Secrets of the Sales

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0:00:02 > 0:00:05Everyone loves a bargain.

0:00:05 > 0:00:08And with most of us feeling the pinch, as a nation,

0:00:08 > 0:00:13we've become obsessed with finding the best deal possible.

0:00:13 > 0:00:17And where better to go bargain hunting than the sales?

0:00:17 > 0:00:22For generations, sales were just a summer and winter treat.

0:00:22 > 0:00:25But now, price promotions happen all year round.

0:00:27 > 0:00:30I'm Cherry Healey, and I want to know how the sales work,

0:00:30 > 0:00:33and how the shops keep us shopping.

0:00:33 > 0:00:37To find out, I've got exclusive backstage access

0:00:37 > 0:00:41to some of Britain's largest high street chains.

0:00:41 > 0:00:46I'm going behind the scenes inside stores where we spend billions,

0:00:46 > 0:00:51to reveal exactly how shops decide what goes on sale...

0:00:51 > 0:00:5479 going to 59.

0:00:54 > 0:00:58..the surprising ways bargain hunting can affect our bodies

0:00:58 > 0:01:01and minds... You've really lit up. Look, 104 beats per minute!

0:01:01 > 0:01:05..and hidden sales offering huge price cuts.

0:01:05 > 0:01:06Those are ?30!

0:01:06 > 0:01:11How much were these originally? Oh! ?175!

0:01:11 > 0:01:15And I'll be discovering the tricks shops use to keep us shopping,

0:01:15 > 0:01:18from the way stores are designed...

0:01:18 > 0:01:20One of their objectives

0:01:20 > 0:01:22is to keep your attention on the go all the time.

0:01:22 > 0:01:25..to the way they deliberately use scent to help us

0:01:25 > 0:01:27sniff out a bargain.

0:01:27 > 0:01:31So that gives us scent for the store.

0:01:31 > 0:01:34That floral scent just gives a bit more of an edge.

0:01:34 > 0:01:37I'm finding out how the shops run their sales

0:01:37 > 0:01:41so we can all become savvier sale shoppers.

0:01:53 > 0:01:57For nearly 150 years, the John Lewis department store

0:01:57 > 0:02:01has been enticing us to part with our cash.

0:02:01 > 0:02:04And today - despite the tough economic climate -

0:02:04 > 0:02:06the chain continues to expand.

0:02:10 > 0:02:15Last year, over ?3 billion was rung up at their tills.

0:02:15 > 0:02:19Their winter and summer sales are a key part of that success.

0:02:21 > 0:02:26In two days' time, the doors will open for the John Lewis summer sale,

0:02:26 > 0:02:29and I get to go backstage and help out.

0:02:32 > 0:02:34Right across the high street,

0:02:34 > 0:02:38shops create excitement about unwanted, left over stock -

0:02:38 > 0:02:42items that haven't sold in that season, at least at full price.

0:02:44 > 0:02:46It's one of the biggest retail tricks of all.

0:02:46 > 0:02:49And it's been going on since the 1890s.

0:02:52 > 0:02:57I'm starting here because this chain specialises in the twice-a-year,

0:02:57 > 0:02:59end-of-season clearance sale.

0:03:03 > 0:03:06Hi, I'm Cherry, I'm here to help out with the sales team.

0:03:06 > 0:03:09Hi. If I could get you to sign in here, please? Thank you.

0:03:09 > 0:03:11I believe we've got a badge here for you.

0:03:11 > 0:03:14Who are you to here to see? The visual merchandising team.

0:03:14 > 0:03:20OK. Hello, everyone. Hi. Sorry, I know you're really busy.

0:03:20 > 0:03:25'It's the job of this 44-strong team to make this sale a success.

0:03:25 > 0:03:30'So how exactly do they lure us in, make us feel like it's a big event,

0:03:30 > 0:03:34'and get us spending even on the most domestic of products?'

0:03:34 > 0:03:35Loo brush?

0:03:35 > 0:03:38'Yes, there are toilet brushes in this summer sale.'

0:03:38 > 0:03:42Always start with the bulkiest at the bottom, smallest at the top.

0:03:42 > 0:03:47Right. God, it's very, very... specific, isn't it?

0:03:47 > 0:03:51Yes, it is indeed. 'They take their window displays seriously here.

0:03:51 > 0:03:54'Chrissie's job is to get hers just right.'

0:03:54 > 0:03:58Do you like what I've done with the loo brushes? I do, yeah.

0:03:58 > 0:04:01I do, the only thing is, if you look at it,

0:04:01 > 0:04:04it's probably looking quite bare right now.

0:04:04 > 0:04:06But what we're going to do is, we've got some products...

0:04:06 > 0:04:10Chrissie, that is not how we do the towels.

0:04:10 > 0:04:13I just put that there to show you another product!

0:04:13 > 0:04:16Chrissie, that is a larger towel, that goes at the bottom.

0:04:16 > 0:04:18How about you do it for me?

0:04:18 > 0:04:22Tag in front or behind? Behind. The tag will be taken off, probably.

0:04:22 > 0:04:24Will customers be able to buy them?

0:04:24 > 0:04:27Yeah, yeah. If that's the last loo brush in that colour.

0:04:27 > 0:04:30We have a number. They say, "Chrissie, window four,

0:04:30 > 0:04:33"you have a loo brush, can you please go down and collect it?"

0:04:33 > 0:04:36I can have that actual one. You can have that actual loo brush.

0:04:39 > 0:04:42So, it's not just the size of the discounts that draw

0:04:42 > 0:04:47customers in, but also the store's look and how the stuff is arranged.

0:04:50 > 0:04:53How do the loo brushes look?

0:04:53 > 0:04:59If you move the front one just slightly to the right. Excellent.

0:05:00 > 0:05:02I want my window to look its best.

0:05:06 > 0:05:09I'm pregnant, you know. Shall we get Chrissie to help you?

0:05:09 > 0:05:11I need to sit down.

0:05:11 > 0:05:12SHE GROANS

0:05:14 > 0:05:16Outside the store,

0:05:16 > 0:05:19the team is heavily promoting the clearance sale.

0:05:19 > 0:05:22But there's something else going on, too.

0:05:23 > 0:05:26Customers who have come inside looking for clearance bargains

0:05:26 > 0:05:30will also find a huge amount of stock that has been specially

0:05:30 > 0:05:31bought in...

0:05:35 > 0:05:37From high-end TV sets to fridge freezers,

0:05:37 > 0:05:40these products, known as "special buys",

0:05:40 > 0:05:45account for a significant portion of the items in the sale.

0:05:45 > 0:05:47To get the lowdown on special buys,

0:05:47 > 0:05:51I'm meeting the branch managing director, Simon Fowler.

0:05:51 > 0:05:55So, special buy is different to sale? It is, absolutely.

0:05:55 > 0:05:58Special buy items are items where we've negotiated

0:05:58 > 0:06:01with our supplier at a particularly good price

0:06:01 > 0:06:03because of the volume we buy in one go,

0:06:03 > 0:06:06and those will continue right through the clearance period.

0:06:06 > 0:06:09I've actually seen a special buy here already.

0:06:09 > 0:06:13So, you've bought this sofa in especially for the sale period.

0:06:13 > 0:06:16Because you've got a captured audience, I suppose, who are excited

0:06:16 > 0:06:18and ready to spend.

0:06:18 > 0:06:21Yeah, and I think for a retailer like John Lewis, there are lots of

0:06:21 > 0:06:25reasons why, at a moment when customers are looking for sale items,

0:06:25 > 0:06:27we can collaborate with our suppliers

0:06:27 > 0:06:31and make sure we can bring some extra value, because of the buying power

0:06:31 > 0:06:34that we put into the clearance period we have twice a year.

0:06:35 > 0:06:39Special buys work for the customer because they're bought in bulk

0:06:39 > 0:06:41and the price is discounted.

0:06:41 > 0:06:43And they work for John Lewis

0:06:43 > 0:06:46because they buy huge volumes of them,

0:06:46 > 0:06:50making them as important to profits and turnover

0:06:50 > 0:06:53as the traditional clearance part of the sale.

0:06:53 > 0:06:56More and more retailers are doing the same thing.

0:07:00 > 0:07:02Back on the seventh floor with the visual merchandising team,

0:07:02 > 0:07:05there are still hundreds of banners to be made.

0:07:06 > 0:07:10Who's the boss? I'm just bossing.

0:07:10 > 0:07:12Just cos you've got a tape measure!

0:07:12 > 0:07:16Over 600 banners will be placed around the store.

0:07:16 > 0:07:18Each one has to be perfect.

0:07:20 > 0:07:25To the bottom, so about 10 centimetres. Can we just guess?

0:07:25 > 0:07:30Well, they have to be the same, the presentation has to be spot on.

0:07:30 > 0:07:33You kind of think, with sales, "Oh,

0:07:33 > 0:07:37"just shove everything on a rail and people will rummage around."

0:07:37 > 0:07:39We've got a lot of expensive product,

0:07:39 > 0:07:42so, if you want them to sell, you have to display them

0:07:42 > 0:07:45in the right way, make sure they're displayed in a way that makes

0:07:45 > 0:07:48people want to actually purchase them in the first place.

