Visual Merchandising
Key strategies for a successful year-end festive visual merchandising campaign:
A good visual merchandising campaign is crucial to motivating customers to buy your products and driving customer traffic into your store. Consider the following key factors when planning your strategy:
Product – Your product needs to be your store’s greatest hero. To create a significant point of difference, plan your product range carefully to ensure you have considered high volume merchandise and the products creating stories. Plan the placement of these product ranges so there is a balance of volume and value as well as eye-catching highlight displays as your hero statement. These categories of product should be dominant in the front third of the store to ensure a bold statement of newness and festive appeal.
Window Displays – Creating a dominant window display with significant impact from a distance should be the aim of every retailer. It is important not to over your layout and make sure there is one strong simple message. Periodically change your window display throughout your festive campaign to keep it updated and looking inviting.
Hot Spots – Careful selection of product for hot spots will ensure the highest numbers of customers are passing your most important product lines. Products in these locations need to be clearly ticketed and rotated to ensure they remain full and renewed throughout the festive promotion.
Standing out from the competition:
The most visually appealing stores are the ones making the simplest statements. Working to the theory ‘less is more’ allows retailers to clearly select their most important product ranges and coordinate a strong statement using only what is required. The repetitive use of one simple prop throughout displays also assists a retailer to create a simple stand out message. This may include using a prop with a level of shock value or contrast with the décor of the store. A consistent promotional message flowing through all signage and communication tools is also vital to a cohesive campaign.
Common visual merchandising mistakes:
The five most common mistakes retailers make during the festive season are:
- Not planning promotions carefully or coordinating the placement and promotion of product.
- Using the same sales proposition as other retailers rather than promoting the store’s points of difference.
- Not renewing, rotating and refreshing the look and placement of product throughout the campaign.
- Failing to realise that retailers are in he business of making it easy for ustomers during the festive season by overcomplicating their offer and the visual merchandising approach.
- Relying too heavily on the shopping centre’s festive season promotions and not maximising the promotional and marketing opportunities in store. Make the most of the festive season by heavily promoting your business while the traffic flow is strong as opposed to saving the marketing spend for lower performing trading periods.
Challenges to creating an effective theme:
It is often difficult to make a visual theme run throughout the store. This could be due to size constraints of the floor space. It is important to set the theme in the windows and the front highlight display and then strategically repeat the theme in a simplified way in additional locations.
Remove any old or obsolete promotional material to ensure that the theme is clear and not confused by outdated material.
Creative planning and capitalising on the prime season:
The festive trading period can constitute up to 40 percent of a retailer’s annualised trade. It is not only important from a financial perspective but it is also the most crucial time to cement new relationships with customers. To maximise this opportunity retailers need to use creativity in their strategy to build a point of difference to competitors.
The most popular visual merchandising concepts:
Interactivity is an increasingly useful tool for retailers in displays – often involving technology supported displays that assist customers in finding solutions. Directory services providing gift suggestions located at entry points are popular among large format retailers.
For independent and boutique retailers there is an increasing emphasis on quirky elements and the influence of art and design on displays to create a unique identity and polarise them from large scale chains and heavy discounters.
Incorporating display elements with an environmental message is also a great point of difference. The use of organic or recycled vintage materials is making a strong presence in retailer’s windows this festive season. It is really about telling the story with a conscience.
It is particularly important for fashion and progressive retailers to make their mark with a visual merchandising strategy that positions them differently. This can not be adequately achieved through the reinvention of the same concept year after year.
Why visual merchandising is important: The careful positioning of the right product in the right place at the right time has consistently proven successful for retailers.
Visual merchandising is the hook to passing traffic and the point of difference that provides an edge against the competition. Given that much of our product offer is increasingly available from other outlets it is important to embellish the product to create the total store experience with a carefully planned and executed visual merchandising strategy.
Marketing
When should retailers start their marketing plans for the Christmas season?
Christmas can make up a significant proportion of a store’s annual sales, therefore a promotions plan for this period can not be left to chance. Ideally, all product and promotions concepts should be planned and coordinated by September, however it is better late than never. A detailed marketing and promotions calendar is recommended for the four month period between October and January outlining many of the following:
- Highlight products
- Hot spot promotions
- Window concepts
- Local or centre marketing initiatives
- In store activities
- Staff education and incentive programs linked with promotions
- Sampling and give-away products
- Supplier promotions
- Data base marketing
- Website updates.
Build relationships with your customers early – layering up your messages to build an enticing offer prior to Christmas. Remember, consumers are bombarded by marketing and media in November and December; this may be leaving it too late to be really noticed.
