Vis.Merch.Paper Extra Copy

Visual Merchandising Final Project 1

Visual Merchandising Final Project

Visual Merchandising Components of HomeGoods

Christina Alonso and Jessica Timmons

Stevenson University

FMER 360


Abstract

This paper explores the visual merchandising components of HomeGoods in Owings Mills,

Maryland based upon research conducted online and instore. Specifically, this paper analyzes the

retailer, the interior, the exterior and signage, and the window display. This paper provides a

combination of HomeGoods current visual merchandising components and the proposed visual

merchandising components. The first phase of research includes a customer profile and five

marketing objectives. The second phase includes a description of the current floor plan, the

proposed floor plan, department names, and key items. The third phase includes information on

the store exterior and signage. The last phase includes the proposed store window. Ideas for

increasing consistency and sales through visual merchandising will be seen throughout. This

paper specifies the research and rationale for all visual merchandising components and choices.


Visual Merchandising Final Project

Visual Merchandising Components of HomeGoods

Phase 1: Research

HomeGoods is an off-price retailer under the TJX Companies, Inc that consists of home

fashions with great value and top brands for every room. HomeGoods mission statement,

“HomeGoods happy-finding what you love at a price you adore” correlates with their brand

image. These stores have an ever changing selection of top brands at prices generally 20%-60%

below department and specialty store prices (“About HomeGoods”, para. 1). HomeGoods carries

a sizable amount of merchandise sorted into these categories: furniture, lighting, rugs, wall decor

& mirrors, home accents, outdoor, gifts, bedding, bath, kids, storage, dining, pet, kitchen

essentials, and seasonal decor. The HomeGoods store that we chose to research and work with is

located in Owings Mills, Maryland.

This store features a particular customer profile, mostly women, ranging in ages from

eighteen to sixty-four. We examined the geographic location and found that the median age is

35.9 years old with a median income of $81,200 (The Nielsen Company, 2015). There were five

distinct life cycle statuses that we discovered on the PRIZM Segmentation System for the

HomeGoods, Owings Mills location. The five life cycle statuses found were Brite Lites Li’l City,

Executive Suites, Home Sweet Home, Young Influentials, and Movers and Shakers. These

groups consisted of ages under fifty five and ages forty-five to sixty four. The education levels

were graduate plus and college graduate with middle to upper income levels. The occupations

were a mix of management, professional, and service. The personal interests and characteristics

of these five groups varied by segments.


According to The Nielsen Company (2015) Brite Lites Li’l City are middle aged people

with double incomes who do not have children. Their median household income is $78,829.

Their lifestyle and media traits consist of shopping at Costco, gambling in Vegas, and watching

the Simpsons. This segment drives BMW’s and reads Runner’s World magazine. They are

mostly homeowners with graduate plus education levels. They also fill their homes with the

latest technology. The second segment is Executive Suites. This segment consists of upper-

middle class people with a median household income of $76,717. Their lifestyle and media traits

consist of playing golf, watching Saturday Night Live, and ordering from barnesandnoble.com.

They are homeowners under the age of fifty five without children that live in the suburbs. They

have graduate plus education levels and are ethnically diverse. (para. 1).

The Nielsen Company (2015) found that those in the Home Sweet Home segment are

under the age of fifty five without kids that live in the suburbs. Their median household income

is $71,083. Their lifestyle and media traits suggest that they download music, read Wired, and

drive Mazda’s. They have education levels of college graduate with professional employment

levels. They have comfortable lifestyles and white-collar jobs. The next segment is the Movers

and Shakers. This segment consists of wealthy, highly educated homeowners that live in the

suburbs. They have a median household income of $105,799 and do not have children. Their

lifestyle and media traits consists of shopping at Nordstrom, playing Tennis, and driving Land

Rovers. They are highly educated and are employed as managers. The last segment for the zip

code location of HomeGoods in Owings Mills, Maryland are the Young Influentials. This

segment has a median household income of $$52,375 and they like to balance work and leisure.

They live in the suburbs without children and rent apartments. Their lifestyle and media traits


consist of shopping at Best Buy, playing racquetball, and watching American Dad. This group is

ethnically diverse with a mix of employment levels. (para. 1).

After entering HomeGoods we were able to identify five of their marketing objectives.

The first objective observed was that HomeGoods wants to increase their sales through the use of

proper signage and placement throughout their store. All of their signs were consistent in color,

theme, and font. The type of signage utilized and where the signage was placed helped to direct

consumers throughout the store. This proper signage and placement was helpful when locating

sales and prices. The second objective is to increase store traffic with advertisements and

window displays. The advertisements that HomeGoods uses helps to increase the number of

consumers entering the store. The consumers are able to see some of the products that are being

carried in store through television advertisements and print advertisements. The window display

signs were large enough to see from the busy parking lot. These large sings help consumers

locate their store and increase the traffic.

