RETAIL AND BUSINESS MANAGEMENT MODULE
Transcription
RETAIL AND BUSINESS MANAGEMENT MODULE
RETAIL AND BUSINESS MANAGEMENT MODULE Module 2.2 Merchandising Year Two 2011 Version © Professional Golfers’ Association of Australia Limited No part of this publication or the topic modules of this guide may be reproduced or transmitted in any form or by any means, electronic or mechanic, including photocopying, recording or by any information storage or retrieval system without prior written permission. Compiled by: PGA International Golf Institute Suite 1, 29-31 Commerce Drive Robina Queensland 4226 Australia Phone: Facsimile: 0061 7 5657 6116 0061 7 5580 8516 © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 1 of 26 TABLE OF CONTENTS Section Page MODULE DURATION ............................................................................................................................................. 3 MODULE PURPOSE .............................................................................................................................................. 3 LEARNING OUTCOMES ........................................................................................................................................ 3 1.0 2.0 3.0 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 5.0 5.1 5.2 5.3 5.4 6.0 6.1 6.2 6.3 6.4 6.5 6.6 7.0 8.0 INTRODUCTION....................................................................................................................................... 4 DEFINING MERCHANDISING ................................................................................................................. 5 OBJECTIVES OF MERCHANDISING ...................................................................................................... 6 VISUAL MERCHANDISING PRINCIPLES ............................................................................................... 7 Housekeeping ...................................................................................................................................... 7 Planning Merchandising ....................................................................................................................... 7 Height Progression ............................................................................................................................... 8 Lighting ................................................................................................................................................. 9 Colour Blocking .................................................................................................................................. 10 Counter Areas .................................................................................................................................... 11 Ticketing ............................................................................................................................................. 11 MERCHANDISING TECHNIQUES FOR GOLF SHOP CATEGORIES .................................................. 13 Golf Equipment................................................................................................................................... 13 Apparel ............................................................................................................................................... 17 Footwear ............................................................................................................................................ 20 Headwear ........................................................................................................................................... 21 TOOLS OF THE TRADE FOR SUCCESSFUL VISUAL MERECHANDISING ...................................... 22 Mannequins and Display Forms ......................................................................................................... 22 Folding Boards ................................................................................................................................... 22 Tool Kit ............................................................................................................................................... 23 Display Props ..................................................................................................................................... 23 Display Theme ................................................................................................................................... 23 Know What’s Hot! ............................................................................................................................... 24 SHOP SECURITY ................................................................................................................................... 25 SUMMARY.............................................................................................................................................. 26 © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 2 of 26 MODULE DURATION This unit will take at least four hours to complete. MODULE PURPOSE This unit will enable the Trainee to understand the theory and practical application of modern merchandising methods in retail. LEARNING OUTCOMES Upon successful completion of this unit the Trainee will be able to: o o o o o o Understand the major theory points underpinning merchandising methods. Have a greater knowledge of merchandising concepts and principles. Demonstrate understanding of the principles leading retailers (non golf) use in their merchandising philosophies. Implement these strategies in their own Pro Shop environment as an integral part of their daily golf operation. Identify areas where creative merchandising can positively impact on the profitability of the Pro Shop, especially in relation to sales, stock turnover, customer response and Pro Sho ambience. Be confident to experiment and create enthusiasm within their teams by leading by example and training. New Zealand Training Note: Throughout this module there may be various references relating to the retail market in general. The Academy believes that these references should not in any way affect your ability to complete the assignment tasks that are related to this module. If you have any concerns please contact the Academy © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 3 of 26 1.0 INTRODUCTION Recently I was told that merchandising and display are frivolous