Also in this report:

– Virgin’s megahit p.24

– Loblaws combines sizzle and sell p.25

– Building a new approach p.26

– Pushelberg: store environment is part of brand p.27

A year ago in Strategy, Dr. Leonard Berry of Texas A&M University described the defining characteristics of ‘retailers of the future.’

What they have in common, he said, is a commitment to ‘the creation of a compelling value for their target customers,’ through such means as fair pricing, dominant merchandise assortment, respectful service and the saving of customers’ time and energy.

The various methods of creating such ‘compelling value’ will undoubtedly be among the major topics of discussion at this year’s Retail Council of Canada Conference, ‘TransActions 97: Looking Beyond the Horizon,’ to be held June 1-3 at the Metro Toronto Convention Centre.

One important value-creation strategy, Berry argued, is making shopping more fun.

‘There’s a lot of boring retailing going on,’ he observed. ‘The retail store is a stage, and the great retailers do practice great theatre.’

So how do you bring greater excitement to that stage? How do you design an environment that stimulates the consumer’s senses, and makes shopping a more enjoyable and satisfying experience? In this report, Strategy solicits the opinion of one of Canada’s top retail designers, and takes a look at some retailers that have successfully put Berry’s pleasure principle into practice.

Point-of-sale and merchandising materials today are doing double duty.

Not only are they expected to serve as the basis for aesthetically-pleasing store displays ­ now they must also impart more product information.

That, of course, used to be the job of store sales staff. But downsizing in the retail business means that in-store marketing has become an increasingly important vehicle for educating consumers and drawing their attention to merchandise.

‘Demographics have shown that the average customer is more mature and requires more information,’ says Stephen Row, president of Retail Advantage in New Hamburg, Ont. ‘They are more apt to make a purchasing decision on their own, provided they’re given the right information that lets them make that decision faster.’

‘Time poverty’ is another important influence on in-store merchandising, Row adds. Because customers have less time to spend in stores, retailers have to be more efficient and effective at serving them.

Retail Advantage provides print-on-demand technology ­ all the hardware, software, supplies, and consultation that retailers need to make their own in-store signage. The company’s products are designed to allow retailers to change signage on demand, in response to changing competitive circumstances or consumer desires.

Things are changing quickly in retail, Row says ­ and they’re changing for the better. Advances in technology now give retailers the ability to assume control of in-store merchandising themselves, whereas in the past they were forced to rely exclusively on outside firms.

Bob Gorrie, president of Gorrie Marketing Services in Toronto, agrees that technology has had a major impact on the business.

On the operations side, he says, computer technology has enabled in-store marketing companies to save steps when servicing clients. Estimates and other paperwork can be turned around faster. And, thanks to digital imaging and other tools, signage and displays that once had to be sent to printing plants can now be completed in-house.

Technology, however, isn’t necessarily the be-all and end-all when it comes to providing in-store solutions.

Ronald March, vice-president of sales at Somerville Merchandising Services in Toronto, says the types of displays requested by retailers have changed. There’s a trend now toward kiosks and boutiques or store-within-store displays, as big box retailers and supermarkets look for ways to add warmth and draw customers to specific merchandise areas.

‘We do a lot of supermarket signage, and a lot of it seems to be more market-oriented and old-world rather than high-tech,’ he says. ‘We’re making custom wooden fixtures and cart fixtures using that type of approach.’

Pre-cooked and pre-packaged meals, he notes, are a fast-growing category for North American supermarkets, many of which have developed their own themes and branding for these products. And as the packaging gets fancier, so too d’es the in-store fixturing.

Very little is standard in this business, March says. The key for suppliers is simply building relationships with customers and being flexible enough to respond to their needs as they change.