In the current economic climate, the retail industry continues to be one of the largest and most profitable in North America, as well as in many countries around the world. In spite of an economic downturn in other markets, the retail industry has maintained its profit margins surprisingly well. Despite the success of the industry as a whole, retailers must take great care to protect their customers, employees and their brand. Having the proper retail signage that maintains the viability of a businesses’ image is imperative to maintaining a profit margin in this sector.
The hefty presence of the retail industry to the U.S market need only be evidenced by the fact that it was worth 3.7 trillion in terms of employment and revenue to the U.S economy in 2010. The retail industry is vitally important to every western economy, as consumerism is constant and the labor requirements of the retail industry stimulate domestic employment and further facilitate spending behavior. The profitability of this industry does come with a substantial amount of risk in terms of customer and employee safety; liability for the safety of everybody on retail premises is something every business must accept.
As previously stated, retail is a labor-intensive industry; for every added employee and customer there comes added risk of injury and company liability. Although the industry as a whole is substantial, the costs to protect a business from injury liability can make quite the dent in profit margins. On average, the costs of employee and customer liability and risk total 0.6% of total sales, which comes to a $ 21 billion price tag to retailers as a whole in the United States. This is a substantial amount of any retail business, big or small, franchised or not. It is, therefore, imperative to maintain the safety standards of the physical retail space for both employees and customers. Something as seemingly simple as retail signage that has been mounted improperly could cost a business a hefty amount in injury claims, not to mention tarnish the reputation of an establishment.
Apart from the safety risk that comes with having inadequate equipment and signage, the consistency and reliability of a brand is also on the line. For any retail space, particularly those that represent a larger company, an image that customers anticipate and respect is important to maintain a consumer base. Branding a retail space is an important step in this market; customers can likely get basic supplies from a myriad of large or small businesses, but what leads them to a certain space is familiarity and trust. Making large or small changes to a physical retail space may very well turn customers away and lead them to a competitor. A large part of maintaining an image is having the proper retail signage in and around the physical retail space. Effective signage will be hung at an appropriate level, easily changed to accommodate rotating stock, safely secured, and be readily recognized as presenting the brand of that particular retail space.
Branding a space with retail signage is not simply about making customers aware of prices and availability of stock, but creating a recognizable design and color scheme that is familiar. Psychologically speaking, humans respond in a positive manner to that which they find familiar, due to the automatic association with comfort and trust. Signs that are consistent and appealing are far more likely to be read and paid attention to than confusing or inconsistent signs. This same rationale is the basis for every television or Internet advertisement; with enough repetition and consistency, an image will be imprinted on some level in the minds of consumers. The priming effect of advertisements is readily known in all industries, which is why businesses invest in commercials and signs. Having brand or product recognition on any level undoubtedly gives a company a competitive edge that can boost profits substantially.
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