extra expenses especially for the small business like many of our Pro Shops. I obviously could not disagree more. Merchandising and display are an important part of the marketing plan, and should have a reasonable budget allocated even for a retailer operating on a shoestring. In today’s golf industry, and retailing in general, it is a highly competitive market place with everyone competing for the customers’ dollar as there are more choices for the consumer out there than ever before. With all the choices, what will grab the consumers’ attention? How will you encourage customers to come into your shop? How will you encourage them to return? What is unique about your Pro Shop? After investing a considerable amount of money on stock, staffing, insurance, advertising, accounting etc your store may not measure up to the customers’ expectations. Posters covering the door and windows, hand written signage, lack of lighting and untidy displays sends the message that your business is not serious. This judgement may have little to do with the product itself, but be the result of poor presentation and lack of general housekeeping. Merchandising is more than simply the arrangement of products on the shelf. It is an integral component of your business image. When you examine your merchandising, you examine what the customers’ experience, from their first sight of your shop front, until they leave the store – hopefully having made a purchase. Merchandising is also about understanding the way customers shop. By using this knowledge you can position your merchandise to increase sales. This module is all about giving you the principles, techniques and ideas to create an environment in your Pro Shop that attracts the customer, is comfortable to shop in and encourages loyalty. Merchandising is about differentiating yourself in the market place to increase sales, profitability and market share. One of the exciting things about retail is that it is dynamic. If you don’t grow and change, customers assume you have nothing new to offer them. You don’t have to overhaul the entire Pro Shop, but rotate merchandise, change displays, change signage and be creative to make the customer feel that there is always something new for them to see or experience. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 4 of 26 2.0 DEFINING MERCHANDISING Merchandise Presentation is an organised and creative method which seeks to utilise the visual appeal of the merchandise. In doing so, the potential to enhance sales may be achieved while providing a pleasing atmosphere in which to shop. The quality of merchandise presentation will reflect the Pro’s/Club’s respect and care for the merchandise they have chosen to sell. It is a discipline that requires constant attention and innovation to keep not only your members and guests interested but also your team involved and motivated to sell. Combined with product knowledge and customer service/selling skills, presentation standards will maximise sales potential. The Pro Shop Manager must look to maintain standards of display and merchandise presentation that encourages and retain its customers and contribute to the overall identity the Club wishes to project. It is the craft of Visual Merchandising that Trainees need to develop to maximise sales potential of merchandise by the application of merchandising principles, thus maintaining the store ambience and atmosphere. Visual merchandising is becoming more and more important within the Golf Industry in giving a shop the competitive edge, since many golf shops share the same supplier base and therefore can carry similar items. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 5 of 26 3.0 OBJECTIVES OF MERCHANDISING As stated earlier, the manner in which merchandise is displayed or presented to the customer is a vital element of the selling process. Once the customer is in the store good merchandising is important because: (a) A logical arrangement helps to sell the stock I. Like products can be grouped together in a classification e.g. golf balls, headwear, footwear, men’s apparel, women’s apparel, hardware, accessories etc. II. A logical arrangement categorizing stock should be attempted e.g. footwear next to socks, shoe laces, spikes and shoe bags. III. In some instances stock positioning will be dependant on seasonal requirements e.g. knitwear and outerwear categories are more prominent in the winter months; rainwear and umbrellas should be repositioned in a prominent position during periods of rain. (b) Merchandising displays with impact attract customer attention and may also use space economically. I. Mass displays of identical products can increase sales substantially e.g. price point polo’s at $49 grouped together and ticketed. II. Displays should not be too tidy and symmetrical. A certain amount of planned disarrangement can encourage the customer to buy. III. Point of sales material can often help increase sales and encourage impulse buys. Suppliers are a key resource for this type of material. But remember excessive amounts of this type of material may confuse the customer along with taking up valuable selling space. (c) Accessibility of the merchandise I. Keep in mind when merchandising that products should be as accessible as possible to the customer. Customers like to handle and touch the products without feeling intimidated. Note that, on the other hand, another key factor in merchandise placement is theft prevention which will be discussed later in this module. II. If applicable, some merchandise should be working and self demonstrable e.g. a putter bar with a putting mat for the customer to try out new putters. III. Products should be allocated shop floor selling space according to their sales and stock turn. IV. There is no point featuring lines for which only a few items are in stock e.g. feature apparel on mannequins that you have width and depth of stock i.e. choose a polo shirt that you have a full size range of so when a customer is attracted by the display you can satisfy their want. V. Be aware of main passage ways and aisles as there needs to be adequate space for your customer to move around the shop and not feel that it is cluttered and inaccessible. VI. Stockrooms should be considered as an extension of the shop floor. Accordingly they should be kept neat and tidy with merchandise laid out in similar classification to that of the shop floor. This will speed up customer service, allow for ease of refilling the shop floor, make stocktaking more efficient and allows the buyer to more efficiently monitor out of stocks. VII. Best selling lines and high turnover stock, like golf balls and tees, should be displayed somewhere around eye level on appropriate fixtures. It is the responsibility of the buyer when making purchase decisions on classifications, brands and price that they must formulate how their purchase will be merchandised on the shop floor to best present the range on offer to encourage customers to buy. