Retail Marketing Report
2036MKT Retail Marketing: Assessment item 1
Briahna Noonan s2951808
This report studies the aspects of merchandise assortment and store design within two retailers to identify and research a foundation area that positively and negatively affect the two stores through the literature and associated fieldwork. The two retailers under the retail category of convenience stores were selected and their merchandise assortments and store designs were observed. The retailers were Night Owl Convenience store and 7 Eleven Stores Pty Ltd. Merchandise assortment elements that were assessed include range and quality of merchandise, breadth and depth of product range and the types of brands. Store design elements were assessed based on the retailers’ infrastructure, store layout, spatial planning and visual merchandising. The observations are used to compare and contrast the two retailers and found that each retailer had their strengths and weaknesses within their merchandise assortment and store design which influences the stores success. NightOwl provided a good merchandise assortment with a range of quality brands, products, breadth and depth. Its store design did not perform effective merchandise spatial planning as a result of the stores layout. Factors such as lighting and flooring also let down the stores design performance. The store provided a good use of visual merchandising, particularly with signage which helped to determine sale items. 7-Eleven performed very well in the merchandise selection by providing high quality merchandise and a great product breadth and depth which reinforces a positive store image. Its store design is very effective adding convenience for shoppers through the stores infrastructure, creating an attractive interior, store layout, merchandise spatial planning and visual merchandising such as signage. Another advantage in the 7-Eleven store design was allocating the cash register towards the back of the store enticing customers to go through the entire store to purchase an item. These observations helped to generate recommendations for each retailer with the support of literature. Final recommendations for NightOwl are that they should deepen its product range depth creating its own brand to provide more choice to customers to enhance its store image. NightOwl should also improve its stores infrastructure, particularly its flooring, lighting and colouring to create a more appealing interior that will improve perceptions of store quality. The recommendations for 7- Eleven are that it should endeavour to optimise packaging for efficient resource use and reduced environmental impact without compromising product quality and safety. 7-Eleven should also continue its performance or merchandise partial planning as this creates ease in the customers shopping experience and thus contributes to the formation of store patronage.
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Table of Contents
The Australian convenience store sector has recently outpaced the growth of the grocery channel for the second year running, recording sales growth of 3.7% (AACS, 2014). Convenience stores are playing an important role for consumers and the economy in Australia. The retailers chosen to be studied under the retail category of convenience stores are Nigh Owl and 7 Eleven. NightOwl is the largest stand-alone convenience brand in Australia, founded by a former Woolworth's Store Manager. In 1975 NightOwl began as one store in Auchenflower, Brisbane with stores now spread in convenient locations across Queensland, New South Wales and Victoria. NightOwl can be identified from its offering of an extensive range of traditional supermarket grocery items-together with, fruit, vegetables, hot foods and confectionary items. 7-Eleven Stores Pty Ltd. is the largest petrol and convenience retailer in Australia, founded...
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