The document discusses how the in-store environment is an important part of conveying a retailer's brand and customerexperience. It notes that stores must work harder to attract customers and differentiate themselves from competitors in the face of multichannel retailing. Facilities management plays a key role in shaping customers' perceptions through cleanliness, maintenance, and other services, though many retailers do not consider these aspects in their brand strategies. Top retailers are enhancing stores with new technologies, designs, and experiences to integrate physical and online shopping. Understanding customer mindsets is also important to crafting compelling in-store experiences.

1. SPONSOREDREPORT
October2012
YOUR STORES,
YOUR BRANDWhythein-storeenvironmentisanimportantpartofthecustomerexperience
Inassociationwith

2. Through innovative programmes, genuine
empowerment and deep collaboration,
we have fashioned transformative change
– creating one team that is a perfect fit
for this major shopping centre.
In fact, with 1.4 million square feet of
retail space, 10,000 retail staff and 240
stores, it is less a shopping centre and
more a small community.
Protecting and projecting that
community’s brand now lies at the heart
of everything we do and going above and
beyond to deliver exemplary customer
service has become a passion.
With a World Class Customer Service
Award secured, alongside sustainability
targets, £1 million of efficiency savings
and a measurable increase in retail sales,
we are bringing all the benefits of single
source supply to the shop floor.
If your facilities management is in
need of retail therapy, come shopping
at Interserve.
www.interserve.com/support
Scan this QR code using
your smart phone and
see how Interserve’s
vision can benefit
your operations.

3. INTRODUCTION
Facilitiesmanagement
is a vital part of retail
contents
In-store environment 34
Why stores are having to work harder
to entice the consumer and convey
a retailer’s brand effectively
Editor-in-Chief
Chris Brook-Carter 020 7728 3593
Acting Features Editor
Anna Richardson Taylor 020 7728 3590
Supplements and Projects Production Editor
Tracey Gardner 020 7728 4129
Art Editor
Jon Hart 020 7728 3519
Production Manager
Paddy Orchard 020 7728 4111
Advertising Manager
Paul Stewart 020 7728 3555
Commercial Director
Mandy Cluskey 020 7728 3586
Managing Director, Retail
Tracey Davies 020 7728 3567
In association with
F
acilities management in retail is an often overlooked area.
Some would think this is because it doesn’t have a core
role to play in the retail experience, even though it
fundamentally does.
Facilities services shape our every day experiences. How clean
a shop window is; if rubbish is on the shopfloor; how well
maintained the changing rooms are; or whether the lift or escalator
work. Cleaning, maintenance and security may not be glamorous
but they are vital in shaping and enhancing a customer’s perception
of the retail environment.
Good facilities services should in fact be barely noticed by the
customer, but this doesn’t mean they shouldn’t be considered in
a retailer’s decision-making process. This is why Interserve has
decided to investigate the correlation between facilities services
and brand management. Brands are about creating a perception
around a product, but it is a retailer’s facilities that deliver the
in-store experience.
The research found that, although 99% of respondents believe
cleanliness and state of repair are important, only 39% and 24%
respectively see these disciplines as playing a part in their brand
strategy. More concerning is that only 25% of retailers see their
facilities management as able to differentiate them from their
competition. I’ll remember that next time I walk past a dirty shop
or use a broken changing room.
In one of the most customer-centric industries, facilities services
should be at the core of decision making.
Tony Sanders
Managing Director – Commercial,Interserve
October 12, 2012 Retail Week 33www.retail-week.com