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 6 of 26 4.0 VISUAL MERCHANDISING PRINCIPLES The following visual merchandising principles will assist the Pro/Shop Manager in creating a more stimulating environment for your members, guests and customers. It is a practical, hands-on guide for daily implementation into your Pro Shop business. 4.1 Housekeeping Housekeeping is the responsibility of all staff. It involves not only general cleanliness but also refilling of stock and constant review of merchandise presentation and positioning. A well merchandised area looks better in a clean and well maintained environment – it shows that the staff care and respect the merchandise and their work place. Housekeeping should flow in all areas of the Pro Shop Operation i.e. from the office and stockroom through to the selling floor. This not only will show clarity of choice for you customers but is also essential for stocktaking and theft prevention. A checklist should be completed daily to ensure the image created, is constantly presented to the customer in a standard that reflects good merchandising, housekeeping and care. Specific areas to concentrate on include: store exterior, windows and lighting, point of sale areas, mirrors, fixtures, fitting rooms (if applicable), floors and carpets and stock refilling. Refer to sample Daily Housekeeping Checklist in your readings. 4.2 Planning Merchandising Merchandising must follow a plan. Begin merchandising with a plan with the main objective to stimulate sales. Be aware of your in store environment and what you want to achieve i.e. maximise sales, present ranges effectively, highlight new season stock, increase turnover of basic bread and butter items. Selling area space is at a premium in most Pro Shops. Consider all the merchandise categories that exist in a Pro Shop: accessories, headwear, gloves, golf balls, golf clubs, golf bags, footwear, socks, rainwear, men apparel, ladies apparel, kidswear. The correct use of limited space by planning merchandise is very important because it: (a) Improves profitability. (b) Helps to optimise the use of space with its costs. (c) Helps give maximum exposure to key brands or categories. (d) Makes adequate use of space on the basis of customer requirements for high demand items e.g. golf balls, tees, gloves. (e) Reduces out of stocks or empty shelves and fixtures. (f) Feeds back information for best selling and slow selling lines so action can be taken. (g) Makes restocking more concentrated and less frequent. (h) Allows variety reduction as you can ascertain what items are giving the best sales volume and possible elimination of slow sellers. In summary: • • • • • • The key is to plan the amount of space required to adequately show each brand / category. Give exposure to as much of the assortment as possible. Generate traffic flow by creating interest and intrigue. Think in terms of your total business, lifting sales in one area at the expense of another is detrimental to your gross profit. Use the placement of merchandise to constantly monitor sales, gross margin and the return on the stock. Seek supplier assistance for merchandising props, point of sale, fixtures or fittings if applicable. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 7 of 26 4.2.1 Selling Floor Layout It is important to consider and be aware of the following when allocating merchandise to the selling floor layout: • • • • • • • New season and best selling merchandise in prime positions. New product with drawing power to generate traffic flow. Consider the shopping habits of your target customers. Destination products to the dead spots e.g. golf buggies. Impulse items in “hot spots”. Desirability of the product in regard to theft prevention. Special types of fixtures and fittings for each category of merchandise to display it effectively. Identify your prime positions and the customer traffic flow through the shop. Hot Spots What is your most valuable part of the sales floor? The positions that are seen first Near the front of the store Near the counter or fitting rooms Eye level Customers line of vision flow upon entering the shop Look at how your customer moves about the shop. ‘Statistics show that products put in hot spots can increase sales by 22%.’ Dead Spots What areas are not visible to the customers’ immediate eye flow? In corners of oddly shaped areas At the back of badly lit stores Behind pillars Too far above eye level (high shelves), or too far below knees (low shelves) The key is to eliminate dead spots by encouraging browsing as the customer enters the store meandering through all sections until they reach the point of sale. 4.3 Height Progression Maximum exposure of merchandise must be created in all areas of the store, ensuring sightlines from aisle ways are maintained through to the perimeter walls. The scaling of fixture heights from the front to the rear of the store is to be graduated i.e. lowest fixtures at the front of the store, through to the highest fixtures at the rear. This is technically called the vista effect (see figure on page 10). Aisles created between racks and fixtures should be adequate for customer movement and are dependent on the overall space of the shop (a guideline of customer comfort suggests approximately 1.2 metres in width). © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 8 of 26 THE VISTA EFFECT FRONT OF STORE Table BACK OF STORE. Clubs Fixture Four way Rack Wall 4.4 Lighting Although sometimes expensive, lighting should not be an afterthought in your merchandising as effective lighting is essential to attract customers, enhance you products and add to the shops overall ambience. Spotlights are great for highlighting products and adding atmosphere to the shop. Lighting is an essential part of the overall shop design – there needs to be a balance between cost and effect e.g. spotlights, fluorescent