0:07:48 > 0:07:51OK, so this has to be specific and neat.

0:07:51 > 0:07:55Yes, so you go up 10 centimetres. Put a little mark there.

0:07:55 > 0:07:58I can't believe that you are up here in the store making your own

0:07:58 > 0:08:00posters by hand.

0:08:00 > 0:08:03This is the moment of truth now, you peel it off.

0:08:03 > 0:08:05Don't you do it, don't you do it!

0:08:05 > 0:08:06Get off my poster!

0:08:06 > 0:08:10This is so satisfying. Get off, it's mine.

0:08:10 > 0:08:14'A few finishing touches, and mine is complete.'

0:08:14 > 0:08:17My special buy poster. Thank you very much, thank you.

0:08:17 > 0:08:20So that will actually go up?

0:08:20 > 0:08:23Well, I'll check the measurements on that one. It looks OK.

0:08:25 > 0:08:28I just hadn't realised how much thought

0:08:28 > 0:08:30goes into preparing for a sale.

0:08:30 > 0:08:32It's almost military.

0:08:32 > 0:08:35The store wants to do two things.

0:08:35 > 0:08:37It wants to do the classic clearance sale,

0:08:37 > 0:08:39getting rid of excess stock,

0:08:39 > 0:08:43but now it also buys stock in so it can cater for

0:08:43 > 0:08:47the large number of shoppers coming through its doors

0:08:47 > 0:08:48who are hungry for a bargain.

0:08:52 > 0:08:57Later on, I'll be back, as hundreds of staff work late into the night

0:08:57 > 0:09:01to ready the store for the opening day of the sale next morning.

0:09:13 > 0:09:15But how do our high street stores -

0:09:15 > 0:09:20whether they're retailing cameras or computers, suits or shoes -

0:09:20 > 0:09:24choose which of their products they're going to put into the sale?

0:09:24 > 0:09:28And how do they decide how big a price cut to make?

0:09:30 > 0:09:33These decisions are very sensitive,

0:09:33 > 0:09:36with the power to make or break a business.

0:09:36 > 0:09:40So they're taken in closed meetings at the companies' headquarters.

0:09:43 > 0:09:45Oh, I just love those.

0:09:48 > 0:09:50But I'm about to be allowed behind the scenes

0:09:50 > 0:09:53at one of the UK's leading shoe shops.

0:09:53 > 0:09:57Footwear retailers have responded to the tough economic climate

0:09:57 > 0:10:00with sales - lots of them.

0:10:00 > 0:10:04It's the shopping dilemma. You see something that's great,

0:10:04 > 0:10:07you want to buy it, but there's always that question -

0:10:07 > 0:10:10is it about to go on sale?

0:10:10 > 0:10:15And when? And how much? And who decides?

0:10:21 > 0:10:25Today, I'm in Eastbourne, visiting the head office of Jones Bootmakers.

0:10:31 > 0:10:36Next we have Kingston at half price, at 49.

0:10:36 > 0:10:38'They've never before allowed an outsider

0:10:38 > 0:10:40'into one of their mark-down meetings.

0:10:41 > 0:10:45'Managing director Andrew White and the company's top people

0:10:45 > 0:10:48'deliberate over not only what to put in the sale,

0:10:48 > 0:10:52'but at what stage during the sale it should be marked down.'

0:10:52 > 0:10:5459? Let's go for that.

0:10:54 > 0:10:56'Millions of pounds are at stake,

0:10:56 > 0:10:59'and the entire senior management team lock themselves away

0:10:59 > 0:11:03'for two days to examine every single shoe in the range.'

0:11:07 > 0:11:12'The company makes more profit per shoe from their men's range,

0:11:12 > 0:11:15'but today, they are focusing on women's footwear.

0:11:15 > 0:11:19'I want to find out the mechanics of how a sale is put together,

0:11:19 > 0:11:22'to pinpoint the best time to bag a bargain.'

0:11:22 > 0:11:26Obviously, with the weather, we had a terrible March.

0:11:26 > 0:11:28We lost most of our increase then.

0:11:28 > 0:11:30The first two weeks of April were pretty poor as well.

0:11:30 > 0:11:32We've got six weeks left till the half-year,

0:11:32 > 0:11:37and we have to try to recoup as many of the lost sales as possible.

0:11:37 > 0:11:42Gemma. 49 going to 35. OK, is that enough off those ones?

0:11:42 > 0:11:45Could be one we reduce right down to 70%,

0:11:45 > 0:11:47just to drive a bit of volume.

0:11:47 > 0:11:51They haven't sold, so... They're really nice shoes.

0:11:51 > 0:11:55So they haven't sold as you expected them to?

0:11:55 > 0:11:58You sort of have a finite time in which to sell them.

0:11:58 > 0:12:02Cos we've missed half the season with the weather, and seasonality,

0:12:02 > 0:12:03you want to speed them up.

0:12:03 > 0:12:06How important are sales to your company?

0:12:06 > 0:12:1140% of our full-year sales are taken in the winter and summer sales.

0:12:11 > 0:12:13Obviously, that isn't 40% of the profit,

0:12:13 > 0:12:16because when we're selling full price, we're selling them

0:12:16 > 0:12:17with a better margin.

0:12:17 > 0:12:20Yeah, I think, particularly when the economy's been quite slow,

0:12:20 > 0:12:23the sale, particularly this summer and coming winter, will be very,

0:12:23 > 0:12:24very important to us.

0:12:24 > 0:12:29Do these sell well in the sale? At the right price! At the right price.

0:12:29 > 0:12:33So at full price... Jasmine was 79.

0:12:33 > 0:12:36It's a lovely shoe, I feel like I'm selling it.

0:12:36 > 0:12:40What do you think you're going to reduce this to? We've got it to 59.

0:12:40 > 0:12:42That's the discussion.

0:12:42 > 0:12:46In reality, it will probably sell at around 45 to 49.

0:12:46 > 0:12:48You mark them down in various phases

0:12:48 > 0:12:51and you'll get to a certain price point where suddenly

0:12:51 > 0:12:54they start to clear, and that's when every article has its right price.

0:12:54 > 0:12:57The customers decide that when they start buying it, obviously.

0:12:57 > 0:13:01So why not just put this on the shelves at half price?

0:13:01 > 0:13:04Because the aim is obviously to try to sell some more of them

0:13:04 > 0:13:05at a higher margin.

0:13:05 > 0:13:09Next, we have Hope. That hasn't lived up to its name.

0:13:09 > 0:13:11LAUGHTER

0:13:11 > 0:13:15Half price again? Yes. Yes. OK.

0:13:15 > 0:13:18Ooh, can you just check what percentage we're up to

0:13:18 > 0:13:21for the number of styles in the sale at half price?

0:13:21 > 0:13:26We're currently running on 9.5%. OK, good. What's that?

0:13:26 > 0:13:27Legally, we have to have...

0:13:27 > 0:13:29If we've got a promotion on the window saying,

0:13:29 > 0:13:31"Sale, up to 50% off",

0:13:31 > 0:13:35legally, 10% of your initial stock has to have 50% off.

0:13:35 > 0:13:38To justify the message. To be fair.

0:13:38 > 0:13:40OK. I'm surprised it's so little, actually.

0:13:40 > 0:13:42I thought it would have to be more.

0:13:42 > 0:13:46We do have phases of the sale where we say, all sale stock at half price.

0:13:46 > 0:13:49Obviously, that's when we'll do that, but, again, to start off with,

0:13:49 > 0:13:51it only has to be 10%.

0:13:51 > 0:13:57OK, so different phases start fairly gently, reducing prices and then...

0:13:57 > 0:13:59As the season goes on, gets shorter,

0:13:59 > 0:14:01you're more aggressive with your mark-downs to clear it. OK.

0:14:01 > 0:14:04So, from the customer's point of view,

0:14:04 > 0:14:07the longer you wait in the sale, the better the deal you'll get.

0:14:07 > 0:14:10Yeah, but the trade-off is, if you wait too long,

0:14:10 > 0:14:12the style that you might want to buy will already be sold.

0:14:12 > 0:14:18That is exactly why sales cause such manic craziness, because you're

0:14:18 > 0:14:23waiting for the one you really want to be as low as possible.

0:14:23 > 0:14:24It's a betting game.

0:14:26 > 0:14:28'Today's been eye opening.

0:14:28 > 0:14:31'For a start, I've learnt that when a shop advertises

0:14:31 > 0:14:35'"up to 50% off" on its windows, as a general guide,

0:14:35 > 0:14:39'only 10% of stock has to be reduced by that amount.

0:14:41 > 0:14:44'And, as I've always suspected, it really is the case

0:14:44 > 0:14:48'that if you can hold your nerve, then right across the high street,

0:14:48 > 0:14:53'the biggest price cuts are to be had in the final days of any sale.

0:14:55 > 0:14:58'But what happens to items that don't even sell

0:14:58 > 0:15:00'at a mark-down during the sale?

0:15:01 > 0:15:05'All retailers need a way to sell on that hard-to-shift stock,

0:15:05 > 0:15:09'and that's when you can find some incredible bargains.

