Page 45 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes 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. For 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.

Did u know? 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 be controlled across all outlets, and visual merchandising can
tie in with other corporate communication themes and messages.

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Caution There is, however, a danger that the centralized approach may prevent the retailer
from adapting to local themes, preferences and competition in the visual merchandising
activity.

3.2.1 Merchandise Management

The primary function of retailing is to sell merchandise. One of the most strategic aspects of the
retail business is to decide the merchandise mix and quantity to be purchased. Merchandise
management is the process by which a retailer attempts to offer the right quantity of the right
product at the right place and time while meeting the retails firm’s financial goals.
Retailers need to decide on the merchandise to offer by engaging in the sorting process of
assembling a range of goods and services from a variety of suppliers. The depth and width of
this range will depend on the specific strategy of each retailer, who decides how different
products will fit into the overall range of product they offer to market place, retailers also decide
whether to include various brands in range and whether the offer of traditional or new products
should be included. The width and depth decisions over the range of considerations of consumer
target group.

Merchandise management focuses on planning and controlling of the retailer’s inventories.
It involves planning and implementation of the acquisition, handling and monitoring of
merchandise categories for an identified retail organization.
The definition stresses a number of key points. As merchandise has to be acquired for future
opportunities, forward planning is needed in relation to changing consumption taste and demand.

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