lighting or a combination of both. As part of the daily checklist, lighting must be reviewed in case blown bulbs need replacing or spotlights need re directing. The fittings closest to the fixture will illuminate more efficiently than fittings required to perform over long distances. THE LIGHTING EFFECT FRONT OF STORE © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management BACK OF STORE Page 9 of 26 4.5 Colour Blocking Merchandise is generally presented by colour because in the majority of cases, it will be colour that attracts your customer first. It is an invaluable selling tool as people are colour conscious. The underlying principle is – (i)… Classification (ii) Colour (ii) Size In the use of colour, the general rule is light to dark, left to right. This begins with white and ends with black. But when it comes to apparel you may alter this concept to best suit the fashion story you are trying to project. Also a colour such as white may also be used to break up large areas of hot colour – e.g. in fashion merchandise. The colour-blocking chart below shows the progression in colour family and can be used as a guideline when merchandising. COLOUR SPECTRUM CHART LEFT / LIGHT DARK / RIGHT Guidelines regarding colour in visual merchandising: 1. Use strong contrasts and loud colour with care 2. Make your colour scheme suit the merchandise on display where possible i.e. be careful in choosing the colours of your shop floors, walls and fixtures and fittings. 3. The type of merchandise displayed has a bearing on the selection of colours 4. Light shades appear to deepen the space, while darker shades close the space in. 5. Most colours can be classified as warm or cool. 6. Harmony must exist if two contrasting colours are used. 7. Keep abreast of colour trends in general fashion and retailing by reading magazines or just observing other retailers at your local shopping centre or department store. Colour is the most effective visual merchandising tool if used correctly. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 10 of 26 4.6 Counter Areas The purpose of the counter area is for customer service and the completion of transactions. Since this is one of the first areas that the customer will see upon entering the Pro Shop it is important that housekeeping is maintained to the highest of standards at all times. General housekeeping disciplines should be enforced so there is no clutter or untidiness. Merchandise to be displayed around and on counters may be a selection of small golf accessories, golf balls and impulse lines e.g. tees, divot tools, gloves, and sunscreen. Merchandising techniques such as colour blocking, price pointing or branding are useful to use around counter areas. PRO SHOP COUNTER DISPLAY EXAMPLE 4.7 Ticketing Retailing is an ever changing business; each day presents new challenges and opportunities to serve the customer in the most effective and profitable manner. An effective part of customer service is ticketing and signage. Ticketing provides the customer with information to make buying decisions. Ticketing can include price tickets on all merchandise clearly showing price and stock codes, general ticketing, markdown/sale/ clearance ticketing, seasonal ticketing or supplier branding. The object of tickets within a Pro Shop is to communicate the price, features and benefits of the merchandise assortment that may not initially be apparent to your customers. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 11 of 26 To do this, tickets should contain information which is clear, concise and correct. Some form of consistency must exist with ticket sizes, formats, fonts and use of your Club logo where suitable. Computerisation has helped in this area as it is now easy to format specific tickets on a computer and use these templates to change and update signage. Ticketing should be neatly placed in some form of a ticket frames or laminated so they don’t become tatty. An abundance of tickets is undesirable as this will dilute the effect and therefore the impact a ticket will have on your customer. Remember ticketing is the ‘silent salesperson’. (I) Price Tickets All merchandise should have a price ticket. The price ticket generally indicates a stock code and retail price, if produced manually, or if computer generated, may indicate stock code / barcode, price and brief description. All stock must have a price ticket for ease of customer selection, processing at the point of sale and for stock control. Custom made swing tags may be developed if the need exists as these are useful for apparel and big ticket lines like golf bags, or in case the product does not come with a swing tag. These can be attached with a plastic tag gun. (ii) General Ticketing This form of ticketing communicates information about the merchandise to highlight product features, benefits, branding and price. Examples of use include for Golf Clubs, Golf Bags, Buggies, Footwear. (iii) Markdown / Clearance / Sale Ticketing This form of ticketing highlights merchandise that has been marked down for clearance. It may indicate a price point or a percentage off. It is essential that the wording on this ticket is not misleading to the customer. Permanent Markdown: Is where stock has been physically crossed down showing a new reduced price. The wording ‘Price on Merchandise Shows Reduction’ may be indicated at the bottom of the ticket. Temporary/Promotional Markdown: Is where the price tickets have not been altered as the discount is only for a limited period of time and after that the price will return to the original selling price. This enables the retailer to promote sales of slow selling merchandise or special buys for customer consideration. The ticket may specify the merchandise, the value of the offer, percentage or dollar off and the duration of the promotion. The wording ‘Reduction taken at Point of Sale’ may be indicated at the bottom of the ticket. TICKETING EXMPLES SPECIAL PURCHASE Men’s Sporte Leisure Polo’s $39 SALE 50% each 2 for $70 AD403 Golf Clubs Selected Men’s and Ladies Apparel off Price on Merchandise Shows Reduction © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management $129 each (Steel ) $175 each(Graphite) Drivers $339 each Irons Up to or Srixon Discounts apply for Full Sets Page 12 of 26 5.0 MERCHANDISING TECHNIQUES FOR GOLF SHOP CATEGORIES Merchandise techniques are detailed below as a guideline for the presentation of relevant categories that are stocked at both on-course and off-course Pro/Golf Shops. These techniques will assist in the overall presentation of your Pro Shop and can also be used as a helpful training tool for your team of staff. 