The third objective is to increase brand awareness of Home Goods for a place of fashion

and value. This was achieved through the brands and types of merchandise sold in the store.

There are many different high-end merchandise categories and brands that are offered with

significant savings. This helps the consumer to tie both fashion and value into their minds when

thinking of HomeGoods. The fourth objective is to enhance the brand image in the consumer's

mind by brand reputability. HomeGoods is known for having value items at lower prices. They

continue to “receive shipments every week of designer goods” which helps to enhance their

brand image (“About HomeGoods”, para. 2). The fifth, and final objective is to promote the use

of functional holiday decor in consumers’ homes through the in store displays and signage. This

final marketing objective has a strong visual merchandising component through the use of their


displays and signage. Their current displays and signage are all holiday related. They have the

same color scheme and holiday theme to help promote the holiday décor.

Phase 2: Interior

The HomeGoods in Owings Mills currently uses a combination of a racetrack layout with

free-flow featured selling fixtures in the middle of the track. The free-flow feature fixtures are

display tables assorted by product function and style. Placing these fixtures in the middle of the

racetrack grabs the customers’ attention onto items they wouldn’t normally pick up in an aisle.

Although the placement of these fixtures promotes the products sales, it could be considered to

violate ADA guidelines if not kept tidy since it disrupts the flow of consumer traffic.

Since HomeGoods specializes in selling home décor, its signature fixture is dependent

upon the season. For this holiday season, the signature fixture is “Santa’s sleigh” with oversized

stuffed animals inside that are available for purchase. The sleigh is placed at the front entrance

of the store adjacent to other free-flow feature displays selling holiday home decor. This

placement gives the consumer a warm, inviting feeling upon entering the store. The supporting

holiday themed display signs are simple, yet effective since they do not distract the consumer

from the display. Having a decorative display at the entrance appropriately communicates the

store's brand image for this season while supporting sales.

Upon entering HomeGoods, it’s clear they know who their customer is; a savvy shopper

who enjoys finding great deals on reputable brands. This is communicated through the use of

signage in the store and the atmospheric elements. The small green signs located on top of aisles

tell you how much you’re saving on items in that department. For example, a sign located in the

storage department reads; “Fabulous find! FABULOUS PRICE! Save 20-60% every day.” On


top of the molding, throughout the perimeter of the store are five, three-dimensional block letter

“signs” that enhance the store’s brand image. These signs read;

1. Better-than-sale prices. Every day!

2. With savings like these, go wild!

3. Thrilling finds. Can’t-believe-it prices!

4. Amazing value for every room!

5. Top Brands. Just-your-style savings!

The store is well lit, with what appears to be HID lighting on the ceiling and task lighting

overhead wall displays. This type of lighting ensures that consumers of all ages are able to

properly view the product before they make a purchase. The wall displays are appropriately

placed at a height that does not require sales associates for customer assistance. This minimizes

the demand for floor associates while keeping consumers happy since they can view and reach

products with ease. The only department that a consumer may need assistance in is the rug and

furniture department, when they’re making a purchase.

For a small, off-price retailer, HomeGoods offers a vast amount of departments with an

extensive line of quality merchandise in each department. HomeGoods has a total of sixteen

departments including Glass & Crystal, Dining, Kitchen Essentials, Gourmet Cookware,

Specialty Foods, Storage, Bedding, Bath, Wall Decor, Holiday, Mirrors, Lighting, Pets, Toss

Pillows, Rugs, and Furniture. Some examples of key items for this season offered in the Holiday

department are a life size Christmas tree ball, reindeer candle holder, and decorative Christmas

signs. Key items for a majority of the departments were displayed on free-flow fixtures adjacent

to the department.


Overall, the store’s visual merchandising components combine well together. However,

we noticed two departments that could use some adjustments to better promote sales. The first is

the storage department; this department lacks visual appeal due to product placement. The

storage bins need to be placed on shelves and tables based on fabrication and size. They should

not be featured in the center of the department, as this causes clutter and makes the department

seem ironically, disorganized. The middle aisle of this department should consist of a maximum

of three tables featuring an assortment of storage items with the same pattern or theme on each

table; displaying that line of merchandise. This will coincide with the other color coordinated

free-flow fixtures throughout the store, keeping the brand image consistent.

For the floor department, we decided to completely change the layout to make it more

functional and appealing to customers. Currently, the department features free-flow risers with a

small arrangement of like merchandise displayed on each riser. Typically, there is only one of

each item found in this department, making it difficult for consumers to find matching pairs. The

arrangement and assortment of merchandise may be decreasing sales for this department.

