PowerPoint Slides - Creating Effective and Commercial Presentation of Products (6 Files Merged)

TOPICPart31
Enhancing the
retail merchandising
environment
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Retail merchandising environment?

Store design unites all aspects of visual merchandising
(Morgan 2008)
Body Shop store exterior and interior (Retaildesignblog 2017)

Fixtures & Merchandising
Shop front Window display Interior displays
fittings displays
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Store design - layout

The store layout is informed by:
• which retail sector? (convenience

| pharmacy | fashion)
• the architecture of the store
• the marketing position (discount

or high-end? Branding?
Image: UNIQLO, Tokyo.

The muted concrete skeleton reveals
spatial display opportunities and
highlights the colour of Uniqlo’s products
(Retaildesignblog 2020)
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Store layout
Brand – what is
anticipated before
coming to the store?
Shop front – how do

we recognise?
Entrance must
engage all senses
and satisfy
expectations
Guide through store

and deliver promise
Positive experience
that will encourage a
return visit
(Anderson et al 2019)
Landing zone 6
Entrance
How does the ‘landing zone’
or ‘decompression zone’
work?
Passageway from outside to

inside – should be no barriers
- 6 metres inside entrance
Should reassure that they have

come to the right store
Defines the store atmosphere

– should be welcoming
Start of the customer path
Encourage browsing instead of

quick exit (Anderson et al 2019)
Normally most profitable area

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Landing / decompression zone

Missguided decompression zone
Works like a central stage and draws you

in.
Strong visual impact
No barriers to entry, sightlines and focal

points are clear.
Showcases the styling, product range
Create drama and energy
Lighting presents focal points and leads

you in and guides you through the store.
Missguided store landing zone, Bluewater. (Retaildesignblog 2017)

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Sightline aids
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Shelf-talkers & instore promotional graphics

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Store layout
70-90% of people turn
right
The power wall should

be placed in view on
turning right
Customer flow (shopify.com)

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Grid layout
Food retailers, electrical, pharmacy, DIY,
warehouse-style usually work with gondola
fixtures within rows to form a grid system
It maximises product exposure and sets up a

customer flow – may have max aisle height
(150cm)
End section = hot spot areas
Benefits:
• Maximises use of space
• Logical display
Drawbacks:
• Could lead to customer frustration
• Inflexible for display Hotspot Gondola display shelving in grid system (davidjames.ie)
• Monotonous customer experience
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Grid layout
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Herringbone layout
Similar to the grid layout
Can limit visibility so theft may become

an issue
Can work with a strategically placed chair

for bookshops to encourage leisurely
browsing
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Free-flow layout
No formal order allowing for more relaxed
browsing.
Benefits:
Good for small spaces
Can create experiential shopping
Good for browsing and impulse purchases
More space between products
Suits high-end with less products
Drawbacks:
Less display space
Can cause customer confusion
Areas need to be strategically placed to
optimize sales
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Free-flow
(or can be referred to as
island layout)
La Rinascente in Milan (Zaghi 2018)

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Boutique
layout
Similar benefits and drawbacks
to free-flow
Floor space is divided into

destination zones with specific
product offerings or brand
offerings.
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Boutique
layout
Ground floor, boutique layout in La Rinascente, Milan (Zaghi 2018)

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Loop layout
Experiential customer journey
Customer can’t just shop specific

products
Not suitable for quick purchases

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Loop
controlled flow
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What do
customers notice
in-store?
Most
1. End of aisle display – 100% attention
2. Free-standing product display – 100%
3. Display bins – 97% Low –margin

& heavy items
4. Shelf ads – 62%
Customers like to scan shelves and shop

horizontally and don’t like to shop vertically!
(Ebster & Garaus 2011)
Video Link
Merchandising display techniques
https://www.youtube.com/watch?v=ghTCtf1yNTk
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In-store design trends

• Open till spaces (reflects transparency)
• Wider aisles and space for safety and comfort of movement
• Light, white, or pastel pale colour schemes (cleanliness / Covid safety)
• Differentiated floor coverings to emphasise different sales areas
• Adaptable lighting
• Information communication through use of images, colours and symbols
• Rest areas, phone recharging, post-Covid customer social areas
• Consistent integration of store brand/ image (internally, externally)
• Multimedia store kiosks for customer assistance
(Zaghi 2018)
TOPICPart32
Store Design
(trends)
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Future store layout?

• The way shoppers have learned
• To shop is not going to change
• BOPIS and delivery is going to
continue
• Shopping needs to bring
experience
Showroom
Coffee bar
Peterson (NRF Converge 2021)
Gaming pod
Relax zone
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Grocery stores . . .?
• Grab and go fresh
Food (conveniently
back to the car
• BOPIS
Grab & Go fresh food

Order and sit in
Easy park Peterson (NRF Converge 2021)
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Higher cost or Speciality purchase. . .?

• Beautifully styled
showroom
• Experiential
atmospherics
• Order instore, home
delivery

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Order online – store pick-up

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Order online – locker system
Urban stores

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Restaurants - Food Service
• Order online
• Pick-up as drive through
• Enjoy in green area
• Dog-friendly restaurant?
• ’Karma Kitchen’ turned
Industrial kitchen spaces
Into 24/7 dark kitchens with
shared cleaning and porter
staff.
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Hybrid mix?
• Order basic shop online
• Pick up instore or delivery
• Browse instore for
impulse/fresh products with
scan & go
• App ordered meals
Or half of the store is devoted
to entertainment/leisure

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Aldi New Corner Store

• Sydney ‘convenience driven
store for the city!
• Fresh produce, ready to go
meals, takeaway coffee,
specialist bakery
• Simple navigation, self-
checkouts, fresh and quality
food, nostalgic feel
Aldi, Sydney. Retail-Week 2021

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TOPICPart33
Atmospherics and
experiential
marketing
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Customers want to relate to the store’s . . .

