We all do.

This past week AMG Strategic Advisors released the results from Clorox, one of their clients, highly targeted display. Consumer Goods Technology covered the story in this month’s issue.

What they did holds true no matter what size of business you manage and whether it is a grocery store, apparel store or other brick and mortar retailer.

Do Your Homework

According to the article, “Clorox first identified a gap between consumer beliefs and behaviors about disinfecting surfaces, and calculated that it represented $400 million in potential sales. The marketer next sought to understand shopper behaviors around preventive health products.

They discovered that most shoppers prefer to buy these products together and expect to find them in or near the pharmacy.”

Takeaway: Don’t just make a display but see if the need is there and calculate what it might represent to your bottom line.

Decide the Timing

During cold and flu season Roundy’s supermarkets in Wisconsin, the Twin Cities and the greater Chicago area were looking for a way to increase sales by driving foot traffic to the pharmacy area.

Takeaway: Seasonality can make a big difference.

Select Your Products

AMG Strategic Advisors helped them combine a bunch of preventive health products within the Clorox brand including  Clorox Disinfecting Wipes, Clorox Clean-Up Cleaner with Bleach, and Clorox Bleach. Clorox separated products and services into four categories: On Me, In Me, Around Me, and Help Me.

Takeaway: Find the main components of your display

Come Up With A Great Sign

Clorox knew they wanted a banner of Prevent, Protect & Soothe.  Clorox does not have a lot of products in the In Me category, which focuses on food, and it used other well-known consumer products to fill out that category. With that sign and four areas, Clorox was able to promote additional items from different categories that complimented their own; they included Campbell’s soup, Kellogg’s cereal, Burt’s Bees, Brita water filters and Dial soap.

Without the sign Prevent, Protect & Soothe, a customer could have looked at the display like some type of Highlights puzzle or wondering, “Why the heck is bleach with soup?” (see example at end of this post.) With the sign, it all makes sense.

Takeaway: Signage makes a display register with the casual observer.

Put Your Display In The Right Area

Shoppers had an easy-to-shop destination near the pharmacy area around the themes of preventing illness, protecting the health of family members, and soothing them if they did become sick.

Takeaway: A secondary role of a display is to get people to see things from around your store, not just the closest aisle.

Look For Your Proof

Clorox brands were up 16% during the program, led by Clorox Disinfecting Wipes which were up 154%. Higher sales for the other brands also meant higher sales for Roundy’s.

Takeaway: Great merchandising creates displays that sell more merchandise.

Don’t Do This

Contrast the AMG Strategic Advisors / Clorox example of a targeted display based on a lot of research, to this one at a supermarket that offers no rhyme or reason why Lucky Charms, Langer Juice and Reese’s would be together except for a “2 fer $5″ sale on the juice.

Geez…

Discover more tips how to merchandise your store with The Retail Doctor’s Guide to Growing Your Business (Wiley.) Download a free chapter here.

One of the occupational hazards of being the Retail Doctor is documenting what is good and bad to share with my audiences.

What is it about signs?  They should be short, informational, welcoming and clear; especially in smaller retailers, regional chains and Main Street boutiques.

Instead we find ones that are confusing or meant to stop or inhibit customers which creates a negative energy in the store (click on each image to view full scale.)

You want to stand out?

Don’t give the wrong person access to your printer.

How to do proper signage? See my post next week.

Michelle Adams, PepsiCo’s vice president of customer strategy and shopper insights, told the LEADS conference last month that they are finding that rounded fixtures and shelving are delivering more sales than those with straight edges.

Eighty to ninety percent of shopping happens at an unconscious level – without thinking. Like when you drive to work sleepy – somehow you get there.  That’s often how many people shop, especially for food. That’s why grocery retailers look at so many angles of how and why we buy.

I think they are on to something important in merchandising…

“Our goal is to see things in a way we’ve never seen them before” Adams stated. “We want to understand the unconscious, emotional drivers of customers.”

To that end, they have found that not only rounded fixtures but also rounded streets are more comfortable.

“What we’ve found is a neurological preference toward rounded edges,” Adams told the group. “Innately, humans avoid sharp edges and objects. It’s a piece of who we are that we never really realized was going on, but is going on subconsciously.”

“Everything in nature is round. And in human design, it’s upscale neighborhoods that have cul de sacs and curvilinear streets. Rounding is a principle.”

Look closely in the grocery aisles and you’ll now see this in various areas of the store.  Upscale boutiques and major chains are utilizing this principle as well.

Rounded endcaps invite customers at an unconscious level, so make the most of this knowledge and feature products that help solve a problem, not just a price.

Merchandising is one of the easiest to learn and yet most often ignored.  Great merchandising acts like a silent sales team to encourage browsing and purchasing additional items. Find more tips on merchandising here. 

Many feel they can only attract shoppers if it is a “deal,”  so that is how they are merchandising their stores.

Not necessarily smart…

For a certain time-constricted shopper, this may be an easier way to browse.  Like this display at Starbucks I saw last year where all items were under $10.

But it may also limit profits as you are giving in to the mission shopper who has come in with a price in mind. Here’s what I mean…

Every aspect of retail has the same issue, customers don’t know how much something costs.

