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It's not what you do but the way that you do it
Selecting the right products for your target market is the first step in becoming profitable. Making them visually appealing is the next. Nursery Industry finds out what retailers can do to prevent a build up of stock in the warehouse
Published:  06 July, 2009

According to Displaysense, a manufacturer of bespoke point of sale displays, research shows that a staggering 60% of buying decisions are made in store: "While there are many aspects involved in marketing and gaining customer loyalty, an increasingly important decision to make is how you create a successful visual presentation on the display/point of sale stand."

In our efforts to find out more about visual merchandising, we came across an article called ‘Creating Attractive Displays' by Shari Waters, in the Retailing section of about.com. "Creating an attractive product display can draw the customer in, promote a slow moving item, announce a sale, or welcome a season. If your store front is fortunate enough to feature one or more windows, then you have one of the most proven (and least expensive) forms of advertising at your disposal." This simple introduction is a good reminder of how important it is to take a step back and critique the visual impact of your products upon the customer on a daily basis.

How often do you change your displays? Take a look at traffic flow in your store, are there any areas that are a focal point? Do you link sales according to season? What else could you do to drive customers in store and out again having made a purchase?

As an industry expert, Displaysense offers some tips designed to help you create displays that will get the customer's attention and maximise sales:

  1. Create a focal point - Where will the eye travel through the display? Don't leave this to chance. Plan what the customer should do when they see the display. Perhaps a new product is the main focal point, with complimentary items placed in close proximity to encourage multiple sales. Many window and table displays are too low. The focal point should be at eye level to most viewers. Visitors will not work to get a good look at your display, they will simply walk on by without noticing.
  2. Plan your design - To experiment with this, draw a rectangle that is roughly the same shape as your display space. Sketch geometric shapes such as squares, rectangles, circles, semi circles and triangles in various combinations to get a sense of an appealing layout.
  3. Create balance - Strong displays have visual balance. Generally larger, darker items would be placed near the bottom of a display, with lighter items at the top to avoid appearing top heavy.
  4. Keep it simple - The goal is to attract attention to the product or literature you are promoting not the display itself.

The company advises use of proper lighting and that you look at the display from all angles, remembering that premium products need quality displays. It is also advised that you monitor your display's sales performance, so that you can make the necessary changes.

In an article published by Inspire Retail Solutions, Melanie McIntosh asks Why Is Retail Merchandising Important?  Her answer? "In today's competitive retail environment a retailer can not afford to consider merchandising as a 'frill'.  There are more choices out there than ever before. Posters covering the door and windows, hand lettered signs, lack of lighting and untidy displays send the message that your business isn't serious.

 "If your store looks like a bargain basement, customers will expect bargain basement prices and may draw the conclusion that your product is poor quality. This judgement may have little to do with the product itself, but be the result of poor presentation. Merchandising is more than simply the arrangement of products on the shelf. It is an integral component of the business image. It should be considered when you design your logo, business cards, brochures, letterhead, packaging and product mix."

Effective buying and merchandising represents the difference between a profit making business and a loss making one. Nursery Industry caught up with two successful retailers to find out why...

Vicky Denby of Mummy & Little Me in Lincoln, currently has a full range of maternity clothes in stock from brands such as Attesa, Noppies, Vaija, Ripe and Lilique. An upmarket boutique, it has been running successfully for the past 2 1/2 years and Vicky explains the secret to effective stock control is in 'gradually' introducing seasonal ranges. "Back in February we started introducing brighter colours. We bring in key items that we know will sell alongside a few more daring ones. Our online platform is doing fantastically, enabling us to virtually stock a much larger range as our shop premises are quite small. Great images are what really sell products. A couple of our suppliers don't give the greatest images and these are the products that fail to sell well. In store visuals and strong online images are vital. The Internet is like another shop for us, we are constantly refreshing it to keep it relevant. The same can be said of the store, we are constantly changing our displays to maintain consumer interest, we do well because we keep it fresh for our regular customers."

Vicky told us that Mummy and Little Me has two big sales year: "When we do it, we do it properly," she said. Locals are given the first chance to buy sale stock, with anything left over going online. "We keep things clean and simple. One of our strongest areas is changing bags. That said, there are many changing bags online that we just wouldn't display in store. Having an online platform enables us to reach a larger target market, allowing us to buy with a completely different attitude. Instead of buying for the average customer, we can be a bit more daring."

Asked about the effect of the economic downturn on sales and the problem therefore of surplus stock, Vicky was quick to refute any claims of financial worry: "There may be a lot of doom and gloom in the press but our online sales are 100% up on last year, while we are 5% up in the shop itself. A lot of that success is down to the Internet. On the contrary, we are continually amazed at the money some women will spend - there seems to be no limit for some of our customers. We hold a customer database and try to keep in touch with our target market as much as possible via email. You are closing nearly every door if you don't have an online platform," she insists.

Garry Shore of Peek-A-Boo agrees that an on-line presence is crucial:  "When we first conceived the ‘idea' of Peek-a-Boo we contemplated a store/mail order catalogue but the costs were ridiculous.  However, the internet has provided a means to present our products, run promotions and add ‘another' shop!  We run our web-site in store which immediately increases the amount of product we can offer.  We take a lot of orders this way and it is a great way of reducing the amount of stock we need to carry.  Stock and particularly surplus stock is money going to waste so we try to avoid seasonal products or keep them to a minimum.  Some seasonal products cannot be avoided; raincovers, parasols (both sold on the same day!), footmuffs, etc.  However, if we find an item is sticking we will move it by offering it with other items to increase the value to the customer.  We never have a sale to shift stock, we only have sales as a promotion when we want to highlight a product or program."

 Particularly popular in the summer months, said Garry, are baby carriers, sun shades and pram toys. Therefore, forward planning is essential including how to shift any surplus stock in the autumn.  Garry takes a very sales driven approach to shifting stock - and it works. With the credit crunch and recession forcing consumers to think twice about parting with their hard earned cash, customers like to think that they are getting something for nothing. So rather than sales and special offers, he often gives something away with a large order - a sling with a pushchair, for example. Not only does it secure a sale, but deals with the issue of surplus stock too.

 It is in the gift selection that Garry has noticed the change in sales since the economy slumped. "Our average sale value on gifts has dropped from £25-30 to £15-20. Grandparents still spend the most on gifts but friends and relatives have definitely reduced the amount they spend!"

 Christmas is an exception at Peek-A-Boo when they really go to town, extending the display of toys and gifts. "We re-merchandise every day and like to go for a festive feel."  Because they are able to show products on-line, many prams and pushchairs are removed to make room for more toys and gifts.  A former retail designer and shop fitter, Garry has a proven talent for display work and as his wife used to be a Department Manager and staff trainer at John Lewis, both understand the importance of effective visuals.

Take a step back

Whatever your marketing budget, visual merchandising must form an integral part of it. If your store has a clean, inviting feel and is easy to navigate you increase your chances of winning customers and maintaining loyalty for years to come.







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