Retail Management - A comparison of bricks and clicks of TOPSHOP

2.6. Impulse Purchasing Techniques

Topshop maximises impulse purchases through design and arrangements of its retail environment (McGoldrick, pg 485, 2002).  Confectionery called ‘Topshop sweet shop’, rack of costume jewellery and lingerie near the till as ‘small, lightweight, easy to store products and less frequently purchased items are more susceptible to impulse buying’.

3. WEB ATMOSPHERICS

In terms of e-retailing, the equivalent stimulus is through visuals, sound, personalisation/ customisation, usability and text.

3.1 E-store design

E-store design refers to ‘the purposeful design of the e-retailer’s site.’ (Appendix2)

The design of the Topshop website enables easy and efficient navigation for the user. The navigation bar on the left side of the frame, illustrates the various products and services the e-store has to offer; these menus are visible on all pages of the site. The average user is impatient; therefore the company recognizes this fact by designing a fast, uncluttered and user friendly site.

The simple design and uncomplicated graphics enable users to navigate efficiently and effectively (two main elements for good design (McGoldrick 2002), which in turn means they are more likely to purchase.

3.1.3 Interactivity

Interactivity is another fundamental aspect; Topshop has introduced a Style Notes Sign up; this service allows users to subscribe to weekly fashion trends, and is communicated by email.

3.1.4 Visual/Colour/Text

These three elements can considerably improve the web atmospherics of a site. Visually the site allows quick downloads and good image quality. The zoom facility allows products to be viewed at close range, and the availability of text, which further describes the product, is useful.  

The use of colour is limited; however the incorporation of a backdrop featuring a model in a Topshop outfit, on the white background of the site is appealing and compensates for the lack of colour. (This ‘varies each time the site is updated which tends to be approximately once a week.’) (appendix2)

3.2 Layout

The layout which best describes the e-store is that of a Free-flow layout (appendix3). According to Vrechopolis’ tips, the following criteria of the Topshop e-store meet his requirements:

1. Product assortment and layout are constant throughout.
2. Display catalogue and search facilities are left of the frame; this is consistent on all pages.
3. Features easily visible on the site; the shopper doesn’t need to scroll up/down/side.
4. Continuous shopping basket management display – this can be viewed at any time; items can be added/deleted easily.
5. Layout is entertaining though it lacks personalisation.
6. Illustrations and product information is available on all items by clicking on the item to be viewed.
7. Items selected are displayed on the right of the frame, one at a time- the menu is still visible on the left.

3.3 Image

Topshop is one of the most successful retailers that have reinvented its image, from cheap teen brand to high street style-leader. The e-store is used as another channel to promote this image of urban chic clothing, aimed at teenagers and young women.

3.4 Loyalty

‘A satisfied customer is more likely to be loyal.’ (Harris & Dennis 2002, pg.169). Loyal customers provide benefits in terms of repeat purchase, opportunity for cross-selling. With e-tailing loyalty is more difficult as consumers have the opportunity to conveniently ‘shop around’.

Loyalty of account holders is rewarded by providing a range of benefits, e.g. VIP invites to Topshop fashion shows. Users can log in online and see offers and their statements.

3.5 Branding

Existing well-branded retailers are more likely to be successful on-line (Harris & Dennis (2002) p.259). With greater choice consumers choose the brands they trust - lack of trust has reduced the growth of e-retail (McGoldrick 2002). The e-store creates a trendy atmosphere, with big visuals and few colours; this is mirrored in-store.

4. COMPARISON

• Navigation is clear in both clicks and bricks stores
• Both channels employ a free flow format.
• In-store and e-store bring in colour and warmth with visual images of merchandise. E.g. website illustrates merchandise as well as the store products.
• Brand and image is consistent throughout both clicks and bricks, promoting urban chic impression
• Store itself is more established therefore considered to be at a more mature level (in terms of services offered etc.); compared to e-store which is still growing.
• The in-store experience is far more entertaining then the e-store due to music, lighting and colour. “It felt more like a swinging underground club than a retail store’.  (Wilson, M., 2005, Mad for Topshop)
• Impulse purchasing will be less likely to occur online.
• Interactivity: bricks equivalent is the sales assistant and online is the Style Notes Sign up Service.
• Both bricks and clicks have the same reward schemes for their customers.

5. CUSTOMER SERVICE OFFERINGS

This section gives an overview of the customer service techniques that Topshop offers to their customers.  These strategies take onto consideration the trend for convenience.

5.1 Usage of ICT

Topshop is taking advantage of the latest information and communication technology as a marketing tool to cater for customers needs and wants through innovative offers.  

Below is an overview of the customer service offerings Topshop are presently providing.

Table 1 Online and other technology offering strategies via  

Albeit there is evidence of internet usage, TopShop are still offering excellent service offers to their in-store customers.

