Developing the store formula: The right combination of creativity and process based development

The retail industry: more complex every day

When you start to develop a new store concept or to restyle an existing formula, you start a complicated process. Success is by no means guaranteed even if your research has been thorough and you have a great deal of experience and the right feeling for it when you make decisions regarding product range, prices and the store's location …

What is it that makes the retail industry so complex? First and foremost the extreme competitiveness: recently a growing number of international players have been offering identical ranges at minimum prices in easily accessible locations. And, of course, the consumers. They often seem like exceptionally well-informed professional buyers! But, at the same time, they are capricious, impatient and insecure. Yet this insecurity also gives you opportunities. Because it makes consumers look constantly for 'anchors', stable values that offer them trustworthiness and security. And they hope to find that trustworthiness in brands with fixed, recognisable values. So it is not surprising that the 'old' brands are, indeed, getting stronger, as demonstrated by a recent survey. Consumers find this trustworthiness not only in product brands, but also in store brands. For they also associate emotional value perceptions with store formulas.

Linking fixed values to contemporary Developments

It is a characteristic of stores that have developed a unique and valuable store brand perception that they have succeeded in retaining it for a longer period of time. This requires a consistent policy regarding such factors as product range and prices. In this respect, a link to communications, especially through the store's image, is essential: in this way, fixed brand values are combined with current developments.
The (Dutch) market shows many chains – such as Ikea, H&M and Aldi – that have built up a strong brand position thanks to this consistent strategy. In addition, there are chains that inevitably run into trouble because they anticipate consumer developments too late, or because they abandon their fixed values, such as for instance McDonalds, which introduced fresh salads into its product range in the nick of time. Or the Dutch supermarket chain Laurus (now Casino) that wanted to introduce a national store brand, but forgot that many of the fixed values of the stores were part of their familiar regional image.

Never stop innovating

Retail organisations are forced to choose their own direction. This is absolutely necessary for survival. But they need to realise that the road is often very tortuous and unpredictable, full of unexpected twists and turns and unpredictable dangers. Besides, they should also realise that the final destination is unknown: in order to survive, the organisation needs to continually re-invent a clearly recognisable consumer-oriented strategy. And each time the organisation does so, the consumer's likely response to the new strategy remains an enigma.
What does this mean?
That those responsible need to make far-reaching decisions. Not only about formulas to be newly developed but also about the future of the existing store formula - which is the successful ‘steady anchor’ for customers, with its familiar brand values. And in order to retain those values, the ‘anchor’ needs to develop in step with the customer dynamics. The aim is to retain the regular customers – and to attract new ones.

The store designers' role is becoming more strategic

The increasing complexity of retailing also requires a different strategy on the part of store formula designers. Creativity and expertise are no longer sufficient. Instead, today's retail organisations need a process-based approach. An approach that, in order to form a clear and recognisable store design, combines aspects such as trends, consumer developments, market overviews and also (with regard to restyling) the existing brand values. The main aim is to achieve a process of dynamic innovation in which designers have an increasingly leading and strategic role. They support the client using their market insight and expertise. They ensure that all of the success factors are integrated into the process in the right way and at the right time.

From theory to practice:

Getting to work with the practical-experience based development model. The Jos de Vries The Retail Company Concept Development Model is a handy tool. This successful model is based on extensive international practical experience of dozens of European retailers. Furthermore, the advantage of the model is that it is not only suitable for use during the development of new formulas, but also when restyling existing formulas. The special quality of the Jos de Vries The Retail Company Concept Development Model is that it is based on three pillars. The first is the maximum integration of market developments, trends and consumer behaviour. These are linked to the store organisation’s commercial expertise – the second pillar. And the third, at the same time not only pillar but also the central hub, consists of the designer's creativity and inventiveness.

Thus the model creates balanced solutions, focusing on innovation and practical applicability.

