THE CATEGORY LEADERSHIP FRAMEWORK

• 1. Simple to understand and logical to follow.

• 2. Modular. While best value will be attained
by working through each stage within the
framework, the approach is designed so that
specific steps can be addressed in isolation if
required.
• 3. Recommendations are supported by
existing technologies, enabling ease of
execution.
• Forecasts : Projections of expected Retail sales over a given period
• In the forecast one must account for Staple Merchandise: Regular products
carried by a retailer .
• Assortment Merchandise: as the name assortment. You have stores like Chen
One, Chase Up, Hyperstar that provide this service, they have an assortment
of things from furniture, to clothing, etc.. This is harder to forecast
• Fashion Merchandise which I hope you are familiar with is affected by
changing tastes and life cycles. Seasonal Merchandise consists of products
that sell well over certain time periods. Take shawls and sweaters in Karachi
during the winter.
• Fad merchandise: High sales are generated for a short time. This is very time
sensitive and in order to take full advantage one has to navigate how to not tie
up stocks (take into account the shortest cycle without losing on any crucial
element) so that when the fade changes or eases out, a loss is not incurred.
Devising Merchandise Plans
 An assortment is a selection of
merchandise a retailer carries
Allocati
on Forecas If you can score
innovation you can
t become distinct
however if you
Timing misread the
situation you can
Merchandi be stuck with
inventory
sing Plan
The use of private
Brands brands or
manufacture brands.
Assortm
Innovati ent
on There is such a thing as the right
time and there is such a thing as the
wrong time
• Definition: A space you lease for the selling of goods to consumers .
• When it comes to business, retailers have one overall goal: to sell
merchandise.
• That's why they focus on sales floor space, adequate parking for
customers, and an overall image that draws in customers. Of
secondary interest to many retail operations are office space and
storage requirements, since most inventory is on the sales floor.
• The opposite is true for shoe stores and more importantly jewelers
• The real inventory is locked in back and only shown to customers
they deem interested or with the appropriate spending capacity
• However Location decisions for them is based in secure locations and
some times around competition

Retail Location
 Jewelers
• Taking Jewelers as an example their location would be ideally
close to their target market
• Security is a high concern which is why jewelers hire their own
security and now prefer to be located in malls as malls feature
their own security and although have high rents can be
balanced by the lower need of security over heads
• This also provides Parking facility which is a crucial concern for
some buyers
• Competition is also welcome as jewelers like to be placed
amidst either their completion or their logical grouping of
retailers, i. e Watch stores, lets take Zaibunisa Street and
Sadder as our local market example
 Takeaway
• Besides learning that Parking in fact does
matter, lets talk competition
• Notice how similar restaurants open in a area (
Do Daria), (E street)
• Car Show rooms ( Khalid Bin Waleed Road)
Auto Parts Market and Accessories (Plaza)
• Furniture and Interiors ( Nursery, 26th Street
after the Mazaar)
 The importance of Location
• Most spaces for Rent ask you for a few months deposit, some are flexible
( like kiosk) that allow for a month to month basis, but over all it’s a long
term commitment so if you are commitment shy , perhaps Brick and
Mortar is not the way for you
• Decision where to locate is complex, the costs are high, and once a site is
chosen, flexibility is limited.
• Depending on your location, even a mediocre offering can fly successfully.
Lets take hospital gift shops as an example
• Due to their proximity , they can charge a premium and still have limited
variety
• South City Flower Shop
• Zerrita (PC)
• Airport Duty Free
• Bateel (PC)
 Let’s keep it Real
• Lucky for all of us there are software's to make
those calculations
• Unfortunately basing your data on population is
not a winning combination (Lucky Mall)
• Lets revisit one of our earlier discussions, If
sporting stores like Reebok had taken not just
income and population but how much disposable
income is spent on fitness into the equation,
perhaps their decision to open a branch in Lucky
Mall may have been different
• A trading area is a geographic area containing customers of a
particular firm or group for specific goods or services ( seen the
groupings of Courier services on Shahrefaisal?)
• Consumer demographics and socio economic characteristics are
uncovered
• The focus on promotional activities is ascertained
• A retailer learns whether new customers in the new locations will be
attracted or will it take away from current customers (Dolmen Mall
Clifton and Ocean Mall)
• Chains can determine whether competitors want to open nearby
stores
• The best number for a chain to operate is determined ( Khaadi at The
Place, Ocean Mall , Dolmen Mall and a stand alone on Zamzamma)

