Staples Sells More Using Less Space
Retailers today are trying to offer more products in smaller format stores. In an effort to open more locations in a cost effective manner, chain store retailers need to fit the same amount of merchandise in a smaller footprint. Display Dynamics has developed a proprietary system that can accomplish this while also increasing product visibility in-line.
Staples uses the Display Dynamics proprietary Redi Rotor system to display 60% more merchandise in the same space. Sales have increased dramatically.
Our Redi Rotor system requires no tools for assembly. It is constructed using injected molded “rotors” that accommodate reposition able hooks to accommodate most peg or carded products. The system plugs into standard peg board, slat wall, or grid. By installing this spinning system in-line, retailers can put up to 60% more merchandise in the same space. Loading product on a spinning display also adds emphasis over product displayed on a standard peg hook. Take a closer look at a recent program we rolled out at Staples office stores.
Staples had a challenge – how can we condense a 4 foot wall gondola of fine writing pen refills into less than half the space? These items do not turn quickly but are a necessity for consumers who need ink refills for their fine writing instruments. Staples wanted to open up space to merchandise new, higher priced items but did not have the space available. That’s when the Redi Rotor came in! We configured our rotor system to accommodate their entire 4 foot program within 20″. We also provided a product information bracket so consumers could quickly reference the coordinating refill cartridge easily. The entire display was very inexpensive and easily shipped to each store via UPS or FedEx ground service and arrived in a carton just larger than a shoe box. With no tools needed to assemble, each store team could install the system quickly and the new program was set in a matter of days.
Same store sales for the category have increased and surprisingly, sales of the refill cartridges have increased. This increased is due to higher product visibility. The cartridges are no longer flat against the peg board. They are floating out in the aisle on our Redi Rotor display and thus can be quickly spotted by consumers. Overall, this program was a huge success because it met their operational and financial requirements with minimal impact on the store environment.
Call or e-mail today to learn more about the Redi Rotor system and receive a FREE sample to test with your product!
Read MoreSelling in Smaller Spaces
Tired of being frustrated with the size of your store? Sick of looking at bigger spaces that you can’t afford? Don’t do it anymore! Embrace your space – regardless of its size. Limited space isn’t always a disadvantage – sometimes it’s a blessing. And your small space can really work for you if effectively merchandise every single square inch.
Be at one with the Chi: Chi is the Chinese word used to describe “the natural energy of the Universe”. One element of chi is ‘harmony’. Merchandising successfully in a small space is achieved when all the parts of your store are in harmony not only with each other, but also with your customer. Take note of how your customers proceed through the store. Take pictures of small areas in your store and look at them closely to see how each display melds into the next. Customizing for customers: Only you know your customer base and what they expect. Are they skipping over certain areas of the store and congregating in others? Try splitting up the more popular items and placing them closer to products that receive less traffic. By purchasing displays that move easily – for example, racks that work in both slatwall or pegboard or displays with casters – you can very easily revamp the visual landscape of your store without even spending a dime. Money, money, money: The only thing you probably wish you had more of than space is money, right? Be firm on your merchandising budget, but don’t be overwhelmed by potential costs. Consider reworking one part of the store at a time, beginning with where the customers enter. Remember, merchandising (also know as effectively displaying product to increase sales) is a long-range plan made up of specific short-range goals. Don’t bite of more than you can chew. Instead, pick the most deserving part of your store and start there. Then work towards other parts of the store, keeping your ‘look and feel’ as the guide for your display decisions. The never ending story: Take your merchandising plan and divide it into easily achieved goals. Be firm with your timelines so that you don’t get lost in details and possibilities. Refer back to your merchandising plan and really try and stick to your goals and budget. Thoughtful displays: Displays that are designed well don’t always cost more, and most times, they hold more products in the same amount of space. Waterfall and rotating displays are perfect examples.
Case study: In this post, you will see before and after shots of a small store in New Jersey. They knew they wanted a new display system to maximize their square footage. The owners designed a plan, firmed up their budget then set out to find a supplier who could fill their needs. Check out the results. Keeping your ear to the ground: Small storeowners have a greater challenge when it comes to turning a profit. You need to be smart about the amount and types of products that you offer at your store, and tuned in to how each product is selling. Enter the magic of merchandising! If you have a product that isn’t selling but should, a better display might solve that problem. Move it, create a sign for it, incorporate it into a sample page display with other complimentary products.