0:15:09 > 0:15:13'For Jones Bootmaker, as well as many of the high street chains,

0:15:13 > 0:15:16'the favoured method is a warehouse clearance sale.

0:15:16 > 0:15:19'And they're holding one right next door to their head office.'

0:15:19 > 0:15:22Is this shoe heaven? No, this is a shoe graveyard.

0:15:22 > 0:15:25Oh, no! Is this where they come at the end of their life?

0:15:25 > 0:15:27We've pulled all the old stock back from the stores

0:15:27 > 0:15:30and we're selling it off at very keen prices.

0:15:30 > 0:15:33I smell a bargain! Plenty down here. I can't wait.

0:15:33 > 0:15:37'Warehouse clearances can be hard to find.

0:15:37 > 0:15:40'This one was only advertised on local radio

0:15:40 > 0:15:43'and on a mobile billboard in Eastbourne.'

0:15:43 > 0:15:46I think we've sold 16,000 pairs in this sale now.

0:15:46 > 0:15:48It's been on for about nine weeks.

0:15:48 > 0:15:50These are really nice boots.

0:15:50 > 0:15:52How much are they?

0:15:52 > 0:15:54Those ones are now ?30.

0:15:54 > 0:15:56I mean, they're real leather. Yep.

0:15:56 > 0:16:01They were ?175 originally. Original price.

0:16:01 > 0:16:03And then after this, the shoes...

0:16:03 > 0:16:06We will generally sell them on to traders,

0:16:06 > 0:16:08who will generally sell abroad.

0:16:08 > 0:16:13They will be de-branded, so the brand names will be taken out. Really?

0:16:13 > 0:16:15It's a simple principle -

0:16:15 > 0:16:20big high street retailers will continue to quietly cut their prices

0:16:20 > 0:16:22well away from the high street,

0:16:22 > 0:16:24until all their unsold stock is gone.

0:16:26 > 0:16:31Warehouse clearances, sample sales and factory outlets selling seconds

0:16:31 > 0:16:35and last season stock are all good places to snap up a bargain.

0:16:35 > 0:16:38These events happen all year round,

0:16:38 > 0:16:42so try contacting individual retailers and scouring the internet.

0:16:50 > 0:16:53'Coming up, I discover why sofa shops

0:16:53 > 0:16:56'always seem to be holding sales...'

0:16:56 > 0:17:00So it's a psychological trick? Yes. Absolutely.

0:17:01 > 0:17:05'..and I see how an angled mirror can get you in the buying mood.'

0:17:05 > 0:17:08I thought it would look quite big on me,

0:17:08 > 0:17:11but, for some reason, when I look in the mirror, I look very thin.

0:17:13 > 0:17:17But first, I want to find out if bargain hunting can be addictive.

0:17:19 > 0:17:21When it comes to the sales,

0:17:21 > 0:17:24more than a third of women admit to buying in bulk.

0:17:24 > 0:17:29And the average woman has 22 items in her wardrobe that are never worn.

0:17:29 > 0:17:33Placed on a clothes rail, those unworn items would

0:17:33 > 0:17:36stretch from Edinburgh to New York and back again - twice.

0:17:39 > 0:17:40Hello.

0:17:40 > 0:17:43'To see if bargain hunting can trigger physical changes

0:17:43 > 0:17:47'in the body, I'm meeting up with a Harley Street consultant

0:17:47 > 0:17:51'who's a specialist in health and human performance.

0:17:51 > 0:17:56'Dr Jack Kreindler is wiring me up to the latest biometric technology.

0:17:56 > 0:18:00'This device measures my heart rate, respiration levels

0:18:00 > 0:18:04'and physiological changes, and by analyzing the fluctuations

0:18:04 > 0:18:08'in my heart rate, it can tell how much stress my body is feeling.

0:18:08 > 0:18:13'100%, I'm very stressed, 0% and I'm totally relaxed.'

0:18:13 > 0:18:15That's you, your heart rate.

0:18:17 > 0:18:19Ready to shop.

0:18:19 > 0:18:21Are you ready? I do need your help.

0:18:21 > 0:18:22'I've also invited friend

0:18:22 > 0:18:26'and fashion blogger Fleur de Force along to give me a hand.

0:18:28 > 0:18:29'Unlike many retailers

0:18:29 > 0:18:34'who split the year up into sale and non-sale periods,

0:18:34 > 0:18:37'TK Maxx have a completely different business model.

0:18:37 > 0:18:39'They offer discounts all year round.

0:18:39 > 0:18:43'And the company targets repeat custom from shoppers

0:18:43 > 0:18:45'obsessed with bargain hunting.

0:18:45 > 0:18:49'The store reminds me of a massive sample sale,

0:18:49 > 0:18:53'with different styles and one-off pieces packed onto every rail.'

0:18:53 > 0:18:58I can feel I've got my shopping face on. Really focused, furrowed brow.

0:18:58 > 0:19:00You know, I'm absolutely in the zone.

0:19:00 > 0:19:03It's actually quite hard work, hunting for that bargain,

0:19:03 > 0:19:05trying to find the thing that you really love.

0:19:05 > 0:19:09'Whilst we shop, Dr Jack keeps a close eye on the variations

0:19:09 > 0:19:12'in my heart rate - the more the rate drops,

0:19:12 > 0:19:14'the more my stress indicator goes up.

0:19:16 > 0:19:21'But what my body experiences as stress, I experience as excitement.

0:19:22 > 0:19:24'I've looked at over 30 dresses,

0:19:24 > 0:19:27'when suddenly, my stress levels spike.'

0:19:27 > 0:19:30Ooh, that's nice. Green is good.

0:19:30 > 0:19:34It's a good one. How much is it? Oh! That's an amazing bargain.

0:19:34 > 0:19:37Cherry, if you were at rest on a hospital bed in

0:19:37 > 0:19:40accident and emergency, we would currently be wondering

0:19:40 > 0:19:43why on earth your heart rate was 100 or more.

0:19:43 > 0:19:46This is really quite interesting, actually.

0:19:46 > 0:19:48The colour in your face, you've really lit up!

0:19:48 > 0:19:50Look, 104 beats per minute.

0:19:52 > 0:19:54'When I spot a bargain I really like,

0:19:54 > 0:19:59'my heart rate leaps from roughly 60 beats per minute

0:19:59 > 0:20:01'to around 100 beats per minute.

0:20:01 > 0:20:05'And my stress levels rocket, from 20% to 80%.'

0:20:08 > 0:20:12That's cool. That is an incredible bargain.

0:20:14 > 0:20:18The stress-excitement score has jumped up into the 80s,

0:20:18 > 0:20:22almost immediately after you started saying, "I want that thing."

0:20:22 > 0:20:27'I've now looked at over 100 garments, and my heart is racing.

0:20:27 > 0:20:31'As I'm six months pregnant, the doctor advises a rest.'

0:20:31 > 0:20:33So, how are you feeling now?

0:20:33 > 0:20:37I feel much calmer, but I'm anxious to try things on

0:20:37 > 0:20:39and then re-edit my selection.

0:20:39 > 0:20:42Your excitement level still is quite high.

0:20:42 > 0:20:46We probably may have to wait some time for you to drop back down.

0:20:46 > 0:20:50Very often, the hormones that get released during excitement

0:20:50 > 0:20:54will persist in your body for a good long while.

0:20:54 > 0:20:58'Taking a break inside the shop is not enough to calm me down.

0:20:58 > 0:21:01'Rather than leave, I decide to carry on with the experiment.'

0:21:01 > 0:21:04You have to stay here, I'm afraid. I understand.

0:21:04 > 0:21:06But you've got your computer to keep you company.

0:21:06 > 0:21:08'The next phase of the test

0:21:08 > 0:21:11'is for Dr Jack to monitor my physical response

0:21:11 > 0:21:13'to the items as I try them on.'

0:21:17 > 0:21:21It is 720 reduced to 139.

0:21:21 > 0:21:23I don't know what's going on,

0:21:23 > 0:21:28but your percentage excitement score was 88, 90%.

0:21:28 > 0:21:30That is, again, the highest it was.

0:21:30 > 0:21:32We only saw that before, when you were...

0:21:32 > 0:21:36You know when you put on that jacket? Yeah. Oh!

0:21:36 > 0:21:41It's the jacket! Again. Do you know, computers never lie.

0:21:41 > 0:21:45'By analyzing the data, it seems there's a clear pattern.'

0:21:45 > 0:21:48You went from being very excited to almost calm, and then up again,

0:21:48 > 0:21:52it spiked and went down into a lull quite a few times.

0:21:52 > 0:21:55What it says to me is the same sort of thing we see with addictions -

0:21:55 > 0:21:57you get something, you've got it,

0:21:57 > 0:22:00you calm down, then you want to get it again.

0:22:00 > 0:22:03It's such a definite excitement - it's such a buzz.

0:22:03 > 0:22:07Who knows whether it's addiction or just love?

0:22:07 > 0:22:11'Oniomania - the technical term for shopaholism -

0:22:11 > 0:22:15'is thought to affect roughly one in 10 people in the UK.

0:22:17 > 0:22:21'Until today, I'd never linked my love for a bargain

0:22:21 > 0:22:23'with a compulsion, however mild.

