Texas Habitat Lone Star Conference

Merchandising Your ReStore to

Attract Key Demographics

August 12, 2014

Richard Weiss, AIA

Weiss Architecture, Inc., Austin Texas

ReStore Design

• Meaning & Importance of Store Design• What do you sell?

• Who are your customers?• Donors

• Shoppers

• Components of Store Design• Store Exterior

• Store Interior• Store Layout

• Fixturing

• Merchandising

ReStore Exterior Merchandising

Considerations

• Site Location & Size of Building

• Retail center, stand-alone, corner lot, other configuration

• Location of Marques & Exterior Signage

• Walkways

• Store Entrance

• Window Displays

• Change often, fun/exciting, reflect merchandise in the store

• Color & Exterior Building Materials

• Theft Prevention (good design, lighting, cameras, security)

• Cart Collection & Lock Systems

Store Layout Basic Principles

• Decompression Zone• The first five to fifteen feet worth of space. Makes the transition

from the outside world and first experience what you have to offer.• Customers make critical judgments like how cheap or expensive your

store is likely to be and how well coordinated your lighting, fixtures,

displays, and colors are. Since they're in a transition mode,

customers are more likely to miss any product, signage, or carts you

place there.

• Point of Recognition• Indicates layout clues and the departments or aisles that the

customer is interested in The point of recognition is the area of the

store where the customer starts to learn how to physically shop

• Customers tend to walk to the right (except Aussies)

ReStore Layout Factors• Total (sales) space available

• Types of Products & Merchandise offered

by the store

• Types and Number of Departments within

the store

• Volume & Variety of product-line carried

• Mode of Operation

• Movement required in the store for

receiving, picking, storing product

• Target customers and the average

number of customers in the store

• Degree of changes in operations

• Stock & inventory levels and turn-over

Check out HFHI

courses ReStore

101 & 201 for

standard ReStore

key performance

indicators/metrics

Types of Store Layouts• Grid Layout:

• Home Depot, Loews

• Race Track/Loop Layout

• Bed, Bath & Beyond, Linens & Things

• Other considerations

• Free Flow/Boutique Layouts:

• Breed & Co. (local Austin, upscale hardware & home store),

Williams & Sonoma

• Spine Layout: This could be an option for some ReStores,

depending on the site location and layout (store’s entry/exit

points, parking accommodations)

Grid Layout

• Common ReStore layout

• Counters and fixtures are placed in long rows, usually at

right angles throughout the aisle placement

• Customers circulate up and down the grid, ideally visiting

each aisle

• Best used where customers like to shop the entire store or

require items from various “departments” organized

throughout the store

Grid Layout

Counters and fixtures are placed

in long rows or “runs” usually at

right angles, through out the

store.

Benefits:

Easy to locate merchandise

Cost efficient

Easily accessible for customers

Disadvantages:

Limited customer/browsing

engagement

Limited creativity in décor or

repetitive aisles

Need to be

creative; focus

on

merchandising

ReStore Merchandising & Methods of Display

to Maximize Sales per Square Foot for

Customer Demographics

HFHI “Typical” ReStore

Customer & Donor • Female

• 5’3 tall

• 40+ years old

• Focus on women customers and donors

BUT . . . Your “typical” customer may be different. Depends on

types of products, departments, and your

marketing/merchandising of your ReStore.

AND . . . You have a “market-tested” opportunity to easily

recruit the “typical” HFHI Restore customer, if she is not

already shopping at your ReStore.

Marketing to Females

If she cannot reach it, she will

not buy it.

Merchandise

should be

optimally placed

between three and

five feet off the

ground.

Marketing Sightlines:

Female Customers• Make sure the height of all the shelving within your store, and especially at the front of

your store, is optimal for the average 5’3 woman to shop comfortably. When

merchandising your products, remember that eye focus level is typically between three

and five feet. Items placed above or below this focal point are almost invisible to the

customer. The fixtures should also showcase merchandise in a pyramidal

display, sloping back from the shopper. Granted, not all of the merchandise in

your store is going to be placed at this optimal eye level, but try rotating your

stock between this focus level and you will find you can move stale inventory

quicker.

• Anything displayed over six feet is not a store fixture but is, in fact, storage.

Placing high-ticket items and other merchandise of note at eye level will ensure

they are noticed by your customers. Placing the brand new Whirlpool tub on a pallet

in the upper racks will ensure it will become nothing but a glorified dust collector. If

customers do notice it, they will pester you for help and it isn’t worth your time to

constantly fetch merchandise down each time a customer wants to look at it. Make

shopping your store as self-service as possible.

