RETAIL SHOP
MANAGEMENT
UNIT - IV
VISUAL MERCHANDISING
Visual
Merchandising:
The physical
display of goods in the most attractive and
appealing ways.
Store
Layout: the interior arrangement of
retail facilities.
Selling areas:
where merchandise is
displayed and customers interact with sales
personnel. (75-80% of the total space)
Sales support areas: devoted to customer
services,
merchandise
receiving
and
distribution, management offices and staff
activities.
MERCHANDISE PRESENTATION
Merchandise
presentation includes the ways
that goods are hung, placed on shelves, or
otherwise made available for sale in retail
stores.
Shoulder-out
presentation:
The way most
garments are hung in home with only one side
showing from shoulder to bottom.
Face-forward
presentation
(face-out
presentation): Hanging of clothing with the
front fully facing the viewer. This should always
be done at entrances and walkway.
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RETAIL FIXTURES
Carousels: Circular racks that turn.
RETAIL FIXTURES
Dump tables/bins: A rimmed table or bin used
to hold sale or special merchandise on the sales
floor, especially in discount operations; it has no
formal arrangement.
RETAIL FIXTURES
Four-way rack: A fixture with four extended
arms, that permits accessibility to hanging
merchandise all the way around
RETAIL FIXTURES
T-stand: Freestanding, two-way stand in the
shape of a T, that holds clothes on hangers,
sometimes with one straight arm and one
waterfall.
RETAIL FIXTURES
Waterfall: A fixtures with an arm that slants
downward, that contains knobs to hole faceforward hangers with clothing at various levels.
DISPLAYS
Displays:
individual and notable physical
presentation of merchandise.
Displays are intended to:
Stimulate
product interest
Provide information
Suggest merchandise coordination
Generate traffic flow
Remind customers of planned purchases
Create additional sales of impulse items
Enhance the stores visual image
SPACE MANAGEMENT
Locations/space
Just
for interior displays:
in the entrance
Entrance to department
Near cash counter
Next to related items
Across from elevators/escalators
Ends of walkway
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COMPONENTS OF DISPLAYS
Merchandise
Lighting
Props
Signage
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MERCHANDISE
Groups:
One-category, or line-of-goods
Related
groupings: go together or
reinforce each other
Theme groupings: event, holiday, etc.
Variety or assortment groupings:
collection of unrelated items all sold at
the same store.
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LIGHTING
Used
to direct customers attention to the
display
Use
more light for dark colors, less light for
light colors
Beam spread; the diameter of the circle of light
Beam spread techniques:
Floodlighting: recessed ceiling lights to direct light
over an entire wide display area
Spotlighting: focuses attention on specific areas or
targeted items of merchandise
Pinpointing: focuses a narrow beam of light on a
specific item
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PROPS
Objects
display.
added that support the theme of the
Functional
Props: used to physically support the
merchandise. (stands, panels, screens, etc)
Decorative Props: used to establish a mood or an
attractive setting for the merchandise being
featured (ex: mirrors, flowers, surfboards, etc)
Structural Props: used to support functional and
decorative props and change the physical makeup of
displays. (boxes, sticks, stands, etc)
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WINDOW DISPLAYS
Seen
from outside of the store.
First contact with the customer.
Advantages of Window Displays:
Establish and maintain an image
Arouse curiosity
Disadvantages of Window Displays:
Expensive to design and maintain
Requires space
Merchandise can get ruined (sun ,etc)
Glare
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TYPES OF WINDOW
Enclosed
windows:
have
DISPLAYS
a full
background and sides that completely
separate the interior of the store from the
display window.
Ramped
windows: floor is higher in back
than in front
Elevated windows: from 1 to 3 feet higher
than sidewalk
Shadowbox windows: small, boxlike display
windows
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TYPES OF WINDOW DISPLAYS
Semi-closed windows
have
partial
background
that shuts
out some of
the
store
interior
from those
viewing the
window
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Open Windows
have
no
background
panel
and
the
entire
store
is
visible
to
people
walking by
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Island windows
four-sided
display
windows
that stand
alone, often
in lobbies.
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COMPETENCIES FOR VISUAL
MERCHANDISING
1.
2.
3.
4.
Explain the purposes of visual merchandising as
they relate to customer satisfaction and
profitability.
Describe areas of the space that can be focal
points for visual display.