• Style
• Atmosphere
• How it communicates its values ATMOSPHERICS
(values the customer aspires to)
The store also should aim to spark

emotions of being unique
Chanel store (Retaildesignblog 2020)
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Scent / aroma? Lighting?
Daly’s Supervalu store, Killarney (tripadvisor 2016) Nork Lighting (Retaildesignblog 2017)
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Atmospherics
Agent Provocateur – boudoir style
Agent Provocateur
Flagship at La Rinascente ,
Milan
(Pinterest.ie)
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What is experiential in-store atmospherics?

Engaging your customers in an experience
that promotes your store or brand values.
Why?
• Customers are likely to remain more loyal if they engage
rather than observe.
• Customers connect with brands or stores if they feel

actively involved.
• Can bring your brand to life
• Customers (70%) are more likely to buy a product after

sampling it
• Can work to engage customers with social media In-store promotion (cuttingnews 2018)
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Why are experiential atmospherics important?

• Persuasion to purchase
• Merging experience with brand is key –
retail can integrate with the experience not
just the purchase of the product.
• Gives opportunity for customer feedback
“What was once the marketplace has now evolved into a
zone of experience and lifestyle, and shopping has changed
with it”
(Manuelli 2006)
Apple in-store (Fobes.com 2016)
Apple is the ultimate in lifestyle atmospherics – part of a club
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How? IKEA Dining Club – book a 3-hour slot where customers can learn to cook
• Product sampling Scandinavian-inspired dishes and then host a dinner party for up to 19 guests.
• Pop-up shops
• Entertainment
• Leisure
• Charity event/support
• Community-focused event
• Workshop
• Health awareness event
• Competition event
• Fashion show
• Bloggers event
• Co-branding initiatives
Future of retail – experiential customer-centric
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IKEA opened a new pilot store in Shanghai.

It offers workshops in three hubs within the
store:
Food to champion healthy
Sustainable cooking:
Makers: to promote circularity and help
customers learn how to make, do and mend;
and design to help with home interiors and
decoration.
Book the workshops through the app.
Rather than self-serve at the end of your tour,

you can scan as you shop and it will be there
for you at the till.
IKEA’s new pilot concept in Shanghai (Retail-week.com 2021)

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IKEA opened new London store – promoted

as a place to “meet, share, learn and shop”
Community and experience are emphasised,
a roof pavilion can be used for
community/leisure activities and a greater
focus on sustainability with a ‘take back’
theme (IKEA to introduce buy back scheme
and scan QR codes to learn of a product’s
sustainable credentials)
Learning lab to host workshops on reduce

waste, upcycle and reuse materials.
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“Bring your pre-worn TOAST garments (up

to 5 per visit) into a TOAST shop.
Complete a story label detailing how and
where you wore your garment.
Receive a token in exchange for each of your
garments. The token will reflect the original
value of your TOAST garment, as decided by
the store team. There will be two tiers: either
under £200 or over £200.
Explore the curated rails of pre-worn TOAST
garments and trade your token to find new
garments of the same tier”
(TOAST 2020)
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“Designed to give guests the ultimate immersive brand experience,

Samsung KX is a place where people are invited to discover, interact
with and learn new skills in a dynamic environment through a range of
workshops, events and performances together with local community
partners.”
(Coaldropsyard 2020)
NIKE – community focus
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Regular instore experiences

promoting community
engagement:
Mindfulness sessions
Wellness based workshops
Guided Nike Traning Club
workouts
Partner with local experts to offer
bi-weekly running club
(Nike Store, Kings Road 2021)

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Primark
Art installations by local
artists
Seating and recharging

areas
Cinematic experience –
11 screens for bespoke
digital content
Allows customer to
pause, observe new
perspective on the
brand whilst recharging
their device!
Primark Flagship Store,
Madrid image:
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Flannels
Frasers Group Beauty
Stores
3 Stores with
interactive, digitally
connected and trial-
and-test booths
Tills replaced with iPads
Flannels Flagship Store,

Sheffield (retail-week 2021)
Farmison 53
& CO
Open their first store to
be ‘as much an
experience as a shop’
Jeff Baker – their in-

store chef will give
Instore advice on
preparing meat and
recipes
Farmison & Co North Yorks

Store: (Retail-week 2021)
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Farmison & Co North Yorks

Store: (Retail-week 2021))
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TikTok
Open their first pop-up

shop in Westfield
Shopping Centre,
London
July 22nd - Aug 8th
Westfield wanted ‘to

bring experiences that
the customer couldn’t
experience elsewhere’
TikTok Store: (Retail-week

2021)
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TikTok
In the garden,
learn new
Football tricks or
dance routines
TikTok Store: (Retail-week 2021)

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TikTok
Cooking tutorials take

place in the kitchen
TikTok Store: (Retail-week

2021)
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TikTok
Get advice on beauty

Or fashion in the
‘dressing room’
Get advice on editing in

the living room
TikTok Store: (Retail-week 2021)

