Page 240 - DMGT550_RETAIL_MANAGEMENT

Unit 13: Store Design and Visual Merchandising

grades. However, grading by size is a very crude method of assessing different stores. Recent Notes
advances in micro-marketing have shown that the profile of a store’s catchment area gives a
better indication of the type and amount of merchandise required than the size of the outlet
(Ziliani, 2000). As retail management-information systems become increasingly sophisticated,
this type of store performance analysis and customer-profile customization will become more
widespread. Space allocation systems are expensive, and may be beyond the means of the
smaller retail organization.

Self Assessment

Fill in the blanks:
6. Gondola, shelving, bins and basket are common types of ........................ found in retail
stores.

7. ........................ shows exactly how the products should be displayed on the shelves.
8. Although ........................ systems have resulted in retailers using space in a much more
productive way, they do have limitations.

9. The ........................ of space-allocation decisions has encouraged the use of computer-based
systems as a retail management aid.
10. Long-term ........................ is dependent on customer satisfaction and loyalty, and so space
planning must incorporate factors other than individual product sales and profitability.

13.3 Visual Merchandising

Following section discusses aspects visual merchandising:

13.3.1 Visual Merchandising and Displays

Visual merchandising is concerned with presenting products to customers within the retail
space. It is a term sometimes used as an alternative to merchandise display, but these days is
generally understood to have a wider definition encompassing all activities concerned with the
presentation of the product within the retail outlet, including the choice of store layout, the
method of product presentation, the choice of fixture and fittings, the construction of displays,
and the use of point-of-sale material. It also has a very close connection with the allocation of
space within the outlet. Visual merchandising is more important in some retail sectors than
others.

Example: Fashion and home furnishing retailers have always devoted considerable
resources to displaying products in a visually appealing way, whilst discount grocery retailers
are much more concerned with space efficiency. However, the need to adapt to style-conscious
twenty-first-century customers is as relevant to the way products are presented as the way a
store environment is designed.
The implementation of a visual merchandising strategy within a retail business is not
standardized across the industry. Lea-Greenwood (1998) found that visual merchandising could
be the responsibility of directors of corporate communications, promotion or marketing, whilst
some retailers gave the function the status of a specific directorship. Often a multiple retailer
will employ a team of regional visual merchandisers who rotate through a number of stores in
a given area. The creative aspect of the visual merchandiser’s role attracts people with a design
training or background, although specific training for visual merchandising is becoming more
common. One of the advantages of using a centralized team is that the retail brand identity can

LOVELY PROFESSIONAL UNIVERSITY 235