The Psychology of retailing facts and interesting stuff.

The main purpose of retail is to move stockIf you're not moving stock at your store, you're not making money. The economic process is simple, stock comes in and stock must go out.Stock inventory costs you money because you must store it, pay for it and still keep your store open without the profits it should generate.

The Psychology of retailing facts and interesting stuff.

Experiments have confirmed that.

• 83% of human information is obtained from our sense of

sight.

• 11% comes from our sense of hearing.

• 3.5% from the sense of smell.

• 1.5% from the sense of touch.

• 1% from the sense of taste.

Therefore we can see that sight is the most important sense retailers have to rely on to entice customers to spend money.

The Psychology of retailing facts and interesting stuff.

The movement of human eyes follows two common patterns while shopping, the Z Pattern and the F Pattern.

Research carried out in the US shows

• 43% higher consumer recall from static displays.

• 94% higher consumer recall from animated displays and 80% of consumers could remember the product displayed.

The Psychology of retailing facts and interesting stuff.

There are four different "modes" shoppers can fall into.

“Autopilot" or “Grab-and-go," consumers generally crossing necessities off their lists.

“Variety-seeking" mode means customers may be bored and will actively look to add a little novelty to their cart.

“Buzz" mode they’re susceptible to attractive marketing and new kinds of products.

"Bargain-hunting" mode, where buyers are more interested in value for money than any cleverly marketed item.

The Psychology of retailing facts and interesting stuff.

Visually pleasing displays sell products!

Prime real estate refers to proven store locations or Hot Spots that attract customers ready and willing to purchase products.

Such as window displays, gondola end caps, free standing shelving, high traffic areas and vestibule areas.

The Psychology of retailing facts and interesting stuff.

For maximum revenue, retailers use prime real estate to encourage close to 100 percent sell-through, which helps to prevent back stock and overstock problems.

The Psychology of retailing facts and interesting stuff.

A well planned hot spot in a retail business can increase sales by 229%

Items on Rolling Racks with signage posted sales increases well above 134%.

The Psychology of retailing facts and interesting stuff.

Research has revealed that during the same sales period, 70% more product was sold when a hand written sign was used compared to when no sign was used at all.

And 165% more product was sold when signs were professionally produced to sell the product.

The Psychology of retailing facts and interesting stuff.

Departmental signs are usually located above the product, and are highly visible to customers.

Departmental signs drive customers to these

“HOT SPOTS”

The Psychology of retailing facts and interesting stuff.

The Psychology of retailing facts and interesting stuff.

Beware the dressing room !!!.

Known as the "endowment effect“

“We become attached to things once we feel ownership over them, Something as simple as touching an object can produce this effect, as can trying it on or

imagining yourself using it”.

The Psychology of retailing facts and interesting stuff.

“Acting as though you own an item makes you more likely to buy it”.

Retailers rely on this when displaying merchandise to drive more sales.

Referrals we are looking for.

Entrepreneurs wanting to start or buy into a retail business.

Retailers struggling with the inexperience factor.

Business owners looking to franchise their business.

New entrants into the Liquor retail industry.

What drives us this Valentines day, is our passion for retailing, Serving others and our love

of helping business owners to become exceptional !

Thanks for listening !

Any questions?