When I was in the western wear business I’d hear, “I’d like to spend about $75 on a pair of boots.”  The average pair they strolled out with were about $150.

A window fashions retailer could hear, “Oh we have a usual window and I’d like to cover it for about $100.” There is no “usual” size window and the ultimate cost can be much more.

In the hotel business we heard, “I just need a bed, not the extras – I’m just going to sleep there.” If you want to sleep well, you pay more (see my post on the Four Seasons Houston.)

Think about the last time you priced a new car. Was your final decision strictly about price?

Unless you work in the sector of business you’re considering, most prices for everything will carry a lower perceived price. That’s why its up to good displays that feature a range of prices, great salespeople and great products to help shoppers get what they want, not necessarily the price they say they can afford.

That’s because customers don’t really know how much what they want will cost, just what the “deal” that has been advertised costs.

And merchandising your store based on price or discounts can leave money on the table.

Please comment below.

To learn how to grow your business, get a copy of The Retail Doctor’s Guide To Growing Your Business.

No signage. Nothing to draw our attention to certain features and benefits. Nothing that explains the educational component to the toy, just stacks of stuff.

Period…

The thing that makes specialty retail work is the discovery aspect. That’s why your store has to be laid out in such a fashion that relationships are obvious to those who don’t know your merch.

The higher priced or more profitable items need help in a crowded world and often have to go it alone as employees are rarely there at the moment of discovery and decision to convince the customer to pay full price.

And this goes the same for just about every specialty retailer whether your gift store, jewelry store, hardware store, you name it. You are able to take different items and group them together so shoppers purchase more than they may have initially expected to. That’s what makes great retail: profits.

It’s not stocking the shelves full of box after box after box with the exact same product all hermetically sealed. That’s the big-boxes.

When you make co-ordinated selling displays,  you make shoppers stop and take notice. If the relationships still aren’t as obvious as they need to be, come up with compelling words that will help.

Just sticking a price in front of an item does nothing to enhance its value. So find ways to excite.  For example “Our best-selling scooter, indestructible, balanced, and light weight now comes in electric red.”

The battle for the dollars has never been sharper, if you’ve got piles of merch to sell, or you’ve ordered lots of merch for the holiday, don’t make the mistake and just “put it out.” To compete with the mass merchants like Target, Wal-Mart and the like – you can’t look like them.

To learn more about merchandising your store get your hands on a copy of The Retail Doctor’ s Guide to Growing Your Business.

Why? I don’t have to think too much. Milk on the left wall. Meat in the back. Cheese on the right. Cashiers in the front. Can’t find something? A simple look at the directional signs and I got it. (Unless its something like honey  – Is that in cooking? Jam? Peanut butter? But I digress.)

Organization of a store is crucial to building sales because the merchandise can only do so much with their clever packaging.

A few weeks ago, I started a business makeover for a client about an hour outside of Manhattan.  I start any makeover with the physical aspects of the store because frequently they are the:

1. Most glaring
2. Easily fixed
3. Take the most physical work

I approach the project as a new customer because they have fresh eyes. They don’t pick up what the owner feels are “obvious.” If the store has gotten sloppy with how they organize the merchandise, it will show in the way customers walk through your store (and quickly out if done poorly)

You can follow my video updates and photos at http://www.facebook.com/theretaildoctor. I figure at this juncture in the process, it is a good opportunity to go over four important reminders for top quality store design on this blog.

My over-riding philosophy is to think like a customer and “Don’t Make Me Think!”

1. Follow the natural traffic patterns. For a typical store in North America, customers naturally walk in and to the right. That means your best and brightest “wants” should be there.  Not at the back of the store or off to the left.  If you don’t do this and put your counter on the right, at the very least it will cause commotion. Put your sale stuff up front on the right and your profitable merchandise sales will fall.

2. Keep it easy on the eyes.  Just because you can use 256 colors of markers or ink doesn’t mean you should. Signage should be simple and a quick read – not clever or tricky. Think of the difference between an ad in Martha Stewart’s Living versus a freeway billboard. Your store signage should be modeled on the billboard. Design shouldn’t be complicated.

3. Make a cohesive display. You can’t just stick a pile of merch on an end cap and expect it to sell. You have to make the customer feel smart about seeing what items go with other items to enhance their purchase. The key is showing your whole store in the display, not just one product.

4. Take steps to maximize upsells.  What are you putting at the register? Unique, weird cheap stuff that customers have to ponder, “Who would buy this?” If so you may be missing the easy money. Instead, put products ANYONE could use. It shouldn’t require much for signage either. Think: “Don’t forget the glue” not “Glue sticks $1.99.”

Be clear about what you want your customer to do and you’ll be able to create an effective store design that sells merch and puts money in your jeans.

Learn more about growing your business.

Here are 5 points you should ask yourself about your store design, layout and unique appeal:

• - Can we see what you sell immediately?
• - What is the image of your brand?
• - What attention are you focusing on your sale merch?
• - Does your store look inviting?
• - Is social media a priority or an afterthought?
• - Are semi-naked boys necessary to attract attention?

