The Evolution Of Store Atmosphere

The business challenge retailers are coming to terms with is that the supply chain model was based on fulfilling consumer demands within stores (Baird & Kilcourse 2011). With the entrant of virtual technology increasing the knowledge and expectations of consumers, traditional strategies are largely missing out on consumer demands. The opportunity for the retail industry is to develop a clear pathway for consumers through the infinite channels to ensure the end result is a purchase within its stores. As studies show that 95% of all purchases by the consumer are still within a ‘bricks and mortar’ store (Baird & Kilcourse 2011).

Trader Joe’s forgoes advertising for a strategy of customer relationship management because advertising “can’t create an experience. It’s the personal relationship with these people that builds loyalty” according to St. John, vice president of Trader Joe’s (Guth, and Marsh 183-187). Through this strategy, Trader Joe’s has seen much success. At the time of this case study, analysts estimated annual revenues to be around 3 billion. Today they are estimated to be around 8.5 billion. The effect is that the company has grown and still continues to grow. Trader Joe’s has gone from having 220 stores in 17 states in 2004 to 356 stores in 28 states as of June 2011 (“Trader Joe’s”). One area of attention for Trader Joe’s is to not lose sight of this customer relationship strategy as it continues to grow into a national or even global company. The company needs to continue to “pay attention to the information it

Consumers generally benefits from increased competition in retailing industries as well as large supermarket chains. It is worth thinking that what benefits shoppers gain and why it is happening. Due to fierce competition among retailing, such as Wal-Marts, Tesco, Carrefour, etc., they innovate internal management and operational modal by grasping the variation of demand. In previous research, Sorescu et.al (2011) mention that innovation challenges confronted by supermarkets is customer-centric. In the sense, they improve retailing processes and design products to better satisfy people’s needs. Meanwhile, Seth et.al (2005:123) show that modern markets gain profits by offering free car parking and one-stop shopping. Economically,

The Internet has changed the way we do virtually everything, including the way we shop. However, shopping is not the only thing that has changed. In the last decade we have changed the way, we apply for loans, study, and even plan a vacation. Doing any of these things would have been impossible a few decades ago. At present, online banking, paying bills, ordering new services, and shopping online have become part of our daily lives. Traditional brick-and-mortar stores have been around much longer than online stores, but we cannot deny that online shopping is giving the traditional stores competition. Many consumers still choose to shop at regular brick-and-mortar stores because they like to see and

As per the study by Bitner (1992) in her servicescape model, consumers also respond to store environment cognitively. According to Bitner (1992) servicescape model, consumers are affected cognitively and emotionally by the store environment.

A review of relevant research reveals studies dating back to the early 1970s that focus on facility-based environmental cues, or atmospherics, and their effect on shopper attitude and decision modeling. However, inadequately explored is the

A report by the Information Technology consultancy company Chateris recently cited the most popular four retail channels in the UK (See Figure 1, below). These included the internet which dominates sales channel for retailers at the moment (Chateris, UK Multi-Channel Retailing

The bargaining power of customers is high. First of all, the customer size is tremendous globally, which also has an accelerating growth rate in recent years. Customers’ leverage is strengthening as a result of this. Another inevitable factor is that with countless retailors online, there is low switching cost for customers to find other alternative companies that suits their desire to conduct purchases. Moreover, consumers today are more sophisticated. Consumers are less commit to impulsive-buying, yet are more willing to study about product features and evaluate their options before purchasing online. Their purchase pattern can also be hard to learn too.

Accumulation of atmosphere disturbances retail environment can best be described as both eclectic and diverse. Atmosphere is describing the design consciously of retail store environment to create certain to effects in buyers and to produce good emotional effects for buyer to increase buyer purchase probability.Turley and Milliman (2000) reviewed found that atmospheric manipulation and shopping behavior shows that consumers do, the customer respond to stimuli in the environment between the some significant

We will see our customers go online on their cell phone and check on what we have said and then purchase the item there in our store, where it is convenient and they can try the item on and take it home that day. Our customers are ubiquitous in that we have to stay on top of their various purchasing trends and predict the movements that they are going to make on a daily basis. Sometimes we get it, sometimes we don’t. We have found that our customers want options that work for them right at their fingertips along with great customer service. We have found that “omni-channel” shopping (the use of a variety of channels in a customer 's shopping experience including research before a purchase-Wikipedia, https://en.wikipedia.org/wiki/Multichannel_retailing) is not only on the rise, but also here to stay. We need to find ways to embrace this new shopping method and find ways to optimize their experience within our store utilizing these methods. A few strategies that we are considering are:

Guaging Customer Buying pattern: With evolution of new technology every few years, consumer adaptability to this technology determines the manner in which they buy. Due to this any one solution framed to address this customer buying pattern will not be a permanent one. Hence Omni Channel retailing needs to evolve with the changing times.

Atmosphere is the silent language which results from the conscious designing of a space to create certain affects in buyers. These environments are intended to produce emotional responses from the consumer to enhance the probability of a purchase. This is done by using atmospheric cues to stimulate the senses and sway the entire customer experience of being in a particular space and time. However as online shopping competition grows, businesses are seeking to create more alluring website atmospheres in order to be distinguished from their competitors. Web atmosphere is in many ways similar to physical environments. Dailey (2004) defines web atmospherics as the “conscious designing of web environments to create positive effects in users in order to increase favorable consumer responses”. I have specifically chosen each text as they give a different perspective as to how we can decipher the true meaning of atmosphere in terms of online retailing. Although different, each reading has valid discussions which backup and reflect on points that the other authors have made.

The company is well aware of the factors driving this change in the market related to the advancement of technology pertaining to online mobile applications for smart phone and tablets, and internet access. The improved economy adds further value increasing disposable income, consumer confidence and spending. The retailing market and consumer trends following this trend are expected to see more sales as internet access become more available and part of consumer’s daily functions.

Nowadays, retail becomes extremely challenging and competitive. Big-box retailers are investing in fulfilment centres, which allow them to support same day and next day delivery services. This competition is affecting the business model of retailers of all sizes. (Singer T. , 2013) Moreover, the increasing amount of information available about products heats up the competition. Consumers now can easily make a comparison between the products from different sellers before shopping. To gain a competitive advantage, companies are looking for ways to increase the brand loyalty of their customers. This can be obtained by focusing more on consumers’ needs, creating value for them and supplying the same quality of service through different channels. Hence, emergence of the Omni-channel concept was a logical step in evolution in the retail operations. (See Appendix 1).

This article shows how unique store design should be, such as interior design, plans, layout and even the outfit of the staff, all of these influence the customer’s experience in different ways. Leading the customer’s perception towards the value and aim of the nature of the business in the atmospheric environment. Furthermore, the article is illustrating how some of the past historical styles such as romanticism and modernism sustain the important orientation which are implemented in the environment of the store in the form of arranging the space, organization of structure, furniture and decoration and how the mindset of these ideologies are still impacting our today’s life style and culture in every aspect of shop design.