2. VISUAL MERCHANDISING
Visual Merchandising: The physical display
of goods in the most attractive and
appealing ways.
Store Layout: the interior arrangement of retail
facilities.
Selling areas: where merchandise is displayed
and customers interact with sales personnel.
(75-80% of the total space)
Sales support areas: devoted to customer
services, merchandise receiving and distribution,
management offices and staff activities.
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3. MERCHANDISE PRESENTATION
Merchandise presentation includes the ways
that goods are hung, placed on shelves, or
otherwise made available for sale in retail
stores.
Shoulder-out presentation: The way most
garments are hung in home with only one side
showing from shoulder to bottom.
Face-forward presentation (face-out
presentation): Hanging of clothing with the front
fully facing the viewer. This should always be done
at entrances and walkway. 3
5. RETAIL FIXTURES
Dump tables/bins: A rimmed table or bin used to
hold sale or special merchandise on the sales floor,
especially in discount operations; it has no formal
arrangement.
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6. RETAIL FIXTURES
Four-way rack: A fixture with four extended arms,
that permits accessibility to hanging merchandise
all the way around
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7. RETAIL FIXTURES
T-stand: Freestanding, two-way stand in the shape
of a T, that holds clothes on hangers, sometimes
with one straight arm and one waterfall.
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8. RETAIL FIXTURES
Waterfall: A fixtures with an arm that slants
downward, that contains knobs to hole face-forward
hangers with clothing at various levels.
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9. DISPLAYS
Displays: individual and notable physical
presentation of merchandise.
Displays are intended to:
Stimulate product interest
Provide information
Suggest merchandise coordination
Generate traffic flow
Remind customers of planned purchases
Create additional sales of impulse items
Enhance the store’s visual image
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10. SPACE MANAGEMENT
Locations/space for interior displays:
Just in the entrance
Entrance to department
Near cash counter
Next to related items
Across from elevators/escalators
Ends of walkway
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12. MERCHANDISE
Groups:
One-category, or line-of-goods
Related groupings: go together or
reinforce each other
Theme groupings: event, holiday, etc.
Variety or assortment groupings:
collection of unrelated items all sold at
the same store.
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13. LIGHTING
Used to direct customer’s attention to the
display
Use more light for dark colors, less light for
light colors
Beam spread; the diameter of the circle of
light
Beam spread techniques:
Floodlighting: recessed ceiling lights to direct light
over an entire wide display area
Spotlighting: focuses attention on specific areas or
targeted items of merchandise
Pinpointing: focuses a narrow beam of light on a
specific item
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15. PROPS
Objects added that support the theme of the
display.
Functional Props: used to physically support the
merchandise. (stands, panels, screens, etc)
Decorative Props: used to establish a mood or an
attractive setting for the merchandise being featured
(ex: mirrors, flowers, surfboards, etc)
Structural Props: used to support functional and
decorative props and change the physical makeup of
displays. (boxes, sticks, stands, etc)
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18. WINDOW DISPLAYS
Seen from outside of the store.
First contact with the customer.
Advantages of Window Displays:
Establish and maintain an image
Arouse curiosity
Disadvantages of Window Displays:
Expensive to design and maintain
Requires space
Merchandise can get ruined (sun ,etc)
Glare 18
19. TYPES OF WINDOW DISPLAYS
Enclosed windows: have a full
background and sides that completely
separate the interior of the store from the
display window.
Ramped windows: floor is higher in back than
in front
Elevated windows: from 1 to 3 feet higher than
sidewalk
Shadowbox windows: small, boxlike display
windows
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21. TYPES OF WINDOW DISPLAYS
have a
partial
background
that shuts
out some of
the store
interior from
those
viewing the
window
Semi-closed windows
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24. COMPETENCIES FOR VISUAL MERCHANDISING
1. Explain the purposes of visual merchandising as
they relate to customer satisfaction and
profitability.
2. Describe areas of the space that can be focal
points for visual display.
3. Explain the role that lighting plays in visual
merchandising.
4. Prepare skin, body, and beauty products for
display.
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(continued)
25. COMPETENCIES FOR VISUAL MERCHANDISING
5. Describe various types of written display
materials and their purposes.