The model consists of three phases, which should be completed in the order given.
1. The discovery phase
2. The development (or Master Vision) phase
3. The concept phase

This chapter is part of the book "the store manual" of Jos de Vries The Retail Company

The Store Manual (2005) Jos de Vries The Retail Company has been working his way through the marvels of the Retail world since twenty years. Since the Retail branch on its way to professionalism is developing and also scholarly interest was growing, there still wasn’t a manual.Jos de Vries The Retail Company has made a definite change in bringing out “The Store Manual” a must for every store.
You can order this manual for € 35,00 (excl. Postage and Package)

Jos de Vries The Retail Company BV

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3605 MA Maarssen

P.O. Box 1194

NL-3600 BD Maarssen

the Netherlands

Tel. : +31(0)346 - 563764

Fax : +31(0)346 - 572722

info@jdvtrc-retail.com

Retail strategy store development: Shop front

Toolbox Revisited
Within a succesfull branding process, a clear basic idea and the uniqueness of the products offered are not enough. The result should also be attractive in its elaboration. The quality of the translation of the basic principles into the store image is therefore an extremely important succes factor. In order to carry out this process in the best and most complete way possible Jos de Vries The Retail Company has developed a practical toolbox. This toolbox contains all the tools to create a complete and distinctive store concept. Using this toolbox, you will avoid making random decisions about the store´s image.

They will always be rooted in the basis principles of the formula.
The various parts included in the toolbox are:

Tool 1. Store lay-out
Tool 2: Store design
Tool 3: In-store graphics
Tool 4: Visual Merchandising
Tool 5: Shop front Design

Tool 5: The Shop Front

Simultaneously with the store´s floor plan and the store design concept, you should decide on the exterior of the store: the shop front concept.

These three aspects, layout, store design and shop front concept cannot really be separated. To approach the concept in the right way, the store´s exterior should be a refelection of what is going on inside the building.

In addition, the shop front and the building´s contours create the context for the situation inside the store. Ideally the exteriour is transformed, via a barely perceptible transition zone, into the interior layout concept. Finally, given the right approach, the emotionals aspects of the style such as shapes, materials and colours are closely connected with functional aspects such as accessibility, transparency and daylight.
During the development of the store, another important component of the shop front strategy is the advertising, which often causes heated discussions. If approached in the wrong way, therefore, the development of the shop front can be the source of much conflict.

The architect responsable for the development of the building plays an important role in this respect. It is not uncommon for an architect to tend to think more about the design than about what it means for the building´s environment. Depending on the architectural vision, the architect wants the building´s function in its environment to be clear. The building should adjust to, or possibly indeed distinguish itself from the existing buildings. However, from the point of view of the store designer, we are rather seeking to insert the uniform familiarity of the concept into the location and to convey the store concept via the shop front.
The second problem, and often the subject of heated discussions, is the openness and the transparency of the building. An architect often aims for an extrovert set-up of his building, whereby the transparency and the dynamics of shop front surfaces, in combination with windows, admitting daylight, are an important part of the architectural design.

The shopkeeper, on the other hand wants the store to be as closed as possible in order to present his goods, and little daylight in order to be able to use his own lighting. And, finally he wants the loccation of his shop front advertisements to be as dominant as possible.
A complicating factor here is that often, when the building is under construction, the tenant or the store formula are not yet known, making it impossible to conduct consultations at an early stage. Good shopping centre architects have no problem with this. Based on their experience they are well able to include general criteria in their building that enable the space to be fitted in and made maximum use of as a store.
However, this requires expertise and empathic skills. Empathy and knowledge of what is important for setting up a store formula.
This is because (and one is not always fully aware of this when a shop building is being developed being able to operate the formulas at the store´s location determines the joint success in the end. A shop location where the two aspects – architectural quality or flexibility in the interests of the tenant – are out of balance will never enjoy long-term success.

This chapter is part of the Book "Let me tell you a store" Please contact Jos de Vries The Retail Company or m.vanderkooij@josdevries.eu for further information.
Since many years Jos de Vries The Retail Company is a well-known organisation in the retail business. We are specialised in analysing, designing and realysing shop concepts all over Europe. We know for a fact that the successful presentation of shops and products can not only bring about a positive image but also achieve above-average successes.