For the majority of retail businesses the “no-brainer” moves have been played, and the easy money has been made. Yet the battle continues unabated for elusive customer patronage, and increased market share. The battlefields are physical and online stores, and the new weapon of choice for creating inspiring retail experiences is visual merchandising. With limited budgets and resources, visual merchandising offers the potential of “quick-win” yet sustainable sales increases through low-cost, low-risk, low-investment solutions, which are dynamic and flexible. In a world of austerity visual merchandising has come of age.Visual Merchandising makes the most of what retailers have.

1. VM-unveiled!
plotting a path for visual merchandising
through the multi-channel minefield
how to pinpoint & deliver sales increases in physical & online stores
from VM-unleashed! Ltd

2. Visual Merchandising comes of age
delivering sales increases in a world of austerity
“In the vast majority of cases,
improved sales and profit will
For the majority of retail businesses the “no-brainer” moves have been now be the result of incremental
played, and the easy money has been made. Yet the battle continues improvements across a wide
unabated for elusive customer patronage, and increased market share. range of store elements.
The battlefields are physical and online stores, and the new weapon of The clever part will be identifying
choice for creating inspiring retail experiences is visual merchandising. which improvements will produce
tangible sales increases and will
With limited budgets and resources, visual merchandising offers the represent a worthwhile return on
potential of “quick-win” yet sustainable sales increases through low- investment. ”
cost, low-risk, low-investment solutions, which are dynamic and flexible.
In a world of austerity visual merchandising has come of age.
Visual Merchandising makes the most of what retailers have.
“Customers are often blind to
VM-unveiled! is a unique analytical process which tests the strengths the extensive work done to
improve assortments.
and the weaknesses of both physical and online visual merchandising,
space planning, assortment presentation & visual display techniques. Only when the product is looked
at through the eyes of the
VM-unveiled! measures and benchmarks an extensive range of visual customer experience, and
merchandising elements to give a unique insight into how successfully changes made to the product
a retailer is delivering and communicating its product proposition grouping & visual display, do
you see the sales response you
VM-unveiled! clearly identifies “quick-wins” and “cost-effective have been looking for.”
improvements” and shows how to convert these into additional sales.
VM-unveiled! explains why, where and how to group, display and sell
more effectively – how to improve conversion & increase rates of sale.
Whilst multi-channel retailing is the future, it will only be a bright one for
those who accurately identify the strengths and weaknesses of their CEO Retail Priorities for 2012
physical & digital experiences, and improve them accordingly. Kurt Salmon Retail CEO survey: Retail2012
The importance of VM in a multi-channel world Multi-channel
Recent surveys confirm the importance of a multi-channel strategy, Develop stores
and in a world where over 80% of retail sales still come through the
physical channel the priority to maximise visual merchandising in
Reduce cost base
physical stores as well as develop best practice online.
VM-unveiled! makes the commercial link between buying & Range expansion
&
merchandising and assortment structure planning with space develop
planning, product ranging, visual merchandising ment
and the delivery of a retail calendar across channels.
International
VM-unveiled! makes the most of what retailers have! expansi
on Scores & mentions
how to pinpoint & deliver sales increases in physical & online stores
from VM-unleashed! Ltd
1

3. Protecting & maximising your interests
Understanding the scope and range of VM opportunities
VM-unveiled! enables retailers, brands and investors in retail to
understand the scope and range of sales opportunities existing “The VM quick-wins that were
within a retailer’s physical and online stores. suggested delivered initial sales
improvements, and bought us
Priority consideration is given to potential improvements that will be valuable time and breathing
quick to impact, can be attained with existing resources, and can be space to address the more
fundamental issues within the
achieved with low cost & low risk.
business. ”
The VM-unveiled! process is used as a one-off catalyst for change, as
a series of seasonal injections, and as an ongoing monitor of progress
and identifier of new opportunities.
VM-unleashed! is also used in conjunction with other consultancy
work-streams typically focused on assortment structure planning and “Our successful yet almost
accidental online business
buying & merchandising, or as part of due diligence and retail strategy
now has key objectives for
reports for financial stakeholders.
improvement, with clear and
precise VM actions to bring
Retailers: to pinpoint weaknesses and deliver quick-win opportunities, us in-line with best practice.”
validating existing perceptions and assisting internal decision making
processes, and galvanising existing operational teams.
Brands: to highlight where retail best practice is lacking in physical &
online stores, and improve the delivery of the brand proposition and
“It can sometimes be a fine,
how it is being communicated through retail and wholesale. but very important line, between
throwing money at a problem,
Retail consultants: to add analytical evidence supporting high level and pinpointing investment that
conclusions and recommendations, and introducing practical “quick- will deliver strategic solutions
win” opportunities and staggered action plans. and financial gain.”
Investment banks/private equity: to highlight areas of strength and
weakness in the retail delivery, and pinpoint where investment can
generate quick and healthy returns through increased sales and
efficiencies.
Design consultants: to add analytical credence to creative
% more spending from
recommendations, and commercial backbone to decisions on space a multi-channel
planning, store layout, fixture design and visual merchandising. customer than a single
channel customer
Web developers: to add retail awareness, to link the areas of buying
& merchandising and assortment structure planning to site
architecture, product segmentation, visual merchandising & the
delivery of a retail calendar. 30%
Customer behaviour analysts, software developers and market
Kurt Salmon Retail CEO survey:
researchers: as a perfect dovetail to sales performance data analysis,
Retail2012
market research & customer focus groups; adding retail expertise to
conclusions, and providing real & practical actions in store and online
for tangible performance improvements.
how to pinpoint & deliver sales increases in physical & online stores
from VM-unleashed! Ltd
2