4. 34 Retail Week October 12, 2012 www.retail-week.com
in-store
environment
r
etailers’ bricks-and-mortar
stores have to aim for
increasingly ambitious
goals in the face of mul-
tichannel development.
They can provide a retailer with a
distinct advantage over online pure-
plays, but also work effectively along-
side online channels to enhance the
shopper journey. The stores of today
have to offer an experience that inte-
grates seamlessly with other channels
to entice the customer, and retailers are
looking to deliver this through a slew of
new formats and concepts.
In August, Victoria’s Secret unveiled
its new flagship store on Bond Street,
which includes a giant two-storey
video screen playing footage from the
brand’s fashion shows, while Marks &
Spenceropeneditssecondbiggestshop
in Cheshire Oaks, which features a host
of in-store innovations, including
iPad-equipped assistants and ‘virtual
makeover’ touchscreens.
Meanwhile, Burberry recently
opened its long-awaited flagship store
on Regent Street. It houses the world’s
largestin-storescreen,onwhichimages
andvideofromthebrandaredisplayed.
Raisingthebarheightens
thein-storeexperience
The role of the in-store environment is increasingly important and complex, as stores have
to work harder to entice the consumer and convey a retailer’s brand effectively.Retail Week
looks at how in-store standards need to meet customers’ expectations
Primark also opened a new 82,000 sq ft
flagship store on Tottenham Court
Road, with a giant LED screen carrying
the retailer’s promotional videos,
and Aurora Fashions launched new
concepts for its Oasis and Coast brands
in London.
In fact, a multichannel approach will
complement,ratherthancompete,with
bricks-and-mortar retailing over the
next two years. It will drive increased
traffic to stores, according to a recent
study by CBRE, which canvassed 50
international retailers with a combined
store network of more than 32,000
stores globally. In addition, investment
in new and existing stores is the
number one priority for many interna-
tional retailers.
The report, The Role of Real Estate in
the Multichannel World, predicts that
over the next two years, the store is
expected to play a significant role in the
deliverynetwork,withshoppersopting
to pick up from store as well as home
delivery. And in-store delivery on
online fulfilment is set to play an
increasinglyimportantpart–twothirds
of retailers intend to use their shops to
fulfil online orders at least occasionally.
The research also found that within
the next two years, 72% of retailers will
operate the same or a greater number
of stores in their domestic markets
(see box, p35).
Multichannel behaviour is encourag-
ing shoppers to visit stores and is
driving additional business to retailers,
says Peter Gold, head of cross border
retail EMEA at CBRE. “Shopping
will continue to be a social experience
– store portfolios are not about to
shrink,” he says. “The fundamentals
of good retail management remain
but, ultimately, it is the retailers with
strong brands and who understand
their engagement with customers that
will succeed.”
The old adage ‘location, location,
location’ remains paramount, but ‘con-
sumer, consumer, consumer’ is an
M&S’s Cheshire Oaks
store has ordering points
and virtual makeover
touchscreens
“It Is not
about
buIldIng a
huge stoRe,
It’s about
buIldIng
a shoppIng
expeRIence”
Marc Bolland, M&S