Advantages of Trading Area

Analysis
 Advantages of Trading Area Analysis
continued
• Geographic weaknesses are highlighted ( unless you
have already taken the leap, extensive research is
required to validate a hypothesis and many
consumers lie in surveys because of image
• Impact of the internet is taken into account
• Factors like accessibility of transport, labor, finance
and the proximity to financial institutions or atms,
competition, suppler location, legal
restrictions ,bataa, etc are also taken into account
and preparation
 Types of Retail Location
• Central Business District (CBDs) is a traditional
business area in a city or a town. Due to its
business activities it draws many people into the
area. The CBD is also a hub of Public transport
and there's a high level of Pedestrian Traffic.
Saddar is a key example, also ShahreFaisal and
Hassan square. The process of tearing down old
stores or restoration with new offices, housing
development or retailers is called Gentrification.
The Union League Club is a private social
club in New York City.
• Many Cities use entertainment to attract
people to gentrified areas. New Yorks
Horse Drawn Carriage Rides, San
Francisco’s cable car, side walk cafes, etc..
 Downtown Area

• Like the mall, this type of store location may be

another premium choice.
• However, there may be more freedom and fewer
rules for the business owner. Many communities
are hard at work to revitalize their downtown
areas and retailers can greatly benefit from this
effort. However, the lack of parking is generally a
big issue for downtown retailers. You'll find many
older, well-established specialty stores in a
downtown area.
 • A shopping Center is a group of retail and
other establishments that is planned,
In Karachi
•
developed and owned as a single property.
Lucky Mall
• Dolmen Group (DMC, DMTR, • Strip Centers have a Canopy linking store
DMH, DC) fronts with direct parking in front ( Tipu
• Ocean Mall Sultan eg Xanders, Chop Chop Wok, LSM,
• The Place ETC..) *failed shopping center is next to
• Saimas Paramount where the first Charles and Keith
• Millennium Mall was located parallel to Sea View Mcdonalds.
• Park Towers
This failed due to … parking issues
• The Forum
• Atrium
• Malls on the other hand are more
• Zamzamma Mall pedestrian focused with walkways attaching
retail stores, enclosed areas,, outward
parking and controlled environment

Shopping Centers
Advantages of a shopping mall location
• Because of many different retail stores,
merchandise available within, opportunity to
combine shopping with entertainment, shopping
malls are the main street for todays shoppers
• Customers can have a one stop shopping experience
based on the tenant mix. Need to loose weight and
join a gym, Clothing and accessories can be found in
Dolman Mall Clifton from sneakers to gym wear,
gym bags , water bottles and even yoga mats from
different brands ranging from lifestyle and durability
 Advantages continued
• The third advantage is that retailers do not need to worry
about their external environment. The malls management
takes care of maintenance, uniform hours of operation,
security, and even signage regulations.
• In the event of shop lifting, security personnel can be
called to take care of the perpetrator, also easing the
responsibility of the retail staff of an outlet. *real example
of a brand
• Also when fights between customers break out (has been
known to involve yelling and even physical violence)
security can be called to ease tensions
• One disadvantage is that with all the facilities mentioned
above there comes a price. Mall rent is relatively higher than
one would pay say on Zamzamma. Furniture stores that
require a lot of space would hesitate before making the shift.
Habbit in fact joined Dolmen Mall Clifton years after its launch
when traffic to their Gizri brand had in fact declined. JB Saeed
showcases their wares at their stand alone in Bukharai.
• Some tenants may not like the mall administrations rules and
regulations * This includes store hours and window displays
• Competition in a mall can be intense. Small specialty stores go
head to head with bigger brands and departmental stores

Disadvantages of a Mall
• Regional Center: This type of center provides general
merchandise and services in full (CSD)
• Superregional Centers: similar to a regional center, but draws
from a larger population base and is enclosed with levels
(Rabi Center, Ghul Plaza)
• Fashion Specialty Centers : Although Tariq road still has a
close collection of medium to low range bridals on the strip
across Rabi Center, Mohsins, and Jabeens stretch, Mehboob
Buksh in Saddar, high end designers prefer E street and
Bukharai for their show rooms ( see String)
• Outlet Centers : Found in Saddar, North Nazmabad (although
prices say otherwise), manufacturers mostly sell their wares
of the brand at discounted rates. From the shift in of the mix,
these are now referred to as value centers
• The business park or
office building may be
another option for a
retailer, especially when
they cater to other
businesses. Tenants
share maintenance costs
and the image of the
building is usually
upscale and professional.
• Example: Gyms, Salons,
located in office buildings

Office Building
• More and more retail
businesses are getting a start at
home. Some may eventually
move to a commercial store
location: The cakery or Caramel
for example, while many remain
in the business owner's spare
room. This type of location is an
inexpensive option, but growth
may be limited. It is harder to
separate business and personal
life in this setup and the retailer
may run into problems if there
isn't a different address and/or
phone number for the business.

Home-based
 Kiosks
• • Kiosks are a popular location within malls or
located adjacent to gas stations and even
Restaurants (yes the pan walla at BBQ
tonight would be a kiosk)
• In malls, frequently between 40 to 500 sq ft
they can be found in prime locations (
Maybelline Kiosk at DMC) is located on the
walkway to the atrium escalator .
• These spaces are seen as a opportunity by a
mall operator to fill vacant positions
 Mobile Retail or Trucks
• The new age of Retail has dawned and so has the new age of Retail
Locations.. A location on wheels!
• Already food trucks have shaken up the restaurant world, with
ambitious cooks no longer confined to kitchens and committed to
crippling rents and problematic locations.
• Now the mobile phenomenon is entering its second phase: Fashion
Retail American companies have been sending their wares out on wheels.
Designer Cynthia Rowley has a "mobile fashion unit" traveling the
country, stocked with her latest styles and equipped with a changing
room. Armani Exchange has sold jeans from trucks in Los Angeles, and
the Olsen Twins did a similar stunt for their line for JCPenney last fall.
• Does it make sense to skip the Brick and Mortar?
It's not hard to see why vendors would want to hit the streets; the "for
rent" signs plastered everywhere are testament to how hard it is to
keep a traditional business afloat. Consider the rent . Just the rent.
• A truck can get rolling for much less and is an owned asset.
• Add in texting plus social media like Facebook and Twitter to keep
the clientele posted on whereabouts, and the marketing plan and
the cool factor are both covered.
• Trucks, whether selling food or fashion, offer "uniqueness and
urgency," says Patricia Norins, a specialty retail expert "There's an
immediacy factor," she says. "The customer is not sure you're going
to be back. And there's a certain level of uniqueness that's
important.”
• More important, Norins notes, is that "it feels trendy, like the hip
new thing--people are interested in different types of shopping
experiences and are looking for new venues. Maybe they don't
want to go inside, maybe they don't think they're going shopping
until they see something that creates an impulse buy."
 Location Selection
• Business Climate : a high level of employment means
high purchasing power, so its crucial to evaluate the
markets employment trends. Also which areas are
growing quickly and why
• Competition: The level of competition in a area can
also effect a retailers merchandise. A saturated trade
area offers customers a good selection of goods and
services while allowing competing retailers to make
good profit. A under saturated trade area has few
stores so less competition and not enough goods or
services to meet customers demand.
Factors affecting the attractiveness of a site

• Pedestrian Traffic: the most crucial measure of a sites

attractiveness is the number and type of people passin
it by. If a lane for a retail site looks deserted with no
street lights and empty parking spaces, chances are it
has low traffic. The chance to convert window shopper
into customers gets low.
• Vehicular Traffic: This is important to customers who
drive to get to their site. Convenience stores, gas
stations, pharmacies, car wash, etc.. all rely and are
located on heavily trafficked areas. E.g Shell Petrol
Pump before FTC
• Parking Facilities : As mentioned before,
parking does matter . The pick and drop
services one individual mentioned offered by
Hyper takes away the dependency of parking,
however for other places, the distance from a
store, the availability and the availability of
valet is all evaluated in location decision
making. *
• Accessibility: the accessibility is the ease with
which a customer can get in and out of. Special
attention to handicapable individuals and strollers
should be taken into account for family retailers.*
• Accessibility has two stages : Micro and Macro
• Macro Analysis: The macro considers the primary
trade area as well as 2-3 miles around it in the
case of a super market. I believe some one
pointed out how bad Imtiaz is in this regard
• Road Patterns- the primary trade area needs
freeways or major arteries so that customers can
easily get there.
• Road Condition- a related factor, includes age,
number of lanes, number of stop lights,
congestion and general state of repair of roads.
• Natural barriers like a river or mountain which is
used as an advantage with The Monal
Resteraunt, and Beach Luxury and artificial
barriers like that or rail roads (Ambala) major
highways (Afridi Inn before their second
location opened in the city and security issues
became a concern) or parks.
• Micro Analysis : The micro analysis focuses on issues in
the immediate vicinity of the site
such as visibility, traffic flow, parking ( as we
previously mentioned), congestion and
ingress/egress.
• Visibility refers to customers being able to see the store
• Traffic Flow: It is ideal to have good traffic flow
otherwise customers may not want to be stuck in
traffic
• Unfortunately there is no short term fix for a bad location,
however there are a few considerations one can make
before throwing in the towel.
• Make a big Change (This is what Allen Tackett told
Entrepreneur magazine in 2005 that he did. When he
opened his coffee shop in a formerly-failed location in
Oregon, he embraced the legacy and even had fun with it.
In a location that had seen three previous failures,
including another coffee shop, Tackett gave his company
the name, “Underdog Coffee.” At the same time, he used
higher-quality coffee beans, and created eye-catching,
backlit signage. We gave Allen a call to see how he’s doing
ten years later. Good news: He’s still brewing up Underdog
Coffee, a decade later. (Who doesn’t love an under dog
How to Overcome a bad Location
story)
• Maximize the power of your retail signage. Your
small business sign is a key piece of marketing. Use
it to direct prospects and customers to your front
door. Don’t assume people will look for you.
• Use your window as a customer magnet. Extend
your product display to your front window. There’s
reason people talk about “window shopping”. The
product highlighted in your window must make
people want to come in and buy it.*
• Promote your location. One thing that Tackett did with Underdog
Coffee was a large opening campaign. He gave away free coffee and
asked local radio DJs to publicize it, which helped put him on the
map immediately.
• Leverage the visibility of your vehicle(s). Decorate your company
vehicles to attract attention and promote your business. This is
particularly important when making deliveries. Peter
Shankman created a Yarnmobile to get customers out of New York
City to a suburban knitting shop
• Offer your customers portable signage. Provide customers with
brightly colored shopping bags with your name and address. Even
better make them reusable bags so customers continue using them.
• Collaborate. If there are other businesses in your out-of-the-way
location, team up with them for some joint promotion.
 Store Layout
The store itself is a fertile
opportunity for market
differentiation. Today’s
consumer is bombarded with
choices, so there must be a
very compelling reason for
them to enter your store as
opposed to buying online. Think
about it. No worrying about
getting dressed, parking, hours
of operation, or even toting
around a large shopping
package.
• Grid: The grid layout is best illustrated by most grocery
stores and drug stores operations. It contains long
gondolas ( a gondola is an island type of self service
counter with tiers of shelves ) (not a venetian boat in this
case) of merchandise and aisles in a repetitive pattern

Types of Design
Grocery Store Layout
• Race Track : One problem with the grid is that customers are
not drawn into the store. The race track, also known as the
loop, is a type of store that allows a major aisle to facilitate
customer traffic. This encourages impulse buys as the store
provides access to boutiques ( departments designed as self
contained stores) . As customers go down the loop their eyes
are forced to take different angles. An example of this is JC
Penny and Macys.
• Free Form: A free form layout ( also known as boutique layout)
arranges fixtures and items asymmetrically. It is successfully
used in small specialty stores or sections of department stores.
In this relaxed environment customers feel free to browse.
• Disadvantages: Since customers are not forced in a direction,
personal selling is paramount here. Theft is also higher as sales
associates cannot always watch. Lastly the store also sacrifices
major storage and display space to create a more spacious
environment ( heartfelt heck yeah!)
• Feature Area: Feature areas are areas
designed to get the customers attention
• Free standing fixtures and mannequins on
aisles are designed primarily to get the
customers attention and bring them into the
department.
• Point of sales area ( also known as point of purchase or POP
AREA) can be the most valuable piece of real estate in the store,
because the customer is almost held captive in the spot.
• Bulk of Stock Area: The Bulk of stock area contains
the total assortment of merchandise. It is usually
on gondolas in grocery stores or discount centers.

• Since retail space is often scarce and expensive,

many retailers have successfully increased their
ability to store extra stock, display merchandise,
and creatively send a message by using wall space.
Merchandise can be stored on shelving and racks.
• Atmospherics refer to the design of an
environment via visual communication, lighting,
color, music, and scent to stimulate Customer’s
perceptions and emotional responses and
ultimately affect their purchase behavior

Atmospherics
• When a customer looks at a department , if they cannot
figure out what is going on in about five seconds, they wont
bother
• Learn to look at your retail space like a customer, a 12 year
old customer in a hurry, under a lot of pressure, and
unfamiliar with your store. If your layout and visuals pass
the test, your good
• The only people who stand and look at the store are from
the head office or waiting to meet someone. Customers are
on the move all the time. Test your layout and visuals by
walking past quickly
Basic Principles
• The store is a theater, the layout is the stage, the décor is the
scenery and the product is the show. Remember that mantra
• Standards are making sure everyone knows what to do. Discipline is
doing is all day, every day
• If a sign talks to a customer about a product it should be close to
the product
• Use the space on the sign to tell something about the customer
about the product. Simply Men’s jackets would be a waste of
communication space. Tell something like Boski Linen Summer
breathable fabric
• Categories should be clearly defined by aisles, walls, high gondolas,
and signage
• All categories should be easy for the customer to find and identify
as they walk through the store
• The customers should be able to easily access every product

Basic Principles
 Multi Level Stores
• Retailers spend literally millions building and stocking
stores with great products only to fail when it comes
to telling customers whats upstairs
• Lets take JB Saeed (Bukhari) as a example
• From Staff to signage next to the elevator every level
has the department and product line it features
• Rule: If customers cannot see it they do not know it
is there unless you tell them
 • Reason One : Best Seller and trying to sell more
• Reason Two: Testing to see if something new sells
Possible Use of Prime Result for the Customer Result for Retailer
Space
Sell more of something Customer exposed to Sell more of good products and be
good best product attractive to customers
Trying to find out if Customer exposed to Can find out quickly if new product
something new is good new product worth repeating
Don’t pay attention to Random effect Potential asset not utilized
anything that goes in depending on chance
front
Use prime space to Customer exposed to Product does not sell anyway and
push something that is product that has customers are turned off
not selling already been rejected

The two reasons to use Prime space

 Decor
• Store décor must be appropriate for the nature of the
business. Good enough to give confidence however not grand
enough as to intimidate or negatively affect price perceptions.
• Would you expect to see carpeting in a hardware store?
• If the hardware store is on gizri and its target market are
contractors, putting light cushioned carpeting may detract
some carpenters from entering as they can assume the store
is pricey plus carpenters are mostly on the job site and
procure materials that fall short, given they are working in
dusty , dirty construction conditions their clothes and shoes
may be soiled and would prevent them from entering the
store. The hardware store by “prettying” itself up just
detracted it’s main customer market.
• Great lighting matters, in fact you would be
surprised to know there are many different
types of lighting available. Those working with
gold aka Jewelers or even Bridal
embellishment houses prefer soft light
halogens and metal halide. The current trend
however is now on leds, although this is not
simplistic ( light walls, diffused lights, down
lights, track lights, spot lights, track lights etc..)
Lighting
• The best way to make the spot lighting
effective is to reduce the ambient light, In
many cases the spill from the feature lighting
is all you need to light up the store
• The best rule for this is that every bulb you
burn must be “doing a job” (pointing to a
product). It would be a mistake to have a spot
light pointing to the floor.
1. Make windows shine. Many small retailers don't do window displays, letting
customers simply look straight into the shop. That's a mistake, says store
design and display consultant Linda Cahan of Cahan & Co. in West Linn, Ore.
"Just like your eyes are the windows of your soul, store windows are the eyes
of the store," she says. "Each window should tell a story.“ To create an
appealing display, use a single color theme to grab attention and communicate
your store's image. It's also important to avoid clutter because in retailing,
space equals luxury, Cahan says.
2. Make an arresting first impression. When customers enter your store, an eye-
catching display up front should make them slow down. Otherwise, they may
hurry on through the store and buy little. Notice how Costco sets up large
seasonal displays at its entrances, often with a product pulled out of its box -- a
kitchen appliance or fresh plants -- that shoppers can stop to touch, smell or
try. Mausummery Clifton got fresh plants but did not realize the drainage issue
they would have when feeding them.
Here are seven layout tips from experts
who have worked with many major
retailers.
3. Steer customers to the right. Retailers should design their
stores to draw shoppers to the right side of the entryway.
Studies have shown that most people naturally look first left,
then right as they enter a store, says Brian Dyches, chief
experience officer of retail branding firm Ikonic Tonic in Los
Angeles. Shoppers usually then prefer to move right and walk
counter-clockwise around the store.
4. Lead them somewhere. Often, small retailers fail to put a
compelling display at the end of an aisle, says store designer
Cahan. "They create an aisle that ends at nothing, either a
back wall or a stockroom or the bathroom.
5. Have an angle. While it's most efficient to lay out aisles
parallel to the store's exterior walls, retailers can create more
visual interest by placing them at an angle, Cahan says.
Ideally, aisles could angle in from both sides to a central aisle,
forming an arrow layout that ends in a back-wall display. But
only take an angular approach if you can keep aisles wide
enough for customers to navigate easily.
6. Create breaks. In studying shopping patterns with his
clients, Dyches says he finds that up to 20 percent of the
store's merchandise is skipped over. That's because long,
uninterrupted aisles don't get people's attention.
7. Offer 'hugs.' People are attracted to round and U-
shapes, Dyches says. To get shoppers to stop at a display,
try hanging a circular sign from the ceiling or placing a
U-shaped background, such as a low wall with small
sides extending forward, behind it. These make people
want to stop and enter the space, which resembles a
person extending their arms for a hug.