Table 2. In-store offerings

6. LOGISTICS

6.1 Supply Chain

• Arcadia uses a standard supply chain strategy for its entire retail brand.
• Arcadia has a long standing relationship with IBM and they use the software- IBM point of sale devices in its stores.
• IBM DB2 universal database in its data warehouse.

• Arcadia is to include air and land as well as sea shipments, to enhance its supply chain and make it more efficient.
• Performing tasks online have dramatically reduced time and have improved the supply chain.
• The challenge for Topshop retailing logistics is to seize the opportunity for improved accuracy, errors and overall improved customer service.
• >K6 design group provides Topshop point of sale.

6.2 Distribution

• Topshop’s warehouses are operated to meet objectives e.g. reduce cost of operation at given stock level.
• The direct transfer of information between Topshop and distributors; improves logistics efficiency - this will improve customer service levels.
• EDI has a significant effect on Topshops retail logistics operations, in terms of order processing, error checking, and information flow.
• EDI gives Topshop information such as price changes, stock levels shipping dates and up to date information.

6.3 Material management

• Material management supports the procurement and inventory functions which occur in Topshop. This helps improve logistics for aspects such as the ordering process and delivery.
• Topshop had help from Industry Forum to improve their product innovation and faster reaction times for one of their jeanswear suppliers.

7. ADVANTAGES AND DISADVANTAGES OF E-    RETAILING FOR TOPSHOP AND SHOPPERS

“E-retail is the sale of goods and services via internet or other electronic channels.”(Harris L & Dennis C, 2002 pg 247)

E-Retailing has steadily grown; this is good news for Topshop.

7.1 Advantages for Topshop

• Accept orders 24 hrs a day from consumers; therefore reach larger target audiences then the ‘Bricks’ store.
• Reduce premises costs and save on wages.
• Do not have to worry about location.
• Compete on equal terms with larger retailers, as size does not matter.

7.2 Disadvantages for Topshop

• E-selling is less powerful then face-to-face selling and the uptake is slow due to a lack of physical contact.
• Topshop have fewer impulse purchases.
• After-sales care difficulties; as there is no face to face contact with any consumer.
• Have faced substantial setup costs as they have invested in e-retailing and technology.  Also, will have to continually invest in ongoing costs that come with e-retailing.
• Consumers have a perception of lower prices online; and this can lead to consumers expecting consistently lower prices.

7.3 Advantages for consumers

• The purchase provides cost-effectiveness, ease and convenience.
• It saves time for the consumer as they do not have to go in-store to make a purchase.
• It fits in with the consumers other activities.
• Online prices are very favourable.

7.4 Disadvantages for consumers

• Credit card and security worries; some cards are not accepted by Topshop because of security worries.
• Consumers will have lack of personal and social interaction from Topshop if they purchase online.
• Unable to see or feel the merchandise before purchase.
• Consumers might have difficulty when returning goods for refund online.
• The consumer may be unhappy with the premiums that are charged for delivery.

8. CONCLUSIONS/RECOMMENDATIONS:

• When viewing the branding of Topshop, it is clear that the ‘clicks and bricks’ stores are very similar.

• Have a wide range of customer service offerings; both in-store and online, which satisfy customer needs.

• Planning a retail strategy that supports directly with consumer merchandise preferences, will help achieve competitive advantage.

• Loyalty can be boosted using personalisation. E.g. ‘suggesting particular products or special offers that might appeal to individual consumers based upon purchase history.’ (Harris & Dennis, 2002 p.169)

• Topshop need to maintain its good supply chain relationships.

9. BIBLIOGRAPHY

BOOKS

• DENNIS C, FENECH T & MERRILEES B (2004) ‘e-Retailing’, Routledge, Oxon -Ch5 e-store design
• DUNNE, P., Lusch, R. & Griffith, D. Retailing (2002) 4th Edition. South-Western Thomson Learning, USA
• HARRIS L. & DENNIS C (2002) ‘Marketing the e-Business’, London:Routledge – Chapters 6 + 9
• MCGOLDRICK PJ, (2002) ‘Retail Marketing’, 2nd Edition, McGraw-Hill, Berkshire
• TONY, K. & OGENYI, O., Retailing (2003) Palgrave MacMillan, New York
• VARLEY, R. & RAFIQ, M. Principles of Retail Management (2004) Palgrave, Basingstoke

JOURNALS

• Vrechopoulos AP (2001) ‘Virtual Store Atmosphere in Internet Retailing: Measuring Virtual Retail Store Layout Affects on Consumer Buying Behaviour’, Brunel University, Unpublished PhD Thesis
• Vrechopoulos AP, O’KEEFE RM, DOUKIDIS GI, SIOMKOS GJ (2004) ‘Virtual Store Layout: An experimental Comparison In The Context Of Grocery Retail’, Journal of Retailing, 30(1)13-22
• WILSON, Marianne. Mad for Topshop. . New York: .Vol.81, Iss. 1;  pg. 104, 1 pgs

