Assoc. Prof. Dr.

Rosidah Musa Retail Merchandising (Ret 545)

Jamaliah Mohd. Yusof

CHAPTER 7
VISUAL MERCHANDISING
The planning concept of retail organization cannot omit the aspect of visual
merchandising. design serves not only as functional purpose, but
The store
it also relates to the symbolic needs of the customer. The symbolic aspects
of the store are anything that contributes to the overall store image. When
customers enter a store, they want the displays and the environments to
tell them what the store is all about. This chapter will cover the concept ot
store image and visual merchandising specifically. It also includes topics
like display and lifestyle merchandising. After reading this chapter, the
students should be able to:

Understand the concept of store image and why it is important to the

retailers

Explain the determinants of store image

Understand the concept of visual merchandising and its elements

Describe the importance of display in retailing

Explain the different types of display

Describe the advantages of good display and its limitation

Comprehend the aspect of lifestyle merchandising

GREAT MINDS DISCUSS IDEAS; AVERAGE MINDS DISCUSs EVENTS; SMALL MINpS
ELEANOR ROOSEVELT
DISCUSS PEOPLE."

7.1 STORE IMAGE_

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa Retail Merchandising (Ret 545)
Jamaliah Mohd. Yusof

An image is the mental conception of something held in common by the generally

most people. A retail image is the mental picture ofa retail organization as viewed
by customers and the general public. Retail image includes both the functional or
physical properties of the store as well as its psychological attributes such as sense of
belonging or a feeling of friendliness. Store image simply refers to as the way
consumers feel about a store.

7.2 Why Retailer Should Be Concerned About Store Image?

Apparently, the flow of customer traffic depends on it. The layout of the space
within the building must reinforce the store image. Retail manager needs to
understand how the images of a store is determines through the layout, design and its
various dimension to evoke certain responses in shoppers.

7.3. DETERMINANTS OF STORE IMAGE

All these factors help to create the store atmosphere, which in turn determines the
custom perception and the image the store projects. Figure 7.1 depicts the factors that
contribute to a store image.

a) Employee type and Density

Type is the general character (e neat, well dresses, old and young). Employee
should be consistent with atmosphere and image the retailer try to project. Density
refers to how many store as per 1,000 sq. meter of selling space.

Figure 7.1: Image Star

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Faculty of Business Management January 20011
Assoc. Prof. Dr. Rosidah Musa Retail
Jamaliah Mohd. Yusof
Merchandising (Ret 545)

Employee Type &

Density

Visual Factors
Merchandise
Shopper's Sensory Type & Density

STORE
IMAGE
Perceptions
Odor Type Fixture Type
&Density & Density

Sound Type &

Density

b) Merchandise type and Density

High quality merchandise reflect high status image. Density refers to merchandise
displayed/ shelved per 1,000 sq. meter

c) Fixture type and Density

Type refers to physical makeup of the fixture. Continuity is very important so that I
is consistent with the overall theme. Density refers to the number of fixture per 1,000
sq. meter of selling space.

d) Sound type and Density

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa Retail
Jamaliah Mohd. Yusof Merchandising (Ret 545)

Sound could be of the pleasant and

strength and loudness of the sound.
unpleasant type. Whereas, density refers to
Interestingly, research has shown that lower
tempo background music is better for store sales than a fast
music increase pace of in store tempo. Fast tempo -

crowed.
traffic, which is appropriate when the store is

) Odor type and Density

Right type and odor makes customer anxious to purchase the
stimulate pleasant mood. Example aroma that exudes product. Odor could
from the bakery section.
Density refers to the strength of the odor.

Visual Factors

Encompasses the overall appearance as seen through the eyes of the customers.
These will include the color scheme of the
store, fixtures and furnitures, flooring,
signage and displays. Simply put, it is the combined effect of the above factors.

7.4 VISUAL MERCHANDISING (VM)

Formally known as 'display', which describes of the way retailers presented their
products in the store as well as at the window. Today 'visual merchandising' is more
accurate description of how retail marketers
visually present their product, services,
and the business itself to potential customers.

Visual merchandising involves visual presentations that will create a

atmosphere that invites the purchase of goods and services and VM is indeed
general
designed to trigger buying decisions while the customer is on sales floor.

VM is art expressed with color, lighting, signage, mannequins, flooring/ wall

material and fixtures
VM is orderly, systematic, logical and intelligent way of putting stock out on the
selling floor.

According to Martin M. Pegler (guru in store design and visual merchandising):

VM as the 'art of selling' of making the store stands head and shoulders above the
others.

