Visual Merchandising Manual 2017

visual merchandising manual 2017

copyright 2017 Fuego Holdings LLC. Merchandising Manual

copyright 2017 Fuego Holdings LLC. Merchandising Manual

Table of Contents I. Philosophy & Foundations: Page 1 II. Store Concepts & Themes: Pages 2-9 - Concept Definitions - Theme Definitions: Major and Minor - Concept Fixture Uses and Sections III. Best Merch Practices: Pages 10-26 - Section Example Photos - Tips, Tricks, Heck No’s, and Thumbs’ Up -Signage within sections IV. Planning for merch Resets: Page 27 -Merch Directives: Tools - Merch Changes: Planning and Adaption

I. Philosophy & Foundations Philosophy: Our Fuego and Attic Salt stores are filled with a breadth of assorted products. In order to create a truly remarkable experience for customers, we merchandise our products by unique themes.

Merchandising this way is relatively unique to our company and helps us stand out against competitors.

It is our philosophy at Fuego and Attic Salt that our customers leave our stores with a pure sense of joy and a long lasting impression of happiness, handpicked.

Foundations: - we merchandise our sections by themes - within sections, we merchandise by size and color - we merchandise product vertically and laterally, by matching heights and widths - we merchandise mainly using pegs, shelves, and bookstands to properly display our product

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II. store concepts & themes Concepts Definitions: - Concept 1 Stores: previously known as “Old Concept” stores. These are stores with metal H-frames serving as their main floor fixture. These H-Frames contain two 2’ wide sides, a Front and a Back endcap. They often have painted walls and dark ceilings. All of these stores are branded Fuego and opened before 2015.

- Concept 2 Stores: Previously known as “New Concept” stores. These stores have 3’ wide Gondolas serving as their main floor fixture. These 3’ gondolas generally have three 3’ shelves and one large wooden pegboard.

The walls in these concept stores are covered in vinyl.

Some of these stores are branded Fuego and others Attic Salt. These stores opened between 2015 and 2016.

- Concept 3 Stores: These stores contain the most recent development of fixtures. These stores have 2’ wide Gondolas serving as their main floor fixture, clustered beside offset spinners and/or 2way fixtures. The walls are covered with vinyl and feature “statement” sections on theirlayout plans. Most of these stores are branded Attic Salt, the first of which opened in 2017.

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Theme Definitions: ‘Major’ and ‘Minor’: As stated in our Merchandising Philosophy, In order to create a truly remarkable experience for customers, we merchandise our products by theme. No matter the concept, age or layout of the location, each Fuego and Attic Salt store contains a plethora of these themed sections. Based on product flow in and out of our stores and the rate of sell-through, these themes either: Grow into or Stay --> Major Themes Shrink into or Stay --> Minor Themes While these themes are ever-changing as we shift in and out of trends, an example of a Major Theme in our store is the Cat Section. An example of a theme that was a Minor Theme in 2016 and grew into a Major theme in 2017 is the Mermaid Section. An example of a theme that shrunk from a Major Theme to a Minor Theme is the Retro Lady Section. Finally, an example of a section that shrunk from a Major Theme in 2013, to a Minor Theme, to altogether obsolete by 2017 was the Cosmetics Section. In addition to growing and shrinking, themes can also transform into something entirely new. An example of a Major Theme that transformed into a new Major Theme was the Star Wars Section into the Nerd Science Section.

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Concept 1 Fixture Uses and Sections:

D Floor Fixtures: - Table (Feature Displays): With few exceptions, all stores have a table. This is a feature display that changes regularly every three weeks. This is usually near the storefront and should be one of your highest sales areas in the entire store. Special care must be taken to make your table compelling and stunning. All items and graphics assigned to a table can be found in the Graphics & Calendar folder on the FTP site. Current display photos of the table can always be found in the Display Photo folder on the FTP site. Table displays from store to store should be largely consistent and any diversions from the assigned set should be approved by the Visual Merchandising Manager.

- H-Frames: Endcaps (Feature Displays): Each H-frame contains a Front and a Back endcap. Front endcaps are merchandised to mirror the concepts or our window displays. Stock of featured merchandise from the window displays should always be readily available on our Front Endcaps for purchase. H-Frame Endcap displays change every three weeks. All themes assigned to Front and Back H-Frame endcaps can be found in the Section List folder located on the FTP site.