Available from:

        =29708&RQT=309&VName=PQD

WEBSITES

• Info on visual merchandise (2005.  Available from:  [Accessed 20th October 2005]

• Info on mannequins.  Available from:

 – [Accessed 23 November, 2005]

• Tosphop’s store environment.  Available from:  – [Accessed 28 November, 2005]

• Topshop merchandising and in-store signage.  Available from:  

• . – Accessed 5/12/05
•   – accessed 5/12/05
•  – accessed 5/12/05
•  – accessed 5/12/05
•  accessed 6/12/05
•   accessed 7/12/05 (Published 5/12/05)

• Brunel Webct (2005)Management of Retailing, Lecture 4, Visual Merchandising - Accessed19/10/2005, Available from: http://webct1.brunel.ac.uk/SCRIPT/MG3039B/scripts/serve_home
• Brunel Webct (2005), Internet Marketing Lecture wk10 – accessed 1/12/05 Available from: http://webct1.brunel.ac.uk/SCRIPT/MG3039B/scripts/serve_home
• Brunel Webct (2005), Internet Marketing Lecture wk10 – accessed 1/12/05 Available from: http://webct1.brunel.ac.uk/SCRIPT/MG3039B/scripts/serve_home
• Brunel Webct (2005), Consumer Behaviour & e-Tailing - Internet Marketing wk10 – accessed 1/12/05 Available from: http://webct1.brunel.ac.uk/SCRIPT/MG3039B/scripts/serve_home
• Brunel Webct (2005) ‘Introduction to the Retail World’ (Accessed 7/12/05) Available from: http://webct1.brunel.ac.uk/SCRIPT/MG3039B/scripts/serve_home

10. APPENDIX

Appendix 1

Entry phase

1964 - TopShop was launched. It started of as a mere division within a Sheffield         Department store called Peter Robinson. 

1965 - Peter Robinson moved to a space at the basement of Oxford Circus.

1974 - TopShop became an independent retailer catering for 13 to 25 year olds

1978 - TopShop extended its market to young men and boys.  This was called TopMan

1982 - TopShop extended its market further, now catering for girls between the ages of 9 and 14.  This was called TopGirl

Brunel Webct (2005), Internet Marketing Lecture wk10 – accessed 1/12/05 Available from: http://webct1.brunel.ac.uk/SCRIPT/MG3039B/scripts/serve_home

Trading-up phase

Telegraph says “Blink and you’ll miss it… with 300 new designs every week, TopShop once famously naff, is now just as famously  cool”

1992 - TopShop becomes the largest fashion retailer in the UK through the merging TopMan and TopGirl at 214 Oxford Circus

1996 - TopShop’s cosmetics collection was voted the best new high street image by Vogue

1998 - The refurbishment reopening of the flag ship store in 214 Oxford Circus with a new and dramatic image.  TopShop experienced 100,000 shoppers per week. A special design collection was also introduced, which added to their new         revamped brand image.

2005 – TopShop to expand online presence internationally

Appendix 2 – www.topshop.co.uk

 

Appendix 3

Source: Brunel Webct: Internet marketing, Lecture 10 http://webct1.brunel.ac.uk/SCRIPT/MG3039B/scripts/serve_home

Appendix 4 - MOBILE TEXTING
TopShop has partnered with Skywire to tap into the youth market, and their obsession with texting. There are three basic choices of customer service customers can choose from.  A customer could ever text ‘HOLD’ ‘STYLE’ or ‘ADVICE’ after the digits 81144.

1. By texting ‘style’, this allows the customer to book an appointment with a style advisor.  
2. By texting ‘advise’, the style advisor will then reply with a recommendation, for example ‘what shoes will go with a red top and blue jeans?.
3. By texting ‘hold’ and a description of the ‘must have’ item employees of the oxford street flagship branch will then retrieve the item from storage which would be placed on hold for the customer to pick up on pick-up day.  

Topshop tries MMS to sell garments 
Posted bytonethephone on Sunday, November 27

TOPSHOP ON THE GO

TopShop ‘on the go’ is a dream come true for those ‘last minute’ dates, parties etc. TopShop allows a customer to book an appointment with an advisor, informing them of the type of clothes they would be interested in wearing, from colours to size.  With this information, Style advisors get together a collection of suitable garments and bring it to the consumers’ home or office.  They spend 45 minutes with the customer giving advice while they try on the selected goods. As trend central says this definitely gives the ‘experience style of the rich and the famous’.  

Appendix 5

 

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