retail management - how to display & promote sales

RAS/N0105

To display stock to promote sales

This OS describes the skills and knowledge required to effectively display stock to promote sales.

This unit applies to individuals who display stock to promote sales in retail operations:Prepare display areas and goods in a retail storeSet up and dismantle displays in a retail storeLabel displays of stock in a retail store

The role may be performed in a range of Retail Operations:Department StoreSupermarketSpecialty StoreFresh Food storesQuick Service Food Stores

Having the right merchandise at the right time, at the right place helps to increase business efficiency. Thus by having

a merchandising plan in place ahead stores try to make sure that every customer walking into the store gets what

he/she wants at any given point of time.

Element : Prepare display areas & goods in a retail store

GENERAL PLANNING

• Annual Business Plan ( ABP) is made in values for the entire financial year.

• ABP is divided into formats/Chains/Categories and later mapped to brands floor wise or vice - versa.

Business plan- Consider all elements

• When a merchandise plan is made we should consider the layout and the fixture plan allotted for the category/Brand.

• Based on the fixture plan the number of options is counted physically and agreed upon (until or unless some fixture is added or removed).

Ideal size mix

Based upon the profile of the brand the ideal size mix for an option is arrived. For example Men's shirts and Men's Trousers size ratio S:M:L:XL and 30:32:34:36:38:40 will be 1:2:2:1 for shirts and 1:2:2:2:2:1 for trousers, ideally making it 6 pcs per option for shirts and 10 pcs for trousers.

An example : Shirts

Arriving at Category Ratio

Then the mix of categories is arrived at for the given brand based on the history and the buying pattern of the customers from that brand. For example category ratio for Shirts: Trousers: Accessories will be 6:3:1. Based on the option plan and the Size ratio required the racking capacity is arrived.

Planning stocks for months ahead

(For understanding purpose we would take Brand X as example.)

Based on the Average Selling Price of the brand X we arrive at the quantity to be sold to achieve the target mapped to the brand. The floor managers would make the plan.

•A minimum of 8 weeks' cover for stocks is planned for the month keeping in mind the lead- time and other factors involved in the process.

•When the total quantity is arrived at, category/sub category wise options are planned as per the option plan made earlier.

•Option and racking efficiency at brand sub category would be made twice a week.

•The entire stocks requested should reach the warehouse ( WH) in different hits during the month.

• The stocks reaching the WH are to be inwarded and to be arranged on racks brand/category/option/colour wise.

•The details of these are sent to the operations team and the managers

•The Operations team makes an Indent on a day to day basis for the stocks required in the next day morning load.

Continued…

• The Indents sent should be very specific to brand/category/option (style code)/colour/size wise if it is a replenishment indent or else option wise.

• A dedicated person in the WH picks up the stocks requested on the same day, does the outward and other necessary documentation for the next day's load

Continued…

• On a weekly basis staffs from the brands and the concerned manager visits the WH and picks the stock physically if required.

Continued…

Planning Stocks

Also other criteria for merchandise outward from the floor to the warehouse would be if theoption available is not a full option, 70% interims of count of sizes.

For e.g.Option A

Size 28 30 32 34 36 38 40 42Nos 1 1 1 1 1 1

Out of 8 sizes 6 sizes available to sell, which is 75% of the total size count. So option Awould be classified as a full option.

Planning StocksStocks

Option B

Size 29 30 32 34 36 38 40 42Nos 2 2 2

Out of 8 sizes 3 sizes available to sell. Which is 38% of the total size count. So option B would be classified as a cut option.

Rules for display : Don’t overload

❑ Floor supervisor to ensure that merchandise density doesn't exceed the plan and is in line with the defined racking capacity.

Rules for display : Do not leave racks empty

❑ Indenting should happen thrice a week to ensure there is no clutter of excess merchandise on the floor as well as avoiding potential sales loss due to unavailability.

Merchandise Display

OBJECTIVE: To ensure that the brands are represented as per the desired positioning, making it visible at the floor and invite customers to shop at ease. This should also ensure that merchandise at the counter are neatly placed while addressing the brand representation in terms of subcategories and as per the customer purchase patterns

Co-ordinate displays

❑ Display of merchandise should be in the proper fixtures, making the merchandisemore visible to the customer and providing ease of shopping.

❑ Floor supervisor to ensure the merchandise is displayed properly taking into the consideration the hanging, stacking and front open display requirements of different product categories.

Make interesting displays

❑ Floor supervisor to ensure the process of innovation in merchandise display is a continuous one. New ways of displaying the merchandise to enhance the offtakeshould be initiated and encouraged at all times.

