Silent Selling: Visual Merchandising

for Small Retailers

Debra Templar: Retail Check ups, Tune Ups & Makeovers....

Its in the bag!

VISUAL MERCHANDISING
Supports sales
Communicates with Customers
Supports Selling by:
Communicating the latest trends
Assisting the customer in making a buying
decision, and
Creating an exciting environment
within the shop/centre

IMPACT OF THE VISUAL

83% Sight
11%
3.5%
1.5%
1%

Hearing
Smell
Touch
Taste

FIRST IMPRESSIONS
First Impressions are formed within the first

10 seconds.
Customers remember vividly the

worst

impression, not the best

impression.

PREMISES: EXTERNAL
Street Numbers
Signage
Entry
Opening Hours

CRABTREE & EVELYN

LOCCITAINE Broadway

Light
windows,
in evening
#win

Way too busy!!!

#fail

Would you get your

hair cut here?
#fail

No shop signs for

pedestrian
recognition of
Businesses.
#fail

WINDOWS
If eyes are the windows to
the soul
Then shop windows are
just as revealing.

soul

They reveal the

the shop

of

BODYSHOP Broadway

BLOWFLIES
#fail

Too much, too

busy.
#fail

Do not stick anything on

glass doors or windows
with BLUTAK.
It looks TACKY!
#fail

Booooring.
Says nothing!
#fail

Far more interesting.

Shows personality!
#win

CUSTOMERS + TRAFFIC
FLOW

Every square metre of space in a retail store costs

money all areas should pay their way.
Useful points:
On entering store, most customers skirt around
the cash desk.
Beware of what merchandise you place in an
Adjustment Space. Customers dont see it.
Most customers avoid badly lit, neglected or
cluttered areas.

Open sight lines are important.

Negative signs on displays about terms of sale
deter customers from returning.
Stock left in aisles and pathways can seriously
damage your traffic flow.
Friendly staff are important.

Remember, your people

are part of your visual
appeal. A friendly face
or a sourpuss... You
choose.
#win

BUTT BRUSH

Paco Underhill

 Some product categories require more space, as

they are browse products.
People will brush up against product

times

three

before they get the heebies and

leave.
Ensure there is enough space for people to move
around your store without bumping into product,
fixtures etc.

Try entering here

with your arms full,
or with a stroller...
#fail

Point of Sale and Entry

to store in same place.
Too difficult to enter the
store. Too hard to pay.
#fail

Butt Brush to the

max.
#fail

Supermarkets, big
box retailers,
newsagents,
pharmacies...

Department
Stores

FIXTURES
&
FITTINGS

Gondolas
Best Positions: Eye/shoulder level and slightly below.
Recognise that the average womans height is 52 (153
cm)...
Worst Positions: Top shelf if well above eye level and the
gondola base on either end is the next lease favoured
Vertical Blocking: Most effective way of presenting
merchandise. If sizes are applicable try to position the size
you want to sell most of at eye/shoulder level..
Colourful Merchandise: colour block vertically +
colour blend from light to dark left to right usually within
the colour families. In winter
the reverse colour order is
used.

Shelving
Similar to gondolas plus:
Use a variety of shelf widths to suit different
products. Small shelves for small products
towards top, graduating down to larger/heavier
items.
Avoid wasting space and obvious gaps.
Levels shelves are usually preferable to sloping
shelves.
Display product face out to show the style and for
ease of viewing and selection

Inconsistent, grubby
ticketing, not
ordered.
#fail

NO STOCK IS TO
EVER HAVE A
BIRTHDAY IN YOUR
SHOP!!

DUMP
BINS +
SPECIAL
S TABLES
+ RACKS

Dont over-crowd. But no less than half full.

Make everything in Dump Bin/Table/Rack the
same price, wherever possible.
Locate in your racetrack and use it to give the
impression that it is a price-motivated promotion.
Allocate one product type per bin and display the
products as if it were just dumped into the bin.
Always have a price sign to highlight the special
price.
Life of a dump bin: Maximum of 1 month.
Preferably, 1 week.
Sales will increase by 30% for that specified
product

DISPLAYS, COLOURS
& SEASONS

Colour Sells
Colour is what customers see first.
More than anything else, colour
makes people stop and look. For
many customers colour is more
important than the size or the style
of the product.