TOPICPart34
Shop front &
window display
Issey Miyake Spring Summer 2018 window
installation, Tokyo, Japan
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Window display
“The key to all store window design elements is to convey a theme, a story and offer
an informative connection at a glance. This is the only way to reach customers on an
emotional level, which makes them pay more attention and indeed more willing to
spend money. Ideally, the design and thus the corporate identity are consistently
reflected on all levels of the company. This increases brand recognition and thus
brand loyalty”
(Mörs 2019)
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Purpose of the window display?
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Purpose of the window display
• Well-dressed window can
attract customers into the
store
• Inform the nature of the store
• Reinforces the brand image
• Advertising tool
• POE (point of experience)

emotional connection to the
store
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Display styles
Displays can be:
• Product driven
• Lifestyle
• Theme
• Controversial
Use of decals for text and vinyl for

closed-back window displays
ON window display for Helion CloudTec technology (retaildesignblog 2019)

High end or 64
high street or
convenience?
• High end - less is more!
• High street give overview of key

product ranges and link selling
– more product
Topshop Oxford Street, London (Retaildesignblog 2018)
Through the looking glass (VMSD 2019)

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Factors to
consider for
window display
• What type of window?
• (size, closed or open backed, angled or
corner, arcade or showcase?)
• Theme – tie it in with in-store
• Less is more
• Reference the products
• Strategic lighting (top track spotlights?)
• Contrast height, depth, colour or
texture of display
• Limit colours (3?)
• Larger scale for passing drivers?
• Angle/direction approach of passers
• Backdrops? Props?
• Ensure you have sufficient stock of
displayed items
Selfridges window display for material world campaign (Retaildesignblog 2017)
• Maintenance programme
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What type of
window?
Showcase triptych window
Showcase window
Regular closed window Corner window

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Reference
topical issues
in the locality?
Luluemon, Regent Street,

London
Global run campaign which
coincided with London Marathon
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Follow through window display in-store
Luluemon global run campaign instore and product window (Retaildesignblog 2019)
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Celebrate
50 year of
’Beanz Meanz Heinz’
‘House of Dreams’
Heinz for breakfast!
Selfridges window display (Retaildesignblog 2017)

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Novelty?
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Seasonal
Fun?
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Or just
Seasonal?
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COLOUR
BLOCKING?
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Colour in geometrics?
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Using props? (dzd.co.uk)

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Clear acrylic boxes for display

– what other props?
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How would you improve

your shop front?
Is signage clear?
Is it sending the right
message?
Forever Bound Sign from Voodoo Design (https://voodoodesign.com/products/shop-front-signs 2021)

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How would you improve your shop front?
Would you use decals or vinyl?

Could you use a large digital tablet?
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How would you improve your shop front?
Keep it simple?
Or more complex?
Christmas window at Selfridges, London 2009

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Think about a product or product range you want to sell?

Or a product that has a high margin?
Or a seasonal product? A product that echoes brand values?
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Now think about a (fun?) slogan that

will make your customer consider that
product . . . . .
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Rule of thirds – best composition

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TOPICPart41
Visual
merchandising
techniques
Daylesford flexible magnetic display system
Tips for effective promotional visual 2
merchandising
• Identify a key hot spot (perhaps close to the entrance, at focal point, power wall or beside products for sale)
• Should tie in with your shop window
• Also use till points (impulse buy) or counter tops (link sales)
• Change display every 2-4 weeks (plan out 6-12 month calendar with product/theme?)
• Displays should be themed or products should go well together
• Display products that are new, seasonal, not performing, higher margin or promotional
• Use acrylic blocks or packaging boxes to help get staggered height
• Rotate products at an angle to guide the eye inwards
• Ensure all products are labelled clearly (POS, directional signage and priced individually)
• Don’t use excessive product (can undervalue)
• Promote with social media
VM technique #1 – 3
symmetrical grouping
• Group which has mirror
image or is equal on both
sides.
• Work with eyeline to hit ¾

way up
• Work a pyramid shape
• Balanced grouping is
pleasing for the eye
(Images courtesy of Sarah Manning)

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VM technique #1 – symmetrical grouping

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VM technique #1 – symmetrical grouping

Video One
• Symmetrical display
(AVAILABLE WITHIN THIS MOODLE FOLDER)
VM technique #2 –
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asymmetrical grouping
• Group with height to left or
right of centre and
gradually dips each side
• Works well to show greater

variety of products
• Usually works from left to

right

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VM technique #2 – asymmetrical grouping

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VM technique #2 – asymmetrical grouping

Video Two
• Asymmetrical display
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VM technique #3 –
repetition grouping
• Repeat of the same object or
product
• Usually with odd numbers

(3,5,7 etc)
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VM technique #4 –
alternation grouping
• Alternating two products that
work well together
• If height is added – can work

with pyramid display

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Space lines
Allow space to give distinction to each of your products
Customer can see the product more clearly
Good for cross-merchandising or link selling

Video Three
• Alternation display
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Merchandising shelves
• Allow each range to be distinct from each other
• Make sure the products are brought to the front of
the unit (front facing suggesting the shelves are full)
• Aim to use symmetrical, repetition or alternation
patterns
• Use odd numbers (if possible)
• Highest margin preferably sandwiched by others and
given more height (pyramid)
• Keep stocked so last customer in day has the same
visual as the first customer
Picture Framing technique

Asda updates
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Asda updates
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Asda updates
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Asda updates
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Merchandising wall spaces

• If working with high wall space, use
the top (hard to reach space) for mini
display groups or signage
• Small items - top,

heavier items – bottom
• Allow space around each item for

easy lifting
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Anatomical Fashion Display

A coordinated arrangement
indicating how garments could
be worn and accessorized.
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Checkerboard Fashion Display

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Working with mannequins

Easily broken fibreglass
Code parts for easy assembly

TOPICPart42
Brand
Awareness &
corporate image
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Brand and corporate image

