your
neighbouring competition is also vital – as well, businesses that
may complement - it will affect your business and create a stronger
retail community.

n Trader banter is important to the theatrical value of the

location. Get to know your neighbour and enjoy friendly inter-
change as this will draw people to you.
n You may have a spectacular store, but the wrong location can
result in certain death of a business so research of other
businesses in the area, demographics, pedestrian activity, etc
is crucial.

Store Design
Store design requires in-depth knowledge of your product mix and
what your store needs to communicate. This includes access,
customer and sales staff-friendly fixturing. Everything is
interconnected and design needs to reflect the intent of your
business, as well as have customer appeal that will not date and
deteriorate overnight. Small detailing, or the ‘Micro detailing’ such
as door handles on change rooms for example need to be taken
into consideration. It is these small details that customers notice
and appreciate. Height of counters and efficiency of counter space
is also a key factor. Factoring in flexibility has always been a key
recommendation.

4
Streets & Signs
Start from the Street Level

The outside of the store is the most under used form of retailing.
From the signage to the smallest item in the window - the
shopfront should be considered to be a tactical marketing method
with the same appeal and branding ability as any advertising
campaign.

'Look at Me' Signage

It may not be evident at first that signage not only highlights the
name of your business, but it also adds visual beauty to the street
and streetscape. A row of well-maintained, unique and at times
'whimsical' signs adds a lot of character and personality to any
shopping strip.

Signage should be clear, bold and reflect the point of difference of

your business. If you are a florist, then some large, colourful 3D cut
outs of daisies could form part of your signage. A cafe could be
highlighted with a coffee-cup silhouette that may be back-lit for
after dark advertising. Don't be afraid to be a bit quirky! This could
be a wonderful talking point with your customer! At times, all that
may be necessary is an updated typeface, a fresh coat of paint, or
replacing that globe in one of the illuminated letters.

Signage is a direct indication of your image. Use it as a tool for

customers walking down the street, motorists stopped in traffic or
patrons of public transport, who may only have a few seconds to
scan the line of shops on the street.

5
Window Displays
Windows are essentially a three-dimensional advertising space for
the store. It is usually the first point of communication with the
customer. Good window displays will enhance communication of
the product, brand and image. Equally the window can
communicate a viewpoint or trigger an emotional response, giving
the customer a reason to enter the store. Stores only have a few
seconds to get the customer’s attention: “theatrical windows or
windows with humour can be the most effective way of
transcending the barriers of both language and budget” (Paul
Smith, fashion designer). This does not always have to be a costly
operation and effective windows are windows that show
imagination. Use of the simplest items can make for a dynamic
statement and aid in the sales of product.

Remember:
n Balance is the key.
n Props should not consume more space than merchandise.
n Textures are a great way to add life and interest to an ordinary
display.

6
 Tips for Poster Hanging

To assist with suspending posters or props in a window display, it

is recommended that a grill be suspended from the ceiling. This
prevents holes being left in the ceiling from staple guns or pins and
messy nylon ends.

§ Light card suspension:

- punch holes near top of
poster,
- holes if possible in line
with print.
§ Heavy card suspension
- stick a strip of heavy
card/foam core along
back with masking tape,
- push large pins up into
card/foam core,
- slip nylon/string behind
and under pins to
suspend.
§ On both suspension techniques,
nylon should be brought in a suitable
distance from the card sides so as
not to bow.

7
The Entrance
Create an Inviting Entrance

How would you welcome guests into your own home? The
entrance to your store is extremely important, as it is the access to
your store and merchandise. The pavement area in front of your
store and entry should always be kept clean and uncluttered.
Stores with selling racks and tables outside the store should
always ensure the entrance is not blocked. Decorative tile work or
inlaid signage on the floor of the entrance could reflect the image
of the store or simply add character. Adding greenery, for example,
a topiary tree on either side of the entrance will effectively 'frame'
the entrance to your store.

8
In store Merchandising
Floor Layout/Traffic Flow

A well-planned floor layout will effectively maximise the retail space

for greater $$$ return. The careful arrangement of fixtures and
display racks form and influence the traffic flow. The traffic flow is
the ‘intended’ path of navigation for customers to access all areas
of the store – paying closer attention to promotional, in-season or
slow-moving stock.

A few points to consider when determining traffic flow:

n Easy access (wheelchairs, prams etc.).
n Visible aisle-ways.
n Suitable aisle patterns.
n Register point/s.
n Display points (their position, to highlight departments etc.).
n Fixture configuration (to move customers).

