Creative Retail Design
Lecture 1
Archt. Asha N. Liyanage
INTRODUCTION TO RETAILING
What is Retailing?
Retailing is the business where an organization directly
sells its products and services to an end consumer, and
this is for his personal use.
By definition whenever an organization be it a
manufacturing or a whole seller sells directly to the end
consumer it is operating in the Retail space.
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TYPES OF RETAILERS
Specialty Stores
These stores are characterized by narrow product lines but with deep assortments such as
Apparel Stores
Sporting goods store
Furniture store
Florist
Book store.
Under this also there could be specializations like limited line store
( eg. Men’s clothing store) and Super specialty store (eg. Men’s custom shirt store ).
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In a retail setting, some of the most popular methods to compel shoppers to buy
include:
INTERACTIVE DISPLAYS THAT
USE SCENT, SOUND, AND
MOTION TECHNOLOGY
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IN-STORE AND WINDOW
DISPLAYS IN UNIQUE
SHAPES
SHELF SIGNAGE
CREATING THEMES TO
BUNDLE PRODUCTS
TOGETHER (E.G. SCHOOL
LUNCH, BARBECUE SEASON,
CHRISTMAS, ETC.)
GIVEAWAYS AND SAMPLES
WELL PLANNED, EYE-LEVEL
PRODUCT PLACEMENT
WELL-STOCKED SHELVES
AND DISPLAYS
FREE TASTING SESSIONS
AND IN-STORE
DEMONSTRATIONS
• Forever 21 is a multinational fast fashion retailer headquartered in Los Angeles, California, United States.
Originally founded as the store Fashion 21 in Highland Park, Los Angeles in 1984, it is currently operated by
Authentic Brands Group and Simon Property Group, with about 540 outlets.
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•Physical store
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Physical stores
https://www.forever2
1.in/
In an eCommerce setting, the most effective ways to
entice people to make a purchase include:
• Live chat support to aid customer purchase decisions
• Placing the search bar in a prominent position on the site
• Offering free shipping
• Status bar to show progress during checkout
• Season-specific and holiday-based collections, curated
landing pages and special offers
• Product descriptions that use images, copy, attributes,
videos and other digital data
• Product recommendations
• Advertising banners
• Ratings and reviews
• Cross-selling, upselling and bundling
• Effective product categorization
• Ribbon overlays that visually accentuate something
special about a product (bestseller, free shipping, sale,
newly added, etc.)
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Department Stores
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• Several Product Lines –typically clothing ,home furnishing
and household goods with each line operated as a separate
department managed by specialist buyers and merchandisers
Supermarket/Hypermarket
Relatively large ,low cost ,low margin high-volume ,self-service operation which is designed to cater total needs for
food, laundry, household maintenance products
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Convenience Stores
These are the stores which are relatively
small in size and they are located near
residential area , normally remains open
seven days a week and carrying a limited
line of high turnover convenience products
at slightly high prices. Many have added
take away sandwiches , coffee and pastries.
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Discount Stores
Standard merchandise sold at lower
prices with lower margin but higher
volumes. Actual discount stores
regularly sell merchandise at lower
prices and offer mostly national
brands. In Discount retailing ,
Discount specialty retailing is also
present eg. discount electronic store
or discount book store
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Off Price Retailers
Merchandise bought at less than
regular wholesale prices and sold at
less than retail prices. Often left-
over goods , irregulars obtained at
reduced prices from manufacturers
and other retailers.
Factory outlets are owned and
operated by manufacturers, and
they normally carry manufacturer’s
surplus ,discontinued and irregular
goods
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• Local neighborhood stores managed by an independent,
which provides limited range of daily use articles.
Mom & Pop Stores
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• Many such outlets are still thriving by knowing their
customers better and providing them with more personalized
service.
Retail Strategies
High Margin and High Turnover
a convenience food store
Low Margin and High Turnover
a discount store
Low Margin Low Turnover
a dying business
High Margin Low Turnover
an up-market specialty store.
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7 steps to photograph clothing
I.
II.
III.
IV.
V.
VI.
VII.
Prepare your clothing
Set up your photo studio
Position lighting
Style it
Set your camera
Take the photo
Finalize in post
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Flat lay
• “Flat lay” refers to arranging
objects on a flat surface and taking
the photo from above.
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Hanging apparel
Hanging apparel is used to show
products at eye level. It’s budget
friendly
Design your
own setup !
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•Student activity time
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Franchising
• Franchising This section covers the following
• Why entrepreneurs franchise
• Starting a franchise
• Benefits of a franchise
• Drawbacks of a franchise
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keywords
Franchising
Paying a franchise owner for the right to use an established business name,
branding and business methods.
Royalties
Percentage of the sales revenue to be paid to the overall franchise owner.
Entrepreneur
A person who sets up a business and takes on financial risks in the hope of
profit.
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Franchisee
Franchisor
• Person or company who has paid to
Creator of a franchise who enable the
become part of the franchise
franchisee to use the successful business
formular in exchange for
1. initial fee
2. Cut of profit
Franchisor
1.
Product range
2.
Interior of the outlet
3.
Staff uniforms
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Control
Franchisee
Staff training
Staff recruitment
Stock control
Franchise Example = Mc Donalds
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Why franchise?
Franchising means paying a franchise owner for the right to use an established
business name, branding and business methods
e.g. McDonalds or Burger King.
Businesses franchise because:
• They can expand sales quickly before competitors fill the market
• a franchise owner gets an amount of money for the franchise plus a share of the
profits
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Starting a franchise
• Instead of a business having to plan, create
and make a new product, they can buy into a
product that has already become well
established.
• Risks of failure therefore become much
smaller
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Benefits of franchising
• The person buying the franchise gains all the benefits of the
image, along with training and equipment on how to produce the
product.
• As part of a large brand the owner can benefit from big
advertising campaigns they could not otherwise afford
• The products and methods have already proved to be successful
so risks are smaller.
• As a result, franchises are very popular
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What are the drawbacks of franchising?
Royalties are percentage of profits that must be paid to the owner of
the franchise.
A royalty has to be paid each year even if sales and profits are falling.
The entrepreneur taking the franchise will fi have less control over the
business and the way it operates.
Domino’s cannot suddenly decide to sell steak simply because local
customers want this option.
Not all franchises are a good business investment.
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Summary questions
• Write down or discuss the answers to these questions.
• Name a business that is franchised.
• Give one benefit to the owner of the franchise of franchising.
• Give one drawback to the owner of the franchise of franchising.
• State one reason a new business may want to buy a franchise.
• State one reason a new business may not want to buy a franchise.
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