5. October 12, 2012 Retail Week 35www.retail-week.com
about giving the customer the right
experience,whichrequiressteppingup
store design, use of technology as well
as staff training.
Alasdair Lennox, creative director at
design consultancy Fitch, stresses
that understanding what Fitch calls
the shopper’s ‘mind state’ is vital in
keeping a customer happy, especially
in this increasingly splintered retail
environment.
According to Lennox, there are three
key mind states – locating, exploring
and dreaming. Most shops are built
around the ‘locating’ mind state –
where a customer looks to find a
specific product.
Locating is therefore about naviga-
tion, direction and signage, while
‘exploring’ is about accessing edited
amounts of knowledge and informa-
tion, and the dreaming mind state
provides inspiration to the customer –
an almost untapped commercial area,
says Lennox.
Understanding these different mind
states is key and should inform
different shopper experiences. “If
brands understand the shopper mind
state and then create compelling
experiences around those, that will
create a happier shopper,” explains 
Victoria’s Secret on Bond
Street has a video screen
showing footage from the
brand’s fashion shows
In association with
equally important message to retailers
in today’s multichannel age, adds Gold.
As M&S chief executive Marc Bolland
saidattheCheshireOaksstoreopening:
“Itisnotaboutbuildingahugestore,it’s
about building a shopping experience.”
a mirror to the retail brand
So how does the store of today need
to reflect a retailer’s brand, and
how hard does it have to work to meet
customers’ expectations?
“We’re trying to make the stores very
experiential so there’s a seamless expe-
rience between the web and a reason to
go to store,” says Ian Dudley, group
property director for Aurora Fashions
andKarenMillen.Hepointsoutthatit’s
almost expected these days to provide a
certain level of technology and interac-
tivity in stores. The new Oasis store, for
example, boasts iPads instead of tills
and wi-fi connectivity. “We’re trying to
embrace as much of the new technol-
ogy as possible,” adds Dudley. “Every-
one’s got to up their game to make sure
it’s worthwhile going to the stores.”
The spend on different areas of the
store has also evolved, Dudley adds,
withAuroraspendingalotofmoneyon
fitting rooms, for example, which used
to be almost an afterthought. It is all
the future of the store
n Within the next two years, 72% of retailers will operate the same or
a greater number of stores in their domestic market
n 60% of retailers say they will need more shop space across their total
network as a result of their multichannel strategy in two years’ time
n Retailers are divided on their plans to take stores in “secondary
cities” and “small towns” with a similar number saying they will
increase as decrease
n Online retailing is set to grow faster than store expansion over the
next two years; however, retailers are set to increase their coverage
of both channels
n Online retailing will play a significantly greater role in emerging
markets including Central and Eastern Europe, Asia Pacific and
the Middle East
Source: The Role of Real Estate in the MultichannelWorld
“eveRyone’s
got to up
theIR game to
make suRe It’s
WoRthWhIle
goIng to the
stoRes”
Ian Dudley, Aurora Fashions
Lennox, who also points out that there
is a great correlation between the con-
sumer’s experience and them buying
higher value products.
And that’s not about pure style
or aesthetics. “Making the store look
nicer isn’t the correct answer going
forward,” adds Lennox. “It’s about
understanding the mind state at the
different channels and then creating
the most appropriate experience.”
In addition, there has been a shift
towards online shopping being more

6. P
sychologists deem that a first
impression can be formed in as little
as seven seconds and it can take at
least three times as long to change this
original perception. Put this figure into
the context of a retail environment; where
brand perceptions can have a direct
impact on customer loyalty and, as such,
are instrumental in maintaining footfall
and achieving sales growth and it’s easy to
see why retailers are placing the customer
experience at the top of their agenda.
But, where does the role of facilities
management fit into this ethos? At
Interserve we understand that the right
facilities management provision, delivered
in partnership with the retailer or managing
agent, can enhance the in-store or shopping
centre brand experience to ensure that
positive, lasting impressions are formed.
First impressions
Consider the issues that may arise
if a facilities team is not doing its job
effectively. It is this team’s responsibility
to manage the environment that a
customer sees.
A retail store that is not being cleaned
properly will soon portray a negative image,
dirty windows, lights that aren’t working,
a cafe where there are no clean tables…
all very basic examples, but all demonstrate
the value that the right support, delivered
in the right way can add to the customer
experience.
Of course, facilities management is
much more than a functional role. Retail
is a people business and facilities teams
are often at the fore, not just in front-of-
house services where they may be the first
point of customer interaction, but also
through the engineering teams behind
the scenes that ensure that equipment
is functioning properly.
The face of the brand
Interserve has therefore placed protecting
the brand at the heart of its offer by training
its staff to deliver customer service that is
aligned to the retailer’s values.
Since securing one of the largest total
facilities management and small works
contracts in the UK, Interserve has been
delivering better for less for a large financial
institution: including a 25% cost saving, and
100% pass rate in front-of-house services.
We have taken in our stride 1,600 retail sites,
more than 80 office buildings, 900 remote
ATMs and many more critical facilities.
With a response that matches efficiency
and accountability, with flexibility and
operational excellence, Interserve is
protecting and projecting their brand at
every touch point.
Elsewhere, Interserve has helped increase
footfall by 39%, while projecting one
shopping centre brand to 37 million visitors.
Through innovative programmes, genuine
empowerment and deep collaboration,
Interserve has fashioned transformative
change – creating one team that is a perfect
fit for this major shopping centre. Protecting
and projecting that community’s brand
now lies at the heart of everything we do.
With a World Class Customer Service
Award secured, alongside sustainability
targets, £1m of efficiency savings and
a measurable increase in retail sales,
first impressions
count in retailEnhancing the in-store and shopping centre experience allows positive,
lasting impressions to be formed, according to Interserve
Facilities management and staff training help to improve a customer’s shopping centre experience
Interserve is bringing all the benefits of
single source supply to the shopfloor.
One team
Facilities management is about much
more than services and support, it is
about investing in the way employees and
customers interact with your company
and embody your brand.
And at the core of that is people and
culture. Our people are often the first point
of contact for your customers. And it is their
behaviours that are instrumental in shaping
your customer’s experience and perceptions.
That’s why quality matters at every touch
point and why our staff are trained in
customer interactions. We recognise that
first impressions count, so we make the best
impressions first.
By embracing your culture, understanding
your brand and embodying your values,
Interserve can ensure the right support is
delivered in the right way, by the right
people, to the right people.
For further information please contact
Tony Sanders on 020 7902 2000 or email
tony.sanders@interserve.com
AdverTising FeATure

