2. Store Design & Layout

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    Amity Business School

    Retail Store Layout andDesign

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    Amity Business SchoolStore Planning

    Planning It is the method of selecting the

    right location and an appropriate site for

    the store with the catchment definition for

    each store

    Types of Locations High street location

    Destination/Freestanding Location

    Shopping centre or Mall Location

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    Amity Business SchoolSite Selection

    Refers to the type of building the retailer needs and its affordability anddecide whether to lease, own, rent or a JV with the landlord.

    Details of Site selection sheet

    Address of the property

    Details of adjacent occupants

    Can site be used commercially

    Name and address of the title holder

    Is the site free for encumbrance ?

    Are all relevant taxes paid and currently up to date

    Is the site free of any civil suit ? When was the building constructed ?

    Total number of floors

    Other prominent facilities nearby

    Details of facilities space / parking space

    Financial details

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    Amity Business School

    Factors to consider while designing

    Employee Type and Density

    Merchandise Type and Density

    Fixture Type and Density

    Sound Type and Density

    Odor Type and Density

    Visual Type and Factors

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    Amity Business SchoolFixtures

    Mid Floor Free standing island Gondola

    Tables

    Furniture Vendor Specials

    Specialist cardboards

    Hanging Rails Capacity, Single, Circular Fixed Shelves

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    Amity Business SchoolStore Planning

    Allocating Space

    Circulation

    Shrinkage Prevention

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    Amity Business SchoolStore Planning

    Floor Plan is a schematic that shows wheremerchandise and customer service departments

    are located, how customers circulate throughthe store, and how much space is dedicated toeach department.

    Stack-Outs are pallets of merchandise set outon the floor in front of the main shelves.

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    Amity Business SchoolAllocating Space

    Types of space needed:

    1. Back room

    2. Office and other functional spaces

    3. Aisles, services areas, and other non selling areas of the mainsales floor

    4. Wall merchandise space

    5. Floor merchandise space

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    Amity Business SchoolAllocating Space

    Warehouse clubs are able to take

    advantage not only of the width and

    depth of the store, but also the

    height, by using large warehouseracks that carry reachable

    inventory at lower levels with large

    pallets or cartons of excess

    inventory at higher levels.

    LO 2

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    Amity Business SchoolSpace Allocation Planning

    Improving Space Productivity in Existing Stores

    Space Productivity Index is a ratio that compares the percentage ofthe stores total gross margin that a particular merchandise

    category generates to its percentage of total store selling spaceused.

    Space Allocations for a New Store

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    Amity Business School

    Merchandise ProductivityAnalysis

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    Amity Business School

    Merchandise ProductivityAnalysis

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    Amity Business SchoolCirculation

    Free-Flow Layout is a type of store layoutin which fixtures and merchandise are

    grouped into free-flowing patterns on the

    sales floor.

    Advantages

    Allowance for browsingand wandering freely Increased impulse

    purchases Visual appeal

    Flexibility

    DisadvantagesLoitering encouraged

    Possible confusionWaste of floor spaceCostDifficulty of cleaning

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    Amity Business SchoolFree Flow

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    Amity Business School

    The Disney Stores Effective Use of the Free-Flow Design

    Approximately 250 millionconsumers visit Disneys

    entertainment retail outlets

    each year. New store

    designs showcase

    merchandise in an engagingand contemporary fashion,

    keeping pace with evolving

    retail trends. Technological

    elements - including a front-

    of-store media wall thatengages guests with Disney

    programming, and

    interactive kiosks-setting the

    stage for the Disney Store in

    the 21st century.

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    Amity Business SchoolCirculation

    Grid Layout is a type of store layout inwhich counters and fixtures are placed inlong rows or runs, usually at rightangles, throughout the store.

    Advantages

    Low cost

    Customer familiarity

    Merchandise exposure

    Ease of cleaning

    Simplified security

    Possibility of self-service

    Disadvantages

    Plain and uninterestingLimited browsing

    Stimulation of rushed shoppingbehavior

    Limited creativity in decor

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    Amity Business SchoolGrid Layout

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    Amity Business SchoolCirculation

    Loop/Race track Layout is a type of store layout in which a major

    customer aisle begins at the entrance, loops through the store,

    usually in the shape of a circle, square, rectangle, and then returns

    the customer the front of the store.

    Advantages

    Exposes customers to the greatest amount ofmerchandise

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    Amity Business SchoolLoop/Race track Layout

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    Amity Business SchoolSpine Layout

    Spine Layout is a type of store layout in which a single main

    aisle runs from the front to the back of the store, transporting

    customers in both directions, and where on either side of this

    spine, merchandise departments using either a free-flow or gridpattern branch off toward the back aisle walls.

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    Amity Business SchoolSpine Layout

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    Amity Business SchoolGeneral Rules

    Convenience of the customer comes first

    Provide free access to customer Higher browsing leads to higherbuy

    Optimize space management

    Ensure audits after every change has been made

    Try to appeal through all five senses of the customer

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