What s new? We can’t emphasize this enough – customers want to know what’s new. If you’re as good as you say you are, they keep coming back and buying – and they want to purchase what they don’t have. Keep your newer items visible – think about a ‘what’s new’ section. In a small store, you can do this even easier – plus you can relocate some of your slower moving items nearby so that customers are encouraged to look at them again. When all else fails mark down! We all do it – check out the sale rack first. Consumers like a good deal, so mark down items that aren’t moving quickly. You may even want to dedicate one corner of your store as your clearance section – but locate it so that the customer has to walk through as much of the store as possible to get there. Something for status quo: As you redesign your displays and bring in new products, remember one thing – customers want to be able to find what they need quickly. In your grocery store, the milk is always in one place – and if it moved, you’d be frustrated to figure out where it went. Make sure your stock items stay in one place, usually in the back of the store so customers can walk through to get to them. Every effort should be made to keep certain stock items where customers can find them.
It really isn’t about the space you have; it’s about how you use it. Smaller spaces lend themselves to quicker and more profound changes. But they can also get cluttered and overfilled. Stay true to your merchandising and product plan. Be sure you offer a reasonable supply of new products – especially products your customers are requesting. Think about the small boutique stores you love. The successful ones turn a small space into a fabulous shopping experience filled with fresh products and new ideas.
Read MoreThe Science Behind the Sale
Visual impact can be more effective in point-of-purchase decisions than brand allegiance.
Merchandising
You thought deciding on product lines and class schedules was tough? Now you have to tackle point-of-purchase issues that include shelf talkers, signage, displays, and everything else that goes with it. You don’t have to panic, though, because there is a science behind the mystery of P-O-P. Here are some winning concepts along with a closer look at one of the world’s most effective retailers.
Know Your Customer
It sounds elementary, but really try to get inside your customers’ heads. How do they shop? Where do they head when they enter your store? Are they typically drawn to new products? Do they go straight to a sale display? Slow-moving products may sell faster if they are located near sale merchandise. Changeable displays near the register are a great way to encourage addon purchases. Also, think carefully about the fixtures in your store. Buy displays that work together and can be positioned and repositioned easily.
The Science Behind the Practice
Tests have shown that customers middle themselves in an aisle. They go to a central location and then begin shopping in a four to six foot-wide field of vision. Usually, they begin looking at products that are slightly below eye-level, beginning with those that contrast greatest with the products around them. Keep this in mind as you arrange your products on the shelves. Try to place contrasting packages next to each other in order to increase interest. Create a signpost that will drive your customer’s attention to certain products. Remember that customers are less likely to consider products that are placed to the far left of center and above eye-level. Also, customers shop like they read, typically from left to right and top to bottom.
According to the Journal of Retailing, position on the shelf is far more important than the number of facings allocated to a product in driving sales. For example, two facings at eye-level are more beneficial than five facings on the bottom shelf. The research also showed that shelf allocation should not necessarily be driven by market share. Rather, visual impact can be more effective in point-of-purchase decisions than brand allegiance.
Additional research has shown that customers are less drawn to a brand as they are drawn to everyday low pricing, good customer service, in-stock merchandise and effective organization. In fact, brand shoppers can be swayed to purchase alternate brands even if the prices are the same. However, they need to feel that they are getting a better deal, which is where your shelf advertising comes into play. Use your shelves to educate your customers about the product’s strengths. Differentiate similar products and help clarify the purchase process.
Remember Your Ceiling
Next time you get a moment, watch as your customers come through the door. Do they get stuck at the front of the store, or are they drawn to the back? Signs are a great way to keep your customer interested in what you have at the back of the store. Keep the signs bright and hung just above the top of your display racks. This is an effective way to make sure your customers see all the fabulous product you have in stock.
Keep an Eye on the Target!