Customer & Donor Demographics

Collecting & Analyzing the Data• Implement an easy system for consistent data collection

• Integrate with check-out & donation process to collect customer

data (zip code, age, M/F, e-mail, name, address)

• Train employees, volunteers, CSRs

• Communicate to staff & volunteers that the data really matters

• Analyze the Data• Identify your customers – who are they?

• “Typical” Habitat ReStore Customer

• Site Selection• HFHI ReStore Market Study: Location, location, location

• Drive-By Visibility & Traffic Counts

• Safety

• Building design: suitability for donation drop-off, receiving, ceiling ht

Psychological Merchandising

Factors to Consider • Mission-Driven, Value-Oriented, Green/Sustainable Image

• Angles and Sightlines

• Customers view store at 45 degree angles from the path they travel as they move through the store

• Most stores set up at right angles because it’s easier and consumes less space

• Equal spacing of items on racks, hooks, hangers to create strong visual effect

• Vertical color blocking

• Merchandise should be displayed in vertical bands of color wherever possible – will be viewed as rainbow of colors if each item displayed vertically by color

• Creates strong visual effect that shoppers are exposed to more merchandise (which increases sales)

Space Management

• The space within stores and on the stores’ shelves are

fixtures is a scare resource, must consider:

• The allocation of store space to merchandise categories

AND

• The location of departments or merchandise categories in the

store

Space Planning

Key considerations:

• Productivity of allocated space

• Sales per square foot

• Sales per linear foot

• Merchandise inventory turnover

• Impact on store sales

• Display needs for the merchandise

Typical ReStore Departments

• Hardware

• Plumbing

• Lighting & Electrical

• Flooring

• Cabinets

• Windows

• Doors

• Appliances

• Furniture

• Home Goods

• Seasonal & Featured Items

• Impulse

Location of Departments

• Relative location advantages

• Impulse products

• Demand/destination areas

• Seasonal needs

• Physical characteristics of merchandise

• Size (appliances, furniture, cabinets)

• Lighting (consider placing lighting dept in darkest spot)

• Adjacent departments

Feature Areas

• The areas within a store designed to get the customer’s

attention

• Entrances

• Freestanding displays

• Cash wraps (checkout areas)

• End caps

• Promotional aisles

• Walls

• Windows

• Ceilings (lighting displays/ceiling fans)

• Use these areas to highlight merchandise and communicate

your HABITAT MESSAGE & MISSION

Merchandising Placement

Considerations• Seasonal/Featured items in FRONT

• Destination purchase items at BACK LEFT of store• Appliances, Doors, Windows

• Special merchandise – lightly trafficked areas (glass pieces)

• Impulse purchase items - near heavily trafficked areas

• Adjacencies; Ancillary or complimentary product

merchandising; cluster complimentary merchandise next to

each other• Paint, paint brushes, drop cloths

• Plumbing Fixtures, pipe fittings, o-rings, caulk

Prime Location for Merchandise

• Highly trafficked areas

• Store entrances

• Near checkout counter

• Highly visible areas

• End aisle

• Displays

Location of Merchandise within a

Category: The Use of Planograms

• Supermarkets and drug stores

place private-label brands to

the right of national brands –

shoppers read from left to right

(higher priced national brands

first and see the lower-priced

private-label item)

• Planogram: a diagram that

shows how and where specific

SKUs should be placed on

retail selves or displays to

increase customer purchases

Visual Merchandising

• The artistic display of merchandise and theatrical props used as scene-setting decoration in the store

• Several key characteristics

• Not associated with shop-able fixture but located as a focal point or other area remote from the on-shelf merchandising (and perhaps out of the reach of customers)

• Use of props and elements in addition to merchandise – visuals don’t always include merchandise; may just be interesting display of items related to merchandise or to mood retailer wishes to create

• Visuals should incorporate relevant merchandise to be most effective

• Retailers should make sure displays don’t create walls that make it difficult for shoppers to reach other areas of the store

Visual Merchandising

Presentation Techniques

• Idea-Oriented Presentation

• Style/Item Presentation

• Color Organization

• Price Lining

• Vertical Merchandising

• Tonnage Merchandising (display large

quantities together to convey value)

• Frontal Presentation

Merchandise: Display Planning

• Shelving – flexible, easy to maintain

• Hanging – options for lighting, ceiling fans

• Pegging – small rods or S-hooks inserted into gondolas or wall systems (slat/peg board) – can be labor intensive to display/maintain but gives neat/orderly appearance

