This is a short presentation of 5 minute presented to the BNI (Business Network International) Legacy chapter on the 12th Feb 2015, as part of the guest speaker program. Enjoy !

1. The Psychology of retailing facts
and interesting stuff.

2. The main purpose of retail is to move stock
If you're not moving stock at your store, you're not
making money.
The economic process is simple, stock comes in and
stock must go out.
Stock inventory costs you money because you must
store it, pay for it and still keep your store open
without the profits it should generate.
The Psychology of retailing facts and
interesting stuff.

3. Experiments have confirmed that.
• 83% of human information is obtained from our sense of
sight.
• 11% comes from our sense of hearing.
• 3.5% from the sense of smell.
• 1.5% from the sense of touch.
• 1% from the sense of taste.
Therefore we can see that sight is the most important sense
retailers have to rely on to entice customers to spend money.
The Psychology of retailing facts and
interesting stuff.

4. The movement of human eyes follows two common
patterns while shopping, the Z Pattern and the F Pattern.
Research carried out in the US shows
• 43% higher consumer recall from static displays.
• 94% higher consumer recall from animated displays
and 80% of consumers could remember the product
displayed.
The Psychology of retailing facts and
interesting stuff.

5. There are four different "modes" shoppers can fall into.
“Autopilot" or “Grab-and-go," consumers generally crossing
necessities off their lists.
“Variety-seeking" mode means customers may be bored and will
actively look to add a little novelty to their cart.
“Buzz" mode they’re susceptible to attractive marketing and new
kinds of products.
"Bargain-hunting" mode, where buyers are more interested in
value for money than any cleverly marketed item.
The Psychology of retailing facts and
interesting stuff.

6. Visually pleasing displays sell products!
Prime real estate refers to proven store locations or
Hot Spots that attract customers ready and willing
to purchase products.
Such as window displays, gondola end caps, free
standing shelving, high traffic areas and vestibule
areas.
The Psychology of retailing facts and
interesting stuff.

7. For maximum revenue, retailers use prime real
estate to encourage close to 100 percent sell-
through, which helps to prevent back stock and
overstock problems.
The Psychology of retailing facts and
interesting stuff.

8. A well planned hot spot in a retail business can
increase sales by 229%
Items on Rolling Racks with signage posted sales
increases well above 134%.
The Psychology of retailing facts and
interesting stuff.

9. Research has revealed that during the same
sales period, 70% more product was sold when
a hand written sign was used compared to
when no sign was used at all.
And 165% more product was sold when signs
were professionally produced to sell the
product.
The Psychology of retailing facts and
interesting stuff.

10. Departmental signs are usually located above
the product, and are highly visible to customers.
Departmental signs drive customers to these
“HOT SPOTS”
The Psychology of retailing facts and
interesting stuff.

11. The Psychology of retailing facts and
interesting stuff.
Beware the dressing room !!!.
Known as the "endowment effect“
“We become attached to things once we feel
ownership over them, Something as simple as touching
an object can produce this effect, as can trying it on or
imagining yourself using it”.

12. The Psychology of retailing facts and
interesting stuff.
“Acting as though you own an item makes you
more likely to buy it”.
Retailers rely on this when displaying
merchandise to drive more sales.

13. Referrals we are looking for.
Entrepreneurs wanting to start or buy into a
retail business.
Retailers struggling with the inexperience factor.
Business owners looking to franchise their
business.
New entrants into the Liquor retail industry.

14. What drives us this Valentines day, is our
passion for retailing, Serving others and our love
of helping business owners to become
exceptional !

15. Thanks for listening !
Any questions?