Visual merchandising and retail store displays are important for attracting customers and maximizing sales. Proper use of fixtures, lighting, signage and other techniques can highlight products and encourage purchases. Effective inventory management also ensures the right products are available while minimizing costs. As the retail sector grows in India, emerging trends like expansion of hypermarkets and regional uniformity will influence customer shopping experiences.

1. RETAIL SHOP
MANAGEMENT
UNIT - IV

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.
2

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

4. RETAIL FIXTURES
 Carousels: Circular racks that turn.
4

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.
5

6. RETAIL FIXTURES
 Four-way rack: A fixture with four extended arms,
that permits accessibility to hanging merchandise
all the way around
6

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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11. COMPONENTS OF DISPLAYS
Merchandise
Lighting
Props
Signage
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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.
12

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
13

14. 14

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)
15

16. 16

17. 17

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
19

20. 20

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
21

22. have no
background
panel and
the entire
store is
visible to
people
walking by
Open Windows
22

23. four-sided
display
windows
that stand
alone, often
in lobbies.
Island windows
23

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.
24
(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.
26
(continued)

27. Retail Inventory Management
27

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
29

30. FUNCTIONS OF INVENTORY
 To meet anticipated demand
 To smooth production requirements
 To decouple operations
 To protect against stock-outs
30

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
31

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
32

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
33

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

47. Customer Personalization

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

49. A Private Industrial Network

50. A Net Marketplace

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

52. Electronic Commerce Information Flows

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
55

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
56

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”.
57

58. TYPES OF RETAIL PROMOTION
 In-Store Promotion
 window displays
 special in-store displays
 posters
 personal selling efforts
58

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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