7. October 12, 2012 Retail Week 37www.retail-week.com
in-store
environment

about the rational experience, while
physical stores are more about the emo-
tional experience. “They need to tell a
richer story and engage much more,”
adds Lennox. “It will be increasingly
about heart over head, and the experi-
ence is where it’s all about.”
Beyond design
But designing and rolling out a store
opening is only the start of the journey
– keeping the store relevant is not
just about the capital investment
in the store opening, says Lennox.
“Some retailers are actually putting
less into the store build and shifting
it towards the ongoing service level –
towards brand ambassadorial staff,
for instance.”
Remaining flexible in the store’s
design, while ensuring it remains rele-
vant is key, but maintaining standards
in store – in its customer service, clean-
liness and state of repair throughout its
life – are also vital.
According to a survey by support
services company Interserve, nearly
80% of retailers questioned said the
In association with
“It WIll Be
aBout heaRt
oveR head,
and the
expeRIence
Is WheRe It’s
all aBout”
Alasdair Lennox, Fitch
Your stores, Your brand
This attitude to in-store facilities management is borne out by findings from an Interserve survey:
Do you think customers are
more or less concerned by
the cleanliness and state of
repair of the stores they
shop in than they were two
years ago?
To what extent do these
stores facilities manage-
ment functions impact on
your organisation’s brand
positioning? (Bars show
percentage of the total
respondents selecting
the option)
To what extent is facilities
management and store
experience by your
organisation part of its
brand strategy?
How much does the impact
of brand image in your
stores get discussed when
looking to reduce running
costs?
0
10
20
30
40
50
0
10
20
30
40
50
0
10
20
30
40
50
60
70
80
0
5
10
15
20
25
30
35
40
40%
29%
25%
6%
1 2 3 4 5
0%
22%
How do customers express
their satisfaction or
dissatisfaction with the
state of repair of your store?
(Respondents chose all
that applied)
0
10
20
30
40
50
60
70
80
61%
40%
19%
32%
7%
38%
3%
25%
53%
19%
Who has responsibility
for defining the store
experience aspect of your
brand management?
0
5
10
15
20
25
30
5.5%5.5%
24%
Store design team
They comment to our store staff
It’s always considered
It is a crucial part in our
business strategy
In-store cleaning
They are much more concerned
than two years ago
Store operations team
They contact our customer
service staff
It’s sometimes considered
It plays an important part
in our business strategy
Security services
They are a little more concerned
than two years ago
Marketing team
They fill in customer satisfaction
surveys for us
It’s rarely considered
It plays a small part in
our business strategy
Customer services
They are not more or less concerned
than two years ago
Store managers/area managers
They comment on social networking
sites such as Twitter and Facebook
It’s never considered
It plays no part in our
business strategy
Maintenance
They are a little less concerned than
two years ago
Facilities managers
Trade suffers in stores that are
less well maintained
Window cleaning
NB ReSpONDeNTS CHOSe A NuMBeR FROM 1
TO 5, WHeRe 1 IS NOT AT ALL AND 5 IS A LOT
They are much less concerned than
two years ago
Other
We don’t know/measure how
satisfied or dissatisfied our
customers are
14%
29%
22%
49%
35%
4%
12%
Following the opening of a store, keeping up standards in maintenance and cleanliness is crucial to provide the right
in-store experience. Tony Sanders, managing director at Interserve, says: “We’re all aware of how important the
shop-front is in terms of shaping a customer’s expectations. However, the focus is often on the layout, colours and
designs, rather than cleanliness. But it is these often overlooked factors that really shape a customer’s impression.”
Sanders adds that facilities services are much more than services and support. He explains: “It is about investing
in the way employees and customers interact with your company and embody your brand.”
Burberry’s flagship on
Regent Street houses
the largest in-store screen