Notice how each colour in rows 2 through 5 corresponds to the colour

above it. For example, pink, in the pastels, corresponds to the bright
red in the top row; peach to bright orange, and so on.

The round rack in the correct example features colours from just one
colour group, brights, for a harmonious colour arrangement. The
incorrect example features colours from two colour groups, brights and
pastels, which dont blend together in a harmonious way.

The four-way fixture in the correct example features from just one
colour group, brights, combined with neutrals. The incorrect
example features colours from two colour groups, brights and
pastels, which dont blend together.

How to Maximise the Use

of Colour

Attract the eye of the customer

Create points of interest
Use contrasts of colour and form
Aim at variety
Create a buying mood

SIGNAGE AND TICKETING

Corporate Signs: Branding signs
Product Category Signs: Direct
consumers to specific categories
Promotional Signage: Highlight specific
promotions, have short life span, based on
the stockturn of the promotion
Information Signage: Identify service +
service policies within your business
Product Signs: These educate customers
about the specific product

Product Category Signage

The bigger the shop, the greater the need for
department signage.
The customer should be able to enter your shop
and clearly see where the major departments are
situated.
Keep the sign simple so it can be easily read.
Be consistent in the style used on all department
signage.

Promotional Signage
Only use the signs in the key, relevant areas (do
not promote roses in the herb department);
Give the promotion a lifespan and keep to it
(customers dont want to see dated, faded and
ripped signs);
Use promotional material in an exciting way.
Rather than just hang up posters around your
shop,
group them to catch the customers eye.

Floor signs

TICKETING

SIGNAGE AND TICKETING

How well any sign works depends on how easy it
is to read and understand.
Signs should look professional. They must be
clean & unblemished.

Theme Tickets
Price Tickets
Hard Sell/Soft Sell
Known Value
Unknown Value

SIGNAGE AND TICKETING

Research in USA has revealed that during the
same sale period if 100 products were
sold with no signage:
Then

170 were sold when handwritten signs

were used

265 products were sold when signs were

professionally produced to sell the products.

Hard sell tickets

(yellow + red)

Way too
wordy.
#fail

Here conversational copy has been rendered in a formally balanced

layout

This is a bullet-point copy in an informally balanced layout

s a le
2 5 %

o ff

JU V E N A

D io r

s e le c t e d f ra g ra n c e s
f ro m t h e s e t o p b ra n d s

O F

S W IT Z E R L A N D

E liz a b e th A rd e n

Known Value Lines

Products that are purchased on price rather than
their benefits as the consumer perceives they
know the exact price of these products.
Even a 5% increase in price is criticised by
consumers but the reverse is that a 5% reduction
in price an result in a buying frenzy, eg.
cigarettes, petrol, milk, bread

 Dont be cheaper than anyone else on KV Lines. It

will not help your bottom line. You can match your
competition, but dont go cheaper.
Consumers will judge your whole product price
strategy based on a few KV lines. Make sure you are
aware of the price structure adopted by your
competition on these lines.
If you are more than 10% more expensive than the
price leader, you will be perceived as being too
expensive in your whole product.
Placement of KV tickets is important.

Product Signage: KV Lines

Bananas

$6.50kg

One third of sign

Two thirds of sign

When merchandising KV products, you need

your product signage to give the right
message

Non-Known Value Lines

98%

Includes
of products you sell where the
consumer doesnt know the exact price. They
will have some perception of price bands, but
they will not argue over the cents. These
products will reflect your image and should be
of the highest quality.
Rely on non-known value lines to promote your
business (Box retailers rely on kv lines to
promote their image).
Promote non-known value lines when doing
product-driven promotions.

Non Known Value Lines

Pre-shaped
Hamburgers

Name of Product

Perfect bun size

Easy storage
Fast defrost &
microwave

3 Benefits

6 for $2.50
Great for BBQs

Price of Product
Closing Motivator

A 12 foot planogram presenting cookware

WHY CUSTOMERS NEED

IN-STORE SIGNAGE

Identify advertised lines

Explain hidden benefits
Indicate value & price
Highlight new trends &
products
Explain difference between
look-a-likes
Remind customers to
purchase
Clarify policies
Help customers find
products

HOW TO CAPTURE
CUSTOMER INTEREST

Catch your customers eye through

repetition.
Step your products to provide variation.
Use a pyramid to sell more product.
Try radiating displays.
Be on lookout for ideas from elsewhere.

