martes, 24 de agosto de 2010

Changing the Store Layout

Change is for many of us a hard thing to do. It is hard in the first place, to recognize that we have made a wrong decision or have taken a wrong way of doing things. Sometimes we just do not want to face it; we put the blame on something or someone else. Sometimes we need to change not for our own reasons but for the environment.


In the case of business it is not possible to slowdown changes; you will always have to change or it might affect your sales.


That of course applies to merchandising too and in a very strong manner given that the merchandising of a store or any other sales space will reflect directly on the profitability of the business. Effective merchandising will push sales in a store or supermarket (as you can see in many of the other articles I have written)


Why to change the merchandising, what is the trigger that should move a manager or owner of a store or supermarket to make changes, to initiate a (sometimes painful) process of change.





The main reason is one or more of these:
  • A wrong store layout.
  • Changes and evolution in your customers or clientele.
  • Changes in the environment or physical area where the store is placed.
  • Changes in the products offered by suppliers.
A wrong store layout
A wrong layout will confuse your customers. You may find them lost looking for products, going back and forth and/or trying to find the way out of the place.
It is like a mad house from where you want to run.


Change and evolution of the customers and clients


  


Customers are always changing and evolving. That is why you have to keep an eye on them and keep in touch with their minds. You can see that, nowadays, customers want to find more organic products, more fresh vegetables and fruits. I have seen supermarkets that have placed this section right after you come into it.


One year back or so, this area was to the back of the place.
People are taking care more and more of their weight; therefore you may have to make a bigger space for fat free items, for example. This same concept applies to any type of business. That is called market trends and you must keep up to them.


Changes in the environment or area where the store is located




To be quick on this one, think of a store placed in a residential area surrounded by houses. Now in a few years that same store could be surrounded by apartment buildings with younger couples and kids. This should bring a mayor change for the store.


Changes in the products offered by suppliers
These changes in the products refer to any evolution of products, think of deeper product line bringing more a more specialized offer from suppliers. This means more items into the shelves. At the same time, think of discontinued products, maybe your shelf should shrink. Maybe there are products replacing other products. All this, will make you move your shelf distribution or store layout.


How to proceed with the changes you need to do


First you have to conduct some investigation depending on what is moving you to change. Most of the times you may find all your answers within your customers, service users, buyers or clientele. You can make a survey. You can observe how they flow in the store. Take a look to your sales compared to the last year or the last three month or semester. Watch the trends, the tendencies of other stores compared to yours. Talk to your suppliers, they know a lot about your business. Watch your competitors, how they do things, are they changing?


Maybe you need to adjust the merchandising to respond better to the profitability of the products you are displaying. Maybe you need to switch areas or place more cashiers. Maybe you need new furniture, make the store look more cozy, maybe you need more or better lighting. What about the smells in the store or supermarket?


After you gather all the information you need to take your time to plan the changes that are going to take place. Now, before making this significant change that will bring you more results on sales and profits, take your time to think of the investment you need to do. Is it worthy to make these changes? How long is the store or supermarket going to take before rewarding the effort? Even if you are making these changes to be in tune with your customers needs, you have to go over it, and think or forecast the effects of the changes over your clients. One more think, how are your competitors going to answer to your change? What is your plan to win over any strategy those competitors will be putting in place?


Final step, implement the changes and promote them to your clients. Move forward, change because change is there and those who refuse to change will drop out of the market. You may maintain your clientele and attract new buyers.


Feel free to email me with your comments about this article...have good sales.

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