8. 38 Retail Week October 12, 2012 www.retail-week.com
in-store
environment
store experience and facilities manage-
ment was a crucial or important part of
their brand strategy (see box, p37).
In addition, 40% believed that cus-
tomers were more concerned now than
twoyears ago aboutthestateof repair of
thestorestheyshopin,whilemorethan
half believed that the state of stores was
extremely important to customers’
perception of a retailer’s brand. As one
respondent put it: “The store is the
main selling point to your business,
get this wrong and the potential
customers do not even walk through
the door. It has to be 99.5% right – this
then will flow down to your company
and brand image.”
“Stores have been evolving over
the past few years to adapt to their
role as being a more social and
engaging experience,” says Tony Sand-
ers, managing director of commercial
at Interserve. “But to deliver this
personal and engaging experience
requires even cleaner, smarter and
well-presented facilities.”
So attention to the in-store experi-
ence needs to be paid at all levels, from
the high-profile opening, to the detail of
facilities management – a formula that
can only grow in importance as the
retail landscape continues to evolve.
the importance of facilities management
In association with
If done right, facilities
management can give
our customers a professional
and consistent brand image
across the board. Clean and
well-presented outlets result in
a more appealing retail space
which influences our customers’
inclination to buy.”
It can positively influence
brand image by providing
a positive retail environment,
which encourages customers
to return.”
Facilities management
has a positive influence
on brand image by ensuring
that the store is clean and
presentable, which then
enables displays to be
eye-catching.”
It reinforces the brand
values and secures
the brand as reliable and of
high quality.”
By replicating the overall
brand experience in the
shop experience, it can influence
the brand image – and by not
creating any distractions from
the shopping process.”
[It can lead to] increased
positive feedback through
many mediums, higher levels
of customer satisfaction
driving higher footfall, sales
and so on.”
The store is the main
selling point to your
business, get this wrong and
potential customers do not
even walk through the door. It has
to be 99.5% right, this then will
flow down to your company and
brand image.”
When you want to market
part of the store portfolio
into upmarket or premium
segments, yes, facilities
management can influence the
persuasiveness of your brand
positioning and image.”
presentation of premises
and offer reflects the staff
and company’s attitudes to both
service to customers and quality
of products.”
It affects the brand
highly – if the store
doesn’t look great, it won’t
attract customers.”
Primark’s new store on
Tottenham Court Road has
an LED screen displaying
promotional videos
“delIveRIng
thIs engagIng
expeRIence
RequIRes
smaRteR
and Well-
pResented
facIlItIes”
TonySanders,Interserve
Some of the survey respondents share their thoughts on how facilities management can positively
influence their brand to enable an improved customer experience