Use themes and Stories

❑ Floor supervisor to ensure the new arrivals are properly highlighted on the floor aand customer perceives freshness whenever he walks into the store

Merchandise Display

❑ Floor supervisor to ensure merchandise is displayed in neat stacks or hung properly the racks should be aligned

All sections in Browsers must be filled

Use Innovative displays

Use themes on Mannequins

Color Dock displays

Ensure floor fixtures are aligned

Trial rooms are lit and clean

Do not leave shirts crushed in hangers

❑ Depending on the fabric requirement the merchandise should be treated accordingly Eg. Any linen merchandise should not be kept without ironing it properly

❑Utmost care is taken to prevent stains- it will loose its salability

If Customer has left a wrong shirt in wrong place

Remove shirt and display in correct place

❑ No Merchandise is kept in any space other than the one which is assigned to the brand

Do not hang one shirt on a hanger

Put back clothes used by customers

Fold the garments back and stack

Use a Steam Jiffy to iron out creases

Preparing display area

Clear and Clean Glass

Cleaning Windows Display

Click to see video

Element : Set up and dismantle displays in a retail store

Window display – Inside the store

Inside windowsshowcase special products

Highlight new arrivals

Internal store displays

Highlights brand

Highlights events

Highlights festivals

Attracts customers to new products

Picture frame – Design visual

Internal store displays

Highlights best product

Features special products

Theme wall or columns in stores

Photographs – theme wall

Focal point of the store

Conveys brand image and positioning

Apparel Fixtures

Wall Fixtures Floor Fixtures

Primary Hanging Rod

Shelves/Wall Rack/Unit

Slant Arms

Step Arms

Gondolas / CDU (Central Display Unit)

Arm Browser

Primary hanging rods – side hanging

Can accommodate more products

Easier to select

Wall racks - shelves

Wall RackShelves

Wall shelves normally 15-18 inches in depth supported with brackets

A four-feet shelf can hold about 20 shirts vertically

Slant Arm

A slant arm with 6-15 knobs

Full front is visible

It is used best for shirts

Best used to display new arrivals

Step arm

It is an arm having a z-shaped form, generally used for hanging tops and bottoms on one arm

A step arm can accommodate 8 shirts per arm or 6 trousers per level

Can be used to display coordinates - shirts on the upper arm and trouser on the lower arm or vice versa

Floor fixture – Gondola - CDU

A long flat-bottomed displayer with straight upright sides

Commonly used for trousers

Can hang or stack products

Gondola

Other examples of Gondolas

Gondola

Four Arm browser

Allows a customer to browse through the merchandise by viewing it from all sides

Best recommended for T- Shirts as it would increase the chances for impulse buying

Can carry about 12-15 T-Shirts per Arm

Floor fixtures - E Table

Hangers

Get rid of waste/ excess stock safely correctly & promptly

• Before the goods are transferred from the floor the operations manager should ensure that the concerned relationship manager's approval is there.

• There has to be different documentation of outwards meant for return to vendor and transfer to the warehouse; the same needs to be identified and stated clearly. •

Get rid of waste safely correctly & promptly

For returns initiated from the floor and meant to be sent back directly to the vendor, a prior return approval has to be there

Label displays of stock in retail store

In-store indicatorsCheck requirements for labeling

Rail Product

Shelf talker

PriceQtyItem number

Indicators are used to show customers some information

Floor fixture - Impulse buyCheck if information is accurate & legal

They are placed in locations where they can catch customer’s attention

Car shampoo

Hair shampoo

POP – FSU Free standing unit

Units which display products like accessories as a standalone unit

Mannequins

Give an idea

on how the

garment

looks when

Displaying Brand labels

Price tags

Supplier code number

Item price

Item number

Report any mismatchwith item

Trial rooms

Attach right label’s to products. They could be changed intentionally too !Secure the labels correctly so that customers can see it .