5.1 Golf Equipment Golf equipment includes the classifications of golf clubs, golf bags, buggies, golf balls and golf accessories. It is essential to develop consistent merchandising standards of these categories for ease of customer service and customer selection. 5.1.1 Golf Clubs Golf Clubs should be merchandised on Slat Wall club rack fixtures (either semi circle or straight) and located within the shop, in an area where the customer will naturally be drawn into. This display is designed to present the customer the full range of all Golf sets on offer, within your shop. It is extremely important that these fixtures always remain in stock and all ticketing corresponds with the correct set. Each arm should display the set in the following order: sand wedge, pitching wedge, 3 iron through to 1 iron and 1 driver through to 5 driver. The sets on display should be merchandised by brand, price, and value, and easily distinguishable between men’s and ladies sets in both left and right hand. GOLF CLUB SET MERCHANDISE DISPLAY The sets on display should be merchandised by brand, price, and value, and easily distinguishable between men’s and ladies sets separated in left and right hand. Be aware of placement of best selling lines and most profitable lines as these need to be in prime selling positions or ‘hot spots’ on the wall or racks. Second hand sets and individual clubs need to be grouped together and sorted according to price point. They can be merchandised in bulk style, like in golf bags, as they would not warrant expensive fixtures and need to be positioned adjacent to full priced clubs but in a less prominent part of the shop floor. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 13 of 26 Note that all Junior Equipment (clubs, bags, buggies and related accessories) should all be merchandised as its own category. Golf trends have shown that the junior market is growing and should be an integral part of any Pro Shop business. Refer to article “Ideas you can hang your hat on” in the readings. 5.1.2 Putters Putters can be merchandised on the wall fixtures, a putter stand or around a circular putter rack. The design and placement of the putter bar will be determined by your floor layout and space availability. It is best to display putters standing upright (not in golf bags). Putters are to be merchandised by right or left hand putters, then brand and then price/value from left to right. If floor space permits set up an indoor putting area as your customers will respond to being able to touch feel and try the product. PUTTER BAR EXAMPLE 5.1.3 Specialty Clubs (Chippers, Wedges, Drivers and Utility Clubs) Specialty clubs are ideally merchandised on supplier fixtures and should be located adjacent to the putter area. This merchandise is easily prone to damage and therefore is preferably not to be displayed in golf bags. Specialty clubs should stand upright with the heads end up to allow the customer to see detail and outer profiles of each club. Keep fixtures well stocked at all times – if the fixture can not be refilled remove it from the shop floor and re merchandise remaining stock elsewhere. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 14 of 26 Specialty clubs are to be grouped together according to end use, i.e. chippers, wedges, drivers or utility clubs, then, merchandised by brand, then price/value. Merchandise best sellers and most profitable lines in a more prominent position in the golf equipment category. SPECIALTY CLUB MERCHANDISING EXAMPLE 5.1.4 Golf Bags and Buggies Golf Bags are to be predominantly merchandised on the perimeter walls. The height of the wall areas will help promote maximum exposure for golf bags. Golf bags should be displayed standing upright and turned to one side, showing one full side of detail. The smaller ball pocket is to face out and the larger pocket to face into the wall. Golf Bags are also good elements to be used in designated display areas or display windows with other themed merchandise. Golf bags are to be merchandised by brand, colour, price and style. Golf bags should be firstly grouped according to end use/style i.e. staff bag, stand bag or carry bag, then merchandised by brand, colour (light to dark, left to right) and price. Golf bags may also be merchandised in brand first if you wish to make a feature of particular brand or special promotion. Refer to article Let golf bags carry their weight in the shop in the appendix. Golf Buggies are a very bulky item that takes up a considerable amount of floor space. The most effective way to present a buggy range is by grouping them according to end use i.e. standard, seated, collapsible and electric. Golf buggies should be merchandised on the floor or a low dais with best sellers positioned up front. They should be kept in an orderly manner as they can appear messy once out of line. The classification of golf buggies should sit adjacent to golf bags and golf clubs. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 15 of 26 GOLF BAG MERCHANDISING EXAMPLE 5.1.5 Golf Balls Golf Balls can account for a significant percentage of a Pro Shops’ sales if merchandised effectively and the range is kept in stock and up to date with latest releases. Golf Balls should be predominantly merchandised around the point of sale counter in close view and access of staff. This is mainly due to the high desirability of the product, i.e. to prevent theft, to allow staff to use their product knowledge to assist customers with their choice, and golf balls being a high volume item closely linked with frequency of play. Golf ball stock should be kept near the POS in draws or cupboards preferably not in a back store room for loss prevention reasons. There are two ways in which to merchandise single golf balls or three ball sleeves: (i) Merchandise by brand and then price point within the brand (left to right) e.g. Srixon - Competition, Soft Feel, AD333 then ZUR-S. (ii) Merchandise by price point e.g. Golf Balls at $4, $5, $6 then $8 (left to right) Ladies golf balls can either remain in the brand category or be separated as this type of ball is for a very specific target market. Boxes of balls in dozens or 15ball packs can be bulk stacked if room permits. To