WHAT IS VISUAL MERCHANDISING? Visual merchandising is the promotion of sales of goods through presentation and display techniques in various types of shops. It’s become an important aspect in retail and therefore, companies put towards large sums of money to make sure their brand is displayed effectively and allows for goods and products to be displayed in a way which highlights their benefits and features.
WHY VISUAL MERCHANDISING? There are many reasons for visual merchandising, some reasons being more obvious than others, for example, although visual merchandising is clearly beneficial for stores to gain greater profit through eye catching displays and promotion of deals, it also supplies further purpose; visual merchandising allows for customers to know about the latest trends, can create a display which helps them become comfortable, allows for the brand to be displayed to be unique and can increase impulse buying which can benefit the brand greatly.
DIFFERENT TYPES OF RETAIL OUTLETS There are various types of retail outlets who all use visual merchandising. Department stores: These offer a wide range of departments which sells different products. It allows for customers to purchase a lot of different products in one large store. Examples include, Fenwicks, Selfridges and Demanhams Malls: This is where many retail stores operate in one place. Examples include, Brent Cross and Westfield’s. Speciality stores: These stores specialise in a particular products and only sell that. Examples include, JD sports, Boots and Superdrug. Supermarket: These stores generally sell food and household items placed in various aisles. Examples include, Tescos and Iceland. Hypermarket: This is a store which companies a supermarket and a department store. Examples include Wal-Mart supercentre. Franchises: This is where a business sells the brand name to others business for profit. Examples of franchises include Starbucks and McDonalds. Discount stores: Discount stores offer lots of products at a discounted price for customers. Examples include, B&M and pound land. Warehouse stores: These stores sell large amounts of product in bulk at a discounted price. Examples include Costco.
Factory outlet: This is a store where customers can buy surplus stock at a discounted price. Cash and Carry: This is a store which deals with wholesale trade. Examples include, booker. TECHNIQUES Micro-merchandising: This is where retailers change placement of products around in store in accordance with customer’s needs. End –cap techniques –cross-merchandising: End cap techniques are where retailers put stock at the end of aisles for easy access as customers wander. Cross merchandising is where competently products are placed closed to each other. Technology: This is where, through technology, a brand is able to advertise, promote or use technology as a way of setting a ‘look’ for the brand. Proper Space & Theme Display & Special events: Proper space is where a store uses their space to their advantage. Theme display is how a brand advertises and represents a certain theme within their store. Special events include times such as Christmas where brands may change the layout of how and where in the store they sell products. Use of fixtures and fittings Wall fixtures, Soft line fixtures, hard-line fixtures etc.: This is where brands use various fixtures around the store to present products in a style they feel works well and represents the brand. Placing of dummies: The placing of dummies is where shops use mannequins on shop floor or in window displays to advertise trends and items within the store. Fragrance of the store: How the brand uses fragrance within the store to add to the feel of the store of to sell products connected to the fragrance. Types of furniture: This is where brands use different types of furniture in their stores to present products and to possibly make it more comfortable for customers within the store, if the furniture being used for example was for a sitting area. Gondolas: Where products are placed in round baskets. Vertical merchandising: Where products are lined up from top to bottom. Horizontal merchandising: Where products are lined up across. Symmetry and balance: Placing products in a symmetrical and balanced style to please the customers’ eye. Story telling: Telling the customer a story through display.
Point of sale: Products placed near the till for customers to buy.
Tesco (Supermarket) Tescos PLC is a multinational supermarket brand and is the world’s third largest retailer measured by profits. As a supermarket it sells various food and household products to its customers and just like all retailers, uses visual merchandising to benefit the brand as whole. Tescos uses their furniture to benefit them, they keep to a grid floor plan with shelves that are neatly stacked in organised aisles in long rows to allow items to be taken from them with ease and allows for positive customer traffic flow, so all customers can get to where they want to be in the most comfortable and practical way. They also make sure all products are spaced out neatly so it’s more attractive to the customer’s eye when choosing out products. Promotional merchandising is used by Tescos; when holidays arrive where certain items will be in popular and in high demand, Tescos place these products to the front of the store so they are passed first. Tescos also use promotional merchandising by putting their best offers at the front of the store, complemented by large signs advertising what exactly is being sold to catch the customer’s attention when there isn’t a holiday. Tescos also uses end caps where products with promotions are put at the end of aisles which grabs the attention of customers as the wander around the store.
Within Tescos they keep impulse goods near the tills in case customers feel impulse to buy any last mind goods at the rush of paying at the till. They use cross merchandising by placing complementary aisles next to each other, for example, the bakery aisle would be next to the condiments aisle with products such as jams and chocolate spreads which allows for complementary products to be close to each other to benefit the customers shopping needs.
Superdrug (specialist store)
Superdrug PLC is the second largest health and beauty retailer in the United Kingdom and is a specialist store. As a specialist store it sells specific items for customer’s needs, in the case of Superdrug, they sell health and beauty products and like all retailers, uses visual merchandising. Superdrug uses their space to their advantage, making sure all sections are blocked out for a chic and organised look and all aisles are neatly presented. Separate departments allow for customers to orientate around the store and find what they need well which improves customer traffic flow. Spotlight lighting allows for specific items to catch the customer’s eye and attention. They make sure promotional merchandising is used all over the
store, from front to end. At the front of the store, they keep special offers and promotional posters on both the shop windows and security scanners to maximize promotional merchandising to attract customers to the shop and to set off impulse buys. Shop windows are covered in large promotional posters that advertise clearly the deals within the store, it’s simplistic yet eye catching. Superdrug use micro merchandising within their store. Items that sync up with the time of the year are found at the front of the store, as way to stay in line with customer’s needs. For example, during the summer Superdrug may keep items such as sun cream and tanning oil at the front to gain the attention of the customers immediately and to give the customers easy access to what they may need for that time of the year. Superdrug also uses vertical brand blocking for their products where all the items on the shelf flow from top to bottom which allows for customers to see various brands clearly and keeps several brands close. Cross
merchandising is also by Superdrug, products that complement each other are found along the same aisles, for example, makeup removers would be next to facial cleansers and various other skincare products. Superdrug keeps large perfume display with testers that customers can try, this allows for the customer to test out the product and talk to any Superdrug workers near the lit up display but also keeps the Superdrug smelling fragranced. The large display is lit up which draws attention to the products in the display and invites customers in.