0:22:25 > 0:22:29'But retailers have been studying our compulsive habits for years.

0:22:30 > 0:22:33'And one person who's advised a range of stores

0:22:33 > 0:22:37'is retail psychologist Dr David Lewis.'

0:22:37 > 0:22:40Are we addicted to that buzz we get when we get a bargain?

0:22:40 > 0:22:42Absolutely. Absolutely.

0:22:42 > 0:22:45You're actually giving yourself almost a fix,

0:22:45 > 0:22:48you're almost getting a high, a perfectly legal high.

0:22:48 > 0:22:53If we look at brain chemistry, you're going a get a whole flood of reward

0:22:53 > 0:22:56chemicals in the brain, stuff that's called dopamine.

0:22:56 > 0:23:00Many people can get hooked on shopping, on buying particular items.

0:23:00 > 0:23:01For example, in my research,

0:23:01 > 0:23:05I came across a lady who is completely addicted to buying shoes.

0:23:05 > 0:23:07She probably has got 500 pairs...

0:23:07 > 0:23:11She's standing there. It wasn't me! Handbags, maybe.

0:23:11 > 0:23:15Particularly if she found a pair of shoes or boots in a shop like this

0:23:15 > 0:23:19where there is a huge discount, then it would add cream to the cake.

0:23:20 > 0:23:22Standing here, looking out onto the shop floor,

0:23:22 > 0:23:26can you point to me some definite things that are designed

0:23:26 > 0:23:28to increase our impulse buying?

0:23:28 > 0:23:32Just presenting the goods almost, in a way, like you're at a jumble sale.

0:23:32 > 0:23:36This particular model is, I think, unique in retailing -

0:23:36 > 0:23:38you have to work for your bargain.

0:23:38 > 0:23:41But because you feel, "I've invested so much of my time

0:23:41 > 0:23:44"and energy in this, my emotions in this,

0:23:44 > 0:23:47"what I'm buying has to be worth a lot of money."

0:23:47 > 0:23:53So you add to that excitement - "I have done this almost on my own,

0:23:53 > 0:23:56"it's my accomplishment, my achievement,

0:23:56 > 0:24:00"and therefore I am a smart shopper."

0:24:00 > 0:24:06It is a real moment. You absolutely feel that euphoria, you feel clever.

0:24:06 > 0:24:09It makes you want to come back, as well, I think.

0:24:09 > 0:24:12It makes you want to come back. That's the thing that's addictive.

0:24:12 > 0:24:15Absolutely, it's a fix. Bargains are addictive.

0:24:15 > 0:24:17Indeed they are, yes!

0:24:20 > 0:24:23Today has been such a surprise.

0:24:23 > 0:24:27I'm much less in control of what I'm feeling - and what I'm spending -

0:24:27 > 0:24:29than I'd thought.

0:24:29 > 0:24:33My body physically reacted to the sales.

0:24:33 > 0:24:34It's a real adrenaline rush,

0:24:34 > 0:24:39it's addictive, and I think that's what I crave.

0:24:39 > 0:24:41But the shops already know this,

0:24:41 > 0:24:43and it's something they want to maximize on.

0:24:53 > 0:24:56But it's not just clothes and shoe shops.

0:24:56 > 0:25:00Even costly items like sofas can get us going.

0:25:02 > 0:25:07Furniture is big business. We spend ?12 billion on it a year.

0:25:07 > 0:25:09But it's not something we have to buy,

0:25:09 > 0:25:12and when times are tough, it's a purchase that is easy to delay.

0:25:16 > 0:25:21For furniture shops, the answer's been sales - lots of them.

0:25:21 > 0:25:27After all, if you feel you can get a real bargain right now, why wait?

0:25:29 > 0:25:32But are all these sofas, with their big reductions,

0:25:32 > 0:25:34the bargain they seem?

0:25:34 > 0:25:37It's hard to believe, given that most sofas are built

0:25:37 > 0:25:41specially to order - even the ones you buy in a sale.

0:25:41 > 0:25:45Sofa sales like these began back in the 1960s.

0:25:45 > 0:25:50And, for most people, it's changed forever the way we buy them.

0:25:52 > 0:25:55Would you ever pay full price for a sofa?

0:25:55 > 0:25:59No. Why not? Because there are so many deals going on everywhere.

0:25:59 > 0:26:03I generally hate sales, but with furniture, I demand a discount.

0:26:03 > 0:26:06How much? 50%.

0:26:06 > 0:26:08A quarter, a third, I guess?

0:26:08 > 0:26:12Generally, based on what you see on TV, online.

0:26:12 > 0:26:14So quite a big chunk? Probably a healthy chunk.

0:26:14 > 0:26:17Well, I don't think anything is a bargain

0:26:17 > 0:26:20unless it's at least 50% off!

0:26:20 > 0:26:24It seems the tactic of offering discounted prices to attract us

0:26:24 > 0:26:26in store has created - and fuelled -

0:26:26 > 0:26:30an expectation that furniture should always be bought on sale.

0:26:30 > 0:26:32What I want to know is,

0:26:32 > 0:26:35what's stopping shops responding by first cynically

0:26:35 > 0:26:38inflating their prices, and then immediately cutting them

0:26:38 > 0:26:41to make it look like it's an amazing deal?

0:26:41 > 0:26:43Are we being tricked?

0:26:46 > 0:26:49Today, I'm in Thetford, Norfolk, to get some answers.

0:26:51 > 0:26:55I'm visiting Multiyork's head office and factory.

0:26:57 > 0:27:03They produce about 40,000 sofas a year - all made to order.

0:27:04 > 0:27:07We buy a new sofa every seven years,

0:27:07 > 0:27:11and the average amount we spend is just over ?900.

0:27:11 > 0:27:14It's a big decision for any household.

0:27:16 > 0:27:21I want to find out the inside story behind all these sofa sales.

0:27:23 > 0:27:25But before I get to interrogate him,

0:27:25 > 0:27:29Oliver Spark, the joint managing director, wants to show me

0:27:29 > 0:27:32how much work goes into making a bespoke sofa.

0:27:32 > 0:27:35Hello, are you the sofa king? I'm a kind of sofa king.

0:27:35 > 0:27:37Come and see the world of sofas.

0:27:39 > 0:27:43All our sofas, everything is handmade here in Norfolk.

0:27:43 > 0:27:46Actually properly handmade? Properly handmade.

0:27:46 > 0:27:49I suppose when I read "handmade" on a website, I think, really?

0:27:49 > 0:27:52You're more cynical than I expected. Really cynical.

0:27:52 > 0:27:55But I'm seeing people making them with their own hands.

0:27:57 > 0:28:00Can I help with anything? No. No.

0:28:00 > 0:28:04No? Because you'll hurt your hand, basically.

0:28:04 > 0:28:06These hands were built for working.

0:28:06 > 0:28:09..All right, maybe mine not so much.

0:28:09 > 0:28:11How many sofas do you make in one day?

0:28:11 > 0:28:15Between nine and 13, depending on what size sofa you've got.

0:28:15 > 0:28:18It's not just the frames that are handmade to order.

0:28:18 > 0:28:20The sofa covers are, too.

0:28:20 > 0:28:24Valerie, how long have you worked here? 27 years.

0:28:24 > 0:28:28Did you make your own sofa cover? No. You didn't? Valerie!

0:28:28 > 0:28:29I've got leather.

0:28:32 > 0:28:36These ladies are making three entire sofa covers every day.

0:28:38 > 0:28:42'And Sue is foolhardy enough to let me have a go.'

0:28:42 > 0:28:45Yay! OK, a bit fast. Wa-hey!

0:28:47 > 0:28:51I mean, how long would it take you to do this? 30 seconds.

0:28:51 > 0:28:52Something like that.

0:28:54 > 0:28:55Not 30 minutes?

0:28:57 > 0:29:00'I may not have messed up, but the clock is ticking.'

0:29:00 > 0:29:03I want to do it right. You've done really well for the first time. OK.

0:29:03 > 0:29:04I'll let you take over.

0:29:07 > 0:29:11I find it interesting that each sofa built here is made to order,

0:29:11 > 0:29:14even if it's been bought in a sale.

0:29:15 > 0:29:18It's not as though they are last season's stock.

0:29:18 > 0:29:22So why do they always seem to be sold at a discount?

0:29:22 > 0:29:25How real are these sales?

0:29:27 > 0:29:30How many do you think you sell at full price?

0:29:30 > 0:29:34We probably sell 75% of our sofas at discount.

0:29:34 > 0:29:3775% are sold at discount. Yes.

0:29:37 > 0:29:43That's huge. What is the most you will cut a sofa by?

0:29:43 > 0:29:46We would very rarely go as deep as 50%,

0:29:46 > 0:29:49but we'll quite often be at 30%.

0:29:49 > 0:29:54If mostly you're doing a 30% offer on your sofas,

0:29:54 > 0:29:56why not just price them cheaper?

0:29:56 > 0:29:58It's a good question,

0:29:58 > 0:30:01and the real issue is whether you will keep walking into the shop

0:30:01 > 0:30:04if we're not telling you there is a 30% discount.

