Module 7 : Getting to Grips with the Retail Environment

7.1    The Retail Environment

We begin
by studying what we mean by the term 'retail
environment' because it does sound quite complex,
but this is not actually
the case.

What this term means is the
environment within the retail outlet itself. That in itself translates into
every aspect of your store that the customer sees and interacts with from the
moment that they walk in the door. In other words we refer to the layout, the
lighting, the products and the ease with which they can be accessed, the
checkout area, the pricing, every single thing that contributes in some way to
the overall shopping experience.

However, there is a bit more to it than just that definition because there is a great deal of thought that has gone into creating
the perfect retail environment for most people and even though you may not be involved in the creation of certain aspects,
as they come from head office, it is not to say that you should take no interest in it.

The retail environment is separate to the overall store environment as it includes
staff areas as well as store rooms. However, we are only dealing with the parts of the store where customers are allowed to go, even if that includes toilets within the building.

We are talking
about the way in which the products
are displayed so that they can be easily identified and avoid customers
having to search for further information; which will only annoy them rather than contributing to their overall shopping experience.

It is also about the way in which staff members interact
and talk to the customers.
It is about how clean the store is, how well displayed
things are and whether or not the prices are displayed in the correct
manner.

Dealing with this is something
that the manager may often feel is rather difficult
to understand. However,
the easiest way to deal with this problem is to consider how you feel when you are in a store and also think about any guidelines that have been passed down to you from your head office.
By combining them both, there is no reason why you as the manager
should not be able to produce the perfect retail environment that encourages people to spend more money.

However, there are certain things that you need to get to grips with before you can start to really create this perfect environment.

Now that we have provided
a brief description of what we mean by the term 'retail environment', we can now turn our attention to the key things that you need to be able to understand to allow you to implement
the perfect environment for those all-important customers.

In order to better understand this, we can take a walk through
an imaginary store to see how each part can play a role.

If we presume that you are the manager of a clothing
store, then even from the moment that the customer
walks up to the store, they should be impressed
by the displays in the windows or at the door itself. These displays will provide the customer with a better idea of what they can expect when they walk through the doors. However,
it is essential that you continue the feeling that is generated
by the displays throughout the entire store.

The atmosphere that is created within the store should reflect the types of clothes that you stock and sell. If they are fun and funky, then there should be music piping through the store to help create that particular
vibe. This kind of thing helps to put the customers in the correct frame of mind to shop in your store and as a result the sales will increase.

There should be no confusion
as to what the store is about and what they are there for from the moment the customers walk in. The customer should be able to decide whether or not they want to purchase something
and be able to make that decision
on their own rather than having to depend on help and advice from either you or a member of staff.

Furthermore, the retail environment should be set up in such a way that it complements the products. It should enhance the shopping
experience and be a relaxed atmosphere where shoppers are able to take their time as they view what is on offer before making their selection
and leaving. There should be no sense of any kind of unease about what is going on and if there is, then you need to take action to prevent that from becoming a problem.

A customer should feel that there is a real flow to the store that is entirely at their discretion without being told what to do. They should be able to browse the products without being harassed
at any point and to be aware that there is help at hand should it be required.

Finally, the customer should feel as if they have been welcomed to the store and that you are grateful
for their custom when they are at the checkout.
Once again, there should be no sense of them being rushed or forced into doing something that they do not want to do and they should be told that you are looking forward to seeing them again in order to start to build a customer
relationship. However, we will talk more about that later.

FACT

There are approximately 294,000 retail outlets in the UK

Source: castuk.com

7.3    Creating that Perfect
Environment

Now you have the description at hand and the key points you need to take into consideration when dealing with the
retail environment, we will look at how you put these points into action.

Remember, as the retail outlet manager, it is ultimately
your responsibility to check that everything is done correctly
from the outset. The environment that you create will have a direct impact on the way that the customers feel about your store.

So, to create the perfect retail environment for everybody, you need to take the following points into consideration.

Create inviting
displays

It is recognised that creating inviting
displays will make a major difference to your sales because of the way in which they encourage
individuals to shop more. People generally see shopping as being a relaxing pursuit and if you create displays that fit in with that way of thinking, then the customers are ultimately going to spend more money. Displays attract attention. Displays make people take notice of what is going on and gets them to think about different
products that may not have previously entered their mind.How often have you been in a store and walked out having bought something that you had previously no intention of buying?That in itself is a perfect example of the power of the retail environment.

Maximise your floor space

Another thing that you must do as the manager is to maximise your floor space, but to realise that you should not overdo it, as the store can then look cluttered
and put people off shopping.
You need to understand that customers have to feel relaxed when they are shopping as that is known to encourage them to spend more money, so if you have products everywhere
and no space for people to move then you are only encouraging them to leave the shop quickly.

