Retail Location Strategy and Visual Merchandising Techniques

Retail Establishment Location and External Presence

External Animation refers to elements located on the outside of the retail outlet designed to draw the attention of potential customers.

Strategic Factors for Establishment Location

Selecting the location of an establishment is crucial. It dictates the potential clientele, the product offering, and pricing strategy. Key factors that must be taken into account when placing a retail establishment include:

• Accessibility: Ensuring good communication and transport links for easy access to the establishment.
• Potential Customers: Analyzing the demographics and volume of residents and traffic in the area.
• Urban Development: Understanding how future urban planning and development will affect the facility.
• Competition: Assessing the impact of direct and indirect competition within the area on the establishment's viability.
• Commercial Image: Defining the desired commercial perception where the point of sale is to be established.

Storefront and Corporate Identity

The external appearance must be optimized to attract attention:

• The Facade: Must draw attention through effective design elements, including the showcase, the logo, the external sign, and the entrance.
• The Corporate Image: Represents the core concept or idea of the company. This includes the logo and its characteristics (variations and sizes) used across showcases, stationery, and promotional material.
• Outdoor Advertising: Used to raise awareness of the store or its products through various media, such as public transport, billboards, and catalogs.

Visual Merchandising and In-Store Displays

The Retail Showcase

The showcase (window display) is highly influential in capturing consumer attention. Its primary role is to present articles effectively. To prevent customer boredom, the merchandiser must regularly change the display elements, including structures, decoration, and lighting.

Domestic Animation (Physical Display Techniques)

These physical display methods are used inside the store to promote products and influence purchasing decisions:

• Gondola Header (End Cap)

  Located at the corners of aisles. Used for short-term promotions (typically 15 days). The height should not be excessive, and it is recommended that products displayed here are in high demand.

• Product Stacks (Battery Display)

  Found within the corresponding product section. Stacks must allow easy access to the product and should be constructed using items that can be placed one above the other without damage or spoiling.

• Jumble Presentation

  This technique gives the feeling of being cheap or offering a bargain. Products are stacked or placed loosely in sturdy containers, boxes, or baskets, designed to withstand customer handling.

• Islands

  These are bulk product presentations placed outside their usual respective sections, typically located in wide aisles to maximize visibility.

• Furniture Near the Checkout

  Displays located near the point of sale (POS) or cashier. These items draw attention and are specifically used for products considered impulse purchases.