generate more sales offer a discount for dozen golf ball purchases e.g. 10% off or buy 1 dozen get 1 ball free. 5.1.6 Golf Accessories Golf accessories include tees, divot tools, golf gadgets, head cover and club accessories, golf towels, sunscreen, gift lines etc. Generally these types of accessories may be merchandised on freestanding gondolas or wall areas. It is advantageous to sales to merchandise these items in sub categories and in close proximity to the point of sale as they generally are impulse type lines. Each item should be arranged by price / value or colour blocked (if applicable). © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 16 of 26 Slat wall type fixtures are the most versatile for this type of product as with prongs, shelves or bins it can be altered to suit the size of the products. Merchandise should be lined up vertically and horizontally to show some order and uniformity, allowing ease of customer selection and stock refilling. Golf Gloves should also be merchandised near the POS counter on hang sell type fixtures. Gloves should be merchandised in four categories: men’s left hand, men’s right hand, ladies left hand and ladies right hand (note junior gloves should be merchandised with the junior equipment). Then in each of these categories in size from small to extra large, left to right. 5.3 Apparel Apparel merchandising requires general good housekeeping and an eye for colour and co ordination. Think about the end use of each garment, brand or fashion story and merchandise accordingly. Plan your shop floor to create departments within your shop i.e. menswear, ladies wear, kids wear, footwear, headwear, outerwear, fashion accessories, clearance apparel etc. Within each classification, colour is the most effective visual tool for merchandising impact followed by brand, price point and fabrication. 5.2.1 • • • • • • • • • • • • • • • 5.2.2 Merchandising According to Fixture Placement When placing your apparel in store take into consideration the placement of fixtures and displays. Do not clutter the entrance to the store. Don’t overload a fixture; allow the merchandise to breath and hang correctly. If the customer has to fight with the merchandise, you may loose the customer and a sale. Keep all fixtures clean and in top condition. Be sensitive to the maximum height of fixtures (remembering that maximum eye view is classified as the height of your customer to their knee). No product is to be dragging on the floor. Regulate wall fixtures to create story definitions and interest by mixing up the use of front hang, side hang, shelving and display busts. Break up side hang merchandise with front hang or display. Front hang is appropriate for strong sellers, with each front hang garment “dressed out” e.g. polo with co-ordinated vest and jumper or the use of layering. Utilise shelving and tables for folded apparel and feature displays. The fixture should ‘fit’ the merchandise. Position displays to enhance the products and to demonstrate to the customer how it can be worn. Where mannequins and bust forms are used in store, ensure that they are dressed accordingly to visual merchandising guidelines. These outfits should be changed at least once a fortnight. Balance the displays so they have some form of symmetry. Where a supplier provides a specific fixture ensure their merchandise is only displayed on it (otherwise it sends confusing messages to the customer). Practice in creating displays is the only way to become an effective visual merchandiser. Apparel Merchandising Guidelines The following are guidelines of how apparel can be effectively merchandised on various types of fixtures. 5.2.2.1 Walls Imagine the customer standing in the entrance to your shop, taking in the ‘view’. Wherever the customer looks it will be a merchandise wall. Merchandise walls form the total background of the shop. In a Pro Shop environment a business decision needs to made about the merchandise category that will be displayed on these walls i.e. hardware or apparel. It will depend on the merchandise mix of the store and sales volume, turnover and profitability of each category. In a resort style golf shop, apparel would more commonly be found on their walls e.g. Royal Pines Resort Golf Shop, whereas in an off course golf shop hardware would be predominantly displayed e.g. Golf World. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 17 of 26 Therefore, when merchandised correctly, walls are as important a selling tool as a floor fixture. Creative merchandise presentation and lighting will draw the customer to the products. • • • • • • • Walls are generally fixtured with a combination of front hang (straight and sloping arms), side hang and shelves (for folded merchandise or display busts). Changing these combinations regularly can create renewed interest and a new look to your shop. When merchandising a wall, tops should always hang over bottoms wherever possible in keeping with a co-ordinated presentation. Merchandise should hang high enough to be seen over the floor fixtures but low enough for the customer to reach. Walls should never be used for fragmented ranges or markdown merchandise. Colour is the most powerful visual effect for walls. Where possible either present in a fashion colour story or colour blocked according the colour chart (light to dark, left to right). Apparel merchandise must be sorted in each style by size (small to large, left to right or front to back). Coat hangers should be of the same type and facing in the one direction. APPAREL MERCHANDISED ON A WALL EXAMPLE 5.2.2.2 Fashion Gondolas and Four Way Racks Fashion gondolas have become the modern alternative to the four way rack. Fashion gondolas and four way racks fixtures are designed to present the customer with a co-ordinated fashion look and they may be used with either sloping or straight arms. With a bit of creativity, fashion gondolas can also present a total fashion/brand concept with co-ordinated accessories or gift lines. • • • • • • Merchandise is presented in classification and colour blocked. Colour is the most powerful visual effect. Where possible either present in a fashion colour story or colour blocked according the colour chart (light to dark, left to right). Apparel merchandise must be sorted in each style by size (small to large, left to right or front to back). Coat hangers should be of the same type and facing in the one direction. As with a wall, the fixture should never be excessively stocked. The fixture arms should be adjusted to the appropriate height for the merchandise therefore not allowing the garment to ‘drag’ on the floor. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 18 of 26 • • It is also important to ensure that the customer can see over the rack to the merchandise beyond and to the perimeter wall. Four way racks, round racks or straight racks are suitable to present fragmented and markdown/promotional merchandise. FOUR WAY RACK EXAMPLE 5.2.2.3 Tables Tables provide you with a flat surface upon which to present either a complete range or classification or a range of alternatives which relate to the main product. It allows you to convey a particular brand, style, fabrication, colour, or price point. • Merchandise is presented in a story and colour blocked. • It is important to adhere to the discipline of not overloading the table surface as this would put a barrier between the merchandise and the customer and alternatively make it difficult to maintain for stock filling and tidiness. • Tables may be used to merchandise a fashion range but remember to also include any add-on or other co-ordinated merchandise e.g. headwear, towels or a golf bag. • Tables may also effectively be used in a nest i.e. putting table close to each other of differing sizes and heights. • If apparel is the main focus of merchandise on a table consider dressing a bust or mannequin in the related merchandise and sitting it on, or adjacent to the table. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail Business Management Page 19 of 26 TABLE MERCHANDISING EXAMPLE 5.3 Footwear Footwear (golf shoes and other shoes) can be presented on acrylic slat wall type shoe holders either on a wall area or gondola, preferably adjacent to apparel categories. Or in the case of a more ‘boutique’ style golf shop pairs of shoes may be merchandised on tables or shelves. • • Ladies and men’s shoes should be separated into sub-categories. All shoes must face the same direction, right; therefore it is the right shoe on display. • Colour option is shown within price range, according to style. • Shoes on display should be of a small size i.e. 6-7 for ladies and 7-8 for men’s. • Merchandise is to be placed in profile by brand with the more expensive shoe on the top shelf then leading down to the moderately priced shoe forming a vertical formation. For stores that attract customers of moderate spending habits, place the moderately priced shoe on the top shelf leading through to the more expensive shoe on the bottom. Ensure that the laces are tied evenly through the shoe and tucked into the top of the shoe (do not tie the laces as it looks messy). Ticketing should be printed and act as a selling tool indicating Men’s or Ladies, brand, price and, if space permits, shoe features. • • • © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail and Business Management Page 20 of 26 • • A handy tip is to make sure all footwear received has the shoe laces pre-tied as this will assist in the speed of customer service. Markdown or promotional stock may be bulk stacked in boxes on tables with one shoe of each type sitting on the box for display. Footwear related categories like socks, spikes, spike wrenches, shoe laces and shoe cleaner should be merchandised in close proximity for ease of customer service and to generate add on or multiple sales. FOOTWEAR MERCHANDISING EXAMPLE 5.4 Headwear Headwear includes sub categories of caps, hats, visors and beanies. The most effective way to display headwear is in custom made wall cubes. Other fixtures that may be used include glass cubing or shelving. Headwear should be merchandised in sub categories, then by colour or brand. Colour blocking light to dark, left to right. There may be times where brand is more dominant e.g. merchandise all Callaway headwear together instead of in the sub categories. It is also important to be aware of the golfing fashion trends when it comes to headwear styles e.g. ‘Trucker’ style caps for the younger target market. Also ensure that there is a mirror near by to assist the customer with their choice. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail and Business Management Page 21 of 26 6.0 TOOLS OF THE TRADE FOR SUCCESSFUL VISUAL MERECHANDISING 6.1 Mannequins and Display Forms The use of mannequins and busts in the display of apparel tells customers fashionable merchandise is available to them, enabling them to visualize how the garment would look on them. The use of mannequins and bust forms will create a fashionable atmosphere in your Pro Shop, through fashion coordination, and will help to sell complete co-ordinated outfits with related accessories. Mannequins and bust forms are made in men’s, ladies, and children. They come in a large variety of sizes, colours, types (to sit on a shelf/table or free standing) and vary in cost depending on the finish. They are an integral investment for visual merchandising a Pro Shop. Fashion trends show that half body bust forms and pole mounted mannequins (without arms, legs or head) torso only on a base are a popular choice in modern retailing. Some key disciplines for dressing mannequins and display busts are: • Choose its location. • If not in a window but in the shop, the mannequin should be dressed in apparel that is adjacent to it and easily identified by the customer. • Decide on a display theme. • Select the clothing in an appropriate sex and size for the mannequin. • Accessories should be chosen carefully to compliment the outfit (sometimes the ‘less is more’ rule applies). • Change the mannequins at least every two weeks to create a fresh look to your shop, showing your regular customers something new to stimulate their interest. • Dressing tips include: - Dress the top first with a shirt, polo, outerwear etc. – note that layering is an effective technique; i.e. maybe use one polo on top of the other and drape a jacket or jumper over the shoulders. Next the bottom part i.e. pants, short or skirt. Tuck shirt in and use a belt if there are belt holes. Place rolled tissue paper in the arms to shape and form. Use pins to get a more ‘fitted’ look to the outfit e.g. you may have to pin the waistband for a snug fit. Add accessories e.g. cap, golf shoes /socks, sunglasses etc. Once the mannequin is dressed stand back and critically look at the end display to ensure it looks real and natural and make any alterations where necessary. 