chapter eleven the importance of retail copyright © 2012 john wiley & sons, inc. photograph...

THE IMPORTANCE OF RETAIL

Copyright © 2012 John Wiley & Sons, Inc.Photograph Courtesy of SuperStock

Learning ObjectivesIdentify the various motivations for tourist

shopping and how they can be met.Describe the role of shopping and retail in a

resort operation.Illustrate the impact on sales productivity of:

Layout and designMerchandisingCustomer segments

Copyright © 2012 John Wiley & Sons, Inc.

Identify the various motivations for tourist shopping and how they can be met.Shopping Motivations:Nostalgia – souvenirs are reminders of the places

people have traveled.Prestige – buying local art allows tourists to show

appreciation for local workmanship and add to their personal collections


Shopping Motivations (cont.)Functionality – convenience and price of items

may vary depending on vacation destinationGifts – tourists buy gifts for family and friendsAltruistic reasons – tourists may buy items that

benefit people and/or places at the destination


Shopping VenuesSouvenir Shops – stock items representative of a

regionSuper MarketsClothing StoresMalls – some have become tourist attractions

with recreational experiencesShopping festivals


Shopping Venues (cont.)Airport Shopping

Landside – located before security checkpoints and open to all passengers and visitors

Airside – only accessible to ticketed passengersRailway Stations – for short distance

commuters


Shopping Venues (cont.)Duty-free Shops – 30% of all spending on each

trip is done in duty-free shopsCraft Villages – produce specific types of

handicraftsMuseums, heritage sites, wineries and

distilleries, special events and theme parks also provide shopping opportunities.


Layout and designMerchandisingCustomer segmentsAll segments are interrelated. Strengthening one

area takes pressure off the others and visa versa.

Illustrate the impact of sales productivity of:


Layout and DesignTimeHow much time people spend in a store is an

important factor in determining how much people buy

Set up should lead customers from one part of the store to another, a voyage of discovery

The more shopper-employee contact, the greater the average sale

The longer shoppers wait in line, the lower their impression of overall service


Layout and DesignLayoutDisplays should be offset to one side, to be more

easily seen from an angleThe reliable zone is the placement area where

customers are most likely to see the merchandiseThis area extends from slightly above eye level to the

knee level


Layout and DesignPeople would rather look at people than

objects, so place advertising near employeesPeople travel and react predictably to their

surroundingsIn North America people tend to walk to the

right upon entering a storeVisitor flow should take customers through

souvenir shops


Layout and DesignThere will be more sales if shops are near the

exitKeep the transition zone as small as possibleAverage sale per customer increases as more

customers use baskets


Merchandising VisibleInvitingAccessible

The first two items attract shoppers while the third is important for keeping them in the store.


MerchandisingRetail CompetitionResort retailers must compete with major retail

stores and chains who are increasingly devoting more space to golf specific clothing

Resort shops offer logoed clothingThe more expensive an item is, the fewer that

should be put out on the floor


MerchandisingSales can be stimulated if:

The product is the focusThe surrounding environment needs to account

for the products final useMini-environments can be created through

themesCreative merchandising stimulates all five

sensesSimilar items should be grouped to create

ambiance


MerchandisingLeisure shoppers are more inclined to make

impulse purchasesAdvertising messages must be kept short where

people are walking fastLonger messages can be posted at cash registers


MerchandisingMerchandise PlacementMerchandise should be displayed to the right of

where customers standMost popular brand should be dead centerBrand the store is trying to build should be

placed just to the right


OperationsContact initiated by an employee increases

likelihood a shopper will buy somethingThe most important factor in determining a

shopper’s opinion of the service he receives is waiting time

Adding sound, light and color to the register area can ease customers from the anxiety of the financial transaction


Customer SegmentsWhen shopping, men:

Move faster, spend less time lookingLook at price tags less often and can be more

easily upgraded to a more expensive itemGet a thrill from the experience of payingHate asking for directions


Customer SegmentsWhen shopping, women:

Spend more money when shopping with other women

Are more demanding of the shopping environment

Older shoppers:Must have easy to read signsSee a lot more black, white and red, and a lot

less of other colorsNeed brightly lit stores


Customer SegmentsChildren

If stores are not child friendly, parents will be deterred to enter Make merchandise reachable Childproof the store Be able to divert the attention of a restless child Design a good area for children

Generation XAre attracted to the specialty-store

environment if the merchandise is up-to-date


Profit RatiosSales Analysis

TurnoverStock-to-sales

Price zones


chapter eleven the importance of retail copyright © 2012 john wiley & sons, inc. photograph...

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