Also be aware of where the “Dead Spots” and “Prime Positions”

are in your own store.
Dead Spots:
n Not clearly visual.
n Odd corners.
n Left/right of entrance when narrow.
n Reverse side of racks (facing away from the entrance).
n Behind columns.
n No clear line/bad lighting.
n Bottom shelves.

Prime Positions:
n Clearly visible.
n Near the front.
n Cash desks.
n Main aisle.
n Eye level.
n End of gondolas (facing entrance of store).
n Where the line of vision meets the wall.

9
The traffic flow is driven by the type of stock in the store. In most
businesses, stock can be divided into these five categories:
Seasonal Merchandise, Best Sellers, Basic Stock, High Profit
Lines and Impulse Merchandise. Understanding your own stock
selection can assist in the placement of merchandise to maximise
sales.

Seasonal Merchandise:
n Summer: swimwear, special events: Christmas, Easter etc.
n Seasonal merchandise has a planned, limited floor life from
one week to three months.
n Should be at the front of the store.

Best Sellers:
n Customers will go anywhere in the store for it (something you
are ‘famous’ for, destination product etc.).
n Creates traffic flow.
n Should be merchandised in the most prominent position.

Basic Stock:
n “Bread and Butter” lines.
n They represent a large part of your business.
n Must always be in stock.
n Generates repeat business.
n Should be placed towards the back.

High Profit Lines:

n Usually carry a higher % markup and generate few
markdowns.
n Not always your ‘best seller’.
n Forms part of your ‘product/profit mix’ – a blend of high and low
profit merchandise.
n Should be placed in a prominent position.

Impulse Merchandise:
n Used to generate ‘add-on’ sales.
n Located in eye-catching positions:
- at the register point/s.
- near the related stock (e.g. napkin rings near napkins).
- end of aisle ways.

10
Arouse Interest

In display, the observer's mental process is directed systematically

toward the target. For the most part, passers by approach windows
without purpose. Attention is gained by something positive, some
striking point that we will term the focus of the display. This focus
may be created by lighting, movement, and colour, or the
merchandise itself. From there, the eye of the observer will move
in the desired direction through the display by use of devices such
as arrows - subtle or definite - that lead to the saleable
merchandise. Observation should be guided along lines easy to
follow; from decoration, to merchandise, to show card, and finally,
to the price tag. Use quality effects and make every attempt to
create a favourable reaction in the mind of the customer.

Create Desire

The customer must be made to want the product; this desire can
be aroused in the following ways:
1. Demonstrate the qualities and benefits of the product.
2. Demonstrate the use of the product.
3. Present the product in such a way as to increase the possibility
of inducing a sale. It is not sufficient just to please the
observer; the objective is to sell the merchandise.

11
Cause Decision to Buy

If you have done your job well up to this point and have
successfully impressed your potential customer, the sale will be
automatic. The customer will walk into the store or department and
buy.

Ensure Front and Back Sight Lines

Customers should be able to see clearly to the back of the store in
order to determine whether browsing longer is worth their time. A
centre aisle, strategic lighting, alternate floor covering, further
displays all can help "pull" the customer through the store.

Take Advantage of your Highest Profile Location

As shoppers move from the front of the store, most in fact walk in 6
to 10 paces before they stop to look around. They then move to
the left at a 45-degree angle, unless the counter is to the left, in
which case they will walk to the right. The store's most exciting and
best-selling merchandise should be displayed in these positions.
Important rule: eye level is buy level, so always ensure
merchandise is at an accessible height for the customer to reach.

Direct and Redirect Common Customer Traffic Patterns

Shoppers in addition to walking towards the left, also quite typically
walk down one side, across the back and up the other side of the
store. Colour, angles and motion in the store's displays can attract
the shopper's peripheral vision and encourage them to zigzag
through the store, pausing and "shopping" the selling floor.

Wrap It All Up at the Cash Wrap Counter

The last chance for that extra purchase should be at the cash wrap
counter. By this time, the customers should have seen most of the
merchandise in the store. One last impulse buy should be
encouraged with a display positioned beside the counter.

Display and visual merchandising today is a retail science.

Experiment with it, use it, measure it.

12
Merchandise Display

Variety
Variety adds interest by creating contrast. It is necessary to attract
and hold the viewers attention. Displaying one small item with
several large items or a single round shape with numerous square
shapes is another variety creating idea.

Dominance
Attractive, effective displays have a centre of attention or
dominance to which the customer’s eye is drawn and held. Without
a dominant display feature, the customers' eye will be attracted
elsewhere and the display does not communicate its sales
message effectively. Dominance within a display allows the outlet
to emphasize a single promotional message or focus on a direct
purchase incentive.

