It’s Musical Chair Time in Retailing
Last weekend I was at Shoppers’ Stop, to my surprise the whole of ground floor is going through a revised floor plan. Except for perfumes and the watch counter every other section is either moved elsewhere or and has been closed.
I am sure the marketing team has found camera sales is virtually nothing in the shop and has shut down the section, the remaining merchandises are going to find the new neighbours, hopefully by the direction they got from some business analytics.
Yes. As per one of the research outcomes, it’s not only the basket size, but also the shape that is going to change. I am sure you all remember the old line ‘Customers who buy hammer also pick up nails”. This line has rather got its well deserved importance and retailers are toying with an idea of ‘not-necessarily’ reorganizing the shelves but creating a honey-comb out of it.
Let me give you an example - In Scotland, the country that is known with its whiskeys – shopping analysis reveals, customers who buy premium whiskeys also buy chocolates with it. Basis this analysis, moving the chocolate counter from where it belongs to ale section is rather meaningless. But, instead why not create small pockets close to whiskey shelves where it can be kept?. Well, it was done and found to be quite effective.
Likewise, imagine a scenario where you find a book (casually) lying next to the diapers section on parenting. You guessed it right; it will raise the interest level and customer’s purchase propensity would increase. Remember, the book section/shelf has not moved but just a pocket was created in baby-care section.
Indian market is yet to pick up in organized retailing, the players have however started pulling up their socks and getting ready for the race. Particularly, Bharti’s recent partnership with the retail giant Wal*Mart is going to bring a sea change in how things are done in Indian Sub Continent. I hope ingenious retailers will hoist and keep the flag flying high by Aug-14, 2007.












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