Branding and brand culture is what
links the customer with the
company.
Brand culture = roots/heritage
“Brands are viewed as a

symbolic language allowing
consumers to communicate their
types and values to each other”
(Batat 2019, p156)
LACOSTE –
Lacoste in-store display (Retaildesignblog 2017)
1920’s French aristocracy
Class sport - tennis
Nike brand and corporate image
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NIKE - The anonymous and unlikely

person that manages to succeed
with sheer determination
Identified with the equality struggle

of black Americans
- Became a representation of the
values of American society
Brands can define a moral

standard, cultural practice, activity,
public rules or define goals, desires,
behaviour, thoughts, a philosophy
or a system that links consumer
consumption with happiness and
Nike in-store dislay echos the brand culture and values (Retaildesignblog 2017)
well-being
(Batat 2019)
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Nike’s
first
advert
(Youtube 1991
https://www.youtub
e.com/watch?v=ZjFK
3L4cvQs)
What are your store’s brand values/ culture?
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What is the store’s story? How does it convey a brand

identity?
Aim: Thematically tell the story of the brand- integrate
that story with the in-store space with a view to
immersing the customer in the story.
Customers often don’t go to the store to buy, they want

to study the trends, the possibilities, take part in
something or feel part of something.
Allow customers to become actors in their own scene!!
Most valuable brands (pbconsulting 2019)

What brand values?
• Write a list of what you believe your
store’s brand values are.
Store brand values – list 3 most
relevant in the chat box
Serve the community Serve the community
Value Supporting excellence in health care
Friendly Support local Every little helps make a big difference
Vibrant Innovative Champions for our customers
Integrity Community reach Responsible action
Respect Fresh Trust and respect
Family focused Ethical Help customers enjoy a better life
Healthy living Value for money Convenience
Value Charity Choice
Educational
Community focused Value
Trusted Quality
Sustainability PRIDE (People, results, improvement,
development, entrepreneurship)
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How do we link customer-centric with brand 33
values
Firstly, we need to understand the
following:
• Type of product being bought
• Type of purchase decision
• Motivation for purchase (necessity, fun, social etc)
• What stage of the purchasing decision are they at?
• Profile of the target customer
• What are the customer needs (product/experience)?
Customer purchasing process (Exodus Marketing 2019)
(Fernie et al 2015)
Who is your key customer?
Demographic – age, family focused, single, couple, gender,
Lives close by or travelled to shop
Key hobbies, interests, values?
What is their shopping mission?
What is important to them?
What challenges do they face?
What pushes them to make a purchase?
What stops them from making a purchase?
What 3 words would
sum up their ideal
shopping experience?
How would you plan atmospherics or instore experiential
atmospherics for your customer?
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TOPICPart51
Stock Management
strategies
Planogram graphic image (Quora 2016)

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Merchandiser role
Apart from visual merchandising the merchandiser has responsibility for the
following roles:
Maximum
• Managing the buying budget (allowing for ‘open to buy’, product Cost
price?
opportunities)
Margin
• Shapes the direction of growth in response to demand targets
• Financial performance of the budget, optimising sales to maximise
profitability whilst keeping operational costs as low as possible. Retail price
& volume
• Critical path management (more applicable to head office roles)
• Product and quantity available to satisfy demand, managing risks.
• Merchandise plan
Fernie et al 2015
Merchandiser role – managing stock
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To ensure that the store is stocked effectively, the retailer/merchandiser / product

manager must know the following:
• Data generated from EPOS (or online data tracking)
• Customer needs and wants
• Product preferences
• Changes in buying behaviour (during day/week/season)
Having understood and analysed this data, this will inform the stock purchased and
how it is managed, planned and the systems used. It is vital that the customer is
fully understood as buying decisions are about more than the ‘functional
EPOS system (costasystems 2020)
performance of a product. The customer has to perceive that the purchase will
benefit them emotionally as well as functionally”.
(Fernie et al 2015)
Merchandiser role – managing and displaying stock
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With regards to stock management strategies – other considerations include:
• How much space is devoted to each category

• Space for aisle walkways, pillars, customer flow, windows have to be accounted for
• Space is usually proportionate to sales /profit
• If not all the sizes or range is available, hold off on displaying.
• Product gaps or slow performers following an in-depth range reviews
• Having the right quantity of the right product, at the right time at the right price in store
(Fernie et al 2015)
Merchandiser role – managing and displaying stock
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Once the range of stock is agreed, how best should the products be displayed to encourage maximum short term and
long term return on the cost of the retail space? What techniques should be employed?
• Inspiring display
• Logical placement, convenient arrangement, optimal position and height level
• Adjacencies, cross merchandising?
• Shelf talker and POP
• Promotion
Case study
Imagine Toy Shop
Explain how product management at Imagine reflects
the needs of the customers.
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How do we plan for a purchase?

• Define the store’s target market
• Understand who are our customers, what is their profile?
• Are they interested in a purchase experience?
• Pinpoint what type of atmosphere is required to achieve the emotional
reaction that our customers are looking for?
• Can this store and its atmosphere compete within the market?
Who is your customer? (Arts Business Institute 2016)

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Choice of
Product
variety
Product range must Supplier and

own brand?
satisfy customer Right brands?
needs… Promotion and

mark down?
price
Product
quality?
performance
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Own brand products?

• Can work to offer differentiation and grow customer
loyalty
• Typically are more profitable than manufacturer
branded goods
• Design and distribution control
• Each product needs to consistently address the
values/personality of the brand it belongs to.
Aldi own label alcohol range (thedrinkbusiness 2019)

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Using stock management technology
EPOS systems that are incorporated into fully integrated information
management systems can give report information on:
• Sales performance of products

• Profitability of the product
• Profit in relation to space allocated
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How do you manage stock?