13
Grouping
A balanced display consists of small groupings within one large
grouping. Each smaller group formulates the depth (as explained
below) within the display. A small area of space between each
depth acts as a full stop. Giving the customer time to absorb the
message. Each smaller group must overlap to form the main body
of the group. Too much product within each group can cause a
heavy/bulky appearance. Display arrangement is placing
merchandise into interesting and stimulating forms to ensure an
effective and clear message is communicated to the customer.
Special display merchandise is frequently presented in one of four
definite arrangement patterns.

Depth
Depth is the distance from the front of the window to the back of
the window. It is important to give the display the right amount of
depth. Consider the way we watch movies or look at a painting; we
step or sit back from whatever we wish to see. The same applies
to windows - to grasp the whole picture it must be set back from
the window, not positioned right at the glass. The rule of thumb is
to start 3 quarters away from the glass then work forward. At the
same time the display should be stepping down from the highest
point. Remember not to push merchandise onto the glass.

This is a plan view of the Pyramid Display on page 16,

illustrating depth. The diagram on page 16 shows the front view
of the display.

14
Step
Step arrangements lead the eye in a direct line; they begin at a low
point on one side of a display area and progress directly to a
higher point on the opposite side of that area. Typically step
displays are constructed so that the base of each step increases in
area; the larger base area is used for displaying accessory items,
while the steps are used for feature merchandise.

Fan
A fan arrangement is spread up and out from a small base, like an
inverted pyramid, thereby directing the viewers eyes upward and
outward.

15
Zigzag
This is a modified pyramid that zigzags its way to the apex of the
display. No two display levels should be at the same height. This
arrangement is less monotonous than the pyramid.

Pyramid
One of the most commonly used principles in display grouping is
the pyramid display. This is a triangular display of merchandise in
vertical (stacked) or non-vertical (un-stacked) form. The pyramid
begins at a large or broad base and progresses to an apex, or
point, at the highest level. When displaying different sized
merchandise, larger items are positioned at the base, and the
smaller items at the apex. This principle can be applied to almost
anything from small cosmetic items (bottles, creams, lotions etc.)
to mannequins (e.g. tall one up the back and two seated
mannequins on a box with accessories grouped into the display).

16
10 Key Points of Display

1. Publicises the business.

2. Publicises the product.
3. Lays a foundation for future sales.
4. Builds prestige.
5. Educates the public.
6. Improves the amenity of the street or precinct.
7. Offers the public useful, practical demonstrations.
8. Informs the public of the operations of the business.
9. Supports popular trends
10. Harmonises pure business interest with aesthetics.

Common Errors

n Too much merchandise.

n Too little merchandise.
n Display changes too slowly.
n No display budget.
n Lack of an underlying theme.
n Too many props.
n Inappropriate props.
n Displays changed too seldom.
n Lack of attention to detail.
n Errors in applying the principles of display.

17
7 Rules for Selecting Fixtures
n See the fixture stocked, (or photos of it) prior to buying it.
Remember: you are selling merchandise, not fixtures! The right
fixture should not upstage or obscure the merchandise.
n Select quality fixtures that will be used for a long time.
n Do not select a fixture simply to fill a space on the floor. Select
one that is best designed to present the item sold. Remember:
fixtures are like silent salespeople.
n Select fixtures which are compatible with each other and with
existing/new fixtures and finishes.
n Make sure the fixture helps to clearly identify the merchandise.
Remember: the better the fixture, the less signage required.
n Choose fixtures that are simple to clean and do not require
frequent maintenance.
n Well designed fixtures are normally safe and will not bruise
ankles and shins - they should be sturdy and steady.

Essential Tools for Visual

Merchandising Kit (toolbox)
Create a Visual Merchandising Kit consisting of these basic items:
n Small step ladder.
n Nylon, twine, wool, chains, wire (for suspending posters etc.).
n Sharp scissors.
n Pins / blu-tack / double-sided tape.
n Long-nosed pliers and cutters.
n Small hammer (to hammer in pins).
n Staple gun and staple remover.
n Cardboard strips (for the backs of posters to keep posters
straight when suspending).
n Masking tape.
n Cotton gloves (to keep glass products fingerprint-free).
n Brush and pan.

18
Sensory Retailing
Sensory Retailing is a term that explains the affect of a total
consumer experience: to create an atmosphere that has a
subconscious effect on the consumer by appealing to the senses.
The sense of smell has a powerful influence on behaviour. Flowers
placed at the front of shops, perfumery departments positioned at
the entrance of stores and in-store bakeries emit smells which
have a powerful, instantly recognisable and tempt the customer to
buy. In-store television, video walls and music are more
established ways of seeking to excite customer interest. The right
tempo of music throughout a store will also further enhance the
retail experience for the customer.