• Stacking – for large hardlines can be stacked on shelves, base decks of gondolas or flats – easy to maintain and gives image of high volume and low price

• Dumping – large quantities of small merchandise can be dumped into baskets or bins – highly effective for softlines (socks, wash cloths) or hardlines (batteries, candy, grocery products) – creates high volume, low cost image

Fixture Types• Straight/Hanging Rack – long pipe or other structure

suspended with supports to the floor, attached to a wall or ceiling used to display lighting (ceiling fixtures) and ceiling fans

• Gondola – large base with a vertical spine or wall fitted with sockets or notches into which a variety of shelves, peghooks, bins, baskets and other hardware can be inserted.

• Four-way Fixture – two crossbars that sit perpendicular to each other on a pedestal

• Racking Shelf/Pallets – takes advantage of vertical space for storage of larger items that are displayed, but not stocked in customer line of site

• Other common fixtures: tables, large bins, flat-based decks

Wall Fixtures

• Small Hardware, Add-Ons/Ancillaries, POS areas

• To make store’s wall merchandisable, cover wall with a skin

that is fitted with vertical columns of notches similar to those

on a gondola, into which a variety of hardware can be inserted

(slat or peg board)

• Can be merchandised much higher than floor fixtures (max of

42” on floor for round racks on wall can be as high as 72”

• Visible signage to delineate point of sale location for a

particular items or area (plumbing, electrical, etc.)

Other ReStore Experience Considerations

Atmospherics

• The design of an environment via:

• visual communications

• lighting

• color

• sound

• scent

to stimulate customers’ perceptual and emotional responses and ultimately influence their purchase behavior

Lighting

• Important but often overlooked element in

successful store design

• Highlight merchandise

• Capture a mood

• Level of light can make a difference

• Consider placing lamps/lighting departments in darker

spaces

Color

• Can influence behavior

• Warm colors increase blood pressure, respiratory rate

and other physiological responses – attract customers

and gain attention but can also be distracting

• Cool colors are relaxing, peaceful, calm and pleasant –

effective for retailers selling anxiety-causing products

• Use standard Habitat/ReStore branding colors for store

accents. Consider adding a “warmer” color (orange, red,

yellow) sparingly.

Sound & Scent• Sound

• Music viewed as valuable marketing tool

• Often customized to customer

• Can use volume and tempo for crowd control

• Scent

• Smell has a large impact on our emotions

• A bad smell does not encourage customers to stay and shop

• Can be administered through time release atomizers or via

fragrance-soaked pellets placed on light fixtures

ReStore Merchandising Examples

HFH Portland Metro ReStore

Shoppers can navigate to

the plumbing department

easily with this nice interior

department sign

The floors are clean, the

departments have floor

tape and the merchandise

is organized nicely on

gondola shelving

HFH of Lima ReStore

All the red bins are

matching and they

keep small items

organized

End cap displays

Fixture is painted

mission colors

Central SC HFH ReStoreRepurposed

picture frames

in tree design

demonstrates a

creative and

beautiful DIY

idea

Living room set-

up creates cozy,

home feeling to

customers

Similar styles and color

groups are

merchandised together

The price tags are large

and easy to read

Accents are displayed

on the coffee table

Artificial plants are

strategically placed to

create that “at home

feeling”