Build a display pyramid

Eyelevel

Disordered
Pyramid
#fail

Ordered Pyramid
#win

BEST SELLERS
Located within their own classification
in a PRIME position exposed to
maximum traffic flow.

THEY MUST BE
IN STOCK.

ADVERTISED AND
SELL UP LINES
Must be clearly identified and located in the spot
directly related to the sale you want from the
advertised line.
Always located within their own merchandise
classification.
In a PRIME SPOT if you aim to sell the line in
quantity, or
If only being used to generate traffic at the rear
of the classification area to pull
people through.

IMPULSE LINES
Close to the advertised line in PRIME
location or in a high waiting area (eg. Close
to cash desk).
Must be clearly visible & in a position on the
way to the cash desk, not where it cant be
seen until main transaction has been
completed.
Merchandise attractively displayed at
the aisle line helps promote impulse
sales.

SEASONAL AND TREND

ITEMS
Understand when seasonal items will sell and
merchandise accordingly. Give them every
opportunity to sell at the right time.
Use trend items to develop your competitive
edge. Be the first with a new idea, if you believe
in it.
Locate the stock within its own classification &
current seasonal or trend classifications which
would be at the front of your store or dept.

BROWSE ITEMS
Items which customers dont make a quick
decision about.
Browse items need time and above all, space.
Never place near high traffic areas, narrow or
busy area or in hot spots near cash register.
If you do, it will deter customers from stopping
and the goods wont sell very well.

HOT SPOTS

HOT SPOTS
Traditionally found on ends of gondolas,
shelves where traffic is heavy and in the
main view points around the store.
Most impulse sales will be made from these
spots.

It is essential that hot spots are

identified and known to all
salespeople.

CREATING HOT SPOTS

Areas within a store to move aged, surplus
stock or specials.
Normally located in high traffic areas
WITHIN their own merchandise category.
Eliminate Dead Spots by using strong
ticketing and good displays rather than
placing top sellers in the spot.

INTERESTING STATISTIC
Research shows a well planned hot
spot can increase sales by:

229%

HOW TO MAXIMISE SALES

UTILISING HOT SPOTS
Know where to best position your hot spots.
Plan your hot spot displays.
Build your hot spots wisely

Present items at customer eye level.

Must have enough product for display to look FULL
and to provide impact.
ALWAYS have a sign or you wont maximise your
return per sq. metre.
Wherever possible try to create a pyramidal shape to
the display. Best selling shape.

MAXIMISE VALUE OF
HOT SPOTS
Consider:
Products being specially promoted by your store
should go on hotspots.
Hot spot displays need to be managed product
level NEVER to go BELOW half full.
Display must be shoppable in the eyes of the
customer.
Products should sell three times faster from
this display.

COLD
SPOTS

COLD SPOTS

Dead corners
Poor lighting
Merchandise out of reach
Merchandise above or below eye level
Too wide a display
Too long a shelf

(Tip:

If your staff keep saying down the

back it is probably a dead or cold
spot)

HOW TO FACE PRODUCTS

CORRECTLY
Face more than 3 of a product when:

It is a trendy item.
The product is in season.
The item is featuring in the media.
It is being promoted by your store.
Suppliers are doing a major promotion.
Compile Planograms.
Consider Indenting.

COLES

MANAGING COUNTER
DISPLAYS
See the counter as a profit centre. Sell 2 3 items
from the counter only.
Select the right products at the counter.
Train the team to sell counter products.
Do not clutter the counter.
Look past the counter.
Make somebody accountable.
Introduce housekeeping standards at checkout.

One of Australias leading retailing experts, Debra

Templar just hates bad customer service and
stupid business practices. So shes on a mission
to change them one slideshow, presentation,
book, or training session at a time:
"I don'tjust want to improve how we do business
for the customers sake but also that we, as
business owners, sell more stuff, make lots more
profit, and love our businesses back to life!

www.thetemplargroup.com.au
www.twitter.com/DebraTemplar
www.linkedin.com/DebraTemplar

E: debra@thetemplargroup.com.au
Mobile: 0417 532383
Skype: debra.templar

Pic Credits: http://www.istockphoto.com and http://shoppologist.blogspot.com and Debra Templar