• Do you use a system that is managed using a central warehouse which distributes stock to your store?
• Do you use a handheld device (MDT mobile data terminal)?
• Does the MDT use a built in program called CGOS (computer generated ordering system)?
• Do you manually enter short shelf life product order quantities?
• Does you CGOS work? (does it factor in weather changes?)
• Easyorder system? Livescan?
• Planogrammed with maximum or minimum stock holdings?
• Deliver Planner?
• Different systems for different product categories (ambient, freezer, chilled, bread & fresh produce)
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Stock replenishment systems

The EPOS records sales, when an agreed number is sold a trigger system orders the required replenishment quantity
• ECR (Efficient customer response) in food and fast moving sector (staple demand and high volume)
• QR (quick response) in non food sectors (higher value, lower quantities responding to fashion/season)
• SBO (Sales-Based Ordering) replenishes based on previous sales (good with stable demand) – can be amended also.
• Automatic Replenishment – warehouse replenishes linked to sales sometimes within 24hours
• Supplier Managed Inventory – supplier invoices for replenished stock
• Management methods (Just in time, first in, first out?)

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The Planogram
No longer just visual models, they can help manage display space and product performance Identify and track shelf
profitability (sales, profit margin and rotation rates)
Benefits of planograms:
• Highlight over-or-under allocated space
• How much space per products are available for shelves
• Can new products be accommodated?
• Helps to inform the right spacing
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Allocating space for display considerations:

Minimum number of facings or logistical restrictions
Assign the quality of the display space
What quantity of product – what service level - what product rotation?
Any excess space? New product offering or extra space to current offering
Not enough space? Adjust product offering or reduce number of facings
Track and compare yield on various shelf allocations
Dress shelves, create aesthetic display and promote using POP materials
Multiply facings (when launching new product, offering novelty, seasonality, add-on purchases / adjacencies, impulse
margin sales or fill out display)
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Category management
Mock up of decision making – is your store a destination, routine or convenience?
PRODUCT Destination Routine Convenience
Number of products 20% + from Same as competitor 10% less

competitor
Location of product Main aisle/ entrance Visible from main/ Checkout
end of gondola
Communication Large visual above No additional visual None
shelf/ shelf hanger or product info
Own Brand Block for brand, eye- Placed next to No brand, focus on
level, more space national brand one national brand
Merchandising Create a statement – General Integrated with
specialist materials, merchandising service
colours/shapes counter/checkout
(Berkhout 2019)
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The Assortment Plan
States what products should be on display at any given time period
Product category will be subdivided into variables that are informed by:
• Customer choice
• Price level
• Styling design themes
• Colours
• Flavours
• Pack size
• Fabrication/type
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Stock management
Video link:
https://youtu.be/3qLV6tfLfk0
TOPICPart52
Stock management
technology trends Hero Mirror Virtual mirror – augmented reality photobooth (Pinterest.ie)
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Physical space meets digital space

• The trends are all moving towards stores becoming more like websites and websites becoming more like stores.
• The digital revolution has seen the move from some activities to a digital platform to meet the evolving
customer demands. Now the ‘virtual’ is revealing itself in the ‘real’. Aim to bring more text, chat, video options
to online to bring the human contact to digital (returns decrease when human contact is made)
• Merchandising strategies now need to link digital with physical for a ‘phygital’ space customer experience (Batat
2019)
• Mobile app and payment

• Click and collect or e-booking (incentivise to pick up in-store/ more sustainable/ cheaper for retailer)
• Order extension - order an item that is not stocked instore for delivery
• Shopper- centric – offering the customer useful digital solutions or offers / what’s in-store/ foster relationship
• 80% of consumers are more likely to purchase when brands offer personalised experiences (epsilon.com)
20
The phygital experience

Connected experience
Connecting the customer’s real world with their digital world
through linked technologies. Also linking interactions
between customers with similar values or buying behaviours.
Web experience
Immersive experiences with satisfying sensory experiences
Virtual & aug reality experience
Using Google Glass, digital gloves and connected devices to
give visual, auditory or sensory experiences.
Socio-digital experience
Connecting through Facebook, Snapchat or Instagram etc.
Re-creative digital experience
3D digital printing, Artificial Intelligence and App control
Cyborg experience
Use of humanoid robots
21
Beacon Technology
Insert your content here
22
Web experience
American fashion retailer, Chico’s have localised their website
interaction.
• Online customers are greeted by their local store manager
• The store manager makes recommendations personalised

for the customer
Other growth trends with web experience linked with in-store:
1. Buy online, pick up in-store (BOPISP)
2. Target specific customers with personalised offers (using

technology)
3. Advanced loyalty programmes

23
Web experience
(salesfire.com 2021)
24
Lowe Store introduced LoweBot
American home improvement store Lowe introduced
the LoweBot in 2016 to guide customers to goods
they are searching for and look up products and
related information.
Target stores also introduced ‘Tally’ to monitor stock

management and pricing
Amazon
Information gathered helps to inform buying

patterns and store improvement
25
What are the benefits?

