by Scott Baumler
Extension Economics Specialist
Iowa State University Extension to Communities
You shuffle to the right, then you curve to the left. You shoot the loop, making your way under bright lights and colorful banners. After wandering though the grid, you emerge at the exit, dazzled by the sights you've seen. Are you in a fun house at the county lair? Could be, but you might just be in your local grocery store.
Retailers use a variety of formats to display their wares. While some merchants use "power merchandising" tactics more than others, the overall goal is the same: present the merchandise in an inviting and informative manner. Studies show that consumers spend 15 to 20 percent more in stores they find to be well stocked, pleasantly kept and "fun."
If you're a customer, maybe you'll recognize a few of the following techniques and appreciate the merchants' showcase efforts. If you're a retailer, maybe you'll pick up a few new ideas. There are many simple presentation techniques that can help consumers react positively to what you have to sell.
Layout: Ever leel as if you're in a maze when you enter a store? It could just be poor planning or a lack of space. Many times, however, the layout is designed to help you move through the store. The loop layout is a popular modern design. The loop is intended to help customers move efficiently through the store and to increase sales by exposing customers to more items. A curving design is more of a free-flow setup intended to create a relaxed, browsing atmosphere. The classic floor design is a grid layout where isles run parallel and perpendicular to each other. This uses floor space well and simplifies stocking.
Flow and Appearance: Shopping should be as easy and enjoyable as possible. If appropriate, carts and baskets should be available since customers may otherwise only purchase as much as they can carry. Good lighting makes things look crisp and clean, and carpet in apparel sections makes for a better presentation. Signing helps identify the store, answer questions, and can be used to draw customers into underused sections of the store. Wide, open aisles are nice because bumping into shelving or other customers can be quite frustrating. Sometimes displays are extended into aisles intentionally, which impedes passage but ensures prominence.
Positioning and Arrangement: Vertical merchandising places like items together in a column, usually putting large things on the bottom and small things at the top. The "sweet spot" for shelf space is between waist and eye level because the goods are easiest to see and reach. Prime merchandise is often located here. Arrangement can be done in many ways: style, price, color, size and so on, depending on what works best. Shoes, for example, are often arranged by style. Cross merchandising displays related items jointly, such as hanging bottle openers in the same area as the bottled soda. Cross aisle merchandising puts related items on both sides of the aisle to keep related goods together.
Projects: Displays are coupled with how-to information with the idea of selling an entire project instead of just one product. This can be especially helpful for do-it-yourselfers. Potential buyers can inspect the goods and learn how to effectively utilize the merchandise. An example would be a display showing how to fix a leaky faucet, with all of the tools and necessary parts nearby. For apparel or home furnishings this often takes place as theme or ensemble displays.
Stirring: Moving merchandise can make it appear as though the retailer is changing inventory and bringing in more stock than is actually the case. It can give an appearance of diversity and change. Seasonal items may be brought to the front of the store. Clearance racks may be used to pull customers through other lines of merchandise.
Endcaps, Dumpbins, and Cutcases: Endcaps are displays at the end of an aisle, dumpbins are large hoppers full of merchandise, and cutcases refer to merchandise in the original container. Cutcases convey a low-budget, bargain-basement image. Endcaps and dumpbins are usually used to highlight sale, sundry or seasonal items. They are changed frequently and are intended to promote impulse purchases.
Power Aisle: A power or action aisle is a wide corridor running through the store. Often it is marked with signs or floor paint. A power aisle leads customers though the store and makes use of endcaps, dumpbins and displays.
There are many other tricks of the trade, which underscore the notion that retailing is as much art as science. When it comes to presenting a positive image, detail makes the difference.
Contacts:
Terry L. Besser, ISU
Extension Sociology, (515) 294-6508
Del Marks, ISU Extension
Communication Systems, (515) 294-9807