6. Describe types of fixtures used to display
apparel and explain how each is used.
7. Prepare apparel for display.
25
(continued)
26. COMPETENCIES FOR VISUAL MERCHANDISING
8. Explain how to display books and CDs to
maximize sales potential.
9. Describe display techniques for gifts and
accessories.
10. List steps for keeping the retail area fresh
and appealing to customers.
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(continued)
28. TYPES OF INVENTORIES
Raw materials
Partially completed goods called
work in progress
Finished-goods inventories
(manufacturing firms)
or merchandise
(retail stores)
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29. TYPES OF INVENTORIES (CONT’D)
Replacement parts, tools, & supplies
Goods-in-transit to warehouses or customers
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30. FUNCTIONS OF INVENTORY
To meet anticipated demand
To smooth production requirements
To decouple operations
To protect against stock-outs
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31. FUNCTIONS OF INVENTORY (CONT’D)
To take advantage of order cycles
To help against price increases
To permit operations
To take advantage of quantity discounts
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32. OBJECTIVE OF INVENTORY CONTROL
To achieve satisfactory levels of customer service
while keeping inventory costs within reasonable
bounds
Level of customer service
Costs of ordering and carrying inventory
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33. A system to keep track of inventory
A reliable forecast of demand
Knowledge of lead times
Reasonable estimates of
Holding costs
Ordering costs
Shortage costs
A classification system
EFFECTIVE INVENTORY MANAGEMENT
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34. RETAIL MANAGEMENT INFORMATION SYSTEM
An Information System is an organized
combination of people, hardware, software,
communication networks and the data resources
that collects, transforms and disseminates
information in a organization.
Management Information System that helps the
management to take appropriate decision for
solving the business problems.
The retailer use MIS for taking appropriate sales
decision and competitive advantage. 34
35. Emerging digital firm
Electronic commerce
Electronic business
Challenges and opportunities
Essentials of Management Information Systems
36. Round-the-clock service: Web sites
available to consumers 24 hours a day
Extended distribution channels:
Outlets created for attracting customers
who otherwise would not support
Reduced transaction costs: Costs of
searching for buyers, sellers, etc. reduced
Internet Technology and the Digital Firm
37. Internet Business Models
1. Virtual storefront: Sell goods and
services through on-line
2. Information broker: Provide information
on products, pricing, etc.
3. Transaction broker: Buyers view rates,
terms from various sources
38. 4. Online Marketplace: Concentrates
information from several providers
5. Content provider: Creates revenue
through providing client for a fee, and
advertising
Internet Business Models
39. 6. On-line service provider: Provides service,
support for hardware, software products
7. Virtual community: Chat room, on-line
meeting place
Internet Business Models
40. 8. Portal: Initial point of entry to Web, specialized
content, services
9. Syndicator : Aggregate information from several
sources sold to other companies
10. Auction: Electronic clearinghouse products,
prices, change in response to demand
Internet Business Models
41. 11. Dynamic pricing: real-time interactions
between buyers and sellers determine worth of
items
12. Banner ad: Graphic display used for
advertising, linked to the advertiser’s Web site
Internet Business Models
42. Categories of Electronic Commerce
• Business-to-customer (B2C): Retailing of
products and services directly to individual
customers
• Business-to-business (B2B): Sales of goods
and services among businesses
• Consumer-to-consumer (C2C): Individuals
use Web for private sales or exchange
43. Business-To-Consumer
• Dis-intermediation: The removal of
organizations or business process layers
responsible for certain intermediary steps in a
value chain
• Re-intermediation: The shifting of the
intermediary role in a value chain to a new source
44. Benefits of Disintermediation to the Consumer
Manufacturer
Manufacturer
Manufacturer
Distributor Retailer
Retailer
Customer
Customer
Customer
Cost
$48.50
$40.34
$20.45
45. Interactive Marketing and Personalization
Web personalization:
• Benefits of using individual sales people
• Dramatically lower costs
46. M-Commerce and Next Generation Marketing
Mobile commerce (m-commerce):
• Wireless devices used to conduct both business-to-
consumer and business-to-business, e-commerce
transactions over the Internet
• Extend personalization by delivering new value-
added services directly to customers at any time
and place
48. Business-To-Business Electronic Commerce
Automation of purchase, sale transactions
from business to business
• Private industrial networks: Coordination between
companies for efficient supply chain management and
collaborative activities
• Electronic hubs: On-line marketplaces, point-to-
point connections, integrated information
51. Electronic Commerce Payment Systems
SYSTEM DESCRIPTION
CREDIT CARDS SECURE SITE PRESERVES INFORMATION
ELECTRONIC CASH DIGITAL CURRENCY USED FOR MICROPAYMENTS
PERSON-TO-PERSON SEND MONEY TO SITES UNABLE TO USE CREDIT CARDS
DIGITAL WALLET SOFTWARE STORES CREDIT CARD INFORMATION
ELECTRONIC CHECK CHECK WITH ENCRIPTED DIGITAL SIGNATURE
SMART CARD MICROCHIP STORES ELECTRONIC CASH
ELECTRONIC BILL PAYMENT ELECTRONIC FUNDS TRANSFER
53. Advertising
It refers to any paid, mass-
mediated and attempt to persuade.
