Download The Importance of Retail

Chapter 11
The Importance of
Retail
Identify the various motivations for
tourist shopping and how they can be
met.
Shopping Motivations:
Nostalgia – souvenirs are reminders of the
places people have traveled.
Prestige – buying local art allows tourists
to show appreciation for local
workmanship and add to their personal
collections
Shopping Motivations (cont.)
Functionality – convenience and price of
items may vary depending on vacation
destination
Gifts – tourists buy gifts for family and
friends
Altruistic reasons – tourists may buy items
that benefit people and/or places at the
destination
Shopping Venues
Souvenir Shops – stock items representative of
a region
Super Markets
Clothing Stores
Malls – some have become tourist attractions
with recreational experiences
Shopping Venues (cont.)
Airport Shopping
– Landside – located before security
checkpoints and open to all passengers and
visitors
– Airside – only accessible to ticketed
passengers
Railway Stations – for short distance
commuters
Shopping Venues (cont.)
Duty-free Shops – 30% of all spending on
each trip is done in duty-free shops
Craft Villages – produce specific types of
handicrafts
Museums, heritage sites, wineries and
distilleries, special events and theme
parks also provide shopping opportunities.
Illustrate the impact on sales
productivity of:
Layout and design
Merchandising
Customer segments
All segments are interrelated.
Strengthening one area takes pressure off
the others and visa versa.
Layout and Design
Time
How much time people spend in a store is an
important factor in determining how much
people buy
Set up should lead customers from one part of
the store to another, a voyage of discovery
The more shopper-employee contact, the
greater the average sale
The longer shoppers wait in line, the lower their
impression of overall service
Layout and Design
Layout
Displays should be offset to one side, to
be more easily seen from an angle
The reliable zone is the placement area
where customers are most likely to see the
merchandise
– This area extends from slightly above eye
level to the knee level
Layout and Design
People would rather look at people than objects,
so place advertising near employees
People travel and react predictably to their
surroundings
– In North America people tend to walk to the right upon
entering a store
Visitor flow should take customers through
souvenir shops
Layout and Design
There will be more sales if shops are near
the exit
Keep the transition zone as small as
possible
Average sale per customer increases as
more customers use baskets
Merchandising
Retail Competition
Resort retailers must compete with major retail
stores and chains who are increasingly devoting
more space to golf specific clothing
Resort shops offer logoed clothing
The more expensive an item is, the fewer that
should be put out on the floor
Merchandising
Sales can be stimulated if:
– The product is the focus
– The surrounding environment needs to
account for the products final use
– Mini-environments can be created through
themes
– Creative merchandising stimulates all five
senses
– Similar items should be grouped to create
ambiance
Merchandising
Leisure shoppers are more inclined to
make impulse purchases
Advertising messages must be kept short
where people are walking fast
Longer messages can be posted at cash
registers
Merchandising
Merchandise Placement
Merchandise should be displayed to the
right of where customers stand
Most popular brand should be dead center
Brand the store is trying to build should be
placed just to the right
Operations
Contact initiated by an employee increases
likelihood a shopper will buy something
The most important factor in determining a
shopper’s opinion of the service he receives is
waiting time
Adding sound, light and color to the register area
can ease customers from the anxiety of the
financial transaction
Customer Segments
When shopping, men:
– Move faster, spend less time looking
– Look at price tags less often and can be more
easily upgraded to a more expensive item
– Get a thrill from the experience of paying
– Hate asking for directions
Customer Segments
When shopping, women:
– Spend more money when shopping with other women
– Are more demanding of the shopping environment
Older shoppers:
– Must have easy to read signs
– See a lot more black, white and red, and a lot less of
other colors
– Need brightly lit stores
Customer Segments
Children
– If stores are not child friendly, parents will be deterred
to enter
Make merchandise reachable
Childproof the store
Be able to divert the attention of a restless child
Design a good area for children
Generation X
– Are attracted to the specialty-store environment if the
merchandise is up-to-date
The End!