6.2 Folding Boards Folding boards can be made out of cardboard, plastic, Perspex or wood and are simply a template to assist in the uniformity of all folded garments e.g. t-shirts, polo’s, shirts and knitwear. It can be made to varying widths and lengths depending on your shops requirements. Retailers that use a lot of tables, shelves and cubing fixtures find that a folding board is an essential tool for maintaining consistency of visual merchandising e.g. Hard Rock Café Retails Shops. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail and Business Management Page 22 of 26 Steps on how to use a folding board are: 1) Place garment face down on a flat surface. Place the folding board in a flat vertical position on the back of the garment, lining up the shoulders. 2) Fold one sleeve across the folding board ensuring a straight edge is shown at the side to the garment. 3) Fold the same sleeve back on itself. 4) Repeat steps 2 and 3 with the other sleeve of the garment. 5) Fold the bottom half of the garment over the top of the folding board and fold in the end. 6) Gently lift the garment and place it face up. 7) Remove folding board by sliding it out of the opening at the top of the garment. 8) Give the garment a final tidy up, straighten the label, remove any threads and tuck the swing tag in neatly. 6.3 Tool Kit Make a tool kit up for your Pro Shop so when it comes to creating a display, time is not waisted looking for items. As an example the Tool Kit may contain: scissors, pins, bluetac, tissue paper, double sided tape, sticky tape, fishing line, small hammer, rubber bands, staple gun. 6.4 Display Props Display Props include all physical objects within the display area that are not considered saleable merchandise. Display props, however, must not overshadow the merchandise. Props do not need to be expensive and is only limited to your creativity and imagination. Suppliers are a good source of props, along with a visit to a Spotlight store or a local market where you can find inexpensive items like flowers, fabric, pots, balloons, coloured paper, old golf clubs and other props that can add interest to a specific theme. You may also wish to borrow items from a member or local club. 6.5 Display Theme Before selecting a theme for a display, firstly determine if the theme can tie into any other promotional activities. Displays might feature merchandise in a particular ‘colour story’, or one particular type of merchandise or brand. Specific theme ideas might centre on a new fashion story, new product release or a specific time of year. Any Pro Shop can take advantage of themes for displays from your promotional calendar like Mother’ Day, Father’ Day, Christmas, Easter, Holiday Season, Valentine’s Day, Chinese New Year, Club Championships, Floral Festival, Golf Tournament etc. The following are guidelines for the correct use of themes in visual merchandising: • Select an overall theme based on the bulk of merchandise in stock. • Overall themes must relate to the merchandise in both colour and concept. • Overall themes must create an image instantaneously – and it must be the correct image. • Overall themes can be achieved by the use of merchandise co-ordination, banner, signs flowers and other props. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail and Business Management Page 23 of 26 DISPLAY THEME EXAMPLE 6.6 Know what’s Hot! Keep up to date with new products and fashion trends. This can be done by meeting regularly with your key suppliers, attending trade shows, reading magazines, journals and articles (not only golf related), and open your eyes and sensors to all that is going on around you i.e. be observant when shopping at shopping centres and department stores as other retailers are a great source of ideas, inspiration and trends. Refer to articles “Merchandising for Cheapskates” and “The Good, the Bad, the Decidedly Average” in the readings. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail and Business Management Page 24 of 26 7.0 SHOP SECURITY Because of increased competition for both customers and staff, today’s retail environment presents security situations that are more challenging than ever before. Shrinkage is the retail term for loss of merchandise due to staff theft, shoplifting, and accounting errors. It may account for between 1-3% of your Pro Shop’s merchandise sales and directly affects the bottom line profit. Shop security is of relevance to touch on in this module as by utilizing consistent merchandising standards and principles, along with a disciplined approach to housekeeping, shrinkage can be kept under tighter control. Examples include ensuring all merchandise is ticketed correctly, keeping stock orderly and clean in its presentation so as to eliminate spoilage and breakages, being able to notice if an item is physically missing (but has not been sold). When merchandising your Pro Shop be aware of the desirability of products and their location within the shop. It may be necessary to lock up items like better end sunglasses or expensive gift lines. But for ease of customer service and selection it is not enough to merchandise or design a store where everything is either behind the counters, locked onto racks and displays, or locked away in show cases. As a retailer it is important for you to be aware of and prepared for these security issues. As an example, if month after month at stock take you find the golf ball category showing significant loss then the first strategy to take would be to re merchandise and relocate this category to another area of the shop where the stock can be more closely monitored. © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail and Business Management Page 25 of 26 8.0 SUMMARY Merchandising is an integral part of your Pro Shop’s business performance and image. In the highly competitive market place of the golf industry, creative and effective merchandising, coupled with disciplined housekeeping will differentiate your Pro Shop from that of your competitors. This in turn will lead to greater customer loyalty and reputation, increased stock turnover, and ultimately more profit for your business. Remember that practice in creating displays is the only way to become an effective visual merchandiser. Refresh ~ Renew ~ Refill © Australian Text Modified for NZPGA Academy Trainee Programme PGA Traineeship 2011 Module 2.2 Retail and Business Management Page 26 of 26