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- H-Frames: Wide Sides(Minor Themes): In Concept 1 stores, products that make up Minor Themes are merchandised on the wide sides of H-frame floor fixtures. Stores generally have Four H-frames on their sales floor. As the product and sales in these Minor Sections increase, the section will move onto a wall and become a Major Theme. All themes assigned to H-Frame wide sides can be found in the Section List folder located on the FTP site.

- Case Jewelry Cases: These glass fixtures sit in the middle of the sales floor and allow customers to look down into displays. In some cases, ring spinners, earring spinners and a mirror will sit on top of these glass cases.

These cases contain higher end jewelry from notable vendors and are kept locked at all times when not in use for a customer.

- Offset Spinners:When used, these fixtures contain peggable merchandise from a single vendor. Additionally, offset spinners may be directed for the use of clearance items. Offset spinners are used minimally in Concept 1 stores during the first 3 quarters and are maximized during the 4th quarter.

- 5’ Jewelry Spinners:These large 4-sided spinners are used solely for costume jewelry. Concept 1 Stores have 3-4 of these fixtures on their sales floor depending on stock level of merchandise.

- T-stands & Rolling Racks: these fixtures are used primarily for seasonal apparel. Secondary uses include hanging dolman, baseball, long sleeve style tees, and clearance apparel. The quantity of these fixtures in stores is based on the size of the store location.

- Cash Wraps:In concept 1 stores, cash wraps are metal based fixtures that hold lower price point, peggable merchandise: ideal for add-ons.a suggested list of product for the cash wrap is always available in the Section List folder on the FTP site. During the 4th Quarter, cash wraps are assigned specific merchandise.

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Wall Sections (Major Themes): Wall sections in concept 1 stores contain a variety of product that make up the Major Themes of those stores. The depth of merchandise in these Major Theme Wall Sections is much greater than that of a Minor Theme H-frame Section. In concept 1 stores, our Wall Sections dictate to customers our bread and butter: what we are known for and what we do best. Depending on size, concept 1 stores contain about 12 Major Theme Wall Sections. With some exception, the majority of Major Theme Wall Sections are 4’ wide. All walls have a metal peg board base. Bars and Shelving are added to portions of the 4’ wall section to break up the peggable display areas. Wall Section themes are all assigned by the Visual Merchandising Manager and relocated throughout the year. Fixtures used on wall sections are highly modular and can be changed out to adjust to the size or merchandise currently in-store.Up-to-date Wall Section themes can always be found in the Section List folder located on the FTP site.

Windows: (Feature Displays): Windows 1-3 are feature displays that changes regularly every three weeks. In rare cases, a location will have a 4th or 5th window. The displays in these extra windows have a longer term, are semi-permanent and do not change as frequently and the regular Window 1-3.

Stores with more than 3 windows should partner with the Visual Merchandising Manager for direction on an asneeded basis. In concept 1 store windows, merchandise is: -Displayed on wooden platforms that have 2-3 tiered levels -All Merchandise should be displayed below the window graphiC -One mannequin should sit on either side of the merchandised platforms

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Concept 2 Fixture Uses and Sections:

b Floor Fixtures: - 3’ Gondolas (Feature Minor & Major Themes) - 2’ Angled Book Gondolas (Books separated by theme) - 2-Way Fixtures (Costume Jewelry,Endcap-like fixtures) - Offset Spinners (Refer to fixture & use of Concept 1 stores) - T-stands (Refer to fixture & use of Concept 1 stores) - Table (Refer to fixture & use of Concept 1 stores) - Cash Wrap (Refer to fixture & use of Concept 1 stores) Wall Sections: in Concept 2 stores, Walls are covered with a colorful vinyl base, highlighted with designs that support each type of product merchandised within the section. Some Sections feature large vendor statements like Boma and Loungefly, while others Walls Sections are set up as dedicated homes for principal products such as: Tees, Mugs, Socks, Apparel, Loungefly and Case Jewelry.

For ease of merchandising, all shelving, bars and pegboard used in Concept 2 wall sections is minimally modular. These Wall Sections are set up to house staples categories of product for our stores and therefore; the Major Themes of these walls will change infrequently.