1. Proximity is less of an issue
2. Information can be archived for quicker repeat interactions.
3. Virtual objects can be made in reality
4. Interactive consumers can inform future experiences
26
5 technologies that will change retail

5 technologies that will change the way you shop – 2017 (video)
27
Augmented Reality
Timberland augmented reality https://www.youtube.com/watch?v=5TZmQPdhpak

28
Amazon Go
– no tills!
Swipe your QR code to enter
Pressure sensor technology
on the shelves
Artificial technology
Hundreds of cameras
Youtube clip:
https://www.youtube.com/watch?v=NrmMk1Myrxc&list=RDCMUCkLXELm63_
pH7L-r-548kig&start_radio=1&rv=NrmMk1Myrxc&t=1
29
Decathlon
App –
scanning
technology
Rent is too high to stock all
SKU’s and product ranges.
Use app to get product info

and order size/ colourway
30% increase on in-App

purchases
20% increase on basket size
(Robin Barrett Wilson – NRF Conference 2021)
30
Other technologies . .
1. Smart Shelves (Track stock on shelves, trace how stock is
selling, schedule replenishment and provide customer
insights)
2. Electronic self labels (SEL/ESL) and digital signage
3. RFID – Radio Frequency Identification – provides key product
information, supplier delivery information which can be
forwarded to customers regarding product availability etc.
4. Fully automated e-commerce warehousing using robots
5. Neuromarketing – facial coding, galvanic skin response,
biometrics providing insight into consumer behaviour and
preferences
2
3
4
5
6
7
8
9
10
11
12
TOPICPart22
How to compete
for the
customer’s
attention
14
How do we compete for the customer’s

attention?
The store can and must stand out.
1. An engaging environment that sparks interest
2. Highlights product functionality as a priority value
3. Whether they purchase or not, becomes secondary
4. The store must allow the customer to live the brand/ store identity
15
How does a store stand out?

Missguided Store, Bluewater (3rd June, 2017)
Designed from the ‘On-Air’ theme
House of mirrors prompting Instagram

opportunities and digital entertainment.
High energy – high fashion

Creative – fun
Customer created content and campaigns
Mirrored columns, sparkly flooring, neon

signage
Missguided store entrance, Bluewater, Kent. (Retaildesignblog 2017)

How to compete for the customer’s attention? 16
• Cross merchandising
• Optimal shelf location
• Eye-catching displays
• Signage
• Pricing & promotion
Missguided in-store display, Bluewater, Kent. (Retaildesignblog 2017)

17
Missguided in-store display, Bluewater, Kent. (Retaildesignblog 2017)
The energy charged ‘On-Air’ theme is carried throughout the store. Playful use of colour,
light, textures, theatrical lifestyle references and photo opportunities
18
Purchasing decisions . . .
2/3 of customer’s purchase decisions are made within the store
4 categories of decisions. The customer . . .
1. knows the specific product and brand they want before entering
the store and does not change
2. know the type of product they think they want but not the
specific type or brand
3. buys a different product from what they had intended
4. buys a product without planning to
(Fernie et al 2015) (Image: Manta 2018)

TOPIC 7
Collaborating
with internal
and external
stakeholders
What constraints/freedom are imposed by 2
internal stakeholders?
• Window displays are pre-assigned?
• Stock is received from warehouse and configured to your store
selection but not necessarily your location?
• Can you engage with local suppliers?
• Are you consulted on store changes?
• Do you have an opportunity to consult on stock allocation?
• Can you initiate promotions or events?
3
Retail contexts relevant to retail merchandisers,
visual merchandisers and store design experts
Different retailers have various agreements with manufacturers, suppliers,
warehousing, reps, wholesalers, agents or distributors that impact on how stock
is merchandised.
Suppliers (either of branded goods or those that manufacture or source a

retailer’s own-branded goods) provide an important source of competitive
advantage for retailers
All retail space is a cost - all space must be effectively and efficiently used. Some
retailers use a Gross Margin Return on Investment and Space (G.M.R.O.I.S.)
Different aisles, shelf levels, position on the shelves and within the floor plan
will give a greater return. Consequently suppliers (particularly in food retail)
negotiate with the store, how much space, what location and shelf level their
products will be displayed
4
Concession Store
• Business within a business / shop within a shop
• Often works in a sale or return basis
• An agreed devotes space is allocated
• Specific products (usually agreed by the entity not the
retailer) are stocked
• Can help boost the retailer’s appeal
• It can act as a new channel to attract additional new
customers
• Host retailer is paid a nominal fee or percentage of sales
profit
• Sometimes provide their own staff
(Fernie et al 2015)
Tommy Hilfiger concession store in House of Fraser, Metrocentre
(Fashion North 2018)
5
Agent versus wholesaler/distributer

The pros and cons of
Agent Wholesaler/distributor
being supplied by an
agent or a • Intermediary between • Ownership of merchandise
wholesaler/distributor manufacturer and retailer • They add their profit margin
• Supply direct from • Good for small orders
manufacturer stock (reducing financial investment)
• Less space for storage -more
space for selling
• Access to leading brands
• Increased selection of
suppliers
• No exclusivity (unless
geographical)
6
How do you find the right supplier?
• What portfolio of goods do they stock? Innovative stock range? Greater quantities/stock purchases = greater
margin.
• Terms of trade? Promotions, marketing, mark-downs provision, sales target incentives?
• Efficient and effective stock management, stock quality and delivery? Supplier performance evaluation?
• Minimum order quantities and lead times?
• Could the competition be advantaged by stocking products from the supplier?
• What reputation does the management and staff of the new supplier hold?
• What safety and ethical standards?
• What other customers do they supply?
If it’s ‘open to buy’? (input margin may be lower, sell through higher therefore mark down is less and final profit
higher?) (Varley 2014; Fernie et al 2015)
Improving internal/external stakeholder 7
relationships (or supplier/retailer)

