Page 61 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes Competitive threats from home shopping means that the store environment has to have
something special to offer, and international competition can also force retailers to pay more
attention to their selling environments. Spanish fashion retailers Mango and Zara, who use
clean-cut and modern store interiors, have been able to threaten domestic retailers in the middle-
market women’s clothing sector.
Store design has always been used to reinforce other elements of a retail strategy.

Example: Plush carpeting and marble used in a store denotes high-quality merchandise
and may suggest a high-price positioning. Strip lighting and dump bins for merchandise brings
the word ‘bargains’ to mind. However, as retail markets mature, the design of retail space is
increasingly being used as a means by which strategic aims are reached.

Example: In 2001, Safeway introduced a new store design to reinforce their position as a
good-value fresh and quality grocery retailer. Wood panelling, slate tiling and pendent lighting
were used in the wines and beers section to create the impression of an upmarket wine cellar;
baskets and barrels were used in the fruit and – vegetable section to give the impression of
‘market freshness’ and chalkboard signage to foster the impression of good prices.
It is these small details that help to refocus the attention of the shopper onto revised core values,
providing a struggling grocery chain with a new lease of life to compete against other forceful
players in the market (Atkinson, 2001).

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Caselet Retail Buzz in South

hennai and Bangalore have witnessed the highest high-street rental growth across
India, according to a retail survey by real-estate services firm, Cushman &
CWakefield. Banjara Hills in Hyderabad has seen the highest increase in annual
rental growth at 114 per cent over last year, while Nugambakkam/Khader Nawas Khan
Road in Chennai witnessed rental growth of 106 per cent. SP Road/Begumpet in Hyderabad
and Koramangala 80 Feet Road in Bangalore has seen 100 per cent and 92 per cent growth
respectively.
Mr Rajneesh Mahajan, National Head, Retail, Cushman & Wakefield India, says, “The
economic growth in southern India has provided a large consumer base with increased
spending power. The retailers are enjoying better revenues in these markets not only
from the existing retail destinations but also in the suburban locations. As the store revenues
become comparable to Delhi and Mumbai, the demand for retail real estate would push
the prices closer to these two markets.”
Banjara Hills and Jubilee Hills, though traditional markets, are preferred by new-age
retailers; demand for space here far supersedes the supply. Begumpet witnessed cent
percent increase in rentals over the last year, indicating strong demand dynamics.

Source: thehindubusinessline.com

Self Assessment

State whether the following statements are true or false:
7. Good store design never creates the vital difference in today’s competitive marketplace.

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