Business Operations of a Retail organisation consists of five main activities explained in this section. Each of these activities is carried out throughout the business, both at the Organisational level as well as Store level. However some of them are concentrated at the organisational level e.g. Buying activity, whereas there are other which are concentrated at the store level and some require contribution from various functional areas within & outside the organisation. This section describes in detail the various functions and tasks in this heading, with an objective to provide a clear understanding of the concepts in each one of them.
Store designing and space planning are essential and critical for retail business success. We discuss, each in detail.
Store Designing
Store Designing is the art of creating the final store and its immediate area within which a retailer wants to operate. Most of the activities under Store designing are covered by Visual Merchandising. A successful retailing business requires that a distinct and consistent image be created in the customer’s mind that resembles all product and service offerings. Visual merchandising helps to create that positive customer image leading to increased sales. It not only communicates the store’s image, but also reinforces the stores advertising efforts and encourages impulse buying by the customer. Visual merchandising can be defined as everything the customer sees, both exterior and interior, that creates a positive image of a business and results in attention, interest, desire and action on the part of the customer. It includes the dramatic presentation of merchandise as well as other important subtle features that create the store’s overall atmosphere.
Visual merchandising is offered to the customer through exterior and interior presentation. Each should be coordinated with the other using the store’s overall theme. The factors which go into the task of Visual Merchandising include – taking care of the Exterior Store Design, Interior Store Design, Store Environment & Ambience and Product Display.
Store Environment & Ambience
VM is responsible for environment & ambience of the store, which is the overall feeling or mood projected by a store through its Image, Atmospherics & Theatrics. The store image consists of both the External as well as Internal Impression of the Store and defines the personality of the retailer. Store atmospherics are the factors which relate to the five basic human senses viz; sight, sound, scent, touch & taste and determines the overall aesthetic and emotional effect created by the store’s physical features. E.g. Graphics, signage, lighting, etc.
Store theatrics is the art of creating more than just a shopping experience out of a retail store. eg. A music store creates a fun atmosphere by a judicious use of artists etc.
Exterior Store Design
The basic objective for visual merchandising is a desire to attract customers to a place of business in order to sell the merchandise. The exterior presentation offers a particular image to the customer which may be conservative, progressive, lavish or discount. How a store visually welcomes customers has a lot to do with whether or not they enter the store. Although good prices and positive word-of-mouth advertising is important, it is hard to overcome the negative image of a poor store exterior.
The Exterior Store Design activity is carried out to create a wonderful pull for first time buyers and then making them comfortable for repeat visits. The position of the store, its architecture, its marquee (the sign or a symbol outside a store) and frontage are important parameters that go into a well-designed store exterior.
Interior Store Design
Each customer has a mental image of a store and its merchandise. A store should have an inviting appearance that makes the customer feel comfortable and more importantly eager to buy. Greater effort must be spent on merchandise displays that make it easier for the customer to find and purchase the items they want.
Interior Store Design plays major role in Visual Merchandising. It involves store layout, space planning and atmosphere & aesthetics.
The Interior Store Design activity is carried out to minimize operational expenses of the store, and yet maximising the store sales and customer satisfaction. Store aesthetics (size, shape, color perceptions), space planning and layout planning are some well defined activities carried out while designing the Interiors of a store.