Up-to-date Wall Section themes can always be found in the Section List folder located on the FTP site.

Windows(Feature Displays): same as Concept 1 Fixture Uses and Section

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Concept 3 fixture Uses and Sections:

Floor Fixtures: - 2’ Gondolas w/ feature vinyl (Minor & Major Themes) - 2-Way Pegboard Fixtures (Costume Jewelry,Endcap-like fixtures) - Offset spinners (Peggable merch of the same theme as the 2’ Gondola it’s clustered beside - 2’ Angled Shelf Gondolas - Coloring Book Section - Books (categorized and separated into Men’s & Women’s) - 3’ wide shirt gondolas (Additional Men’s & Women’s Shirts) - Cash Wraps (Refer to fixture & use of Concept 1 stores) - 36” Double Sided Table w/ 11x17 Table Sign (Feature Display) This display changes regularly every three weeks.

All items and graphics assigned to a table can be found in the Graphics & Calendar folder on the FTP site. Display photos of the table can always be found in the Display Photo folder on the FTP site. While completed table displays in concept 3 stores should be adapted version of the provided FTP site photos, due to differences in table layout, they should ultimately include all the same product assigned to the display. Any further diversions from the assigned table set should be approved by your Visual Merchandising Manager.

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Wall Sections: Wall Sections in Concept 3 stores contain highly curated Men’s and Women’s Walls, Single-Product Statement Walls, & Dedicated displays for specific categories. Walls are covered with a colorful vinyl base and highlighted with designs that support the type of product merchandised within the section. Each Wall Sections in the store is permanent in location, mildly interchangeable in theme (when directed), and not modular with regards to fixtures. Concept 3 stores currently contain most or all of the following Wall sections: - Women’s & Men’s Tee Walls with lifestyle images framed above section - Tee Wall Displays have 8.5”x11” graphic in acrylic - Case Jewelry with lifestyle images above section - Women’s & Men’s Handpicked Happiness walls Curated to contain hot titles with themed shelves within the section - Power Product Statement walls w/ 35”x72” Graphic (Two Shelves below graphic, containing massed out amounts of featured product) - Category Specific Sections include: Mugs, Socks, Seasonal Apparel, Loungefly and Case Jewelry Windows: Windows 1-3 are feature displays that changes regularly every three weeks. In rare cases, a location will have a 4th or 5th window. The displays in these extra windows have a longer term, are semi-permanent and do not change as frequently and the regular Window 1-3. Stores with more than 3 windows should partner with the Visual Merchandising Manager for direction on an as-needed basis. In concept 3 store windows, merchandise is: -Vertical Windows displays, product is displayed to the right of the window graphic - window graphic hangs on the left side of the display - Three 2’ shelves are spaced out and merchandised to match the height of the graphic - Mannequin Bust sits on the Top or Bottom shelf - No product or signage sits below the graphic

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III. Best Merch Practices: Windows Example Photos (Concept 1 + 3):

Tip: On each platform or shelf level, merchandise your tallest items in the center and the short items on either side. Triangular displays help dictate, visually, to a customer what the focal point of the display is intended to be Trick: Have alternative or back-up ideas for merchandise if you sell out before you replenishment arrives. It’s a good problem to have, and it’s smart to be prepared!

Heck No: Spread out merchandise. Keep it tight with even spacing on either side.

Thumbs up: Your mannequins have the correct feature apparel on and are accessorized to match. Sold!

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Tables Example Photos (Concept 1 + 3):

Tip: Check your back-stock for product. Bulk up the quantity of each assigned item listed for the table display Trick: Use varying heights of acrylic, metal or wooden boxes to creative different depths or merchandise Heck No: None of the featured shirts are merchandised on your table display. Oh no! We always want all shirts featured on windows or table graphics to be folded and available on the table.

Thumbs up: You have Men’s and Women’s shirt signage printed and posted next to each shirt stack to let customers know what sizing style the shirt is available in!

Sa-weet!

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H-Frame endcaps & wide sides Example Photos (Concept 1):

Tip: After you’ve gathered the assigned or appropriately themed merchandise for your section, Group the merchandise within each display by packaging color.

Trick: Determine the Setup your peg and shelf fixtures first, then seek what product that fits in the space. This will ensure your display is evenly weighted aesthetically.