Trial rooms

Encourages

trials of

products

Product trial props

Encourages

trials of

products

An revision of learning @ supermarket

Display stock & promoting sales inside the supermarket

Store components in Super Markets

Coolers and freezers

Products easily visibleCustomer can open door and remove products

Temperature -18 deg

Freezers & Chillers

Can be portable or fixed

People can see products looking down

Freezers temp -18 deg C

Chillers temp -4 deg C

Freezers in food stores

Special products displayed in look down freezers

Easy for a large number of customers to see and select products

Wall freezer

Look down freezer

Fixtures in Super Markets

Gondola

Examples of food counters

Other examples of food counters

End Caps

Can display new arrivals

Can display representative products in the racks

Branding can be done

Complete family of packs and sizes can be represented

Shopping carts

Used for adding products to be purchased

Supplements carry carts

Cart Basket

Exercises for participants

Do exercises from workbook

Common Physical components

Common physical components

Surveillance – CCTVs

For surveillance of products with a central monitor

Also can record store walk-ins

Security tags on products

Security equipments

Prevent pilferages

If bar code is there when a product is taken out it beeps

Bar codes are removed after billing

POP - Danglers

Adds to display information

Announces promos and schemes

Highlights arrivals

Props with products

Used to create mood

Enhances displays

Projects a lifestyle

Special promotion counters

Special promotion counters highlight special products

Inform customers special features

Present new products with special schemes

Used also for bargains and special rebates

Story cards

Builds brands

Explains features with a story

Display of Fliers tent cards

Information cards placed near displays

Gives products features and catalogues them

Customer can take away these fliers

Stock room

Room where additional stocks are kept

Normally organized item wise

Should be kept for easy retrieval

Attendance recording devices

Swipe cardreader

Register

Cash counter

What is kept in cash counters

Platform for client to remove products

Discount cards, products which become last minute purchasesSome promotion materials are placed on the counter

Billing in Hypermarkets

Rows of cash counters for billing and handling large number of customers

Credit card machine

A credit card machine normally kept in the cash counter is used to swipe customer credit cards, debit cards, and membership cards

These machines are connected to banks to automatically transfer funds without using cash

Different stock display & promotion options

Store Layouts

Store layouts

Store Layout

Positioning of

products in an

attractive way

Gives customer

plenty of moving

Store layouts - Forms

Vegetables

Office & customer service

Books, magazines, seasonal display

Entrance

Cart area

Checkouts

Vegetables

Entrance

Cart area

Checkouts

Vegetables

ExitExit

Entrance

Cart area

Checkouts

Layout

Used in grocery and drugstores.

Repetitive patterns.

Cost efficient

Products

Custservice

Fruits

Checkouts

Cartarea

Fruits

Storage, Receiving, Marketing

Underwear Dressing Rooms

Checkout counter

Clearance Items

Feature Feature

Open Display Window Open Display Window

Checkout counter

Clearance Items

Feature Feature

Checkout counter

Clearance Items

Feature Feature

Layout

Fixtures and aisles arranged asymmetrically

Used in small specialty stores and departments within large stores

Course

Layout

Draws customers around the store.

Has a major aisle that has access to departments and store’s multiple entrances

Zones of the store

CashCounter

Rack Rack

Entrance

TrialRoom Rack

New arrivals

Feature wall

Rack Rack

New arrivals Cut sizes

Service zone – Accessories

Elements

To promote impulse purchase

Store Layout comparisons

Layout Type Characteristics

Grid Clear route and aisles.

Free FormRandom fixture positioning.

Race courseLooped pathway

Interconnecting boutique and islands

Layout Type Advantages

Easy maintenance

Easy movement

Free Form

Shopper freedom

Flexibility

Image creation

Race courseAesthetically appealing

Encourages impulse purchasing

Layout Type Disadvantages

GridNot flexible

Cheap image

Free FormExpensive

Poor use of space

Race courseVery Expensive

Very poor space usage

Layout Type Uses

GridFood stores

DIY stores

Free FormClothing stores

Department stores

Race courseSpecialty stores

Concession stores

Ideas for stock display and promotion

Ideas to help arrangement

Good Floor display

1Locate the high draw items around the perimeter of the store so customers will have to go through other products to get to them.

2Use noticeable locations when displaying high-impulse and high-margin items

3Allot items that are purchased frequently between both sides of aisles to increase the visibility of all items

4Use the end of aisles to display best products because of high exposure

5Be careful when deciding which items will be seen first at the store because this will portray the image of the store

Performance Criteria(PC) w.r.t the Scope

Element Performance Criteria

Prepare display areas and goods in a retailstore

To be competent, the user / individual on the job must be able to:•PC1. Identify need for the display in relation to stock, space, position of the display and dates.•PC2. Check that the display area is the right size and report any concerns promptly.•PC3. Gather the materials, equipment and stock you need for the display and check that they are clean, safe and in good working order.•PC4. Follow company procedures for clearing, cleaning and preparing the display area before use.

Setup and dismantledisplays in a retailstore

To be competent, the user / individual on the job must be able to:•PC1. Set up and dismantle the display safely, inline with plans and within the time allowed.•PC2.Check that the display is clean, tidy and safe for use.•PC3.Check that the display has the levels of stock you need.•PC4.Clean and store equipment and excess materials; get rid of waste safely, Correctly and promptly.

Label displays of stock in a retail store

To be competent, the user / individual on the job must be able to: •PC1. Check requirements for labeling stock. •PC2. Check information on the label is clear, accurate and legal before starting to label stock. •PC3. Report promptly any information on labels that may need changing. •PC4. Attach the right labels to the right products. •PC5. Position labels so that they are securely fastened and customers can see them clearly. •PC6. Complete labeling within the time allowed.

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