4. Making the most of what retailers have
Building the retail of tomorrow with the realities of today
VM-unveiled! is a well-tested and structured process which has
delivered incisive improvements and added real value for retailers.
The adaptation of the store concept to a variety of international
markets with inherently different consumer tastes and shopping
behaviours - assortment mix, visual display, space layout, product
exposure and product story grouping.
The re-balancing of physical option densities and unit depths to
“It was very important to
maximise assortment impact and choice yet sustain enough stock to
understand the subtle yet
support a self-service concept without missing vital sales. important differences when
grouping and displaying our
Coordinating the product dynamic of the retail calendar across store assortment for new overseas
space, windows, display points, mannequins, fixture displays, online markets. Acting on the analysis
and recommendations will have
imagery, home page design, web architecture, assortment
a positive and immediate
segmentation, frequency & content of newsletters. impact on our sales. ”
Avoiding the invisible online assortment by ensuring the correct
segmentation of the product to create logical and intuitive on-line
architectures for optimum product visibility and assortment exposure.
Setting the correct display parameters for store grading.
Defining for outlets from 200-2000sqm modifications to the display
densities, product grouping, display rhythms and visual techniques.
Creating different visual merchandising personalities for a variety of
departments and brands within the same store to deliver appropriate
visual and commercial differentiation, facilitating ease of navigation, “Our store refurbishment
driving footfall and increasing sales productivity. programme had always
brought initial sales increases
but this became more
Correcting the balance of “product stories” within an assortment.
sustainable when the
Working with merchandising teams to develop coordinated themes, environment and fixturing
categories & silhouettes, and with planning teams to define their was linked to the display
strategic placement and adjacencies in wall and floor displays. requirements of the
assortment.”
Ensuring that new store layouts deliver the correct display space,
correct wall and floor capacities, correct floor fixture balance,
appropriate store zones and department depths for each product
department, category and product story grouping
the battle for market share.
year-on-year change in total footfall aug-oct 2011
BRC footfall monitor
-2.3%
how to pinpoint & deliver sales increases in physical & online stores
from VM-unleashed! Ltd
3

