The ultimate goal of retailing is to bring together supply and demand; to provide consumers with a selection of goods and services that satisfy their needs profitably.
The world is teaming with diversity and mobility, and demanding consumers are leading retailers on a chase. In response, retail is multiple things: store design, packaging, commercial and social Web sites, promotions, events, place and media -- even handling and shipping. The industry as a whole is approaching innovation more cautiously, vetting options for the highest potential for return. In the battle for customer loyalty, companies with a direct community connection are finding success, especially those that go beyond the usual promotional tie-ins to local events to create something within the store that speaks to the local spirit. Every retailer will develop its own strategy. It's time to define the game, perhaps with retailers asking national brands for a more collaborative approach. Opportunities for competitive differentiation are everywhere -- new brands and formats, services, presentations, interactivity. Companies must continuously capitalize on innovation and make strategic adjustments in the store.
Shopintainment: Walt Disney once said, “People spend money when and where they feel good”. Research has confirmed this to be true. When customers enjoy the shopping experience, they will spend more time browsing in the store and are more likely to make discretionary purchases. Shopping is generally regarded as a leisure activity is something of a conundrum. At the other are the shopperholics for whom shopping is an addiction. Nowadays there is evidence that the average number of hours spent shopping rose in many shopping malls. Although the need to travel for longer to shop may explain some of the observed increases, it appears that shopping has become more attractive as a leisure experience. However, the amount of time devoted to shopping varies based on the culture , disposable income and changing life style etc.
Show the Product: The product is the focal point of the shopping experience. It is what draws consumers into the store and energizes the shopping process. Products the store and through the aisles. Fixtures should be selected and arranged to improve sightlines (e.g. by placing lower fixtures in the foreground).
Balance between National Brand Vs Own Brand: Finding the right balance between national brand and store brand is a challenge that needs to be taken up across the industry. There's no one-size-fits-all. Each store's demographic will have a different mix of private vs. national labels. Every retailer will develop its own strategy. And retailers don't want to lose control of their customer experience. It's time to define the game, perhaps with retailers asking national brands for a more collaborative approach.
Continuous innovation: The way to stand out in a crowded marketplace is to operate in a distinctive way that invites notice, and people notice things that reduce clutter and enhance value in retail mix. Many companies are choosing remodels over ground-up stores to increase basket size. For effectiveness and efficiency, new designs are bringing the same voice and touch points to all of a retailer's formats.
Differentiation: Opportunities for competitive differentiation are everywhere-new brands and formats, services, presentations, interactivity. Even small touches can encourage shoppers to buy often and stay loyal. Companies must continuously capitalize on innovation and make strategic adjustments in the store. Innovation can't wait until business picks up. Retail moves so quickly and competitively, the only constant is the ongoing push for the ideas that will lead to better performance.
Provide effective navigational aids: In the real world, if you do not know where you are going, no road will get you there. In the retail world, the situation is no different. When visiting a store that is unfamiliar or shopped infrequently, consumers need a visual roadmap to help guide them through the assorted goods and services. If consumers do not see the desired products and cannot find them, then, for all practical purposes, they are not for sale.
Online shopping will continue to grow as a retail channel as well as serving as a testing ground for new concepts to be launched in physical stores. Together, these innovations will provide a more engaging, convenient and enjoyable shopping experience, allowing retailers to satisfy consumers’ needs profitably.
Feel Good Factors: The store should present an attractive selection of merchandise, including new and fashionable items to keep the experience fresh and interesting. The environment should stimulate consumers’ senses with appealing sights, sounds, smells, tastes, and touch. These stimuli can evoke powerful emotions by connecting with consumers’ past experiences and memories.
Special events are an important tool for managing a store’s social atmosphere. They can attract groups of customers with common interests and lifestyles, creating social opportunities for patrons and economic opportunities for merchants. Retail theory has been constrained within the notion that shops need to attract customers. Wherever there are people in numbers there is a retail opportunity. The process of converting people who are engaged in one activity to become shoppers needs to be better understood.