• Give feedback on sales and customer response
• Establish a clear understanding of each others business aims, target customer and brand values.
• Co-ordination in promotional events. POP signage, display and graphics
• Establish incentive sales targets and rewards
• System integration to improve delivery response
• Collaborative sustainability initiatives
(Varley 2014)
AIS - Case study
Discuss the benefits that
membership of a buying group can
bring to small retail businesses.
9
Local sourcing of products
Advantages:
• Local interest in product
• Provides point of difference for the store
• Niche product?
• Fresher food?
• Supporting local economy
• Environmentally ethical
Disadvantages:
• Quality control may be more difficult
• Consistency may be issue
• Not able to comply with the requirement/set-up you have with other
larger suppliers
Valerie Taylor, Libby bag designed and produced in

Donegal (Valerietaylorhandwoveninireland 2019)
TOPICPart61
Legislation & Ethics
2
Legislation for merchandising and display of
alcohol (Public Health (alcohol) Act 2018)
The Act proposes to achieve its objectives through the introduction of:
• Minimum pricing of alcohol products – (10c per gram of alcohol in the product)
• Labelling of alcohol products and notices in licensed premises (warning labels regarding dangers, Kcals and grams of alcohol)
• Prohibitions and restrictions on advertising and sponsorship (less relevant to retail)
• Separation and visibility of alcohol products and advertisements for alcohol products in specified licensed premises
- Came into effect last year - 12th November 2020
- Store in a separate area of the shop separated by a physical barrier (min height 1.2m) where alcohol and alcohol adverts are not
visible OR enclosed adjacent storage units on the shop floor in which products are not visible up to a minimum height of 1.5
metres OR a maximum of three adjacent units, each of 1m width and 2.2m high
• Regulation of the sale and supply of alcohol products in certain circumstances - (restrictions on buy one get one free or
student night promotions)
3
Alcohol stored in a separate area of the shop

• Separated by a physical
barrier (s) (min height
1.2m) for entry and exit –
no advert for alcohol on
the barrier
• Alcohol only and alcohol

adverts are not visible
from outside the area and
alcohol adverts can be
within this area
4
Enclosed adjacent storage units - shop floor

• Enclosed storage units containing
only alcohol products which are
not visible up to a minimum
height of 1.5 metres.
• Unit can state that it contains

alcohol products and must remain
closed when not in use.
5
Maximum of three adjacent units
• Each unit of 1m width and 2.2m high

• Adverts for and alcohol products only in a
maximum of 3 units
6
Provisions of the Public Health (Tobacco) Acts
• No advertising or display of tobacco products permitted
• Tobacco products are stored out of view within a closed container or dispenser
only accessible by the retail staff
• May use a pictorial list (in accordance with regulations) to inform a member of
the public aged 18 and over who intends to purchase a tobacco product as to the
products available
•
Retailers must display a sign at their premises informing the public that tobacco
products may be sold to 18+
• No self-service vending machines are allowed
• Retailers of tobacco products must be registered with Office of Tobacco Control

(OTC)
Unfair Trading Practices (UTP) in the Agricultural 7
and Food Supply Chain Regulations 2021 (1 July 21)

• Aims to ensure ‘fair dealing’ with food suppliers:
• It covers a range of areas (some of which are below) but none
that impact directly on retail merchandising.
• Fair time to cancel perishable orders

• Supplier may not be charged for the deterioration or loss of
products which is not the supplier’s fault
• Buyers must not return unsold products to the supplier
without paying for the products or for their disposal (unless
otherwise agreed)
• Buyers can’t claim compensation for the cost of examining
customer complaints in connection with the sale of the
supplier’s products (unless supplier negligence)
• Payment from the supplier for stocking, display, listing,
promotion, marketing, advertising, staffing or premises re-fits
(unless agreed)
8
Advertising of High Fat, Salt & Sugar (1 Dec 2021)

• “Marketing communication for HFSS food should not be directed or
targeted at children under 15 through the selection of media or the
context in which they appear”
• No medium should be used if more than 50% of its audience is under

15.
• Point of sale displays, menus etc can use promotional offers or a

competition for HFSS foods
9
Other legislation . . .
• The Pharmacy Act 2007 – Superintendent role for pharmacists
• The National Lottery Act 2013 prohibits the sale of products to anyone
under 18 years of age. Scratch cards were illegally sold to minors
(mystery shoppers) in almost four out of 10 Irish retail outlets (Irish
times.com 2019)
• Maximum of 10 scratch cards
• Retailing pesticides - Pesticides that are classified as being toxic (T) or