HFH ReStore Charlotte

HFH ReStore Charlotte

Several room vignettes

Coordinated like styles

of furniture and accents

to help the shopper

visualize what their

room could look like

Added area rugs and a

mechanism to hang

light fixtures if needed

Bold paint colors make

artwork stand out

HFH of Greater Orlando ReStore

Open floor plans allows for

multiple mini-room set-ups to

demonstrate which pieces go

together and give shoppers

an idea of how it would look

in their home

This ReStore showcases

their nicest furniture at the

front for window shoppers

and a good first impression

for regulars

Imaginative use of

everyday ReStore

merchandise is used to

create the signage

display

Use of slat walls and the

use of Habitat blue

Plastic bags bring a

clean professional look

to the display for

donated materials

HFH Ottawa ReStore

HFH of Tulare County ReStore

Gondola fixture has

been equipped with

peg board and

shelving so that

they can display

different types of

merchandise

Fixture is well

stocked and

organized

Professional, branded

design of bag toppers

A simple colored

sticker allows ReStore

staff to know how long

the bag has been on

the peg board

HFH Charles Co. ReStore

Bold statement of having a

lot of a certain item

Fixtures fit the inventory

Labels are facing out &

product evenly placed

Product shelf placement,

color blocking

HFH Burke County ReStore

Sign shows both the

words and the picture

to make it easier for

people to easily identify

a department

Bag toppers make

shelving more

organized and allows

shoppers to find items

easily

Shelving is painted in

Habitat colors

South Puget Sound HFH Store

Like styles are placed

beside each other

Chairs are lined up and

presented back to back

to be more visually

appealing

Large inventory does

not keep you from

merchandising properly

HFH of Orlando ReStore

HFH Charlotte ReStore

Slat wall was installed to

display art work

Hooks are used for easy

hanging

Everything is priced

Subject matter is grouped

together

HFH of Forsyth Co. ReStore

The pictures are displayed

gallery style, hung on an

actual wall, and lit with

accent lights

Shelving is designed for an

average height woman so

that all items are not only

visible but also reachable

HFH Niagra ReStore

Bright green wall

color helps items

really stand out

Wall shelving allows

for height change so

that they can still

display the tall vases

and make items

reachable

HFH Charlotte ReStore

Tiered fixtures

allow for large

quantities to be

displayed

Glassware pops

on glass display

fixture

Inventory has

been cleaned and

priced

HFH of the Chesapeake ReStore

Attractive use of displays

to merchandise the home

goods and housewares

This department is free of

clutter so customers do not

have to dig through items

to find something they may

want to purchase

Green Mountain HFH ReStore

Female shoppers are

able to examine each

piece of merchandise on

this gondola shelf

Like items are with like

items (short lamps, tall

lamps, lamp shades,

lighting, etc.)

HFH of Greater Miami ReStore

Pallet racking can be

used to nicely display

household goods like

lamps

An average height

female could easily

examine merchandise

on this pallet racking

HFH of Madison & Clark Counties

ReStore

A book nook can be

easily added to a

home goods

department

Notice how bright

and open this

department is,

making it

welcoming to shop

Books are displayed

in shelving to

emulate what it would

look like in a home

The blackboard

allows staff to change

the signage when

needed

Cups and mugs are

hung by their handles

to save on shelf

space

Lexington NC HFH ReStore

Fauquier HFH ReStore

•The tubs are placed on pallets

so pallet jacks can easily move

the tubs around the store

•The tubs are arranged

together to create an open

space and to maximize sales

floor space

HFH Charlotte ReStore

Customers can learn the prices of sinks with this

nice-looking sign

This sink display can be easily made by a group

of volunteers

This shelving

allows for a large

quantity to be

displayed

Bottom shelf can

be used for heavier

items such as

toilets

HFH Greater San Francisco, Inc.

ReStore

Space in this plumbing

department is

optimized by this

fixture

This fixture allows for

many different types

and sizes of sinks to be

displayed nicely

HFH of Dane Co. ReStore

This sink fixture has

rounded holes in the

boards so that all circular

sinks can easily fit into

each hole

This fixture allows

shoppers to see all of the

sinks available for

purchase

Designs are streamlined

and hold different shaped

sinks

Toilets are able to be

merchandised below the

first set of racks

Faucets are displayed

professionally and parts

are kept together

HFH of Greater Baton Rouge ReStore

HFH Charlotte ReStore

This pedestal sink fixture allows

the two pieces to remain together

while also being moved easily

throughout the store

The pedestal sinks are aligned

symmetrically as a means to

merchandise the sinks along this

aisle

HFH Orange Co. ReStore

This section is bright and

open, which welcomes

shoppers to browse

through the vanity sinks

The vanity sinks are

separate from other

plumbing merchandise so

that they can stand out

amongst other sinks

HFH Charlotte ReStore

The moveable

toilet dolley

allows both

shopper and

staff to move

toilets around

the store with

ease

The A-Frame

fixture allows

large windows

to rest against it

HFH Orange Co. ReStore

It looks nice to

display the floor

pieces on pallet

racking

The packs of

laminate flooring

stack nicely on

pallets and can be

easily grabbed by

shoppers

HFH of Greater Baton Rouge ReStore

The windows are neatly

displayed using pallet

racking

Each window rests on a

board and is secured by

multiple wooden beams

The size of the pallet

racking allows large

windows to easily slide

through

ReStore Check-Out (POP) Merchandising

Considerations

Check-Out Displays at

Point of Purchase (POP)