Heck No: You sold the last of an item and left the gap! As you recover your stores, you should always be touching up merchandise and re-arranging displays add needed Thumbs up: No merchandise is exceeding the height of, hanging off the side of your fixture. Everything has a comfy home!

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Gondola Example Photos (Concept 2 + 3):

Tip: product on each row or shelf should be similar in height.

Trick: Have deep quantities in a particular book? Try turning some to face spine out. the prettiest part of a book is not always the cover!

Heck No: Gondola vinyl Imagery is being covered by product on the top shelf. These images a visually impactful, they draw customers towards the display. Let’s make sure we can always see them!

Thumbs up: None the merchandise exceeds the height of your fixture or covers the fixture’s signage topper!

Crushed it!

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Offset Spinner Example Photos (All Concepts):

Tip: Keep smaller items merched up top and items with bulky packaging down below This will help you avoid overshadowing and parts of the display Trick: Double-Face peggable items when you’re merchandising to minimize gaps between merchandise and visible metal fixture. This keeps your display looking extremely neat and full.

Heck No: Mixing peg lengths within the same row. All peg lengths on a given row should match. Choose your weapon and stick with it.

Thumbs up: Pegged out merch correlates to the fixture it’s clustered beside. Nailed it!

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5’ Jewelry Spinner Example Photos (Concept 1):

Tip: Merchandise your costume jewelry by base color and vendor carding Trick: Revisit new and old styles. Find new mini-stories to tell within each side Heck No: Merchandising necklaces of vastly different lengths side-by-side Thumbs up: Your Costume Jewelry BOGO ½ off signs are clearly posted on top of your spinners!

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2-Way Pegboard Fixtures (Concept 2 + 3):

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ip: Whether creating jewelry or an endcap displays, merchandise each side of your 2-Way pegboard fixture distinctly by color in addition to theme.

Trick: Set your peg and shelf fixtures first, then seek out the right product that fits in the space. This will ensure your display is evenly weighted aesthetically.

Heck No: Merchandising a single row of pegs at different heights. All pegs and shelves on your 2-Way should be at matching heights from left to right in a single row.

Thumbs up: Your costume jewelry is recovered often and tangle-free, so inviting!

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Cash Wraps Example Photo ( All concepts ):

Tip: Merchandise the same category of products across(by row), instead of down( by column).The variety of categories on your cash wrap will look more planned and intentional.

Trick: Double-Face the items when you’re merchandising to minimize gaps between merchandise and visible pegboard.

This keeps your display looking extremely neat and full.

Heck No: Selling Expired Merchandise. Check your candy regularly! Mark it down when the expiration date nears and damage it out once it has passed Thumbs up: You’ve sold down on some product and swapped out the peg in was hanging out for the next size down. Nice! No one will stab their leg today!

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Shirts Section Example Photos (Concept 1 + 3):

- Tip: Match up your shirt stacks with your display shirt in repelling order. The closest row of display shirts to the top shelf of folded shirts, should represent the exact same stacks of shirts on the top shelf in order front Left to Right. Repeat until all shirts follow suit.

- Trick: In stores where shirts are physically attached to shirt boards and then placed onto the shirt wall, all displayed shirt boards should line up evenly, both vertically and horizontally. In order to achieve this smooth even display, you may need to swap the placement of display.

- Heck No: Shirts of the same base color should not be displayed next to each other - Thumbs Up: Board-folded stacks of shirts make for perfect looking wall sections!

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Case Jewelry Example Photos (Concept

1 – 3):

Tip: Cluster together like-product within a case: group necklaces, studs, dangles and rings together in blocks.

This help customers compare pieces easier and keeps your case organized.

Trick: Signage for each jewelry line should always be on display. Refer to your display signage when selling to a customer and you’ll never forget case jewelry features and facts!

Heck No: Mixing lines that don’t pair well. Individual jewelry cases should be separated by Vendor whenever possible.

Thumbs up: Tags & prices are hidden from view & Silver is be regularly polished.

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Major Theme Wall Sections (Concept 1 + 2):

Tip: Separate your peggable items from your shelf-able items into different piles. You’ll have maximum visibility on all the items that need to fit into each portion of your wall section Trick: Save your shipping dunnage paper and use it to stuff all of your bags so they display standing up on their own Heck No: You just squeezed an item into your wall instead of adjusting the merchandise around it. Wall sections should be re-worked weekly as needed based on your inbound shipment Thumbs up: Your shiniest, newest product in your section is merchandised at eye level for all to see and buy!