Our plan is to first decrease the assortment of merchandise in this department. We believe

that the assortment is a bit overwhelming and having less variety will help the customer make a

purchase decision. Instead of an assortment we will increase the product depth by having

multiples of each item in stock for this department; eliminating that “one-of-a-kind” merchandise

aspect. Next, the departments’ layout will be changed by displaying the merchandise in a

lifestyle presentation with vignette displays. This type of display will promote sales by showing

the product’s end use. Each season the furniture department will display a different room in a

home. We want our customers to feel like they walked into a room in a house, not a department


in a store. For this holiday season the living room will be the departments’ layout since this

room gets a substantial amount of use during this time of year.

The back walls of the furniture department will have the decorative props that are in the

display of that season. These will be the only items that a customer may select without an

associate's assistance in this department. The furniture department will now act as a showroom.

To make a purchase in this department you will need to talk with a sales associate. Since the

majority of the store is self-service, it should not be an issue to have employees stationed in this

department. Items displayed in this department will be located in the back room of HomeGoods.

Upon purchase, the customer may choose to either have the item brought out to their vehicle at

this time or have it delivered to their house. In cases where the item is no longer in stock, home

delivery will be the only option available.

Items in the furniture department should be positioned exactly how it is shown in the

planogram. For this season the planogram shows a couch with a coffee table placed in front of it.

To the left of the couch is the Christmas tree decorated with ornaments found in the Holiday

section. To the right of the couch is a chair with a fake fireplace adjacent to it. Employees are

encouraged to create the vignette settings using the merchandise that is located on the back wall

of this department. Since this department is in a corner, to create a room-like atmosphere and

close off the showroom, a temporary wall made out of fabric will be placed along the right side.

Having a curtain as the temporary wall enables us to easily change it based on the display for that

season. This season’s temporary wall is a white curtain that reads “Be HomeGoods happy this

holiday season” in the iconic HomeGoods font.

Phase 3: Exterior and Signage


HomeGoods exterior is bland and only takes advantage of a small amount of their

window space. There are plain signs with the words, “HomeGoods” on the exterior of the store.

The same plain signage is used in their window display and there are no props or merchandise

used. The signs appear to be purely directional so that consumers know they are at a HomeGoods

store. Since the exterior is inconsistent with the interior signage and merchandise we would

change the exterior signage to be more consistent with the interior merchandise and interior

signage. HomeGoods utilizes pleasing signage throughout their store interior. We would want

this same pleasing signage on the exterior to pull the consumer into the HomeGoods store. Foot

traffic and sales could increase if HomeGoods used more exciting visuals, words, merchandise,

and props.

The signage currently being used in HomeGoods are holiday themed. The signs that we

have created will correlate with the holiday season, the current signage being used in

HomeGoods, and the window display. We have created nine signs in total. One policy sign, one

directional sign, one special promotion sign, three sale price signs, and three regular price signs.

The colors that are currently being used in the Owings Mills HomeGoods signage are white, red,

and gold. Our signs use blue and silver to keep with a holiday “wintry” feel. The first sign that

we created is a return policy sign. The background of this sign is silver with a blue font. The

words “Holiday Return Policy” are large while the explanation of the policy is in smaller writing.

The words “HomeGoods” is written in red to keep consistency with the HomeGoods logo. There

are also a few blue snowflakes on the sign to ensure the holiday feeling. The second sign is a

directional sign that will point out where “Seasonal Decor” is located. This sign will also feature

a silver background with blue writing. “Seasonal Decor” is written in large letters while the


words, “The celebration starts here! Save on everything to make holiday memories.” is in smaller

letters.

The third sign is a special promotion sign. This sign is shaped like a silver present box

with a blue bow. There is a gift tag attached that reads “To: You, From: HomeGoods”. The

words on this sign are, “Our gift to you this holiday-The GOODS by HomeGoods. Download

TheGoods app now and receive 15% off one item.” This special promotion sign is to promote the

consumers to use the HomeGoods app to discover products and share their finds. The next three

signs are sale price signs. HomeGoods does not have sale price signs because the prices are

already discounted. Usually, there is one sign that says clearance, and they group the sale items

in that section.

We made up these three sale signs to portray what our signs would look like if

HomeGoods had regular sale prices. The three signs are all horizontal gift tags that have the

same color scheme, blue and silver. The first sale price sign is silver, with a blue bow and blue

writing. The red HomeGoods logo is on the top of the sign in small letters. The words, “Original

Price and Sale Price” are in larger letters. Below that are the words “To all a great gift”. On the

right of this tag are small blue snowflakes. The second sale price sign is the same layout as the

first, with the red HomeGoods logo on the top. This sign has different words on the bottom that

read, “designHAPPY”. The background of this sign is blue and the letters and bow are silver.

