OPEN
WALLETS
USING PSYCHOLOGY TO
OPEN SHOPPERS' WALLETS
DR STEPHEN SAUNDERS

INTRODUCTION 03
This book is for retailers who want to grow sales and profits I have assumed that the reading retailer has products which are
through a deeper understanding of their shoppers. It uses the relevant and attractive to the target audience, and uses a good
psychology of shopping to highlight those practical things retailers standard of POS technology and retail operations. Today, these
can change to trigger positive changes in shopper behaviour along are the minimum stakes to play in the retail game.
their 'path to purchase'.
The examples shown have been chosen to illustrate a particular
I have developed these principles based on a combination of point. These have mainly been sourced from Australia and to a
academic studies of consumer behaviour and more than 25 years degree from New Zealand. Not all of these businesses are still in
spent in retail both as a retailer and consultant. Having run retail the same form or indeed trading.
businesses, I appreciate why and how retailers want to influence
their top line sales. The examples are not presented with the knowledge or
endorsement of any of the owners, so these are totally
This book is not intended to be a catalogue of best practice store independent opinions. If an example is used frequently that is
designs – there are plenty of other resources which showcase how because I consider the store is a well-run business from which
retailers with large capital budgets can design and build beautiful other retailers can learn. Positive examples are shown with a
stores. It has been written with the capital-constrained retailer in blue star and negative examples with a red cross. The reader is
mind – those things which can be changed without a significant encouraged to understand the principle that is being illustrated
capital investment. It is also not intended to be a retail operations in the example, which can then be applied to her or his own
handbook, although the influencing techniques described here context.
mostly have to be implemented through an operations framework.
The style of this book is unashamedly visual, as in my opinion, a
As the experienced reader will know, in retailing you have to retail store is that visual space where the shopper experiences
change more than one thing at the same time to achieve a positive the 'atmospheric' interaction or 'chemistry' between space,
result. For example a change to display will almost certainly impact product, promotional cues and sales staff. So this is a book
on and in turn be impacted by changes to the store layout. about how to experience your store through the eyes, ears and
other senses of your shopper, and how to more intelligently
So, while this book will focus on individual elements such as market your store to achieve growing sales.
signage or windows, remember that the best results will be
achieved by simultaneously changing a number of elements to Please join me in being inspired.
present the shopper with a cohesive and compelling 'story' that
says 'buy me'.

THE AUTHOR 04
Dr Stephen Saunders
Stephen Saunders is a rare combination of experienced retailer
and thought leader. He graduated with a Doctor of Commerce
in consumer behaviour from the University of Port Elizabeth
(South Africa) in 1992, having written a thesis on low
involvement consumer behaviour with a study of toothpaste
and deodorant shopping.
His professional career in marketing and retail has spanned 25
years' experience with retail and marketing organisations,
ranging from Unilever to Woolworths and Edgars Stores in
South Africa. He migrated to Auckland, New Zealand in 1995
and was instrumental in the strategic development of a number
of leading NZ retailers, including the well-known Whitcoulls
Group and Life Pharmacy Limited.
Stephen successfully developed and established the Books & Since moving to Sydney, Stephen has worked with leading
More New Zealand Post franchise business, a joint venture Australian retailers including Just Jeans, Angus & Robertson,
between Whitcoulls and New Zealand Post. He grew it from a Chemmart Pharmacy, Sanity Music, and Dusk, to name a
zero base to 36 stores within three years, achieving outstanding few. He also consults to a wide range of smaller retail
financial results for shareholders in the process. Stephen was businesses.
also instrumental in the successful establishment and listing of
Life Pharmacy Limited, now the largest pharmacy retailer in From a category perspective his experience has included
New Zealand. apparel, footwear, jewellery, manchester, pharmacy,
consumer electronics, books, stationery and postal services,
He has also worked in advertising and loyalty marketing for retail cinema, music, homewares and specialty foods.
clients with some of Australasia's leading agencies (including
Colenso.99/Clemenger and Ogilvy), and brands including Stephen's passion is converting consumer insights into retail
Farmers, Kathmandu, Air New Zealand, Vodafone and Mazda. cashflow.

Vol 1
03 Introduction
CHAPTERS 05
04 The Author
06 Signage
08 Frontage
10 Windows
12 Promotion
14 Layout
16 Navigation
Vol 2
18 Lighting
20 Display
22 Pricing
24 Product
26 The Senses
28 Service
30 Final Words
31 Index

THE SENSES 26
Why
Engaging the shopper's senses (sight, smell, taste, touch, sound) is
where shopper wants triumph over needs. Simply put, engaging
the senses give you the maximum opportunity to make the sale.
The Psychology
Engaging the senses taps into the following needs:
Imagination and Suggestion
The senses can take a shopper into a positive psychological space,
eg. Romance in Provence.
Relaxation
Engaging the senses relaxes a shopper and also builds authenticity.
1 Commitment
2 3 When a shopper touches or tastes an item, it builds commitment to
the seller.
Curiosity
Engaging the senses enables them to explore.
_____________________________
1. L'Occitane, QVB, Sydney NSW: sight (colour), textures and aroma
reinforce the Provence experience.
2. Lush, QVB, Sydney NSW: fragrance, supported by colour and texture
dominates the shopping experience.
3. Paper2, Surry Hills, Sydney NSW: simple, effective use of colour and
textures from different paper types to enhance the experience.

2
THE SENSES 27
How
Do:
Create a sensory signature through consistency.
Try to engage multiple senses.
Ensure it is consistent with your brand identity.
Use lighting to support.
Have product samples available where possible.
Use imagery and blackboards or posters to provide
supporting cues.
Keep music neutral and relatively upbeat (instrumental is
often best, latin, new flamenco, for example).
Don't:
1 Over-complicate it.
Change it too regularly. Consistency is important.
Allow music to dominate the senses in a store.
2
Recommended:
3 4 Try joss- sticks as a way to introduce fragrance cost-
effectively.
5
____________________________
1. Upmarket boutique, Castlereagh St, Sydney NSW: the
combination of colour and the leather makes for a sensory
experience.
2. Thomas Dux grocer, Surry Hills, Sydney NSW: good example of
using tasting and sampling in-store, to sample both the bread and
the olive oil.
3. Produce stall, Auckland NZ: the classic tactic – using mirrors to
suggest abundance. Abundance is important in food.
4. Eumundi markets, Eumundi, Sunshine Coast QLD: tactile fabrics
X presented in an easy to experience manner.
5. Target, Broadway, Sydney NSW: it is inexcusable to have empty
product samplers in the 'fine' fragrance area.