Marketing and promotion plans should link directly to everything that is going to happen in your store. It is worth coordinating your marketing and promotions with the key product stories planned in your visual merchandising campaign.
The most cost effective and high impact marketing tool is the look and feel of your store and the experience that your team creates to drive word of mouth at a time when customers are all talking and looking for solutions.
Be cautious of marketing your business as a discounter. Customers buy at Christmas on emotion as well as budget. It is easier to increase the average spend by pushing emotion buttons than relying on a price war to get you there.
Is Christmas marketing just about Christmas?
Retailers should never underestimate the potential to build long term loyal customers just from one visit over the festive season. If a retailer provides a memorable experience that is worthy of firstly revisiting in the New Year or more importantly telling others about it, a foundation of sustained business can be built for the longer term.
Is there a rule of thumb that retailers should use to guide their Christmas marketing plans?
It is all about creating an impact on the customer by doing these three things – seduce, educate and convince. Seduce them into the store with an emotional pull – this can be the theatre created in store that customers observe quickly on the way past. Educate them once they are in the store by providing high levels of customer service and carefully planned signage giving customers tips and solutions on what to buy. The key is to make it easy and inform them about what you offer for the longer term – not just a Christmas gift. Finally, persuade them to buy on the visit with concrete facts that support your offer. The quality of your products, incentive promotions and a highly skilled sales team is what is needed. By leaving a lasting impression, customers are more likely to return to your store for more in the future.
Selling
What controls great sales results at Christmas?
Christmas trade is dependent on the right products followed by effective presentation and promotion. Equally important is having the right people working to a plan to ensure that the offer is executed well and the customer is engaged and wowed by the experience. A strong sales result depends on an informed, well coordinated and motivated team.
If it is all about the team, what do retailers have to do to make them work effectively?
The following points are all valid in getting the most out of your team.
- Recruit early and plan rosters well in advance.
- Have a plan that everyone can understand and follow.
- Set targets at achievable but motivating levels.
- Invest in training the team in product knowledge, creating a positive customer experience and selling skills to ensure
- they are all equipped for success.
- Adequately staff the store – this is not an area to skimp on over Christmas as an easy gift solution is often found with customer service.
- Direct the staff’s focus on products to push and change their focus frequently to keep them interested.
- Plan simple rewards and recognition tools to keep them motivated.
- Ensure there is always a leader on each shift and there is clear planning for what is required by each individual.
- Manage mundane tasks and refilling out of hours where possible.
- Lead from the top, show motivation, enthusiasm and appreciation to get the best from others.
Product Buying
It is important to recognise a trend for Christmas early and have confidence that you have invested in a winner. This allows you to highlight the hero to hook in the traffic. Budget well in advance and allocate your spend to the categories of product that matter most. By analysing sales history you will be able to identify categories needing additional stock at Christmas and those you can shrink.
What are the keys to success for buying product at Christmas?
Plan and manage stock levels to the peak and close with limited markdowns: Excess stock post Christmas ties up cash flow and limits a retailer’s ability to reinvent for the next season. Plan with an ‘open to buy’ system to allow you to balance the volume of stock you need at this time.
Plan your cash flow to ensure you don’t bottle neck: Your sales peak will not come until December, so you have to manage cash carefully and have a plan for the amount spent weekly prior to Christmas and a weekly gross profit target for before Christmas. Cash pressures at the peak trading time equal lost opportunity.
Leave a buffer of spend for last minute top ups: A retailer always has some winners they underestimate on the first buy. Leave a buffer of cash to quickly fund the growth in this stock level. Manage your suppliers and back those you believe will support you: Your suppliers can be your greatest ally or enemy. Work with those you know will provide you the right stock at the right time and the right price. Also plan your negotiations in advance with these suppliers to ensure you can extend payment terms where possible over Christmas.
Remember key price points: Customers often shop on a budget. Buying to price points is important as it builds a product offer that suits all needs. It is important if you have bought to a price point to promote it strongly using ‘gifts under’ concepts. Build the margin in volume value lines: Smart buying will allow you to have volume value lines with strong gross profit. This is the basis for building a profitable Christmas trade.
Keep history on the winners and losers: Valuable information is gained for next year’s buy from this year’s result. Keep a week-by-week record of the successes and failures you can refer back to.
Be cautious of overstocking while the sales are good: Balance is the key and it is easy to get carried away with just one extra order of a good selling line. There is less risk in running out of highly seasonal lines just before Christmas than having overstocks after.