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Category Specific Wall Example Photos

(Concepts 2 + 3):

Tip: Merchandise categories of product on their respective walls by vendor, packaging, or styles.

Trick: When mugs do not have open window packaging, place one style of each on display

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Heck No: Each style within your category should be visible, no mugs, apparel items or bags should hide below or behind any other. Each style of sock, mug, apparel items and bag should have its own peg, shelf, or row.

Thumbs up: You’ve massed out quantities while avoiding stacking too high or on the floor

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Handpicked Happiness

Wall Example Photos

handpicked happiness

(Concept 3):

handpicked happiness

Tip: Organize your curated hot titles into 2 or 3 distinct mini-themes and merchandise accordingly Trick: Mass out one or two items max per shelf, giving your wall a full look without disjointing your overall theme Heck No: Don’t merchandise your entire plethora of plush onto these walls simply because they’re large. If the item doesn’t strongly support your theme, find its rightful home.

Thumbs up: You’ve printed off the appropriate 5”x7”signage for each hot title and posted the sign on the same shelf as the merchandise!

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Statement Wall Example Photos

(Concept 3):

Tip: Your large items should be massed out the lower shelf, smaller on the upper shelf Trick: Keep it narrow, pick a maximum of 4 appropriately themed items to be featured Heck No: Damaged posters are displayed. Change out your Statement Wall graphics periodically Thumbs up: You’ve continuously checked the stock of the wall and filled with back stock throughout the day!

You’ve got it!

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Signage Within Sections: The following lists are all the various sizes of signage that we utilize weekly in our stores and the sections in which they are to be placed. Photos examples of how to use these signs can be found in the In-Store Signage folder on the FTP site at any time.

Small Format Product Signage (Printed in-store) - 2.875”x.875” Bin Signs - for use on wooden and metal shelves in all sections - 3”x2” – for use in case jewelry sections - 3”x5” – for use in all sections, including sale sections - 5”x7” / 7”x5” –for use in apparel sections, windows, table ,register and offset spinner toppers - 4.5”x4.5” triangles- for use on shirt boards and case jewelry cases Large Format (mailed to stores) - 11”x17” Posters (Table, Windows) - 22”x28” Posters (Tables, Above Major Theme Sections, Media Sign Holders) - 35”x72” Posters (Table, Windows) - 17”x3.5” Signs (endcaps, gondolas, 2ways) Sign Requests: If your store receives new product or has an upcoming event that requires Signage not already available on the FTP site, you may submit a sign request form to the office. Sign Request Forms are available in the In-Store Signage folder on the FTP site and should be printed and filled out in full before being submitted.

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IV. Planning for merch Resets Merch Directives-Tools: Merch changes occur on Mondays. Stores are provided the following tools in the Merchandising Folders of the FTP site calendars the Friday before the directed change: - display photos - graphic lists - item lists - section lists - display calendars Stores are notified via weekly E-blast about the change and upcoming Foko Assignments the Wednesday before the Monday change. All graphics needed for the merch change are sent to the stores one week before “Merch Change Monday�. Foko tasks go out to stores the same day as the directed merch change and are due by the following day. With the exception of 4th QTR, Regularly scheduled merch changes occur every three weeks.

If stores have any questions or concerns about the upcoming merch changes, they should reach out to their Visual Merchandising before the display is set to begin.

Merch Changes Planning and Adapting: - Once given all FTP site tools --> Start to gather the products needed to complete your displays - As sections from which you pull begin to deplete --> rework sections both before and after - Once product is pulled into the display --> Adapt your display to fit the concept of your fixtures - If you lack product listed or shown in display photo --> Choose alternative merchandise from the same category that aligns with the concept of the display - As display product is sold down and out --> Replace it with alternative merchandise from the same category that aligns with the concept of the display until next display change

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copyright 2017 Fuego Holdings LLC. Merch Manual

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Fuego Holdings LLC 6411 Burleson Rd. Austin, TX 78744

copyright 2017 Fuego Holdings LLC. Merchandising Manual