DISPLAY ARRANGEMENTS

• Assortment display

• Theme-setting display

• Ensemble display

DISPLAY TYPES

• Rack display

• Case Display

• Dump bin

ReStore Check-Out Considerations

• Organized, neat, clean

• Welcomes customers

• Communicates Mission, Volunteer Opportunities, Habitat

Branding, Collect Customer Data

• Bagging & check-out is easy for small and large items

• Target impulse shoppers based on customer demographics

• Cart storage (cart security systems)

• View of store - loss mitigation/theft prevention

• Cashier Safety

• Signage: my.habitat.org

Attractive Habitat color

scheme used throughout the

area

Two cash registers are used

for high-volume days

Small amount of space the

entire checkout area

occupies (to avoid an

opportunity for clutter)

Professional staff uniforms

HFH of Greater Miami ReStore

South Puget Sound HFH Store

Beautifully built counter

reminds customers that

building is central to

Habitat’s mission

L shaped design provides

a long counter top for

ringing up purchases and

allows for extra space if

more cashiers are needed

Forward-facing area

makes it easy to greet

shoppers as they enter

HFH of Greater San Francisco

ReStoreThe sharp uniforms for the staff

members

Professional looking policy

sign displayed on the wall

The cash register displays the

sales total for each customer

and receipts are given to each

customer

The sign-up sheets recruiting

volunteers and e-newsletter

recipients

HFH of the Lehigh Valley ReStore

The counter is positioned next

to the front entrance to allow

staff to greet customers and

say a final, “Thank you!”

The clean countertops promote

a higher-end look and feel

The counter height and open

space in front is ADA compliant

HFH St. Louis ReStore- Des Peres

The flat screen TV to

educate customers waiting

in line on Habitat’s mission

Staff to come around the

counter to assist

customers

Creative wall design

makes the store unique

and fun to shop

Iowa Valley HFH ReStore

Checkout area provides a 360

degree view of the store for

staff

Clutter-free counter top space

allows customers to place their

purchases, purses, coats, etc.

Amount of counter space

allows for two lanes of

customers wanting to checkout

(quick checkout even on busy

days)

Designated area for carts

HFH Charlotte ReStore- Wendover

Large Habitat Logo emphasizes

how each dollar spent at the

store goes towards Habitat’s

mission

Sign honors the volunteers that

have served over 1000 hours

(shows appreciation and

attracts more people to

volunteer)

The professional sign explains

the return policy

HFH of Greater Memphis ReStore

The signage clearly states

where customers can

check out

Cashier’s view of the

entire store is free of

obstructions

Limited counter space in

between the staff member

and shopper (prevents us

vs. them mentality)

Central SC HFH ReStore

Design of the counter allows

space for another cashier

when it gets busy

Showcase by the register

means the cashier can keep

an eye on more smaller,

more valuable items

Repurposed wood adds a

design feature while still

being cost effective

Fayetteville Area HFH ReStore

The wall blocking the view

of the check out area from

the window (ensuring

safety)

Counter is clean and

clutter- free

The nice sign informing

customers that there are

volunteer opportunities

available

HFH of Greater Chattanooga Area

ReStoreHeight of the counter is

ADA compliant

Design of the counter

allows for a neat display of

merchandise (maximizing

square footage)

Cabinet drawers along the

back wall hide any

unsightly objects like

paper, office supplies,

binders, etc.

HFH Greater Portland Maine ReStore

The neat use of doors to

make up the check out area

(provides a unique

experience for shoppers)

The shopping basket return

is convenient for shoppers

to return their basket

The office space in the back

has windows for the

manager to see the entire

store

HFH of Greater Orlando ReStore

Similar design to a grocery

store where smaller items

are merchandised as

impulse buys

Bagging area makes it easy

for customers to package

their own purchases

Space is neat and clutter-

free

Madison & Clark Counties HFH

ReStore“Customer Service” sign that

gives a professional look and

feel

Two registers on high volume

days eliminate long lines

Staff are able to see the entire

store from this centrally-

located checkout area (acts as

a hub)

Our Towns HFH ReStore- Cornelius

The cashier is able to greet

customers that enter the store

A volunteer is able to act as the

cashier by using a simple and

effective cash register

The far end of the counter

allows the cashier to bag small

items

HFH of Forsyth Co. ReStore

The horse-shoe design

allows for two lines to

form, especially useful on

busy days

Sponsor recognition

plaque honors that

corporation’s donation in

the heart of the store

While customers are

checking-out they have a

clear view of the mission

wall

Resources & Quick Reads

Resources:

www.my.habitat.org

Merchandising quick reads:

• http://www.entrepreneur.com/article/223808