Explain the role that lighting plays in visual
merchandising.
Prepare skin, body, and beauty products for
display.
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(continued)
COMPETENCIES FOR VISUAL
MERCHANDISING
5.
6.
7.
Describe various types of written display
materials and their purposes.
Describe types of fixtures used to display
apparel and explain how each is used.
Prepare apparel for display.
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(continued)
COMPETENCIES FOR VISUAL
MERCHANDISING
(continued)
8.
9.
10.
Explain how to display books and CDs to
maximize sales potential.
Describe display techniques for gifts and
accessories.
List steps for keeping the retail area fresh
and appealing to customers.
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Retail Inventory
Management
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TYPES OF INVENTORIES
Raw
materials
Partially
completed goods called
work in progress
Finished-goods inventories
(manufacturing
or merchandise
(retail stores)
firms)
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TYPES OF INVENTORIES (CONTD)
Replacement parts, tools, & supplies
Goods-in-transit to warehouses or customers
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FUNCTIONS OF INVENTORY
To meet anticipated demand
To smooth production requirements
To decouple operations
To protect against stock-outs
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FUNCTIONS OF INVENTORY (CONTD)
To take advantage of order cycles
To help against price increases
To permit operations
To take advantage of quantity discounts
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OBJECTIVE OF INVENTORY CONTROL
To achieve satisfactory levels of customer service
while keeping inventory costs within reasonable
bounds
Level
of customer service
Costs
of ordering and carrying inventory
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EFFECTIVE INVENTORY MANAGEMENT
A system to keep track of inventory
A reliable forecast of demand
Knowledge of lead times
Reasonable estimates of
Holding
costs
Ordering
costs
Shortage
costs
A classification system
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RETAIL MANAGEMENT INFORMATION
SYSTEM
An
Information System is an organized
combination of people, hardware, software,
communication networks and the data
resources that collects, transforms and
disseminates information in a organization.
Management Information System that helps
the management to take appropriate decision
for solving the business problems.
The retailer use MIS for taking appropriate
sales decision and competitive advantage.
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Essentials of Management Information Systems
Emerging digital firm
Electronic commerce
Electronic business
Challenges and opportunities
Internet Technology and the Digital Firm
Round-the-clock
service:
Web
sites
available to consumers 24 hours a day
Extended
distribution
channels:
Outlets created for attracting customers
who otherwise would not support
Reduced transaction costs: Costs of
searching for buyers, sellers, etc. reduced
Internet Business Models
1. Virtual storefront: Sell goods and
services through on-line
2. Information broker: Provide information
on products, pricing, etc.
3. Transaction broker: Buyers view rates,
terms from various sources
Internet Business Models
4.
Online
information
Marketplace:
from
Concentrates
several
providers
5. Content provider: Creates revenue
through providing client for a fee, and
advertising
Internet Business Models
6. On-line service provider: Provides service,
support for hardware, software products
7. Virtual community: Chat room, on-line
meeting place
Internet Business Models
8. Portal: Initial point of entry to Web, specialized
content, services
9. Syndicator : Aggregate information from several
sources sold to other companies
10. Auction: Electronic clearinghouse products,
prices, change in response to demand
Internet Business Models
11. Dynamic pricing: real-time interactions
between buyers and sellers determine worth of
items
12. Banner ad: Graphic display used for
advertising, linked to the advertisers Web site
Categories of Electronic Commerce
Business-to-customer (B2C): Retailing of
products and services directly to individual
customers
Business-to-business (B2B): Sales of goods
and services among businesses
Consumer-to-consumer (C2C): Individuals
use Web for private sales or exchange
Business-To-Consumer
Dis-intermediation: The removal of
organizations or business process layers
responsible for certain intermediary steps in a
value chain
Re-intermediation: The shifting of the
intermediary role in a value chain to a new source
Benefits of Disintermediation to the Consumer
Cost
Manufacturer
Manufacturer
Manufacturer
Distributor
Retailer
Customer
$48.50
Retailer
Customer
$40.34
Customer
$20.45
Interactive Marketing and Personalization
Web personalization:
Benefits of using individual sales people
Dramatically lower costs
M-Commerce and Next Generation Marketing
Mobile commerce (m-commerce):
Wireless devices used to conduct both business-toconsumer and business-to-business, e-commerce
transactions over the Internet
Extend personalization by delivering new valueadded services directly to customers at any time
and place
Customer Personalization
Business-To-Business Electronic Commerce
Automation of purchase, sale transactions
from business to business
Private industrial networks: Coordination between
companies for efficient supply chain management and
collaborative activities
Electronic hubs: On-line marketplaces, point-topoint connections, integrated information
A Private Industrial Network
A Net Marketplace
Electronic Commerce Payment Systems
SYSTEM
DESCRIPTION
CREDIT CARDS
SECURE SITE PRESERVES INFORMATION
ELECTRONIC CASH
DIGITAL CURRENCY USED FOR MICROPAYMENTS
PERSON-TO-PERSON
SEND MONEY TO SITES UNABLE TO USE CREDIT CARDS
DIGITAL WALLET
SOFTWARE STORES CREDIT CARD INFORMATION
ELECTRONIC CHECK
CHECK WITH ENCRIPTED DIGITAL SIGNATURE
SMART CARD
MICROCHIP STORES ELECTRONIC CASH
ELECTRONIC BILL PAYMENT
ELECTRONIC FUNDS TRANSFER
Electronic Commerce Information Flows
Advertising
It refers to any paid, massmediated and attempt to persuade.
