The retail selling options
There are many
ways to expose your product to the customer in the hope that they will make a
favourable decision and purchase your wares. More often than not the nature of
the product will influence the type of channel that is selected but whatever
format that the retail store takes it still is very simply a part of the
integrated supply chain whereby goods are purchased in large quantities
directly from a manufacturer or maybe from a wholesaler, trading house or agent
and then sell on in smaller quantities to the end user. Retailing can be done
in the more traditional fixed locations like stores or markets but in recent
years there have been more innovative ways of selling the product such as “pop
up” shops whereby a temporary location is used in a busy environment which is
possibly a sports event, trade show or similar location where large volumes of
potential customers are present. It is also an easy way of promoting goods or
the carrying out of special launches.
In the modern era
of technology the internet is probably the fastest growing medium to sell
product. Online websites now exist for all types of goods and all the major
retailers as well as dedicated online retailers are spending large amounts of
money to set up their sites in such a way that they are the most user friendly,
faster and the most attractive with secure, easy payment methods. Door to door
deliveries are carried out by a sophisticated courier services from some highly
efficient distribution centres or withdrawals of stock from brick and mortar
stores that are in close proximity to the online customer. The challenge that
customers do have is that they do not have the facility to try on the garments
so retailers devise some convenient options for the provision of special
services. International purchases in foreign currencies is also relatively easy
to do and receive the parcels in a reasonable period of time.
Closely linked to
shopping on line is the digital download of product from the retailer website
to the customer computer such as music, films, books and subscriptions to
magazines.
Marketing teams
utilise various types of techniques to effectively expose the product in the
most attractive way to the market. Traditional channels in the form of print,
radio, television, in house magazines, flyers, and point of sale material, even
the use of innovative medium such as the use of permeating fragrances which
assist in order to enhance the shopping experience. The well-used posters and
bill boards, scratch cards and the like are still very prominent in varying
formats. However in increasing proportions is the creative use of the
electronic channels in the form of websites, SMS, E-Mail and social media such
as Facebook and Twitter. The scientific
collection of customer data through the electronic media allows the customer
profiles to be analysed and targeted in a more scientific way. Loyalty
programmes are very popular through the rewarding the customer either in the
form of points for reward and be used as a means of transaction or immediate discount
at till point. Such programmes are not only extremely effective in
significantly improving sales and profits but they also allow the retailer to
interpret in detail the buying habits of the customer and consequently thereby
are able to better service the consumer needs.
While shopping
generally refers to the activity of simply buying product it has become very
much a recreational activity whereby a visit to the shopping mall becomes a
wonderful experience which may or may not result in any purchase being made.
Some malls may have added attractions such as theatres, ice skating rinks,
stages for entertainment and even larger magnetisms such as aquariums and fun
parks while facilities such as gyms are not an uncommon appendage. Restaurant
and fast food eateries are an integral part and are often included in centrally
located food halls and are always represented by the major brands as well
specialised restaurants.
The anchor
tenants are the major retailers who are seen as the crowd pullers. Large food chains
together with typical mass clothing retailers while other chain stores such as general
chains provide the bulk of hard and specialist goods such as electronics and
appliances, stationery, furnishings, jewelry and sports shops. A complex
combination of line shops who derive their name due to the fact that they line
the interlinking walkways between the major tenants are like the fish feeding
off the major chains and tend to be more exclusive in their offerings. The
rentals are usually at a much higher rate and the closest adjacency to a major
tenant comes at a premium. Line shops will include service shops such as
hairdressers, opticians, beauticians and even tattoo parlours. Specialized stores
such as the traditional chemist are finding it more and more challenging as the
emerging trend amongst some major chains to include a dispensary counter in
their store and malls includes a supermarket format of a chemist. Apart from
eateries the typical line shop will offer exclusive product and offer
specialised service. Some of commonly seen stores are boutiques, dedicated
outdoor gear retailers, accessory specialists, luggage shops, photographic
outlets and religious retailers selling inspirational product making up more or
less the balance. What is also evolving to a greater degree is the presence of international
chains and brands from all over the world which has become increasingly easy
for stores to open due to greater technologies and exposure both from an IT
perspective as well as efficient transport methodologies.
Other options in
the malls include the barrow type stores such as ties and accessories and
specialized delicacy outlets. Vending machines which are an automated piece of
equipment wherein customers can drop the money in the machine and acquire the
products are also popular.
Malls are
strategically positioned close to residential dense areas and the science of
the mix of line shops supported by the major tenants will be largely influenced
by the demographics of the area that it serves. Such malls may be supported by
adjacent discount shopping centres which mostly include many clothing, shoes
and factory outlet stores. Factory outlets enable manufacturers or traders to
market over runs, rejects, problem lines at reduced prices in locations that
enjoy lower rentals. Liquor outlets, hardware stores and nurseries are also
frequently seen adjacent to the main shopping complex.
While the mall has largely been the cause of the demise of the “high street”
store as many major chain store have succumbed to and their operations have consequently
closed or relocated to the shopping centres. However, there is still a place
for these stores predominantly in the city centres and in certain cities there
is a reverse trend where there is a density of office workers and the growing inclination
to live within the city centre as can be seen by the fact that many office
blocks have been transformed into apartment blocks.