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa Retail Merchandising (Ret 545)
Jamaliah Mohd. Yusof

Good Mexptains, it tets sizes, itgives prices, ittake thestressuut uf mak+ng

decision. If well done it can lead to multiple sales.

VM in America is moving into a new era of Visual Marketing'. It is an important

part of the promotional mix in the retail business. It is art, communication, selling
and a bit of theater combined to present a business to its customers.

Visual Merchandising has grown in importance due to increasing sameness of

merchandising and services offered by competing retailers. Competition becomes
razor sharp in retailing business. In shopping mall/complexes many competitors
clustered together. It has become even more difficult for stores to create competitive
advantage. Visual merchandising offers an avenue for a store to create distinctive
and significant image and attract customers. In order for visual merchandising to be
effective and successful, it requires careful coordination with advertising, displays,
special events and merchandising.

7.4.1 Exterior Visual

7.4.1.1 Visibility
Location
Store front / façade/ margee
Store building architecture
Landscape

7.4.1.2 Maintenance
Cleanliness communicates caring to potential customers
Front window/ door / entrance/ sidewalks
Keep sign clean and straight
Well lit and replace burned out bulb

7.4.1.3 Business Signs

Tell people what you're selling through visual communication.
Good business signs can compensate poor location. Visible 24
hours.

7.4.1.4 Window, entrance, store front (façade) and marqee

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa Retail
Jamaliah Mohd. Yusof Merchandising (Ret 545)
T5BISPLA¥ AHDSTO SELtNG-
In terms of contribution to the overall sales
on the cake". Extra volume
turnover, displays play the role of "icing
generated by displays can guarantee success to
retailer
Displays must attract the patronages' attention. An attractive display of merchandise
gets the customer's attention and prompts customer to buy. Today retailers belief and
realize that customers are likely to buy merchandise seethey on display.
The relatively low cost of display permits many small retailers to
larger retailers. Small store operates on limited budgets that eliminate compete with
expenditures for printed media as well as electronic media. By using large
and well- executed windows and in store well-planned
displays, they promote the sale of their
merchandise and achieve a profit. Displays also
the increasing cost of advertising and helps larger retail stores to cope with
time is more effective and less
rising costs of business
operation. Display at
expensive than other forms of
promotion.
can be easily and
quickly changed to meet a competitor's lower and attractiveDisplays
offer.

7.5.1 Types of Displays:

Displays are classified into two types: Window displays and interior (in-store)
displays.
7.5.1.1 Window Displays
Is considered an important
part of a retailer's promotion. Very often it is the
primary reason why the customer decides to enter the store. Window display
help to established the tone of the store and also reflect the
policy of the store. It sets the stage by creating the image ofmerchandising
the store that
attracts customers and makes them want to
go in and buy. Effective window
displays attract the eyes and turn store traffic into stoppers.

Faculty of Business Management 111

January 2011
Assoe. Prof. Dr. Rosidnh Musu Retall
Jamaliah Mohd. Yusof
Merchandising (Ret 545)
12Imterlor tlu=storr Disphry
Displays located on the sales floor in retail stores for a specific period ofT
time. With the rapid growth of self-service
retailing, there has been a
dramatic increuse in the use of interior (in-store display) as a major mcans of
sclling merchandisc. 1o be successful, in-store display should contain some
of the merchandise customers have seen in the store windows.

K
Senihaai

7.5.2 What Do Effective Window Displays Achieve?

Window Displays do more than simply increase the sales within your store. There are
many' benefits to the retailer of effective window displays. These include
i. Reinforce or create the image of your store to the customer.

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa Retail Merchandising (Ret S45)
Jamaliah Mohd. Yusof

it Stressthe-benefitschcreatethe desire torbuy thedisptayectmerchrandise

ii. Increase consumer trial of new products or lines.

i. Increase 'add-on or impulse' sales within the store.

ii. Draw the consumer's attention to your store.

iv. Draw the consumer into the store for further information.

7.5.3 Types of Interior Displays

i. Open displays
Merchandise is arrange so that customers can touch and smell

ii. Closed Displays

Closed on all sides (purpose only for observation). Fixtures used
showcases and museum cases.

ili. Ledge Display

Merchandise displayed on ledges, store walls and partitions.

Figure 7.1 LedgeDisplay

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa Retail Merchandising (Ret 545)
Jamaliah Mohd. Yusof
Buit-bp Disptay (ffommage
Used props, platforms and other devices to make the merchandise
attractive. Placed at traffic points (ends of aisles) and open display.