There are also sparkly silver dots on the right of this sign. The third and final sale price sign has

a silver background, a silver bow, and blue writing. This sign has the red HomeGoods logo with

the writing, “TheGoods” on the bottom of the tag.

The final three signs that we created are for regular priced items. These signs are gift

tags, but instead of being vertical tags they are horizontal tags. The first tag is silver with a blue


ribbon and blue writing. It reads, “Festive Savings. Make it yours for way less” with blue

snowflakes on the tag. The second gift tag is also silver with a blue ribbon and blue writing. This

sign reads, “Dreaming of a winter HomeGoods wonderland. Significant savings every day.” The

words “HomeGoods” are red and there are blue snowflakes on this sign. The last regular price

sign has a blue background with a silver ribbon and silver writing. This gift tag reads, “Shiny &

bright. Everyday savings 30%-50% off department & specialty store prices.” There are sparkly

silver dots on the background of this tag. We decided not to list any actual prices on these regular

priced item signs. The HomeGoods stores do not list prices on their signage because they are

already discounted prices. We wanted to keep that consistency with our signs.

Phase 4: Window Display

In a store like HomeGoods that sells an abundance of unique merchandise creating a

window display that’s consistent with its product offerings can be a bit challenging. The Owings

Mills HomeGoods doesn’t offer an ample amount of window space to produce a display that

showcases their products efficiently. Currently, their window displays are open back windows

made entirely of promotional signage. Using promotional signage in a window is helpful to get

customers to enter a store, but having a window that doesn’t display any merchandise will not

hold customers attention and can easily be overlooked. In some stores open back windows are

helpful because they allow the interior of the shop to be displayed, which gives the customer an

actual peak of what’s inside the store. However, in the Owings Mills HomeGoods an open back

window doesn’t work to this store’s advantage since the back of one window is the cash wrap

and the other is where the carts are located. To have a successful open back window the

placement is crucial and the interior of the shop must be attractive at all times. In our opinion,


the windows are the weakest part of the store since they do not entice customers to enter the

store.

After carefully analyzing the store and window space available we concluded that the

display should be made entirely out of signage. There is not nearly enough space to display any

merchandise in the windows, which is probably why this HomeGoods stuck to promotional

signage in the first place. Since there is no space to display the items they will be photographed

and made into “signage.” This way we will be able to display merchandise offered in the store

effectively in the small space we’re allotted. Using actual merchandise in the window gives the

customer a preview of what they can find in the store and will entice them to enter the store;

creating more sales.

For this season our windows theme is “Give the gift of savings.” The window will

showcase a wintry holiday scene to coincide with our product offerings. Rather than having an

open back window, a white, winter forest backdrop will be hung to set the scene and create that

closed window look. In the center of the window will be plates formed into a Christmas tree that

can be found in the Glass & Crystal/Dining section. Also placed center will be a dining room

table with a runner placed down the middle that reads “Give the gift of savings.” At the ends of

the table will be two chairs facing inwards. The table and chairs displayed can be found in the

Furniture section. Along the edges of the window will be white birch trees similar to the ones

shown in the backdrop to give the backdrop a three-dimensional feel. The color scheme of the

window is white and blue with silver accents to complement our interior signage. The purpose

of having this dining room outside is to show the warmth and spirit the holiday season can bring.

No matter where you are, joy is in the air and the warmth that the holidays bring is enough to let

you celebrate anywhere.


Conclusions

HomeGoods is known for having great merchandise at discounted prices. The categories

of merchandise vary as do their low prices. After evaluating their visual merchandising

components we have concluded that they lack consistency with their interior and exterior. Other

aspects of the visual merchandising components are consistent and help to send a clear message

to the consumers. Integrating a winter holiday theme into their sings and window display will

show how HomeGoods can be consistent with their interior and exterior. Incorporating a

proposed floor plan will show how HomeGoods can have the “designer” look at discounted

prices. The store will be more organized and therefore their sales should increase.


References

About HomeGoods. (2015, November 7). Retrieved from www.homegoods.com/about/

The Nielsen Company. (2015, November 5). Zip Code Look-Up. Retrieved from

www.claritas.com/mybestsegments/default


Appendix A

Current Floor Plan


Appendix B

Proposed Floor Plan


Appendix C

Key Merchandise


Appendix D


Planogram for Storage


Appendix E

Planogram for Furniture


Appendix F

Sample Signage

Image 1-Policy Statement Signage


Image 2-Directional Signage


Image 3- Special Event/Promotional Signage


Image 4-Sale Price Signage


Image 5-Sale Price Signage and Regular Price Signage


Image 6-Regular Price Signage

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