19
Lighting
Whether it's facing the street or a crowded shopping centre, the
shop window is a good starting point for understanding the role of
lighting in retail. The window acts as both a frontier, separating the
retail space from the street, and as a visual entrance displaying the
goods on sale. Thus, a well-lit window provides a visual link into
the store itself, highlighting the type of shop it is, the attitude,
atmosphere and ethos of the business and not merely the goods
on sale.

The final effect of the display depends on good, carefully planned

lighting, enabling the customer to see the merchandise with perfect
clarity. Intelligently controlled, the lighting assists enormously in the
design of the window display, and by varying the power and type of
illumination, the appearance of the window and the merchandise
can be altered to a great extent.

Lighting highlights the focus of the display and creates the

ambience required for a well dressed window. Our eyes will always
focus on the brightest spot within a space, therefore good lighting
can lead the customers' eye to the product we want them to see.
To illustrate the importance of good lighting, consider a different
type of business that uses lighting particularly effectively - the
theatre. To highlight particular characters on the stage a spotlight
is shone on them to strengthen their presence and focus the
audience attention on that character or spot.

How are the lights arranged in your outlet?

Are all the globes working?
Are all the lights focused on a particular product or spot?

Lighting Types

For practical purposes, there are three main types of lamps. These
are fluorescent (including compact fluorescent), incandescent, and
discharge. How they differ depends on the electrical system used

20
to create light, either by passing a current through a wire filament
or through a chamber filled with a reactive gas. In retail,
fluorescent and incandescent lamps are mainly used. Discharge
lamps offer poor to no colour rendition (emitting a yellowish to
orange light), and are not appropriate for indoor use.

Fluorescent Lamps
Fluorescent lamps operate by passing electrical current though a
gas or vapour contained in a glass tube or bulb, which is usually
coated in phosphor on the inside. Fluorescent lamps are efficient,
have a long usage life and low operating costs. The light provided
is a fairly flat, even wash with little tonal qualities and is therefore
not ideal for display lighting. Recommended in grocery stores, pet

Incandescent Lamps
These types of lamps generate light by the passing of an electrical
current through a wire coil mounted in a vacuum. The tungsten
GLS (domestic globe) lamp has a warm, yellowish colour; whereas
the PAR lamp (with integral reflectors) allows better directional
control and has a longer lamp life.

Tungsten halogen lamps have a light quality that is closer to

daylight with an even longer lamp life. Also available are low-
voltage tungsten halogen lamps that offer excellent colour
rendition, small lamp sizes, long usage life and low operating
costs. These low-voltage lamps are ideal for display purposes and
are available with various lamp sizes, beam widths, and brightness
(wattage). They can be mounted in down light fittings, on tracks (to
create adjustable spot lighting against a display wall), on drop-
down pendants, or on wall lamps (to throw light upwards).
Recommended on tracks or down lights to create ambience in
fashion boutiques, cafes, salons etc. Also highly recommended for
window displays.

21
Service Areas
The service areas of a store may appear to be a secondary
consideration in the design process, but they can in fact be central
to the success of the store. These areas can include cash and
wrap areas, fitting rooms, waiting areas, repair counters, ticketing
areas, staff rooms, offices and space for tailoring and alterations.
These areas need to be well thought out in the planning stage to
accommodate your every need.

Maintenance

This is a basic, very important area of merchandising that is often

overlooked. Housekeeping requires ongoing maintenance and can
be done quite quickly beginning, during and at the end of each
day, week, month or year. The following points are guidelines for
what you will need to do each day to ensure housekeeping is
maintained:

Daily

n Own the street! - keep pavement clean and well maintained

(including council provided greenery).
n Water any plants/greenery outside of your store.
n Keep windows and displays clean.
n Straighten, tidy up window display.
n Dust and wipe clean shelves, fixtures, counters and cabinets.
n Straighten fixtures.
n Determine if merchandise rearrangement is necessary.
n Restock merchandise.
n Remove any empty boxes, rubbish in aisles.
n Mop/vacuum floor space.

22
Weekly/Monthly

n Seasonal display changes.

n Update any promotional posters, banners etc. (may be done
on a weekly basis).
n Update ticketing (if starting to look a bit old).
n Check external signage and clean if necessary.

Yearly (or every few years)

n Check/replace globes in all lighting (ambient and display

lights).
n Consider cleaning shop façade.
n Consider a fresh coat of paint every 3-5 years.
n Repair any damages to external signage.

23