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When You Need a Merchandising Consultant

By Terry Elton

Merchandising, the most misunderstood discipline in the Universe. Why? Because merchandising looks so deceptively easy, nothing to it. How tough can it be to put merchandise on shelves or arrange products by classification?

Thereby lies the crux of the problem. The simplicity that seems so apparent is an illusion that hides a complex group of synergies that must be nurtured constantly. Your store should be viewed as a cube, not as a flat floor plan or some two dimensional shape. The store is a cube and everything in it affects everything else. Wonderful displays and functional stores don't happen by accident; they are the result of careful planning. Would you hire a CPA to take care of a lawsuit or a roofer to fix your plumbing? Then why would you run a store without seeking knowledge on one the most important aspects of your business . . . Merchandising!

"I've been in this business 15 years. I know how to merchandize." Sound familiar? I've heard that before and while some do know about merchandising, a lot of store owners don't.

If you own a store and have never taken a lesson in Merchandising, you are doing yourself a disservice. Good merchandising can grow your business in double digits and draw customers back to shop. Bad merchandising can chase customers away and turn your store into a ghost town. The sad part is, many storeowners don't realize how difficult their store is to shop. They know where everything is, so they assume the customer should too.

So how do you know if you need a Merchandising Consultant?
Let me ask you just a few questions and if you know the answers to all of them you probably don't need a Merchandising Consultant. If you miss a few . . . . a Consultant might be a good investment.

• What are the two basic types of customer and how do their shopping habits differ?
  
  
• Which way do people typically turn when they come into your store and which way do they look?
  
  
• How do they feel if you force them to turn the wrong way?
  
  
• What is a neutral zone and why do you need one?
  
  
• What is the difference between fast traffic and heavy traffic and how do you merchandise for each group?
• How do mirrors affect the way people move through your store?
  
  
• How much time do you have to grab a customers attention as they walk past your store or past a display in the store?
  
  
• How many visits to your store does it take for all merchandise except the target item the cus- tomer came in for to become in- visible in the eyes of the cus- tomer?
  
  
• How do you keep all your mer- chandise visible all the time?
  
  
• How long should you wait to change a display or a window?
  
  
• When should displays look neat and when should they look messy and why?
  
  
• What are the six Presentation Principles and how do they af- fect the friendliness of a display. How do they affect the way cus- tomers shop?
  
  
• What are the four levels of sign- ing and how do they work?
  
  
• Where do you merchandise "De- mand" product in your stores and why?
  
  
• What is Vista Merchandising? What are the good and bad characteristics of this type of merchandising and when should you use it?
  
  
• What is a Product Movement Ac- tion Plan and how does it work?
  
  
• What is the one and only con- stant in the world of Merchandising?

Those are just a few of the questions you should know the answers to. Application of the information referred to above will drive sales in your store whether you are a single store or a multi-store operation. I have worked with individual children's clothing stores and major multiple retailers across the country, and no matter what the store format, they have all shown major increases when this knowledge is applied to their store(s).

So what would a Merchandising Consultant do for you?
First and foremost, the consultant would be a new set of eyes for your store. He or she would analyze your store from a functional and presentation standpoint and partner with you to develop a game plan to make the store more shopper friendly and more productive though layout and product classification placement. None of this need be an expensive proposition. It could be as simple as just rearranging the store so that it flows more smoothly or developing effective signing to help the customer. If needed, they might show you how to build effective displays that attract customer attention and increase sales. They might advise you on fixtures so that you can maximize the efficiency of space management through correct fixturing. They can be just the person you need to bounce your ideas off. You determine what your needs are, then search for the people who have those skill sets.

Where would I find a Consultant?
They're everywhere they're everywhere! Sorry, that might be just my perception. Good places to look are the Internet or if you belong to a Retail Association, they might have someone they recommend. Or, you might talk to associates that you know from trade shows or even the sales people that come to sell you merchandise. Or, just call me and if I can't help you I might direct you to someone who can.

How do I find the right Consultant?
You interview them much as you would a prospective employee. Find out about their background, where and with whom they have worked, how much experience they have and whether it is practical experience or theory. My recommendation would be to tread lightly with the theorists and choose someone who has paid their dues in retail stores by actually working in them to see how they function. Bottom line, the right consultant for you is the one you feel the most comfortable with.

Can smaller stores afford to hire a Consultant?
The answer is a resounding YES! In fact, if you don't have an in-house display or merchandising team, you would be making a big mistake if you didn't explore working with a consultant. It doesn't have to be expensive. I have clients that I work with over the Internet. They send me a floor plan and pictures and we work that way. Whatever you pay can be deducted on your taxes as store expense. Personally, I prefer working with smaller stores or multiples because of the potential for growth that typically exists.

TERRY Elton, a merchandising consultant, retail columnist and author, has spent 40 years honing his skills in all aspects of retailing, with special emphasis on product presentation and store function and layout. Starting in department stores, Terry was a buyer and merchandising manager before being recruited by Hallmark Cards. With Hallmark, Terry worked as a Merchandising Strategist for National Accounts for twenty-five years before retiring and forming his own company. Very active in the marketplace, Terry is consulting with retailers and wholesalers on ways to increase their sales through better presentation and store function. Contact him at www.terryelton.com or 913-268-8187

IMPACT MERCHANDISING, developed and written by Terry, is a tool guaranteed to help you grow your store sales by providing you with comprehensive knowledge of customer shopping tendencies, store dynamics, and a solid understanding of effective merchandising. Companies are now using Impact Merchandising across the United States and also in Canada, England, Holland, Dominican Republic, South Africa, and Latin America to name but a few.

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