Traditional general stores and co-operatives serving everything for the
community and mom and pop family run shops who purchased from the travelling salesman
most commonly found in the rural areas are now very far and few between. Centralized
shopping locations with all the relevant chains being represented and the
influx of the discount shops specialising in goods from the East some of which
have originated from dubious sources in almost every town has sadly relegated
these stores to being romantic memories of the past. There is however an
emergence of independent stores who serve niche markets with specialised
product such as outsizes, maternity wear, high end knitwear and excusive
footwear.
Franchise stores offer the opportunity for individual traders to invest in
a mass retail group and enjoy the benefit of the support from the chain’s
branding, quality products and marketing strategies. The advantage for the
franchisee is that the expansion and market penetration can be accelerated with
external investment and they enjoy a commission for goods sold without the risk
of stock holding costs, overheads and staffing expenses.
Traditional stores where historically the goods were kept in walk-in
counters with goods often being displayed behind glass and in drawers with
sales assistants serving the customer from within the unit and manned the till
stationed at each counter. While this way of serving customers was very
effective from the customer interaction point of view it soon became unsustainable
due to the demands of mass retailing and convenience for the customer.
Courtesy of Woolworths South Africa archives – first store opened in 1931
in Plein Street, Cape Town
The newer formats of stores are well lit, uncluttered and appealing to the
customer. They house easy to access product which is in sufficient quantities
with well demarcated information through attractive signage. Displays whether
on shelves, tables or garment rails are well thought out and coordinated in
cameo presentations which suggest to the customer how the product pieces can be
worn together in terms of lifestyle and colouration. Displays are adjacent to
similar customer needs, for example women’s skirts will be located close to the
blouse displays which will be adjacent to the ladies trousers. The ladies
outerwear will most likely next to the lingerie department and ladies shoes
leading into ladies sleepwear. There will also be a thread of the chosen
similar colour themes throughout which is being promoted at that point in time.
The personal interaction with the customer by any staff member whether they are
the sales assistants or management can never be substituted. Service remains of
paramount importance in ensuring that they can illustrate to the customer the
ways in which styles and colours of the different components can tastefully be
worn. There are focus displays which may
be located in highly visible areas such as aisles, window displays or walls
which are regularly changed as new product is received. Seasonal changes,
special events, promotional activity and colour themes are typically introduced
in this way sustaining the impact of newness, freshness and excitement. The
customer not only has a pleasant experience considering the suggestion but the
opportunity of a sale is maximised.
Various principles are also supported by visual merchandisers who create coordinated cameo displays,
whether they are window or within the store, including video screens as well as
static mannequins.
Pay points and change rooms are conveniently placed and the design of these
units are such that they lessen the frustration that comes with the inevitable
waiting periods.
The need for refurbishment and revitalisation of stores and displays is an
ongoing process, which although being costly, regularly presents the customer a
fresh and exciting environment to enjoy the shopping experience and avoid being
faced with stale, run down and drab looking stores that undermine even the most
attractive merchandise.
As with the buying
teams, the selling teams also consist of a mix of skills that are coordinated
in such a way that the customer has the most satisfying shopping experience.
The team is
spearheaded by the head of the store known usually as the store general manager.
This position maybe supported by an assistant position and they will ensure
that the overall co-ordination of all the roles will ensure the most effective
running of the operation. A classic structure that they will support will
consist of commercial or departmental managers who will each be responsible for
a segment of the store. The role will focus on ensuring that the displays are
continually fully stocked and that they are optimally positioned and displayed
proportionately appropriate to the customer demand. By way of illustration the
most popular product will normally be in the front of the racks and displayed
at eye level of the customer. The size of the display will be proportionate to
the relative demand, in other words in the ideal world a product that
represents twenty percent of the sales will enjoy twenty percent of the space
of the relevant display area. Exceptions to this principle may occur where the
product may be bulky and may require to be pallet stacked on the floor. An example of this would possibly be nappies,
duvets and cushions.
The challenge is to ensure that there is the optimum number of well
trained, knowledgeable and positive staff that can best serve the customers
without the overhead costs being put under pressure. The best service disposition should apply
right through the experience from the time that the customer is greeted at the
front door until the transaction is finalised at the till point and the
customer leaves the store. The objective
should always be that the customer will always look forward to returning to the
store. Even where a sale may not materialize the offering of advice or helping
with choosing alternatives is part and parcel of the creation and reinforcement
of the loyalty to the brand is consequently embedded in the customer’s mind.
Selling teams are supported by other staff functions such as the human resource
officer who will be responsible for the personnel functions as well as the shift
scheduling of staff. This function is imperative to ensure optimum staffing
appropriate to the variable number of customers over the various times during the
day, week month and year of trade. A flexible, part time work force is required
which can be above two thirds of the total store staff and because some of the
hours of work are unsocial such as weekend or after normal hours variable rates
of remuneration or extra time off will apply.