Chapter 11 The Importance of Retail

1. Chapter 11The Importance of Retail

2. 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

3. 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

4. Shopping Venues • Souvenir Shops – stock items representative of a region • Super Markets • Clothing Stores • Malls – some have become tourist attractions with recreational experiences

5. 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

6. 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.

7. Illustrate the impact on salesproductivity of:Layout and design MerchandisingCustomer segments • All segments are interrelated. Strengthening one area takes pressure off the others and visa versa.

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. The End!