Fenwick’s (Department store) Fenwick’s is an independent branch of department stores over the United Kingdom. As a department store it has a wide range of departments which sells all types of things for customers and like all retailers uses visual merchandising. Fenwick’s uses visual merchandising with their window displays. Large detailed sets and uniquely styled mannequins under soft lighting attracts the customers eye to what the mannequins are wearing and also tells the customer a story. Fenwick’s uses symmetry and balance within their displays to please the customer’s eye. Fenwick’s keeps a free form layout; merchandise and fixtures are grouped into a free form pattern on the sales floor which acts a benefit to the customers as it allows for better customer traffic flow as they can get to all separate areas how they wish to. A large beauty department with large perfume counters allows for a fragrance of expensive perfume to fill Fenwick’s; all counters have spotlight lighting, which brings the attention to the products at the counters. As well as this, Fenwick’s uses cross merchandising techniques by
putting products such as perfumes next to similar scented body creams by expensive and well-known brands. Fenwick’s also uses simple yet modern pieces of furniture to display their products and brands on which shows Fenwick’s as a stylish modern department store and gives it a chic look. Conclusion In conclusion there are both similarities and differences in how various types of retailers visually merchandise their brand. Although all types of retailers mentioned used cross merchandising as a visual merchandising technique, the department store, Fenwick’s did not use end capping at a technique, unlike Superdrug and Tesco’s who did. This is because of various reasons, one being the layout of the store doesn’t allow for end capping, unlike Superdrug which is a specialist store and Tesco’s which is a supermarket, department stores such as Fenwick’s do not use a
grid layout, a second reason being that the technique does not suit Fenwick’s as a brand. Therefore, it can also be concluded that a large part of visual merchandising is finding the best techniques that work well and best represent the brand for what it wants to be seen as. TYPES OF GOODS: Impulse goods: these are goods normally placed near the checkout and are bought impulsively. For example, bubble-gum. Convenience goods: These are essential goods that are needed by customers. For example, toothpaste.
Search and compare lines: These are goods that require thought in buying them. For example, televisions and mobile phones. Speciality goods: These are special items that may not necessarily be sold in all types of retail outlets. For example, designer clothes. Complementary merchandise placement: Where complementary goods are placed near each other. For example, breads and condiments. Seasonal goods: Goods that are within a store that are seasonal at the time. For example, pumpkins at Halloween.
Tescos (supermarket) Tescos PLC is large multinational supermarket brand which sells food and household items to the public. They use various visual merchandising techniques to sell different types of goods. Impulse goods in Tesco’s are placed at the point of sale by the checkout for customers to impulsively buy last minute. For example, small shelves by the till in Tescos will sell snack products and bubble-gum. Cross merchandising is used in Tescos to sell convenience goods by putting similar products close to each other to make it easier for customers to shop. For example, toothpaste and toothbrushes are placed horizontally together. Cross merchandising is also used to sell complementary merchandise placement, products such as condiments and spreads are placed near each other. Micro – merchandising is used in Tesco’s to sell seasonal goods, items that are in season are placed in the front of the store and rearranged for customers benefit. For example, pumpkins placed at the front of the store at Halloween.
Superdrug (specialist store) Superdrug is a speciality store, which sells and specialises in health and beauty products. They use various types of visual merchandising techniques to sell various types of goods. Impulse goods in Superdrug are sold at the point of sale and in large gondolas which holds large amounts of products. For example, gondolas in Superdrug could hold beauty wipes and by tills, small shelves will be filled with lip balms and bubble - gum. Cross merchandising is used in Superdrug to sell convenience products. For example, make up remover is sold next to cotton pads. This technique is also used to sell complementary merchandise placements, for example, hair accessories would be placed next to styling products. Micro – merchandising is used in Superdrug to sell seasonal goods, for example, during Christmas Superdrug place Christmas sets near in their own section.
Fenwick’s (department store) Fenwick’s is an independent branch of department stores over the United Kingdom which sells a large variety of goods to customers. They use various visual merchandising techniques to sell different types of goods. Impulse goods in Fenwick’s are sold by the point of sale where customers can pick up last minute items by the tills. For example, gift cards may be offered. Seasonal goods are sold in Fenwick’s using horizontal merchandising. For example, winter clothes are placed in rows displaying colour difference.
Use of symmetry and balance, as well as lighting is used to sell speciality goods and search and compare goods within Fenwick’s. For example, expensive designer products that customers may put a lot of thought into spending money on are placed out in a simple, symmetrical layout to attract the customer’s eye. Conclusion To conclude, all retail outlets use various techniques to sell various types of goods. However, not all retail outlets sell all types of goods, for example, supermarkets such as Tesco’s are unlikely to sell specialist products such as designer items as it does not represent their retail outlet or their brand, however, large department stores such as Fenwick’s do as it represents their brands items well and also fits into what they offer as a department store. Bibliography: http://categorymanagementblog.com/merchandising-strategies/ http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/12217merchandising.html https://en.wikipedia.org/wiki/Fenwick_(department_store) https://en.wikipedia.org/wiki/Tesco https://en.wikipedia.org/wiki/Superdrug