very toxic (T+) in accordance with the provisions of Regulation (EC) No
1272 of 2008 6 or that in accordance with relevant national legislation
are deemed to be poisons 7 must be secure from the public at all
times. (Storage, labelling, records and whom may be sold need to be
maintained)
10
Implications for
merchandising?
TOPICPart62
Consumer Protection
12
Consumer protection
• Goods must be of ‘merchantable quality and fit for intended purpose’ and as described
“it must match the description given verbally or in an advertisement. False or exaggerated claims should not be
made by the business”
• If a consumer buys a product in-store, and change their mind afterwards or has an unwanted gift there is no
legal obligation to exchange, refund or offer a credit note (unless it is faulty or bought online)
• Display the euro price of the products they sell and include VAT (full price or per kg, litre or metre)
• The price displayed must be the price charged at the till.
• Clear and accurate information on the price of the goods must be displayed to inform comparison choices.
(Sale of Goods and Supply of Services Act 1893; Consumer Protection Act 2007; CCPC 2020)
13
Shelf display
1. Ensure that food items are displayed in the appropriate section (chilled areas | raw
food section | cooked food)
2. Food should not be displayed if it has exceeded its use by date.
3. Packaging should be intact (preferably not damaged)
4. Products in main display should not be damaged or impaired in any way.
5. Product information is clear, accurate and not misleading
Related article
(Irish Times, 2017)
TOPICPart63
Public Liability &
Health & Safety
16
Public Liability
• If you run a business you face the potential of the public suing you for injury or damage caused to them as a
result of you carrying out your business. If they sue you for injury or damage, or even allege that you caused
them injury or damage that can be very costly.
• Cover is required in the event that the retail owner is found responsible or the injuries/loss sustained by a
Customer / Employee on the business premises.
(Example: A member of public slips on a floor and injures themselves due to the wet floor but there was no sign
to alert them)
Health & Safety – manual handling
17
• Avoid handling loads – break up a large load & get help with heavy,
sharp or awkward loads.
• Bend your knees
• Keep walkways clear
• Use the mechanical aids provided (trolley or pallet truck)
• Report any manual handling concerns
(HSA 2020)
Merchandising Health & Safety – Risk 18
assessment
When setting up a visual merchandising display or arranging a new fixture
or fitting - complete a risk assessment.
• Outline potential hazards, risks and level of risk
• Detail with control measures can be put in place
• Delegate responsibility for agreed actions
Have employees sign and date the HSA Retail Simple Safety Data sheets –
the manager must ensure that employees are safety aware!
(HSA 2020)
Health & Safety – Slips, trips and falls
19
• Keep floors and access routes clear

• Do not create any slip or trip dangers
• Do not let waste build up.
• Mark spills and wet areas immediately
• Report trailing cables, uneven walkways and poor
lighting
• Report or remove loose objects on walkways
• Don’t run – pay attention to where you are going.
(HSA 2020)
Health & Safety – Cuts and burns
20
• Don’t use a knife unless you have to.

• Always cut away from you
• Use the right cutting knife for the job
• Store knives in a safe area
• Don’t leave knives in public areas
• Inspect the knife or cutting tool for damage before you
use it.
• Don’t use blunt blades
• When adjusting display lighting, wear protective gloves
or use adequate fabric protection.
(HSA 2020)
Health & Safety – Falling Object
21
• Avoid storing heavy items above shoulder level

• Store heavy and unstable items close to the ground
• Don’t overload shelving
• Place stock far back into the storage units.
• Inspect the storage area regularly and report any damage
• Use platform steps to get stock
• Wear the correct footwear
(HSA 2020)
Health & Safety – Fall from a height
22
• Do not work at height where possible

• Do not climb racking or shelves
• Never stand on the forks of a forklift truck
• Use proper access equipment (platform steps)
• Be careful doing maintenance
• Ladders are only for temporary access – inspect them for
damage regularly.
• If you are not sure, ask your supervisor
(HSA 2020)
TOPICPart64
Security
24
Security
For a crime to occur, the three following components need to be in place:
• A suitable target (product that is concealable, removable, available, valuable, enjoyable
and disposable)
• Motivated offender (will I succeed? will I get caught?)
• Absence of capable guardians (crime reduction measures are proportionate to the retail
er and risk)
(HSA 2020)
25
Prevention through design
Increase visibility by:

• creating clear sightlines
• reducing height of displays
• lowering shelf heights
• reducing the number of blind spots
• avoid poorly lit corners
• regular presence of retail staff
Ceccanto, V. (2018, p. 126)

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TOPICPart31

Retail merchandising environment?

Body Shop store exterior and interior (Retaildesignblog 2017)

Store design - layout

• which retail sector? (convenience

• the architecture of the store

• the marketing position (discount

Image: UNIQLO, Tokyo.

Shop front – how do

Guide through store

Passageway from outside to

Should reassure that they have

Defines the store atmosphere

Start of the customer path

Encourage browsing instead of

Normally most profitable area

Landing / decompression zone

Works like a central stage and draws you

Strong visual impact

No barriers to entry, sightlines and focal

Showcases the styling, product range

Create drama and energy

Lighting presents focal points and leads

Missguided store landing zone, Bluewater. (Retaildesignblog 2017)

Shelf-talkers & instore promotional graphics

The power wall should

Customer flow (shopify.com)

It maximises product exposure and sets up a

End section = hot spot areas

Can limit visibility so theft may become

Can work with a strategically placed chair

La Rinascente in Milan (Zaghi 2018)

Floor space is divided into

Ground floor, boutique layout in La Rinascente, Milan (Zaghi 2018)

Customer can’t just shop specific

Not suitable for quick purchases

3. Display bins – 97% Low –margin

Customers like to scan shelves and shop

In-store design trends

Future store layout?

Grab & Go fresh food

Higher cost or Speciality purchase. . .?

Peterson (NRF Converge 2021)

Order online – store pick-up

Peterson (NRF Converge 2021)

Order online – locker system

Peterson (NRF Converge 2021)

Restaurants - Food Service

Peterson (NRF Converge 2021)

Aldi New Corner Store

Aldi, Sydney. Retail-Week 2021

Aldi, Sydney. Retail-Week 2021

Aldi New Corner Store

Aldi, Sydney. Retail-Week 2021

Aldi New Corner Store

Aldi, Sydney. Retail-Week 2021

Aldi New Corner Store

Customers want to relate to the store’s . . .

The store also should aim to spark

Scent / aroma? Lighting?

What is experiential in-store atmospherics?

• Customers connect with brands or stores if they feel

• Can bring your brand to life

• Customers (70%) are more likely to buy a product after