V. Shadow Boxes Displays

Small display area resembles a shadow box in the front. Similar to
shadow box design used in exterior windows and behind counter.

vi. Flying Displays

Suspending merchandise from ceiling. Quite frequently used by small
fashion boutiques.

Trade Talk

Ensemble-display related items (apparel) and accessories together.

Gondola - movable shelving units; use singhy to create an island.
Endcaps (gondola ends) - display units at the end of aisles.

7.5.4 Why Is In-store Display Is Important to Retailers?

Research Findings:

Surveys have found that over 80% of consumers can recall a specific display
after shopping in a particular store .... So they do notice.

Almost 509% of consumer's state that they used displays as a guide to their
purchasing decisions. Most importantly, displays can affect buying behavior in
regard to "brand switching".

Once inside the store displays can persuade up to 40% of consumer to switch to
another brand . ... Displays are certainBy worth the effort.

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa Retail Merchandising (Ret 545)
Jamaliah Mohd. Yusof
55Wtrattu-storeDisptay ¬rboh
We all know that in-store displays are a vital component of any store's
Marketing Mix'. Displays can do much for a store, but there are also
limitations to what displays can do. Displays should be regarded as 'silent
salespeople'.
Used intelligently, displays can .

i. Help shape, or promote, a store's image

We know that the style or displays technique employed communicates
specific message to the consumer.

i. Help launch new products, or promote existing products

Customers take note of what is being displayed and often use displays
to guide their buying decisions.

ii. Help increase store traffic flow

Displays can assist to make your store more 'interesting and visually
appealing' which in turn will draw more customers both in and
through, your store.

iv. Help a product's stock turn and therefore its profitability

We know that effectively displayed products will sell faster than those
hidden on the shelf. A faster stock turn will help profitability and
reduce your 'dead stock".

Help to promote impulse/ unplanned purchases

Help an average of 70% of purchases in retail being made on impulse
it is important to use in-store displays to trigger the unplanned
purchase.

VI. Help generate confidence in a particular product/brand

Because customers believe that you, the retailer, are the expert they
look to you for advice. Whatever product/brand, you have chosen to
display immediately gains credibility and gives the customer added
confidence to purchase in their minds if you display it, is must be
good!!

vii. Help mould the customer's perception and influence buying behavior
As state customers look to display a guide to their purchasing
decisions. Displays can therefore influence how customers feel about
a particular product/brand.

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa Retail Merchandising (Ret S45)
Jamaliah Mohd. Yusof
56. Limitatiomsof I-store Disptays
There are limitations to what in-store displays can achieve. Regardless of
how effective your display building skills are, in-store displays cannot:

i Improve the quality for a particular product

Do not
Remember, 'you cannot fool all of the people, all of the time'.
with
try to exaggerate claims, or enhance a product's quality
displays... It doesn't work!

Sell on a continuous basis

from store,
Displays have a certain 'selling lifespan'. This will vary revisit
customer
but is usually between 2 to 6 weeks, depending upon
them going
frequency. Displays should therefore be rotated to avoid
stale.

il1. Sell well from a poor location

If a display is constructed in a 'dead zone' it will not generate the
same sale volume as if it were positioned in a "hot spot, in a main
traffic area.

iv. Sell well when badly constructed or maintained

An
A display must aesthetically pleasing to generate maximum sales.
in-store display which is clutter and uninspiring or falling down, will
not grab as much attention as an effectively build display.

7.5.7. Constructing In-store Dispays

When constructing in-store displays remember:

i. Bigger are bolder

Small displays sell small amount; large volume displays sell large
volume of stock. Large indicates confidence in the product or

discount pricing.

ii. Accessible to the customer

Should be easily removed without destroying the rest of the display.

ii. Silent sales people sell stock ... use them!

Price ticket / showcards / packaging

iv. Impact and high visibility

Use different/ big/ unique displays

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Faculty of Business Management January 2011
Assoc. Prof. Dr. Rosidah Musa
Retail Merchandising (Ret 545)
Jamaliah Mohd. Yusof
Eompticatect disptays vorfuse
vi. Keep it simple and unclutered

7.6 LIFESTYLE MERCHANDISING

Retailer develops a product mix that suited to a particular mode or way of living (e.g.
Country and Western). It involves knowing targeted consumers' activities, interests,
and opinions.

A - How people spend their time

I -What most important/ interesting to them
0- Views about themselves and world about them

Selection of merchandise lines must consistent with both consumer's lifestyle and
the retailer's image.

Notes/Discussion

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