This article first appared May 24, 2011.
In the past year I have walked through shopping malls across Australia, China, Singapore, Europe and the UK. I have witnessed astounding differences in the standard of retailing across the world. This has inspired me to make a few comments to the key retail design principles that really impact on the customers’ mind and in turn leads to higher sales and profits.
There are many examples of power in a retail store; innovative design, format, statement, power merchandising, clear and compelling messaging are combined with a unique and consistently delivered sales and service impact. Where all these elements of powerful retail design combine we get the “wow” factor. No one element alone has this effect, rather the symmetry is achieved when it all comes together.
The journey from the initial high visual impact in the windows, the effortless movement through the shop, product and staff presentation and the moment of truth at the counter. “Fit” retailers all deliver this “wow” factor and underpin this with some retail design elements that remain consistently relevant and timeless.
These elements include:
External signage and your shopfront is the face of your business and should attract customers in different ways at different distances. At 50 metres the main signage should be a brand beacon, creating a large impact recognisable statement. At 20 metres the shopfront should have a secondary brand statement and reinforce one key offer or byline. As the customer approaches five to 10 metres there needs to be a direct call to action, this should be reduced to three to five key sales messages/offers. There should also be key invitation/attraction devices to pull customers into the threshold of the store. Of course, the brand and product itself needs to be the main focus with props and signage being utilised to make the product look its best at all times.
Ensure your store traffic flow is maximised for profitability. The store layout and for that matter the basic principles of retailing are about getting your customer to interact with the stock in the most effective way and then make a purchase. If your customer can not get within one metre of the stock, on their natural path, the stock will not sell.
Understanding your flow of traffic can be very profitable, so watch where your customers walk and position your most profitable products in the hot spots of the store. Destination products that draw customers into the store should be towards the rear of the store and impulse items by the counter.
Understanding the decision factors when a consumer buys a product is a vital element with category management. Once the buying criteria of a customer is understood the internal category management can be designed to reflect the customers natural selection process. This simplifies the product selection process, increases customer satisfaction, decreases purchase time and solidifies the retailer as a product leader in the customer’s mind.
Lighting levels, the use of internal colours and graphics create the personality of your store environment. Designing this personality to create an alliance with your brand is vital to the success of any retail business. Once the personality has been devised the “tone of voice” that the environment, graphics and messaging “talks” to the consumer can also be developed. The overall effect is a store that can link directly to the overall marketing strategies of a business to create a strong uniform message to the customer.
It is no longer enough to rely purely on the sense of sight. Our partners at e2 Experiential Environments promote the creation of an environment that invigorates all five senses and creates an experience that will create an ongoing relationship between your customers and your brand.
A great example of this is Abercrombie & Fitch in the US who embrace this concept to create an environment like a nightclub that resonates with their target audience and matches their young, funky and sexy brand image. They achieve this to by using load dance music, low lighting and their signature fragrance Fierce is spritzed regularly through the store.
Our research tells us that store design and layout can make a difference of +/- 40% to a retail business. Investing in a strong merchandising and design strategy is essential to lifting sales and profits.
Brian Walker is Managing Director of Australasia’s leading retail consultancy, the Retail Doctor Group. For more on Retail Doctor Group’s Effective People program email businessfitness@retaildoctor.com.au.
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
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