0:30:04 > 0:30:07So it's a kind of psychological trick

0:30:07 > 0:30:10that I need to feel like I'm getting a bargain?

0:30:10 > 0:30:11Yes. Absolutely.

0:30:11 > 0:30:15Why we have to keep running a discount shout, as it's called,

0:30:15 > 0:30:20we're a relatively small company, even though we've got 50-odd shops.

0:30:20 > 0:30:21If you looked and watched TV,

0:30:21 > 0:30:24constantly, you're getting that message drummed in that

0:30:24 > 0:30:26that is how the market works.

0:30:26 > 0:30:29So if we don't offer a discount, and there is somebody else

0:30:29 > 0:30:34shouting about a great discount, then, unfortunately, we miss out.

0:30:34 > 0:30:37'So that's it from the horse's mouth.'

0:30:37 > 0:30:39Sofa retailers feel they have to offer a discount,

0:30:39 > 0:30:42because all their rivals do.

0:30:43 > 0:30:46They've become a must-have marketing ploy.

0:30:46 > 0:30:50'So what's legal and what's illegal in these kinds of sales?'

0:30:50 > 0:30:53What are the rules for putting on a sale?

0:30:53 > 0:30:56Well, they're all governed by the trading standards rules

0:30:56 > 0:31:00and the real thing about them is you have to have your product established

0:31:00 > 0:31:02at the list price, as it's called -

0:31:02 > 0:31:06so the "was" price, before it gets discounted.

0:31:06 > 0:31:09How long do you have to keep it at its "was" price

0:31:09 > 0:31:12before you do the "now" price?

0:31:12 > 0:31:15The actual definition is it has to be shown

0:31:15 > 0:31:17for a meaningful length of time,

0:31:17 > 0:31:19but it's probably at least 28 days,

0:31:19 > 0:31:22and what really happens is there should be notices

0:31:22 > 0:31:26explaining when that product was last at full price.

0:31:26 > 0:31:29But not all shops have to do it for 28 days,

0:31:29 > 0:31:32they just decide what a meaningful length of time is?

0:31:32 > 0:31:34I can't speak for other shops.

0:31:34 > 0:31:37Certainly, it feels like, when you look at the market,

0:31:37 > 0:31:41that sometimes products come in and then are discounted very quickly.

0:31:42 > 0:31:44So it clearly does make sense

0:31:44 > 0:31:46to look for a discount when buying a sofa.

0:31:56 > 0:32:00So far, I've been looking at pricing on the high street,

0:32:00 > 0:32:05but what about some of the other techniques high-street chains use to persuade us to buy?

0:32:09 > 0:32:13Perhaps the most powerful tool that a high-street store has

0:32:13 > 0:32:18to try and influence us to buy is its sales team.

0:32:18 > 0:32:21Salesmanship has been around for ever,

0:32:21 > 0:32:25but the most recent development is the rise of the personal shopper.

0:32:28 > 0:32:30When it comes to clothes,

0:32:30 > 0:32:34households spend, on average, ?244 a year on menswear.

0:32:34 > 0:32:38Just short of half what they spend on women's clothes.

0:32:38 > 0:32:42Hardly surprising, then, that the big stores are keen to offer men

0:32:42 > 0:32:44that little bit of encouragement.

0:32:44 > 0:32:47Top Man employs a team of five personal shoppers

0:32:47 > 0:32:51and three assistants in its Oxford Street branch.

0:32:51 > 0:32:56'To see if the personal touch works, I'm paying a visit to James

0:32:56 > 0:32:58'and his assistant, Rebecca.'

0:32:58 > 0:33:01This is a really gorgeous. Look at it. It's all right, isn't it?

0:33:01 > 0:33:03Not bad. It's amazing!

0:33:03 > 0:33:09I feel like I've stepped into a kind of secret world. That's the idea.

0:33:09 > 0:33:12It's a bit more off the shop floor, somewhere a bit more private,

0:33:12 > 0:33:13away from the hustle and bustle.

0:33:13 > 0:33:16We'll go on the shop floor, find guys who probably don't

0:33:16 > 0:33:18necessarily know what they're here for,

0:33:18 > 0:33:21or they are after something, but panic and just leave.

0:33:21 > 0:33:22So we're here to grab them,

0:33:22 > 0:33:24bring them in, show them what they need

0:33:24 > 0:33:26and show them what else is out there for them.

0:33:26 > 0:33:29So it's completely free? You're not on commission. No.

0:33:29 > 0:33:31But they're going to buy a bit more than they might have?

0:33:31 > 0:33:34I like to think so. Do you ever offer sale items,

0:33:34 > 0:33:36or is it generally a certain type of clothing?

0:33:36 > 0:33:40Personally, I don't pull from the sales items, because they tend to be

0:33:40 > 0:33:43out of season and I always like to show the client what's new.

0:33:43 > 0:33:46So anybody can use the service. Anybody. Yeah.

0:33:48 > 0:33:50Hi there, Dave. Hi there. James, nice to meet you.

0:33:50 > 0:33:54James's next appointment is software analyst Dave Radley,

0:33:54 > 0:33:57who normally goes shopping with his girlfriend.

0:33:57 > 0:34:01This time, it's James and Rebecca's turn to style him.

0:34:01 > 0:34:04I'll take your bag for you. Rebecca, can you...? Thank you.

0:34:04 > 0:34:07And let's take a look in the room and see what I've got for you. OK. Cool.

0:34:09 > 0:34:12That little bit more smarter, with the jacket.

0:34:12 > 0:34:16That's a really nice fit on you. How do you feel about this outfit? Yeah, it's quite nice. Cool.

0:34:16 > 0:34:20I feel like I'm going on holiday. It's cool, it's a good summer look. It's a strong look.

0:34:20 > 0:34:24I quite like that jacket. It's cool. It's nice.

0:34:24 > 0:34:26How are you finding the whole process?

0:34:26 > 0:34:28Yeah, it's very friendly, isn't it?

0:34:28 > 0:34:31You get to try on all sorts of things.

0:34:31 > 0:34:33It's a very bold print. It's not for everyone.

0:34:33 > 0:34:36What do you think? I think it's great.

0:34:36 > 0:34:39I think you pull it off so well. Those, as well. Do you just want to take a seat?

0:34:39 > 0:34:43(It's quite interesting. No-one has talked about price yet.)

0:34:43 > 0:34:48(When I go shopping, I definitely check the prices of all the garments,

0:34:48 > 0:34:51(but it's like, in here, money doesn't exist.)

0:34:51 > 0:34:54Quite soft, quite light, nothing too garish, not too contrasted.

0:34:54 > 0:34:57Becca, how would you feel if your boyfriend stepped out in this?

0:34:57 > 0:34:59Really good. Yeah? THEY LAUGH

0:34:59 > 0:35:01Yes. It looks really cool.

0:35:01 > 0:35:04James and Rebecca's clever salesmanship seems to be

0:35:04 > 0:35:06making quite an impact.

0:35:06 > 0:35:11Dave's now been here for over an hour. What will he buy?

0:35:11 > 0:35:16OK, so we did pretty good, didn't we? We've done OK. Yeah, a few good pieces there.

0:35:16 > 0:35:19OK, that's a cost of ?688. Ooh.

0:35:19 > 0:35:22HE CHUCKLES Slightly over budget. You've got some great items there.

0:35:22 > 0:35:25You're not going to have to go shopping for, like, another six months.

0:35:25 > 0:35:29Like I said, you've got some great items that will last you for quite a long time,

0:35:29 > 0:35:32through to winter. I think there's some really good bits.

0:35:32 > 0:35:35OK, fair enough. Well, my budget was originally ?100. OK.

0:35:35 > 0:35:40So I think I'm just going to have to pick out a couple of the items. Of course, yeah, yeah.

0:35:40 > 0:35:45Dave cuts back, but he still spends almost twice his original budget.

0:35:45 > 0:35:47Cool. Very good.

0:35:47 > 0:35:51Altogether that's ?191. OK. That's a little bit over budget, but...

0:35:51 > 0:35:55'The personal shopping experience has encouraged Dave to spend more

0:35:55 > 0:35:58'than he meant to, but does he mind?'

0:35:58 > 0:36:00Do you think you would do that again?

0:36:00 > 0:36:06I think I might do, because I got a couple of items that I wouldn't have had the confidence to get by myself.

0:36:06 > 0:36:08So you feel happy? I do, definitely.

0:36:10 > 0:36:13It is a bit of a fantasy land when money isn't really talked about.

0:36:13 > 0:36:18Even the payment. He didn't have to queue. It doesn't even feel real.

0:36:18 > 0:36:20I would definitely use the service,

0:36:20 > 0:36:23but what I would watch out for is being strict with your budget

0:36:23 > 0:36:27and also not being afraid to ask for sale items.

0:36:27 > 0:36:29We've got a little camera facing forwards

0:36:29 > 0:36:32and that's recording everything that you are seeing.

0:36:32 > 0:36:38Still to come, I discover how exactly stores direct our attention.

0:36:40 > 0:36:42'And it's sales time at John Lewis.'

0:36:42 > 0:36:44Someone's just bought that, already?

