question time
uestiontime
This month’s question: Should department stores
consider changing how they allocate floor space?
DR TIM DENISON
on every other. Layouts can always sure that shop floors reflect the
2010 is well under-
BSC, MSC, PHD, MCIM.
be improved, and the best way to needs and aspirations of customers.
way and thankfully SYNOVATE.
do this is from a position of knowl- I’m sure that Mr Selfridge would
the economy is offi-
edge and the more of that you can agree. Whatever you do this year,
gather, the better. with dark clouds of potential tax in-
cially out of the
Department stores, except perhaps
in predominantly touristy areas, cater
In the days of Mr Selfridge, this creases, rising unemployment and
recession. However
to an enviably loyal and sophisti-
relied on exceptional people with general uncertainty, department
it is widely known
cated audience. One of the things
unusual insight. In today’s world, stores must remain that safe, calm
that every industry their customers especially appreciate
thankfully, technology has made life and reassuring bastion of familiarity
must work hard to
is that they’ll know where everything
easier in this respect. There now on the high street; even if under the
exist sophisticated and discreet elec- surface new technologies designed
develop economic
they need to browse on any given
day will be located. Consequently
tronic systems (including from my to raise the game are paddling away
stability. For retail
regular shoppers may be distinctly
company) which allow retailers to frantically!
this means encour-
not amused if ladies wear was to
fully understand how shoppers actu-
aging consumer somehow mysteriously migrate from
ally shop their store; where they go,
confidence and thus
the first floor to the basement.
what they engage with and which
areas are ‘hot’ and which ‘cool’. BECKI ROWE
spending. In this
Therefore I would always advise cau-
tion before making any substantive
Armed with this knowledge retailers RETAIL MARKETING MAXIM.
new decade and
changes to floor layouts.
can now build ‘win-win’ solutions:
new economic pe-
However, this being acknowl-
layouts that improve the customer’s
riod do the edged, customer inertia should not
in-store experience and improve the The short answer of course is yes.
traditional formats
be a reason to never move anything.
performance of the store. We all know that the best and most
Improvements might stem from responsive retailers are those that
still work or should
It’s simply a warning that any
changes made must serve a business
building a more intuitive layout, constantly seek to evolve, tweak,
department stores
purpose, whether it is to improve
such as clustering together those adapt and otherwise improve every
consider evolving
minute aspect of what they do. At
how they allocate
the same time these retailers - I call
departments and
“It is thanks to Mr Selfridge’s deep
them challenger brands - also hold
both their USP and brand identity
floor space? If so
what changes
understanding of a changing customer
very close to their heart as an integral
part of everything they do. It is no
should be made?
market that we have glamorous beauty
different when you are considering
halls welcoming us into many
how to allocate department and
floor space. Ask yourself, am I really
department stores.”
making the most of our USP? Am I
simply doing it this way because that
is how it has always been done or
can I turn this on its head and come
sales, reduce costs or improve mar-
departments that shoppers are
up with something really unique?
gin, because there will inevitably be
known to shop together, or making
Does this plan result in a layout/envi-
a downside to any major change.
the experience more exciting by
ronment that is on brand?
Improved sales, reduced costs or
building a trail of ‘cookies’ (e.g. new
I suppose the essence of my advice
higher margins can be readily justi-
designer brands) in strategic areas,
is to keep the main thing the main
fied, and as long as change isn’t for
perhaps within sight of or leading
thing and think really hard about ex-
change’s sake, then why not? After
from an existing ‘hot area, gradually
actly what the main thing is! And
all, if it had not been for Mr Self-
drawing customers into a formerly
keep looking for just one more im-
ridge’s deep understanding of a
‘cool’ one. This serves to improve
provement. With the economic
changing customer market together
the return from those friendless and
downturn set to loiter for a while
with his famed business acumen,
unprofitable square feet, thus an-
longer, 2010 will be highly competi-
we would not have glamorous
swering the needs of cost savings if
tive and see even more ingenuity in
beauty halls and cosmetic depart-
nothing else. It is remarkable how,
retail. Businesses that cannot keep up
ments welcoming us into many
using such technologies, arid shop-
a programme of constant improve-
department stores.
per deserts can become lush oases
ment risk a fate much worse than
In the current recession depart-
of buyer patronage, and all because
just lagging behind.
ment stores have well understood
you have taken the time to learn
Let's also look very briefly at the
what makes them different and
what is really going on.
specific circumstances of the current
have used that difference to protect
Thanks in part to the recession
year and how this may affect depart-
margins and sales while sailing tran-
the pace of change in shopping atti-
ment and floor space allocation. It's
quilly on. This is all very laudable,
tudes and behaviour patterns is
been a hot topic for some time now
but every square foot in every store
accelerating. In this regard, it has
so I won't witter on about it but it is
must repay its cost or it is a burden
never been more important to en-
worth thinking about some of the
8 Department Store Buyer
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