In an effort to better understand the power of effective merchandising, let’s take a look at a case study of Target stores. Target’s core customers, or guests as they are called, possess retail tendencies similar to scrapbook and craft store customers. Ninety percent of Target shoppers are female with a median age of 45 and median household income of $57,000; 44% are college educated and 39% have children. In a recent study, 98% of American consumers recognized the Target bull’s-eye logo.
Target relies heavily on point of purchase support of their brand by using ceiling hangers, shelf talkers and large wall posters. Signage depicting merchandise brands is extremely rare. Even in cosmetics, an area where vendors typically have free reign, Target controls display designs and gives brands a standardized template with which to work. When Target does break from policy and accept vendor-supplied displays, they must integrate closely with each store’s motif.
Specialty Departments
Some Target stores include a Starbucks coffee shop, ATM machine, one-hour photo center, pharmacy and a grocery store. The average shopper visits 8.3 times per year, however those buying groceries visit 20 times per year. You can clearly see that stores offering consumable products and specialty departments have stronger foot traffic and a higher number of sales transactions annually.
Destination Departments
Target’s 1 Spot dollar-store department is one of its best success stories. This traffic-driving initiative was rolled out in September 2004 and was strategically located near entrances at discount stores and super centers nationally. The department was expected to generate $400 million in sales. In the first week after the rollout, sales were four times higher than expected. Because it is located at the store door, customers begin shopping the minute they arrive and are encouraged by the deals with which they are greeted. It drives them straight to a shopping cart with thoughts of other deals to come.
There really is a science behind the shopper mystique. Product placement, shelf advertising and, of course, merchandise desirable to your specific customer will lead to a store’s success. Remember that your customers want to buy; that’s why they stopped in. Effective point-of-purchase advertising will help them accomplish their goal and leave them feeling happy and satisfied.
Read MoreWalking the Retail Tightrope
The first balancing act of the retail environment is the problem of merchandise.
If you’re a tightrope walker, you know it’s all in the balance. But as a retailer, it is sometimes easy to forget the delicate balance that exists in the store environment. Stores in general share basic physical similarities—checkout counters, end caps, shelves and spinners. But each store becomes individual through its product lines, flow of environment, interior attitude and how these factors relate to its customers. Herein lies the balancing act.
THE PRODUCT SEESAW
The first balancing act of the retail environment is the problem of merchandise. On one side of the seesaw is just too much stuff. Often, stores choose so much product that workers spend the day cramming it into every space available. The thought here is trying to make sure they have everything the customer could possibly want. The result can be an overcrowded, dizzying space. When the customer walks through the door, they are forced to root through the shelves to find what they are looking for—and often leave without it.
There is obviously a delicate balance between having enough product to satisfy a broad range of customers, but not so much that the customer feels overwhelmed and less likely to make their way to the checkout. When you are choosing product lines, think carefully about your customers. What do they typically buy? New products should work in tandem with your best-selling items so your customer feels comfortable trying them out.
Too many new products all at one time (like right after a big tradeshow) only confuse your customers. The solution to this problem, obviously, is to simplify your product lines. It isn’t necessary to carry everything that you saw at last month’s tradeshow. First of all, it’s better for your cash flow to stock fewer items. Second, if you are thoughtful about your merchandise, the customers will be able to find similar products and, better yet, actually locate them in your store.
Speaking of location, try some new signs that communicate to shoppers’ individual tastes. You can use the extra space previously jammed with product to speak directly to your customers. With good merchandising, effective displays and a streamlined product mix, your customers will be comfortable, not overwhelmed.
SATURATED OR SPARSE?
Now, on the other side of the seesaw is under-stocking product and understating your message to customers. Stores guilty of this typically have very clean, very well organized, very symmetrical shelves but not enough merchandise to appeal to a wide consumer base. They have used their surplus space, perhaps, to paint inspirational murals, the lighting scheme is soothing, and the displays are subtle. The result: a space so relaxing you almost want to take a nap.
The solution to this problem is twofold. The first is a shot of personality. Don’t be afraid to inject some of yourself into your store. Your customers obviously like you and your taste, so go a step further. Tell your customers a story, make them comfortable, and create a merchandising system that easily leads them through the store. Effective signage placed on the shelves and hung from the ceilings will guide your customer down the aisles and interest them in products they didn’t know they needed.