Characteristics of Advertising:
•mass selling
• non-personal communication
54. 54
PURPOSES OF PRODUCT ADVERTISING
To educate people
To emphasize a brand’s
features
To create the customer goodwill
55. TWO MAJOR TYPES OF RETAIL ADVERTISING
To explain potential buyers
The availability and price of nationally
known merchandise
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56. RETAIL ADVERTISING METHODS
In-house flyers indicating products
Informative in-house displays of
merchandise
Direct mail advertising
Local newspapers
Distribution of flyers by hand or using the
local newspaper deliveries
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57. RETAIL SALES PROMOTION
“sales promotion includes those sales
activities that supplement both personal
selling and advertising and coordinate them
and help to make them effective”.
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58. TYPES OF RETAIL PROMOTION
In-Store Promotion
window displays
special in-store displays
posters
personal selling efforts
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59. Retail Displays
Both in-house displays of
merchandise and advertising displays
should be:
attention getting in layout
informative in regard to the product
convince the customer
informative of price
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60. RETAIL ACCOUNTING
"Retail Accounting" is a method of
accounting to account for inventory
using retail prices only for sales,
purchases, beginning inventory, and
ending inventory.
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61. 6
1
EXAMPLE OF RETAILACCOUNTING.
Sales at Retail $12,000
Beginning
Inventory at Retail
$ 3,000
Purchases $11,000
Invoice is for $8,250 but this figure is not
used. Instead, the merchandise is "priced
out" at retail.
Ending Inventory
at Retail
$ 2,000
Cost-of-Goods-Sold
at Retail
$12,000
$3,000 beginning inventory + $11,000
purchases at retail - $2,000 ending
inventory at retail = $12,000
No loss $ 0
The $12,000 in sales matches the $12,000
retail COGS.
62. LIMITATIONS OF RETAIL ACCOUNTING
Inadequate information
Difficult to auditing of retail accounts.
Difficult to find out the gross profit
Retail accounting is differ from one to another
business
Retail accounting is inadequate to properly
reflect the true cost of goods sold for general
accounting and tax purposes. 62
63. RETAIL ACCOUNTING-
THE SIGNIFICANCE AND BENEFITS
It is the growth factor.
Record monitoring helps to find out the errors.
Records and account maintenance with the years
of expertise supporting the business
Easily find out the errors
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64. RETAIL STORE BRAND
Store brands are a line of
products sold by a retailer under a
single marketing identity.
store brands have been able to
position themselves as premium
brands.
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65. TYPES OF RETAIL STORE BRANDS
Convenience store
Supermarket
Superstore
Combination store
Warehouse store
Departmental store
Discount store
Factory outlet
Membership club
Flea market
Specialty store
Category killer
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66. EMERGING TRENDS IN INDIAN RETAIL
SECTOR
The trends to follow in the future:
The Indian retail sector will grow up to 10% of
total retailing by 2011.
No difference in cultures regionally.
The most encouraging format now would be the
hypermarkets.
The hypermarket format would be further
encouraged with the entry of the Transnational
Companies (TNCs).
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