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.
Nightgown provided a good merchandise assortment with a range of quality brands, reduces, 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.
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Its store design is very effective adding convenience for shoppers wrought 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 Nightgown are that they should deepen its product range depth creating its own brand to provide more choice to customers to enhance its store image. Nightgown should also improve its stores infrastructure, particularly its flooring, lighting and coloring to create a more appealing interior that will improve perceptions of store quality. The recommendations for 7- Eleven are that it should endeavourer to optimism packaging for efficient resource use and reduced environmental impact without compromising product quality and safety. -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. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Literature Review 5 Introduction 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% (SACS, 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. Nightgown is the largest stand-alone convenience brand in Australia, founded by a former Woolworth Store Manager. In 1975 Nightgown began as one store in Coneflower, Brisbane with stores now spread in convenient locations across Queensland, New South Wales and Victoria. Nightgown can be identified from its offering of an extensive range of traditional supermarket grocery items-together with, fruit, vegetables, hot foods and confectionery items. 7- Eleven Stores Pity Ltd. S the largest petrol and convenience retailer in Australia, mounded by the Withers and Barlow families in 1977. Today 7-Eleven operates more than 600 stores in Queensland, NEWS, Victoria, the Australian Capital Territory, and most recently Western Australia. Through its store network, 7 E-Eleven conducts more than 180 million transactions per year, serving on average six customers per second, generating sales of approximately $3. 6 billion. Worldwide, 7-Eleven operates more than 54 900 stores in 18 countries (7- Eleven 2014). 7-Eleven can be identified from its offering of an extensive range of Food on the go items.