5. VM-unveiled! - Methodology
Translating the complexities of the retail space
into something we can all understand
At the heart of the VM-unveiled! process is the obsession to
understand how effectively a retailer is communicating its retail
proposition to the customer through its physical & online stores. .
It is the strength or weakness of the proposition which attracts new
customers, retains existing customers, inspires customers to visit
more often, and stimulates every customer to buy more products on
every visit. The only ways to generate more sales.
How well a retailer conveys its proposition is dependent on delivering
Retail propositions
a complex array of retail elements and features from store layout, and customer perceptions
space planning & online architectures - through product display and create brand differentiation
visual merchandising - to graphic design and the communication of and appeal, drive footfall and
product, price & promotions. frequency of visit, and ultimately
increase sales productivity:-
VM-unveiled! measures the collective effectiveness of these retail
elements. A unique link between tangible retail features and the VM-unveiled! benchmarks:
intangible customer perception. Ease of Shop
- Coordinated analysis of the diverse elements of the retail experience Product Inspiration
- Quantification of the quality and effectiveness of each element. Product Visibility
Product Dynamics
- Unique correlation of the retail element analysis for an accurate
assessment of the strength of the product proposition delivery Assortment Authority
Assortment Price & Value
- Quantitative comparison of the strength of the retail proposition
across internal channels and with the key competitors Fashionability & Freshness
Retail Sociability
Customer Centricity
Femininity & Warmth
Multi-channelness
Professionalism
The process is a virtuous cycle where the
weaknesses of today are the opportunities
for the strengths of tomorrow
how to pinpoint & deliver sales increases in physical & online stores
from VM-unleashed! Ltd
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6. VM-unveiled! - Deliverables
Plotting a path through the multi-channel minefield
VM-unveiled! will…
VM-unveiled! delivers a final
illustrate at a strategic level what are the current strengths and recommendations report and
weaknesses of the product proposition for the customer. presentation…
specify at a practical level what retail elements and features need Highlights of the strategic
to be improved, and how precisely they should be improved. appraisal of the key elements of
the customer experience
recommend what actions are required to improve each retail
element to allow the product proposition to achieve its full Relative strengths and
potential. weaknesses
look in depth at specific retail elements and product propositions Relative strengths and
that are of current strategic importance to a retailer. weaknesses of each channel
Output charts will be used to illustrate important conclusions: Consistency and coordination
between channels
• Comparative product proposition and retail element scores
Strengths, weaknesses,
• Retail element relative scores against competitors opportunities & threats
• Product propositions against customer perception - market position/ benchmarked to competitors &
best practice
price perception/exciting/trustworthy/dynamic/static
• Photographic store review illustrating data conclusions Process changes required for
sustainable improvements
• Competitor photographic store review illustrating strengths & threats
Quick wins for “buying time”
Pinpoint recommendations on
which attributes carry the
maximum sales opportunities
A focus on improvements which
are quick, low-investment, low
resource, low risk but high
impact
Where the combination of
several incremental actions
together can have significant
impact on the retail proposition
and sales
how to pinpoint & deliver sales increases in physical & online stores
from VM-unleashed! Ltd
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7. VM-unleashed!
Making the most of what retailers have
VM-unleashed! has developed its unique VM-unveiled! diagnostic tool
as a first step to improving the retail experience of stores & websites. VM-unleashed is a retail
specialist consultancy working
VM-unleashed! offers a wide range of retail services to enable clients with companies throughout
to implement our analysis and recommendations. Europe.
Tim Radley is the founder and
Managing Director and has
Space planning & allocation been working with best practice
maximising sales/profit productivity per sqm., space density and store European retailers for over 20
years including:-.
capacities – store grading, square metre to linear metre conversion,
store & web space allocation, fixture capacity and design flexibility. All Saints, Camper, Boots,
Carrefour, Otto Versand,
Assortment structure display Gruppo Coin, Vestebene,
Segmenting the assortment for customer ease-of-shop, balancing Adidas, Sonae, Alessi, Aena,
Marks & Spencer, KappAhl,
product story types, defining construction of options within stories,
Imaginarium, Porcelanosa,
planning the flow of goods to construct and fragment stories
Clarks, Aldeasa, Pepe Jeans,
Store layout & web architecture Trucco, Sony, Orange…
Segmentation, architecture and intuitive navigation, sightlines and
focal point planning, best seller merchandising, “contact points” to
stimulate impulse purchasing, cross-merchandising
Visual Merchandising
Commercial display with optimum option and unit densities, creative
display for maximum rates of sales, integration of actual and planned
best sellers, image makers, high & low margin product
Retail Calendar, Events & Promotions
sales promotion strategies and calendars, price & promotional
communication, stimulating the assortment, controlling store & web
space, time and graphic communication, dynamic promotional
layering, window strategy & display, store & website promotional
journey, e-newsletter delivery
VM tools & processes, team structure & training
developing guidelines & manuals, space plans & zoning, developing
store regimes and routines, instilling a culture of visual merchandising
“from boardroom to stockroom!”, improving visual merchandising skills
in-store, developing & delivering training programmes.
Multi-channel
Building consistency & integration of the assortment segmentation and
grouping between channels, development of a coordinated retail
calendar delivered through creative “contact points” in stores and
online.
how to pinpoint & deliver sales increases in physical & online stores
from VM-unleashed! Ltd
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8. VM-unleashed Ltd! Tim Radley
11 Moat Farm Managing Director
Royal Tunbridge Wells tim.radley@vm-unleashed.com
Kent TN2 5XG 07967 609849
UK www.vm-unleashed.com
how to pinpoint & deliver sales increases in physical & online stores
from VM-unleashed! Ltd