Retail Observer

RETAILOBSERVER.COM JULY 2015 60 B U Y I N G G R O U P N E W S RO O ne of the most challenging jobs as a store owner is to make sure you are merchandising in an effective manner. First and foremost, you must attract customers into your store and planning your advertising is where it all begins. There are a lot of choices when selecting your advertising plan. Newspaper, direct mail, radio, social marketing, billboards, magazines and television are just a few. 80 percent of consumers research big ticket purchases online before making their purchase. The shopping experience begins and ends before the consumer even arrives at your store. Dollar one should always be spent on your website. You MUST have a robust website, if you do not have an effective website; you are losing customers every single day. By having a strong online presence, you level the playing field with your competition. Visual merchandising is a must. Store windows are the first line of sight to the consumer. By changing your displays in the front window every couple weeks, it sends a message to the consumer that there is always something new in your store. Your window displays should always reflect special events, promotions & holidays. Watch your customers. How do they move through your store? Does your store currently have a focal point? A focal point could be a high end kitchen display positioned to catch the customer's eye when they enter your store. Don't be afraid to add some accent colors to the display such as a bright red Kitchen Aid mixer. Good lighting leads the consumer's eye to the focal point areas in your store. Product displays are sales tools for you and your sales team. When displaying a pair of laundry, add some color to the display with a stack of towels and a box of laundry detergent. Are you bundling sales, when displaying a range, have an over the range microwave displayed above it. Don't overcrowd your show floor and make sure you have the right product on display. The way you display the product is key— 45 degree angles work well for appliances. Positioning the appliances in pods creates better sight lines. Customers want to visualize that kitchen vignette in their home. Studies show, consumers make higher dollar purchases when products are merchandised high to low. High margin products should be displayed in your high traffic areas. High demand items should be displayed in the low traffic areas. The latest innovations should be positioned at the front entrance. End caps should also be used for NEW, innovative or high gross margin products. I recommend positioning your close-outs or scratch & dent items in a separate section or room at the back of the store. If you don't have a separate area, when an item goes to close-out, I would encourage you to reduce the price and encourage sell through as quickly as possible allowing you the opportunity to earn thousands on that square footage. Think of in-store signage as silent sales reps providing additional information on the products and services you sell. You should always keep your signage and price tags fresh and leverage double tagging whenever possible. The goal of merchandising is to sell a consumer more than what they originally came in for. Don't forget add on sale items such as water filters, hoses, product protection, pedestals. Be sure to position these items next to the product and near the checkout counter. As major appliance margins continue to squeeze, add on sales become a very important piece of your business. Are you selling add on items that will draw customers back into your store such as Phoenix AMD detergents? Do you spiff your sales staff on add ons? During the sales process on a refrigerator, do you capture your customers email address? Approximately 4-5 months after the sale I would encourage each of you to email your customer a discount coupon for their next water filter. This creates a draw and a possible customer for life. Retailing continues to be an exciting arena. I encourage each of you to take some time and see how your customers experience is measuring up. Make yourself unique and give your customer a reason to come back to see you! HOW EFFECTIVE ARE YOUR APPLIANCE M ERCHANDISING & ADVERTISING EFFORTS?

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