0:36:44 > 0:36:47Yeah. The guy just there. You haven't even been open five minutes.

0:36:50 > 0:36:54Big sales events and promotions grab our attention,

0:36:54 > 0:36:58but with money tight and online shopping growing fast,

0:36:58 > 0:37:01what else are the stores doing to lure us in?

0:37:02 > 0:37:06From electronics to jeans, to bookshops and banks,

0:37:06 > 0:37:11there's a massive makeover underway as interiors are rethought

0:37:11 > 0:37:14and the whole shopping environment is redesigned.

0:37:17 > 0:37:20One of the big high-street chains, Oasis, spent ?7 million

0:37:20 > 0:37:26redesigning their shops, including this flagship store in London.

0:37:26 > 0:37:29The idea is that by enhancing our sensory experience,

0:37:29 > 0:37:32we'll spend a whole lot more.

0:37:32 > 0:37:36Briony Garbett is the head of customer experience.

0:37:36 > 0:37:39Downstairs is quite fresh, quite bright, kind of day feel.

0:37:39 > 0:37:42Then, upstairs, you can sense it. We've got a change of pace.

0:37:42 > 0:37:45A little bit more moody, a little bit more theatrical.

0:37:45 > 0:37:49We were really keen to have a quite natural flow in terms of the customer flow,

0:37:49 > 0:37:53the customer walking into the changing room, it being very inviting.

0:37:53 > 0:37:55Even down to the kind of railings.

0:37:55 > 0:37:58"Come this way, come try on your dream dress."

0:37:58 > 0:38:00This is where the decisions are made

0:38:00 > 0:38:03and it's where we make our customer feel good about herself,

0:38:03 > 0:38:07which is really important in this kind of customer experience and shopping experience.

0:38:07 > 0:38:10And your staff are wearing headsets. Really cool!

0:38:10 > 0:38:14It's almost like I'm coming into a venue, like a club. Yeah.

0:38:14 > 0:38:17An exclusive venue.

0:38:17 > 0:38:19'To put the fitting rooms to the test,

0:38:19 > 0:38:22'I've picked out a wardrobe essential - a little black dress.'

0:38:24 > 0:38:29My legs look really thin. I know they're not that thin.

0:38:29 > 0:38:30And the lighting is really nice,

0:38:30 > 0:38:34it makes my skin look a bit darker, whereas, actually, I'm quite pasty.

0:38:34 > 0:38:39There's definitely... It definitely makes me look healthier.

0:38:39 > 0:38:40There seems to be...

0:38:43 > 0:38:48It's like... There's like a film over the mirror.

0:38:48 > 0:38:51That's kind of... It makes a bit of a glow.

0:38:51 > 0:38:54I look a bit like I'm glowing and I really don't glow.

0:38:54 > 0:38:56Definitely don't glow in real life.

0:38:56 > 0:38:59Up here, the mirror is really close to the wall

0:38:59 > 0:39:04and as you get further down, it gets further and further away,

0:39:04 > 0:39:08till, at the bottom, it's that far away from the wall.

0:39:08 > 0:39:11So it's quite a significant lean.

0:39:11 > 0:39:15And that's why my legs look absolutely fantastic!

0:39:17 > 0:39:20But am I just being cynical?

0:39:20 > 0:39:23'What do other shoppers think?'

0:39:23 > 0:39:27Do you trust mirrors in changing rooms? Sometimes.

0:39:27 > 0:39:30But other times not, I guess some of them are quite slimming.

0:39:30 > 0:39:33Mmm... I don't know. We'll see.

0:39:33 > 0:39:34Can I come in? Yes.

0:39:36 > 0:39:39I really like this one. Yeah. And how do you feel about the reflection?

0:39:39 > 0:39:44What you expected, better than you expected? Um... Yeah.

0:39:44 > 0:39:48The mirror looks nice. It makes me look good.

0:39:48 > 0:39:51You kind of want to be helped to make the purchase.

0:39:51 > 0:39:5699% of girls aren't fully happy with what they look like.

0:39:56 > 0:39:59There is always something they don't like, so, obviously,

0:39:59 > 0:40:02if the lighting and the mirror makes you feel good and look good,

0:40:02 > 0:40:06then you'll buy it, whereas if it's not, it's just kind of,

0:40:06 > 0:40:11you're not going to get that feeling. Even though you know there are a few tricks that the shop is playing?

0:40:11 > 0:40:14Yeah. You kind of don't mind, because it gives you such a lovely feeling? Yeah, exactly.

0:40:14 > 0:40:18You hope that it's going to look good when you get home, as well.

0:40:18 > 0:40:21Fingers crossed. I think it will, by the way. I hope.

0:40:21 > 0:40:24'Next door, another shopper and another angled mirror.'

0:40:24 > 0:40:28Oh, I like it. It's really neat. Yeah.

0:40:28 > 0:40:30The dress I really like,

0:40:30 > 0:40:33but because I have curves, I thought it would look big on me.

0:40:33 > 0:40:36But, for some reason, when I look in the mirror, I look very thin.

0:40:36 > 0:40:38Are you surprised? Yeah. Hmm.

0:40:38 > 0:40:41It makes me look really thin, so it could be the mirror.

0:40:41 > 0:40:44Does it make you want to buy the dress? Definitely. Even more.

0:40:46 > 0:40:50Most high-street chains deny the deliberate use of magic,

0:40:50 > 0:40:53or angled mirrors, in order to create a slimming effect.

0:40:55 > 0:40:58I decided to ask Briony why they tilt theirs.

0:41:00 > 0:41:06You can see here quite clearly, it's significantly further out here than it is at the top.

0:41:06 > 0:41:09Yeah, that was actually more for a design aesthetic than anything else.

0:41:09 > 0:41:13We wanted it feel quite boutiquey and kind of vintage,

0:41:13 > 0:41:15but modern and relevant.

0:41:15 > 0:41:20So they're very big mirrors and to have them on the wall is quite heavy.

0:41:20 > 0:41:22We wanted to lean them up against the wall.

0:41:22 > 0:41:25You can see that with the mirrors we've got outside, as well.

0:41:25 > 0:41:29It's more of a design aesthetic than any kind of ploy to make you

0:41:29 > 0:41:31think you are 6ft tall, or anything like that.

0:41:31 > 0:41:33But it must help your sales when women look in the mirror

0:41:33 > 0:41:37and they think, "I look so slim and tall in these outfits."

0:41:37 > 0:41:39I don't know that that is true.

0:41:39 > 0:41:42Because you go home and try the item on again and, actually,

0:41:42 > 0:41:44the last thing we would want is to disappoint the customer

0:41:44 > 0:41:47and to use trickery to try and get her to buy the item.

0:41:47 > 0:41:51Um, so I don't think there is any particular effect on these mirrors,

0:41:51 > 0:41:54having them slanted against the wall like this.

0:41:54 > 0:41:58I also noticed this little thing. What is this?

0:41:58 > 0:42:03So that gives us scent for the store. So we have summer and spring, at the moment.

0:42:03 > 0:42:06So that floral scent just gives a bit more of an edge.

0:42:06 > 0:42:10Why is it useful to you as a company wanting to sell clothes

0:42:10 > 0:42:12to have a certain smell?

0:42:12 > 0:42:16It's really important, because smell is a trigger for contextual memory.

0:42:16 > 0:42:21So what you will find is that people associate smells very strongly with certain experiences.

0:42:21 > 0:42:23It's freshly cut grass, it's the summer,

0:42:23 > 0:42:26they're lying in a park, they're feeling good about themselves,

0:42:26 > 0:42:29they're relaxed and then they have that same smell

0:42:29 > 0:42:31when they're entering our changing rooms.

0:42:31 > 0:42:36Scent is used today by fashion retailers, hotel chains

0:42:36 > 0:42:38and even car dealers.

0:42:38 > 0:42:42But can our noses really make us part with our money?

0:42:42 > 0:42:46I've selected eight people - a combination of retail workers,

0:42:46 > 0:42:50style writers and shopping obsessives - to come to my aid.

0:42:51 > 0:42:53I've devised a little test.

0:42:53 > 0:42:56It's not scientific, but I'm hoping it will give me

0:42:56 > 0:43:00a bit of an insight into why these big companies spend money on scent.

0:43:02 > 0:43:07The first step is to separate my volunteers into two groups of four.

0:43:08 > 0:43:10As you can see, there's the product.

0:43:10 > 0:43:14I'll leave you for a couple of minutes, I'll come back and ask you a few questions.

0:43:14 > 0:43:18'Both groups will examine the same pair of running shoes.'

0:43:18 > 0:43:22This first group is looking at them in a non-scented room.

0:43:22 > 0:43:25Shortly, we'll add the scent and show them to the second group.

0:43:25 > 0:43:27They're very high street. ALL AGREE

0:43:27 > 0:43:29Like a budget high street.

0:43:29 > 0:43:31They don't feel expensive. No.

0:43:31 > 0:43:36They don't look durable. No, not at all.

0:43:36 > 0:43:39Like a cheap running shoe. No, in the sale permanently.

0:43:39 > 0:43:40LAUGHTER

0:43:40 > 0:43:45So, what do you think of the product? It's very cheaply made.

