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Chapter 13
STORE LAYOUT AND DES IGN
Learning Objectives
• List the elements of a store’s environment and define its two primary objectives
• Discuss the steps involved in planning the store
• Describe how various types of fixtures, merchandise presentation methods and techniques, and the psychology of merchandise presentation are used to increase the productivity of the sales floor
Learning Objectives
• Describe why store design is so important to a store’s success
• Explain the role of visual communications in a retail store
Introduction to Store Layout Management
• Store setting and presentation are critical factors in serving the customer
• To encourage repeat visits and purchasing, online retailers should:• Keep content current• Make the site easy and enjoyable to work• Structure an online community for consumers to
interact
LO 1
Supermarket Style
Right Handed90% turn right/Store brands
Neatness counts?Dump displays/Hand Written
End CapsHighest turnovers/25-25-50
Creatures of HabitA little bit greedy
Limit 4
Exhibit 13.1 - Elements That Composethe Store Environment
LO 1
Introduction to Store Layout Management
• Objectives of the store environment• Creating desired store image- Important factors• Merchandise carried• Promotional activities• Customer service• Cleanliness • Sales force
LO 1
$300 per square footYields $1,500
Introduction to Store Layout Management
• Increasing space productivity• The more merchandise customers are exposed to that
is presented in an orderly manner:• The more they tend to buy• Fuel Up, Sit down, Retailtainment, Bathrooms• Length in store• Exposure to merchandize? (Robert Kahn)
• Incorporating new advances in technology can help stimulate sales• Shrinkage: Merchandise that cannot be accounted for
due to theft, loss, or damage
LO 1
Store Planning
• Floor plan• A schematic that shows:• Where merchandise and customer service departments
are located• How customers circulate through the store, and how
much space is dedicated to each department
• Is based around the predicted demands of the store’s targeted customer
LO 1
Exhibit 13.2 - These Warning Signs mayIndicate a Space Problem
LO 2
Store Planning
• Microretailing: Occurs when a chain store retailer operating over a wide geographic area:• Tailors its merchandise and services in each store
to the needs of the immediate trading area• Adjacencies: Merchandise being arranged
alongside other merchandise (IKEA)• Stack-outs: Pallets of merchandise set out on
the floor in front of the main shelves (Winco)
LO 2
Store Planning• Allocating space• Types of space needed• Back room• Offices and other functional spaces• Aisles, service areas, and other
nonselling areas• Floor merchandise space• Wall merchandise space
• Space allocation planning• Circulation• Shrinkage prevention
LO 2
Store Planning
• Space allocation planning• Improving space productivity in existing stores• Space productivity index
• Compares the percentage of the store’s total gross margin that a particular merchandise category generates to:• Its percentage of total store selling space used
• Space allocations for a new store• Robert Kahn’s theory - Retailers should concentrate on
the time customers spend browsing and experiencing the store:• Not on how much merchandise they are exposed to
LO 2
Exhibit 13.4 - Impact of Customer Traffic and Length of Store Visit
LO 2
Store Planning• Planograms: Illustrate how and where a retailer’s
merchandise should be displayed on the shelf• Designed to allow the retailer to increase space
productivity by taking into account• Inventory• Turnover• Space and inventory investment requirement• Gross margins of SKU’s
LO 2
Store Planning
• Circulation• Ensures efficient movement shoppers through the
store, exposing them to more merchandise• Determines the character of the store• Types of layouts• Free-flow layout • Grid layout• Loop layout • Spine layout
LO 2
Store PlanningFree-flow layout Fixtures and merchandise are grouped into free-flowing
patterns on the sales floor.
Grid layout The counters and fixtures are placed in long rows or ‘‘runs,’’ usually at right angles, throughout the store.
Loop layout A major customer aisle begins at the entrance, loops through the store—usually in the shape of a circle, square, or rectangle—and then returns the customer to the front of the store.
Spine layout 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 grid pattern branch off toward the back side walls.
LO 2
Exhibit 13.6 - Grid Layout
LO 2
Exhibit 13.7 - Loop Layout
LO 2
Exhibit 13.7 - Spine Layout
LO 2
Planning Fixtures and Merchandise Presentation
• On-shelf merchandising• Display of merchandise on counters, racks,
shelves, and fixtures throughout the store.• Must be attractive, easy to understand and
accessible• Must be reasonably easy to maintain
LO 3
Planning Fixtures and Merchandise Presentation
• Fixture types• Merchandise-presentation planning• Selecting fixtures and merchandise-
presentation methods• Visual merchandising
LO 3
Fixture Types• