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best practice merchandising

so that you have a very small line of sight. You can never see from one end of the shopping centre to the other. This is intentional so that you are not daunted by the size of the shopping centre. Another way that they keep you longer is that escalators or elevators never let you exit them close to an exit to the real world. And while you are in this wonderland, you are bombarded with signs promising 50% off.The SaleThe once a year clearance sale!! Everything Slashed!! 50% of all clothes!! Have you ever heard this before? These phrases are a common occurrence in the retail industry. The sale is one retailing tool that is used quite commonly to get customers in the store. Items are offered at a reduced price for the consumer so that they can get a bargain. The problem with this is that generally speaking, the sale price is not a lot less than the normal price. Some tricks that retailers use is to rotate the items on sale. They offer a product at a high retail price and then offer a similar item of another brand at a low sale price. They also rotate sale items. One week the 34cm Panasonic TV is on special for $399 while the 34cm JVC TV is at the normal retail price of $499. The following week, the 34cm JVC TV is on sale for $399 while the Panasonic 34cm TV has gone up to its normal price of $499. (Science press 1993) By doing this, the price of the sale item seems a great deal cheaper than the normal price therefore large quantities of the sale item are sold. Approximately 75% of sales come from selling items at a sale.By selling an item on sale, this also helps with the sale of accessories. If the customer has saved $100 on a TV, they are more likely to spend that $100 on accessories. Another way that shoppers get caught in the trap is by thinking that the more you spend, the more you save. Many retailers get people caught up in this trap. Another trick is offering loss leaders.Loss leaders are items that are advert...

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