The second key is your assembly of products. As we have said, too much can be dizzying, but not enough may make your customers go elsewhere. Think about the last time you went looking for the right pair of pants. Too many racks overflowing with jeans in every size seems like too much work. But if the store only carries petites or is stocking only black pants, you’d have to find another outlet. By limiting your product lines in trying to create a serene, unobtrusive environment, you may also limit the coveted “add-on” sale.
Finding the balance between too much and too little is a personal journey. Before you buy a line of products, take a look around the store and decide where you will put it first. What other products will it complement? Are your customers even asking for it? Remember that each store is different and requires a different blend of products to maximize sales.
RETAIL EXPIRATION DATES
Walking through the dairy aisle of the grocery store, you can easily assess the freshness of the products by looking at expiration dates. This is not so simple in the retail store. Your products do go bad, so to speak, but they don’t carry labels announcing it. They are frequently improved upon, re-created, better engineered, etc., and it’s your job to balance the new without making the old look obsolete. The key here, again, is to pay close attention to your product mix. Bringing in new merchandise is important, but making sure it blends with your existing stock will bring up your bottom line. Don’t be afraid to discount some older merchandise in anticipation of newer product lines. You’ll net some sales, which will free up additional space to avoid overcrowding.
The same holds true for merchandising systems and the interior of the store. Are your displays free of cracks and chips? If they are a little worn, try to disguise the blemishes. Look around at your walls, carpets and checkout areas. Do they need to be spruced up or repainted? Take a few hours after closing to give your store a needed makeover; it also communicates to your customers that you care. If you have ever sat down at a sticky restaurant table or been served by a waiter in a dirty apron, you’ll know how much a little attention to detail can say about the quality of an establishment.
The goal of any retail store is to establish a relationship with the customer, and it needs to happen as soon as they walk in the store. Know your customers and what they want. You won’t wow them by stocking every product under the sun, and you won’t make them feel warm and cozy if your store doesn’t communicate a specific message to them. They want to feel connected, to feel they can trust you and that they know you. Too much or not enough, clean or cluttered, loud or mute; it is, in the end, all in the balance.
Read MoreWelcome to The Dynamic Retailer!
I would like to formally introduce The Dynamic Retailer. The goal of this blog is to provide an open forum to discuss all aspects of retail merchandising and the design and manufacturing of retail displays and store fixtures.
In spite of weak consumer confidence and slow retail store sales, this is an exciting time for retail merchandising. New technology like RFID and facial recognition technology are providing more information to consumer product companies and retailers than ever before regarding consumer behavior on in the store. Focusing on consumers when they are in retail stores is more important than ever. With fragmented media, DVR technology, and the internet, consumers are overwhelmed with brand images and promises. The best way to reach consumers is directly in stores because products, people (and their money) are all in one place. In addition, consumers like to interact with products before they make a purchase. With shelves full of actual product, smart retailers are displaying items in a format that allows consumers to “touch”, “feel”, and ”demonstrate” product attributes.
My company, Display Dynamics, Inc., is focused on this shopping phenomenon. We design all of our display and store fixture solutions around the idea of consumer interaction. What exactly does this mean? Most basically, we try and understand the attributes of a product that mean something to target customers. If the product is colorful, the display system should accentuate this. If the product needs to be demonstrated, we find cost effective ways to take the item out of it’s packaging and display it in the store without allowing shoppers to steal or destroy the product.
Another way we approach this merchandising challenge is by creating space that was not previously available. We have designed systems that display up to 60% more merchandise in the same space. The newly created open space is then devoted to product information panels or demonstration areas. The overall goal is to provide a more educational or inspirational environment for shoppers to make product purchases.
In my next few entries, I will be focusing on specific products and the methods by which we achieve heightened consumer interaction and inspiration. I will also be discussing innovative technology that provides power to electronics products like mobile phones, cameras, and GPS devices. We will also discuss innovative materials and manufacturing processes available to create these display fixtures.
To our readers – feel free to post your thoughts and ideas about any aspects of retail merchandising. As mentioned, the goal of this blog is to provide useful, free information for anyone in the retail marketing and display industry. More to come…
Bob.
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