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The reason that US bookshops are failing is not because of competition from the internet but because selling books in big box out-of-town warehouses dos not work, suggests maverick Financial Times columnist Tyler Brûlé in his latest Fast Lane column. We need to “challenge the ingrained notion that … a super-size store is a superior place to shop.” Mr Brûlé does not declare an interest but his Monocle shop just of Marylebone High Street in London is one of the smallest I have visited. However, on the subject of bookshops he argues that if you ask most people what the perfect one looks like they think about:  Small windows stocked with titles selected by the shop’s long serving staff  Well worn tables stacked with a combination of new releases and classics  A comfortable atmosphere with room to browse  Decently paid staff able to offer advice, the men wearing “cosy cardigans” and the women favouring “loafers, kilts and turtlenecks”. “Perhaps the most important detail is...

At some time in the 1990s retail marketing decided that the experience shoppers had in-store helped determine how satisfied they were with the goods that they bought. Put simply, this means that they distiniguish between the bottle of Coke they buy in Asda and the bottle of Coke they buy from you. While the product is identical, it is likely shoppers will value one more. The response to this was to invest in in-store theatre, where the products could be included in a sympathetic environment. Quite quickly shoppers reacted to this and negatively. The reason that shoppers no longer rationally evaluated value was because there were simply too many products to compare. Adding theatre made the shopping experience even more difficult. However, you have to know which market you are in. Here are policy statements from two stores at the polar opposites of the in-store theatre debate. Target: "We design our stores to be easy and intuitive to shop, with related departments placed next ...

Research by Ogilvy & Mather suggests that one in five shoppers buys on impulse and the way products are displayed triggers impulse purchases more than any other in-store activity. As manufacturers spend heavily on providing "theatre" to local shops, is there a danger that the shopper can no longer see the product because they have seen the dump bin creative execution in too many other places. Local retailers need to understand what works in their shops and harness this to grow their sales. Use the ideas of the major suppliers to inform and develop your product displays. The opportunity is there but remember that O&M also found that promotional pricing is the least effective way to trigger the impulse buy.