What are some of your favorite larger stores in the mall doing this summer that you like and why do you think it works – or not?

Learn how to make your business a destination.

In the next year or so, these and a few of the other largest retailers are expected to slice the assortment of products in their stores by at least 15%, industry executives and analysts say. ‘All that go-go 1990s where we were adding items in and adding items in, and people wanted more, more, more, more choice… just didn’t pay off,’ said Catherine Lindner, Walgreen’s divisional vice president for marketing development, at a recent conference. Looking at store shelves, ‘People say, ‘Whoa, you’re bombarding me. Help me figure out what I need.’”

If the big guys are doing it, you should be too.  Here’s how:

• Take a look at your inventory categories’ sales figures by month and year-to-date.
• Within each category, look at your bottom 20% – the ones not moving
• Cancel all orders to replenish
• Come up with a sale to clear them out
• Use your money saved to add to your top two categories of merchandise

It’s never easy to let go of items we personally thought would be good movers but when you have 20,000 skus, how much duplication do you need?  The big boys know: not much. Same with you.

In the window on the left was a sign Brighton and several handbags nicely laid out. In the back a few yellow flowers to add interest.  After the first time I saw it, my interest waned because I’d “seen it.”

What struck me was that it didn’t change while I was there. What a missed opportunity in a resort with nearly 4000 rooms, near Disneyland and across from the Convention Center!

You want to grow sales and you have windows? Change them like you do your socks or underwear.

I learned this from a swimwear shop at the Hilton Hawaiian Village many years ago.  Every day they got there about an hour before the store opened and completely changed the merchandise in the window.  Not the whole display mind you – that would take hours if not days.

What that did was capture everyone who passed by – and there were thousands – attention because we always saw something different.  I imagine they could showcase their entire store within a month.

This is one of the easiest things to do with most gift shops, apparel shops and even bookstores in high traffic locations like downtowns, busy malls and resorts yet it is the least utilized.

Don’t put your windows on “set and forget.”  Instead, create a look for the window with an eye to how you can rotate your coordinated merchandise through the week.

This approach is not for everyone but if you’re looking for more customers, we’re often walking right past thinking, “seen it.” Stop us and grow profits.

Want more ideas for how to compete?

Jockey underwear reported this week that, “sales of pink underwear are soaring as men use their undergarments to cheer them up in the economic crisis.” Jockey claims that sales of their colored Y-front briefs have rocketed by an average of 60% over the last six months – and the baby pink pairs have sold more than any other, seeing a 62% boost in sales over the past three months.”

The UK’s Daily Mail website concludes, “If claims that men are perking themselves up using their underpants is true, it adds a new dimension to lipstick economics – the theory market-watchers attribute to sales of small cosmetic items rising in a recession, or the fact that hemlines rise and fall with the economic state of the country.”

Hold that thought a moment …

I was in Portand, OR for a presentation with the Oregonian newspaper about 6 weeks ago and stumbled on Finn in the upscale shopping district, the Pearl.  The whole store was merchandised with a merchant’s sensibility. Clearly an upscale men ‘s clothing store, it stopped your eyes from wandering with overstuffed, handmade, free-trade toys, antiques and other knickknacks that made you want to browse.

I was surprised to see a large display of fancy socks and underwear. The owner came up to me and told me socks and underwear were becoming the coolest thing to accessorize your wardrobe. “Really?” I asked. “The crazier the better,” he said. We chatted a bit more about the socks made by Duchamp and I ended up getting a pair myself (at right.)  That was the only time he was behind the counter.

Contrast that experience to the one a week prior at Bloomingdale’s, the store who used to be all things trendy, smart and fashionable.  Walking through the men’s aisles I found, like most department stores these days, the gang of three employees talking.  In the men’s furnishings section there were some interesting items but to this day I still have no idea what they were used for or why they were on top of a counter clearly for sale. (You can try to make them out on the counter to the left in the photo below.)

After staring at them for 2-3 minutes, I looked around for help.  Sure enough, the gang of three was behind the castle expecting me to approach so they would graciously stop talking, lower the drawbridge and cross the moat to wait on me.

And here’s the point of this post: it is the boutique operators who will bring us out of the recession. They are the ones who are truly the merchants looking to wow us with new products and convince us to try new things.  They are the ones giving a pulse to America.  They are where you should be shopping.

Contrast the latest trends Jockey reported to your local Macy’s, Lord & Taylor and other mid to upper tier stores where all you’ll see displayed face-out will be a sign, “25% off Jockey” with a mountain of white.

You want to get more customers in a recession? You’ve got to earn it; even if it means you have to be knowledgeable about men wearing pink underwear so you’ll feature the best-selling, colorful ones upfront, along with colorful socks.  And to do that, you have to get employees out from behind the castle and talk up your products.

You can’t invent trends -unless you were Starbucks in the early 90s -  but you can ride them. Merchants know this.

Bob Phibbs, the Retail Doctor, has helped thousands of independent businesses compete by using his approach to business and not discounting.  He speaks to groups large and small how to grow sales in a friendly, engaging and entertaining manner.