0:43:45 > 0:43:49We decided low end. Price, roughly?

0:43:49 > 0:43:53I think about ?30. 20 to 30. Or less.

0:43:53 > 0:43:5519.99 sort of thing.

0:43:55 > 0:43:58'Now it's time to add the scent.'

0:43:59 > 0:44:02Yeah. That's really, really lovely.

0:44:02 > 0:44:07It's kind of... It's citrusy, it's really fresh again,

0:44:07 > 0:44:08little bit floral.

0:44:08 > 0:44:12This scent is similar to one used by academic researchers studying

0:44:12 > 0:44:16how it affected the sales of the top brand shoe.'

0:44:16 > 0:44:20And they've done research to show that in a scented store,

0:44:20 > 0:44:24there's an uplift in sales and that 84% of people

0:44:24 > 0:44:28in the scented store were more likely to buy the product.

0:44:28 > 0:44:30How will our second group of shoppers react

0:44:30 > 0:44:33now that the fragrance has been added?

0:44:33 > 0:44:35Time to hide the scent machine.

0:44:35 > 0:44:36Just tuck it away.

0:44:38 > 0:44:41Love the pink! LAUGHTER

0:44:41 > 0:44:44It looks like it's really good quality.

0:44:44 > 0:44:47They've got a lot of detailing on them, like, a lot of different types of fabric.

0:44:47 > 0:44:50If you're working out, it would be brilliant.

0:44:50 > 0:44:52There's air pockets, so you wouldn't get too hot.

0:44:52 > 0:44:55Really well put together, really well made.

0:44:55 > 0:44:58OK. What did you think? Good. We liked them.

0:44:58 > 0:45:03What would you expect these trainers to retail at? I'd say about 60.

0:45:03 > 0:45:0965 to 70, maybe. 60. I think they would sell about for 90.

0:45:09 > 0:45:12Really interesting. Thank you so much.

0:45:12 > 0:45:14'And it wasn't just with the shoes

0:45:14 > 0:45:16'that the scent seemed to have an impact.'

0:45:16 > 0:45:20We noted positive results when tasting a dress, a radio,

0:45:20 > 0:45:24and when we switched the focus groups around.

0:45:24 > 0:45:28So, very surprisingly, scent, it seems,

0:45:28 > 0:45:32can have a big impact on the way we value products.

0:45:32 > 0:45:36But there's one further classic test I want to try.

0:45:36 > 0:45:39Can fragrance encourage us to trust a salesperson?

0:45:41 > 0:45:45So you will see here, there is a photograph of a salesman.

0:45:45 > 0:45:47Do you trust him?

0:45:47 > 0:45:51'To kick things off, we begin with the room aired and free of smell.'

0:45:51 > 0:45:55I'd say probably second-hand cars. Yeah, definitely. Looks a bit dodgy.

0:45:55 > 0:45:58Bad body language, bad hair. I wouldn't trust him.

0:45:58 > 0:45:59No, I really wouldn't.

0:45:59 > 0:46:02He is the epitome of, "Would you buy a car from this man"? Yeah.

0:46:02 > 0:46:04ALL: No. No, you wouldn't.

0:46:04 > 0:46:08'Will a new scent encourage a different view?'

0:46:08 > 0:46:10So there's definitely a vanilla flavour there.

0:46:10 > 0:46:13It's quite soft, it's really calming.

0:46:15 > 0:46:17And kind of welcoming and warm.

0:46:17 > 0:46:21Actually, a massive car dealership has invested ?50,000

0:46:21 > 0:46:24developing a scent just like this, because they believe

0:46:24 > 0:46:26it encourages trustworthiness

0:46:26 > 0:46:28and then, hopefully, an increase in sales.

0:46:30 > 0:46:34Scent machine discreetly hidden again, will the focus group

0:46:34 > 0:46:37in the now perfumed room trust the salesman more?

0:46:37 > 0:46:41He looks quite nice. He looks like he'd be easy to speak to.

0:46:41 > 0:46:44You could trust him. He looks like he has some charm.

0:46:44 > 0:46:46Hello. ALL: Hi.

0:46:46 > 0:46:48So, what did you think?

0:46:48 > 0:46:53He just seems like an everyday, run-of-the-mill salesman, really.

0:46:53 > 0:46:59So, for all of you, there is a sense of trustworthiness that he wouldn't try and scam you?

0:46:59 > 0:47:03THEY AGREE OK. That's fantastic. Thank you so much.

0:47:05 > 0:47:07I was a bit of a cynic at the beginning of today,

0:47:07 > 0:47:09but the results have definitely convinced me

0:47:09 > 0:47:13that scent has a massive impact on our opinions.

0:47:13 > 0:47:15The people who came today were savvy shoppers.

0:47:15 > 0:47:19But, to me, it does seem that the scent really influenced them.

0:47:19 > 0:47:21I can see why businesses use it.

0:47:29 > 0:47:32The internet has changed the high street.

0:47:32 > 0:47:3510% of all retail spend is now done online

0:47:35 > 0:47:39and we can compare prices on our mobile phones.

0:47:39 > 0:47:44But high-street chains are now using social media to offer

0:47:44 > 0:47:47their customers the promise of community.

0:47:48 > 0:47:51By liking the chains' Facebook pages and following these brands

0:47:51 > 0:47:56on Twitter, shoppers get a heads-up on special in-store events

0:47:56 > 0:47:59that make them feel part of that firm's family.

0:48:01 > 0:48:06Members of the club are offered anything from free classes in technology stores

0:48:06 > 0:48:11to previews of new titles in book shops. All designed to drive footfall in-store.

0:48:13 > 0:48:16That's the theory, at least, and I'm going to put it to the test

0:48:16 > 0:48:21at one of the stores that's done the most to build a social media fanbase.

0:48:21 > 0:48:25New Look is a high-street chain with over 1,000 shops

0:48:25 > 0:48:29and a massive 2 million Facebook fans.

0:48:29 > 0:48:33They entice customers by offering deals that you can only get

0:48:33 > 0:48:36if you're signed up to their online sites.

0:48:36 > 0:48:38Are you Shivani? Nice to meet you. I'm Cherry.

0:48:38 > 0:48:41You look like you're in the middle of something important.

0:48:41 > 0:48:44'Shivani Tejuja is multichannel director.'

0:48:45 > 0:48:49How important is online to your profit now?

0:48:49 > 0:48:50That's a great question.

0:48:50 > 0:48:54So, at the end of our last financial year, we were 8.5% of the total business

0:48:54 > 0:48:58and, as you can imagine, that number is growing like this.

0:48:58 > 0:49:00It is just growing massively.

0:49:00 > 0:49:04What do I get from asking for e-mail, Twitter, Facebook?

0:49:04 > 0:49:07What am I going to get for making the extra effort?

0:49:07 > 0:49:11There's tonnes of things. So, Facebook, for example, recently we did a flash sale.

0:49:11 > 0:49:15We e-mailed it to our loyal database, as well as our Facebook fans,

0:49:15 > 0:49:18and said, "From 12 to 2, we're going to take five dresses

0:49:18 > 0:49:21"and we're going to discount them online only, limited offering."

0:49:21 > 0:49:24So, a great example of something that is really exclusive to that community

0:49:24 > 0:49:28and trying to engage with customers, who are part of that community.

0:49:28 > 0:49:31Can we send a tweet to one of your fans and get them here?

0:49:31 > 0:49:34You want to do that right now? Right now.

0:49:34 > 0:49:38Sure, why not? We can test the immediacy of the internet.

0:49:38 > 0:49:40Yeah, let's do it.

0:49:40 > 0:49:43Right, so, we will entice them with a surprise. OK.

0:49:47 > 0:49:49Shall we tweet it? Do it.

0:49:51 > 0:49:56What New Look and other high-street chains are trying to pull off

0:49:56 > 0:50:01is to use social media to make us feel like we are part of an exclusive club.

0:50:01 > 0:50:04And, for New Look, that seems to be working.

0:50:04 > 0:50:07'Just one hour after posting online,

0:50:07 > 0:50:10'and the store's internet friends have started to arrive.'

0:50:10 > 0:50:12Do you actually like talking to the shop, you know,

0:50:12 > 0:50:16when they e-mail you and there's Twitter and Facebook? I like that.

0:50:16 > 0:50:19Yeah, because you... Particularly, you find out about sales.

0:50:19 > 0:50:24Definitely. I love it and it always gives you an excuse to shop, as well.

0:50:24 > 0:50:28If they send you an e-mail, "Oh, there's 20% off this week. It's free delivery,"

0:50:28 > 0:50:32it kind of gives you that... Oh, gosh. I don't need any excuse to shop.

0:50:32 > 0:50:36Actually, you're finding out about things first? Yeah, definitely.

0:50:36 > 0:50:37Especially sales.

0:50:37 > 0:50:40You get that kind of buzz when you find out about it first

0:50:40 > 0:50:42and you can rush and tell everyone.

0:50:42 > 0:50:48Do you think you spend more money in the store, in the shop, or online?

0:50:48 > 0:50:51Ooh. In the store.

0:50:51 > 0:50:53Mine's online, because there are so many different...

