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The other day I was shopping at a Trader Joe's, which is an organic type market that has lots of locations out here in California, they are also expanding to other parts of the country, and all the communities they serve love this company, and always recommend it. They have all the healthy foods, in a small mom-and-pop type grocery store format, even though it is a multi-national run store, with its parent company in Germany.
Anyway, while shopping, I noted all the young hip college aged employees scurrying about and making all the shelves look snazzy. I asked them what they were doing and they said "Facing" - no they were not using FaceBook on their iPads, rather they were taking all the products and "facing" them forward with the label showing and they really took this exercise quite seriously, as if it was some sort of religion. Now then, let's talk about this simple retail strategy shall we?
You see, I'd like to take this to a theoretical psychology level, and then tie it back into retail merchandising, namely I'd like to discuss:
Broken Window Theory
Neat and Clean - Trust in Products
Scarcity - Fear Buying Methodology
Happy Shopping Environment - Safe and Clean
I'd like to start with the "broken window theory" which is used in law enforcement which states that;
"If people see one broken window, graffiti, or piece of trash on the ground they are much more likely to break another window, spray paint a wall, or toss their garbage onto the street."
In a retail environment the same thing holds true. If products are in a disarray, customers are no longer careful when handling products or putting them back, thus more likely to throw them back onto the heap. Eventually, it just looks as if a bomb went off by mid-day and we've all seen stores which look like that.
When the store shelves are in perfect rows and all the products lined up, customers will put more "trust in the quality of the product" and trust in the store, their pricing, and the safety they feel when shopping. That makes sense from a human nature standpoint. A well stocked store, one with rows that have "proper facing" immediately tells a story of trust and integrity of the establishment.
On the flip side, stores which look as if things have been rummaged through tell a story of scarcity and can incite a feeding frenzy, which interestingly enough is the opposite strategy, and might be equally employed on sales racks and tables which are set apart from the perfect rows. Indeed, I hope you will please consider all this.
Anyway, while shopping, I noted all the young hip college aged employees scurrying about and making all the shelves look snazzy. I asked them what they were doing and they said "Facing" - no they were not using FaceBook on their iPads, rather they were taking all the products and "facing" them forward with the label showing and they really took this exercise quite seriously, as if it was some sort of religion. Now then, let's talk about this simple retail strategy shall we?
You see, I'd like to take this to a theoretical psychology level, and then tie it back into retail merchandising, namely I'd like to discuss:
Broken Window Theory
Neat and Clean - Trust in Products
Scarcity - Fear Buying Methodology
Happy Shopping Environment - Safe and Clean
I'd like to start with the "broken window theory" which is used in law enforcement which states that;
"If people see one broken window, graffiti, or piece of trash on the ground they are much more likely to break another window, spray paint a wall, or toss their garbage onto the street."
In a retail environment the same thing holds true. If products are in a disarray, customers are no longer careful when handling products or putting them back, thus more likely to throw them back onto the heap. Eventually, it just looks as if a bomb went off by mid-day and we've all seen stores which look like that.
When the store shelves are in perfect rows and all the products lined up, customers will put more "trust in the quality of the product" and trust in the store, their pricing, and the safety they feel when shopping. That makes sense from a human nature standpoint. A well stocked store, one with rows that have "proper facing" immediately tells a story of trust and integrity of the establishment.
On the flip side, stores which look as if things have been rummaged through tell a story of scarcity and can incite a feeding frenzy, which interestingly enough is the opposite strategy, and might be equally employed on sales racks and tables which are set apart from the perfect rows. Indeed, I hope you will please consider all this.
Lance Winslow has launched a new provocative eBook on the Future of Retail. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net
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