Characteristics of Advertising:
mass selling
non-personal communication
PURPOSES OF PRODUCT
ADVERTISING
To
educate people
To
emphasize a brands
features
To
create
the
customer
goodwill
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TWO MAJOR TYPES OF RETAIL
ADVERTISING
To
explain potential buyers
The
availability
and
price
of
nationally known merchandise
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RETAIL ADVERTISING
METHODS
In-house
flyers indicating products
Informative
in-house
displays
of
merchandise
Direct mail advertising
Local newspapers
Distribution of flyers by hand or using the
local newspaper deliveries
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RETAIL SALES PROMOTION
sales promotion includes those sales
activities that supplement both personal
selling and advertising and coordinate
them and help to make them effective.
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TYPES OF RETAIL PROMOTION
In-Store Promotion
window
displays
special in-store displays
posters
personal selling efforts
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Retail
Displays
Both
in-house
displays
of
merchandise and advertising displays
should be:
attention
getting in layout
informative
convince
in regard to the product
the customer
informative
of price
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RETAIL ACCOUNTING
"Retail
Accounting" is a method of
accounting to account for inventory
using retail prices only for sales,
purchases, beginning inventory, and
ending inventory.
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EXAMPLE OF RETAIL ACCOUNTING.
Sales at Retail $12,000
Beginning
Inventory at Retail
$ 3,000
Purchases
Invoice is for $8,250 but this figure is not
$11,000 used. Instead, the merchandise is "priced
out" at retail.
Ending Inventory
at Retail
$ 2,000
Cost-of-Goods-Sold
at Retail
$3,000 beginning inventory + $11,000
$12,000 purchases at retail - $2,000 ending
inventory at retail = $12,000
No loss
$0
The $12,000 in sales matches the $12,000
retail COGS.
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LIMITATIONS OF RETAIL ACCOUNTING
Inadequate information
Difficult to auditing of retail accounts.
Difficult to find out the gross profit
Retail accounting is differ from one to
another business
Retail accounting is inadequate to properly
reflect the true cost of goods sold for
general accounting and tax purposes.
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RETAIL ACCOUNTINGTHE SIGNIFICANCE AND
BENEFITS
It is the growth factor.
Record monitoring helps to find out the errors.
Records and account maintenance with the years
of expertise supporting the business
Easily find out the errors
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RETAIL STORE BRAND
Store
brandsare a line of
products sold by a retailer under
a single marketing identity.
store brands have been able to
position themselves as premium
brands.
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TYPES OF RETAIL STORE BRANDS
Convenience store
Departmental store
Supermarket
Discount store
Superstore
Factory outlet
Combination store
Membership club
Warehouse store
Flea market
Specialty store
Category killer
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EMERGING TRENDS IN
INDIAN RETAIL SECTOR
The trends to follow in the future:
TheIndian retail sectorwill grow up to 10% of
total retailing by 2011.
No difference in cultures regionally.
The most encouraging format now would be the
hypermarkets.
The hypermarket format would be further
encouraged with the entry of the Transnational
Companies (TNCs).
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