0:50:53 > 0:50:57Like, you'll see more of the imaging and the marketing kind of aspect online.

0:50:57 > 0:51:01With the photoshoots, it kind of pushes me more to buy.

0:51:01 > 0:51:05'I've seen that social media really can draw shoppers in.

0:51:05 > 0:51:09'But now the store has agreed to let me try another experiment.

0:51:09 > 0:51:14'This time, to test if shop layout can influence how we browse a store.

0:51:14 > 0:51:17'Sophia has agreed to be my guinea pig.'

0:51:17 > 0:51:18It is like James Bond. Yep.

0:51:21 > 0:51:23You've got a camera facing forwards

0:51:23 > 0:51:26and that's recording everything you are seeing.

0:51:26 > 0:51:32'Dr Tim Holmes is a neuroscientist who works with cutting-edge eye-tracking technology.'

0:51:32 > 0:51:33Perfect, OK. Right.

0:51:36 > 0:51:38Goggles on, Sophia is ready to go

0:51:38 > 0:51:43and the exact spot she looks at is pinpointed with a red dot.

0:51:53 > 0:51:59According to Tim, nearly all high-street chains, from computer retailers or department stores,

0:51:59 > 0:52:04use blocks of colour and texture to focus our eyes from point to point

0:52:04 > 0:52:07and pull us deeper into the store.

0:52:10 > 0:52:13The shops also use suggestive slogans,

0:52:13 > 0:52:17which register in our brains, even if they think we haven't noticed them.

0:52:19 > 0:52:23Sophia's shopping mission complete, Tim and I review what the eye tracker discovered.

0:52:26 > 0:52:29OK, so, this is what we got.

0:52:29 > 0:52:34New Look are employing quite a few common principles that we see in shop design.

0:52:34 > 0:52:38One area that she went into that's was quite interesting is the shoes.

0:52:38 > 0:52:43What we're seeing here is an example of something used a lot in retail, which is blocking.

0:52:43 > 0:52:46You have a lot of things that are similar

0:52:46 > 0:52:50and you group them together and this actually increases the impact.

0:52:50 > 0:52:54You see groups of pink shoes. A shoe that's quite small wouldn't do it on its own,

0:52:54 > 0:52:57but you have a group of them, it works great.

0:52:57 > 0:52:59Her eye's really drawn to the sale signs.

0:52:59 > 0:53:02Red is one end of a colour range

0:53:02 > 0:53:04and by having it as an extreme colour,

0:53:04 > 0:53:09it means it will stand out against almost anything else you put it against.

0:53:09 > 0:53:12And so it makes it really powerful.

0:53:12 > 0:53:17Knowing that shops really can set up their environment to capture us,

0:53:17 > 0:53:21to entice us and to guide us,

0:53:21 > 0:53:25how can we be more aware, be more savvy?

0:53:25 > 0:53:27I would say if you're going shopping, take a shopping list,

0:53:27 > 0:53:32because that is the best way to have a task that focuses your attention.

0:53:33 > 0:53:39So, layout does matter and it's clear that retailers across the high street

0:53:39 > 0:53:42can subtly influence our attention while we're browsing.

0:53:46 > 0:53:48I'm back at John Lewis to find out

0:53:48 > 0:53:51whether all their military-style planning has paid off.

0:53:52 > 0:53:56Can the excitement of a traditional clearance sale

0:53:56 > 0:54:00still get us out in our thousands, despite the allure of online shopping?

0:54:02 > 0:54:0795% of the staff who work at this branch have been involved in preparing for the sale.

0:54:07 > 0:54:11And this sale matters, because they are partners in the company.

0:54:11 > 0:54:16'Unusually, it is a retailer that is entirely owned by its full-time staff.'

0:54:16 > 0:54:21Could you tell me - you guys are partners, is that right? You're not like staff,

0:54:21 > 0:54:25which means you're shareholders, you have a buy-in to the profits?

0:54:25 > 0:54:31So how important are the sales? It's a big part of our bonus.

0:54:31 > 0:54:33It works out like eight and a half weeks.

0:54:33 > 0:54:38It's about two months' extra pay. Wow, that's massive.

0:54:38 > 0:54:40It gives you something to look forward to.

0:54:40 > 0:54:44'The partners have spent over a month planning the event.

0:54:44 > 0:54:47'But hundreds of signs still need to be hung

0:54:47 > 0:54:52'and thousands of price labels need to be individually changed.'

0:54:52 > 0:54:56Is it a race against time now? It is, that's why we're just go, go, go, aren't we?

0:54:56 > 0:55:00Everyone's rushing round. Don't let me stop you. You climb that ladder!

0:55:00 > 0:55:03You look really busy and there's lots of red labels.

0:55:03 > 0:55:06Is this department particularly frantic? Yes.

0:55:06 > 0:55:08At the beginning, yes. Definitely.

0:55:08 > 0:55:11Normally, we sell out of most of our stock in the first week.

0:55:11 > 0:55:15You sell out in the first week? It's just go, go, go, really.

0:55:15 > 0:55:19Busy, busy, busy. Do you normally work this late?

0:55:19 > 0:55:20We do, but not that late.

0:55:20 > 0:55:24Not this late? Not this late, this is a special one.

0:55:24 > 0:55:29It's like a military operation. Every floor is just alive with activity. We're done.

0:55:29 > 0:55:33The final bits going out and we're ready. (Is this the best floor?)

0:55:33 > 0:55:36Oh, I think so. Are you do most organised? Certainly!

0:55:43 > 0:55:45Today, the sale begins.

0:55:45 > 0:55:51Branch general manager Jeremy Adams checks in with his key operations staff.

0:55:51 > 0:55:55Good morning, all. Have there been any problems?

0:55:55 > 0:56:00Come on! Spill the beans! We're reluctant to say no.

0:56:00 > 0:56:04There's always glitches. There may be some product we're expecting in that hasn't arrived,

0:56:04 > 0:56:08but we know about that. It's about selling what we've got, not selling what we haven't got.

0:56:08 > 0:56:12That was such a good answer for, "Yeah, there have been a couple of problems, but it's all right."

0:56:12 > 0:56:15I said "glitches". Glitches. Never problems.

0:56:15 > 0:56:17It's a special purchase, for example.

0:56:17 > 0:56:21There are five televisions in special purchase that only arrived about 20 minutes ago.

0:56:21 > 0:56:23Great(!) Stressful.

0:56:23 > 0:56:25What about these? These do not look that ready.

0:56:25 > 0:56:29This will all be cleared by 9:30, no problem.

0:56:29 > 0:56:33I'm just conscious that we've got to get downstairs, as well. We've got to get downstairs.

0:56:33 > 0:56:36OK, let's go. Sorry, yeah, don't let me hold you up.

0:56:36 > 0:56:41Here we are. There's Simon. Hello, Simon, good morning. Good morning. Here we go.

0:56:41 > 0:56:46'The doors open and the countdown begins on the hottest clearance bargains.'

0:56:46 > 0:56:48Here we go!

0:56:50 > 0:56:53Someone's just bought that, already? Yeah. The guy just there.

0:56:56 > 0:57:00The television department is almost at full capacity.

0:57:00 > 0:57:03When it comes to day one of the sales, I think

0:57:03 > 0:57:05people just don't mess about.

0:57:07 > 0:57:10As the day progresses, the store gets busier.

0:57:12 > 0:57:15I should think we've sold about 300 pairs of shoes already. Already? Yeah.

0:57:15 > 0:57:19'The special buys are attracting a lot of attention.

0:57:19 > 0:57:22'And with all the excitement that sales generate,

0:57:22 > 0:57:26'it's not surprising we sometimes buy on wild impulse.'

0:57:26 > 0:57:29Do you have a tactic when you go sales shopping?

0:57:29 > 0:57:32I wasn't actually sales shopping today, I was looking for a wedding outfit

0:57:32 > 0:57:37and I came away with a piece of ceramic shaped like a squirrel. So...

0:57:40 > 0:57:43For John Lewis, the strategy has worked.

0:57:43 > 0:57:49In the first week of the sale, they did 7% better than the year before.

0:57:49 > 0:57:51We all love a bargain,

0:57:51 > 0:57:54but what I've learned about how the sales work from the inside

0:57:54 > 0:57:58is that our high-street shops are powerful selling machines.

0:57:58 > 0:58:00What's really stuck with me

0:58:00 > 0:58:04is the thought that goes into what's on sale,

0:58:04 > 0:58:09how the store is laid out and what the shopping experience feels like -

0:58:09 > 0:58:11all to make us spend more.

0:58:11 > 0:58:15Knowing this puts us back in control.

0:58:15 > 0:58:20Make a list, don't be afraid to ask when items are going to be further reduced.

0:58:20 > 0:58:25Do your research and try, even though it is really hard,

0:58:25 > 0:58:27not to get carried away.

0:58:32 > 0:58:37# There's a big love sale At the five-and-ten

0:58:37 > 0:58:44# They've got bargain rates On what never could have been

0:58:44 > 0:58:49# A million screaming people Are stripping down the counters

0:58:49 > 0:58:52# Tearing through the racks Paying sales tax

0:58:52 > 0:58:55# On the split seam of a dream. #