Have you ever wondered
why a supermarket will have a large
display of something on special offer in a large empty space in the layout of the store?

This is because
they see it as a wasted opportunity to have something
for sale there, and here is the best part, we now expect that kind of thing to happen and see it as being rather strange when nothing
is there.

Create a flow

Flow is everything. Customers want to be able to get into a store and work their way around it in a logical
manner or in whichever way they prefer.

Furthermore, they should also be able to identify where different key points are such as the exit and the checkout. One thing that customers dislike and which goes against the entire retail environment idea, is when they are forced into going through a store in a certain way. Yes, we all accept that there is a door to enter and a door to leave and the checkouts are in a certain area, but apart from that there is a real need for us to go wherever we want and whenever
we want. The flow of the shop creates a stress free environment and a store that is not full of stress is one that people want to visit over and over again.

Take deliveries away from the shop front

It is always going to be better for the retail environment if you are able to receive deliveries away from the public eye. It should always be the case that these kinds of things are kept away from the shopping area as it is going to disturb customers and at the same time it will disturb your staff who should be focusing on helping customers
wherever possible. Staff areas have to be somewhere else entirely as the two really should not mix at all. It makes you look professional and it means that the shopping experience is more relaxed for the customers and that has to be your number one thing.

Make sure products are well lit and well merchandised

Customers expect a certain experience when they walk into a store, but one thing that they do not want is to have to battle to see products because the store is not lit well enough or for it to be untidy with poor merchandising. These are absolutely
basic things that you need to be able to do in your store and which should be checked on a daily basis. Failure
to do these two things reflects badly on your store and it will create a bad atmosphere which you most certainly want to avoid.

Make staff visible, but not annoying

It should always be the case that a member of staff is visible to the customer, but at the same time the staff member should not interfere
with the shopping experience unless asked something
directly by the customer. However,
even with this it should be kept to a minimum unless the customer
reacts differently, but as soon as their question has been dealt with in an adequate
manner, then the staff member should move away and leave them alone. The key here is in not being annoying.

You need to make sure that there is a clear definition
between the customer
space and every other part of the retail outlet. Furthermore, the two should mix as little as possible, although
clearly that is not always something that you can do.

The key in all of this is to make sure that your retail store is inviting, has everything that your customer
needs, that the products can be found easily, and the overall vibe of your store is what people would expect from whatever it is that you stock.

The exact vibe will vary depending on your industry
and that is something that you need to be aware of. However, by understanding your products, you will be able to fine tune the environment so that your customers spend more money than they were previously
able to do.

7.4    The Difference All This Makes to the Retail Store

Finally, we look at the real difference that this all makes to the retail
store; stressing the importance of doing this for your outlet.

Remember, creating the perfect retail environment is all about enhancing the shopping experience as much as possible for the customer
and failure to do this will often lead to them going to a competitor that makes them feel more welcome. As the manager,
it is your job to maximise the entire retail environment because
you want to be able to generate as much income as possible per square foot of your store.

There is no way of actually calculating this, but the way in which it changes your store is going to be  obvious
to you in a number of ways.

Think of it this way. You will know if you are maximising
your retail environment by the sheer number of customers
that come in through the doors and how this correlates to the total sales that you are able to generate. In other words, the difference
it makes to your store is something
that you can at least judge in terms of sales and whether things are on the increase or decrease.
If your sales are stagnant,
then you have to think about why that is happening and whether or not you can change
something to boost those sales.

Failure to understand your retail
environment is going to have a significant impact on your store. Not providing your customers with what
they want will only reflect poorly on you and tempt them into shopping elsewhere
as a result.

Are you able to afford to lose
customers to your competitors in that way? Very few retail outlets are able to
do that, so paying attention to the environment and taking advantage of every
single aspect that you can think of will only be of benefit to you and show you
to be a very good retail manager.

MODULE SUMMARY

In this module we have looked at the concept of the retail environment and the impact that it has on the shopping
experience. What we have concluded
is that it is your job as the retail manager to be able to create that environment, maintain it, and at the end of the day make absolutely sure that your customers are more than happy with their time in your business.

We are not expecting you to reach full understanding of the retail environment and the ins and outs of each part, as that is something that has been done by industrial psychologists and marketing experts.
However, there is a need for you to completely understand your entire store from the staff, to the products, to the layout and displays,
and even the vibe and atmosphere that is created
should this be something that is important.

The retail environment is the one thing
that drives sales and it does so without the customer even being aware that they are being tempted to buy more products.
You can take advantage of this as the manager and this will reflect favourably on you and your ability to run a store of this size.