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EXTREME MAKEOVER RETAIL:

CREATING THE WINNING DISPLAY TO DELIVER AN IN-STORE SHOPPING EXPERIENCE. EXTREME MAKEOVER RETAIL:. Michael W. Piczak Dipl.T., B.Comm., MBA OCCAM Consulting Associates Limited Ancaster, Ontario piczakm@mcmaster.ca 905.730.1385. October 5, 2005. The genesis of this presentation.

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EXTREME MAKEOVER RETAIL:

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  1. CREATING THE WINNING DISPLAY TO DELIVER AN IN-STORE SHOPPING EXPERIENCE EXTREME MAKEOVER RETAIL: Michael W. Piczak Dipl.T., B.Comm., MBA OCCAM Consulting Associates Limited Ancaster, Ontario piczakm@mcmaster.ca 905.730.1385 October 5, 2005

  2. The genesis of this presentation • Working with BIA Co-ordinator as an evaluator of businesses that undergo rather extreme makeovers in City of Hamilton • The sense that retailers might benefit by picking up tips from those who do it right • Hunting for best practices by just plain looking around

  3. Objective • To walk out of this room today with one actionable idea that you could commit to implementing tomorrow • Get you thinking like a customer

  4. Indiana U. & KPMG Study (2004) IU/KPMG report found that, in retail stores, shoppers want knowledgeable and courteous sales help, ease of shopping, effective presentation of goods, competitive prices, fast checkout and convenient payment options. The on-line shopping experience required having accurate product and pricing information, convenient and secure ordering, order tracking, reliable delivery and accessible customer service.

  5. What’s important to whom… The point is: One size does not fit all and the experience must be tailored

  6. Methodology • Objective and observant eye of the weird guy (me) • Critically examining stores in Las Vegas, NYC, NOTL, Hamilton and Southampton • Fly on the wall and by loitering inconspicuously beyond the watchful eye of the security guard • Taking pictures of the good, bad and the ugly • Internet searches • Reviewing the literature

  7. Today’s shopping options • Direct mail order • Via the internet • Traditional bricks and mortar

  8. Today’s Retailing Value Proposition • Is complex encompassing: • Price • Quality • Information • Selection • Convenience/Presentation • Service • Entertainment/fun • Finding the balance is key and choosing what to emphasize for your retail operation

  9. The Point of Retail Departure - Vanilla • What you start with is the last person’s mess • Undo their artifacts to get to ‘vanilla’ • Then positioned to create your retailing/merchandising experience

  10. Vanilla: Knowing it when you see it

  11. Getting to work…

  12. Who doesn’t get it… • Bi-Way • MTV Store, NYC • Liquor stores of days gone by • Eaton’s Bargain Basement • Temp retailers in Limeridge • Mom and Pop operations • Pet Store in Limeridge • XS Cargo, Upper Gage • Small town retailers • Knock-off Canal St. vendors, NYC • Many cluttered web sites

  13. The Canal St. Experience They think of everything In store hospitality for the complete experience

  14. Exemplars who get it right…arguably • Home Depot • Disney Stores • Future Shop • Liquor Stores • Chapters • Hilfiger • Nike Stores • The Bay • Terra Greenhouses

  15. Creating the Experience: What have you got to work with? • Lighting • Colours • Sound/Music • Samples • Visual • Atmosphere • Materials (flooring, wall coverings, glass, ceiling heights, fixturing) • Your peoples’ demeanor & appearance • Demonstrators • Window displays • Pairing related purchases (beer and chips) • Appeals to the sense of smell • Cleanliness • Organization • Signage/tagging/directional aids • Digital signage • Aisle space • Inventory pathways for traffic flow • Inventory walls serving dual purpose • Strike zones to slow shoppers to look • Power Zones at the Bay • Display height • End of aisle • POPs • Events

  16. The objective: To create a retailing experience • Interactivity • Welcoming • Movement/energy • Excitement • Customization (Nike Store)

  17. Who openly claims to provide an experience? • Rogers Video • NBC Experience Store, Manhattan • Nike Shopping Experience • Starbucks coffee Experience

  18. Reinventing the In-Store Shopping ‘Experience’

  19. The Image-maker Tools • 1. An Identifiable Store Name 2. A Powerful Visual Trademark 3. An Unmistakable Storefront 4. An Inviting Entrance 5. A Consistent and Compelling Store Look and Hook

  20. Aisle space/positioning • The butt brush factor • Enough space for carts, bags, handicapped, child carriages • Aisles aligned consistent with check out drive 1% more sales

  21. Display height • Realize who is doing the decision making – children, seniors, busy moms, teens • Teens reach for anything • Seniors limited in terms of reach and visibility • Children climb

  22. Store within a store…

  23. Signage

  24. Billabong and Quicksilver

  25. Even these guys know how to do it…

  26. Just plain fun…at Toys R Us

  27. Interactivity at NBA and Nike stores Mano-a-mano with Michael Jordan Building your own shoe for 4 week delivery

  28. Backlighting, digital signage and cubic presentation at Champs

  29. The presentation at Nike and Golftown… Always with the folding boards Golftown’s displays

  30. Digital signage at Ti-Cat games… • Permits messages to be: • Timed • Targeted • Flexible • A show

  31. Want cleanliness?…you can have cleanliness

  32. The ‘presentation’ at Pioneer • Five MUSTS of Proper Display: • Fresh • Faced & Fronted • Stocked • Rotated • Clean

  33. On a budget…who isn’t? • Set out your customer’s shopping objective i.e. what to emphasize (fun, convenience, assortment, etc.) • Make a layout plan of your space • Plan the work and work the plan with your planogram • Think through every square foot of space usage and then think the same in cubic footage • Work with vendors to help solve problems and find ideas

  34. Layout planning first

  35. Planograms defined • The play book of diagrams that guide the manager and team to get the right products in the right place at the right time for the customer. • Input from a variety of sources, both internal and external, & third-party market research collection companies.

  36. Planograms continued • A planogram is the final authority for what should be on the shelves in each area of the store and needs to be maintained accordingly to keep it accurate. • Unauthorized products disrupt the picture the customer sees from store to store.

  37. Some planogram driven tips • Group like items together • Natural flow from product to product • Direct the customer thru the store to the Pay-point. • Impulse buying, fast movers for impulse purchase on the cash counter , front and center • New and Innovative products up front/close and personal

  38. Planograms in action

  39. And here’s what it looks like

  40. Quick and dirty options • Upgrade lighting with halogens • Accent lighting • Paint • Clean up: fingerprints, grime, washrooms, mirrors, dustbunnies • Wallpaper, fabric

  41. Some final thoughts: • Create a focal point (a strike zone a la The Bay) • Use line and shape concepts to design your plan • Use a planogram • Create balance • Keep it simple • Look at your work from all angles • Ask customers for reaction

  42. Other resources… • Why We Buy, P. Underhill • Retail Council of Canada • www.sideroad.com • www.retailimage.ca (virtual tour planning tools) • www.storexpo.info • www.spin.mohawkcollege.ca/courses/piczakm/start.html

  43. CREATING THE WINNING DISPLAY TO DELIVER A SHOPPING EXPERIENCE EXTREME MAKEOVER RETAIL: It’s NOT ‘Rocket Surgery’ Michael W. Piczak Dipl.T., B.Comm., MBA OCCAM Consulting Associates Limited Ancaster, Ontario piczakm@mcmaster.ca 905.730.1385

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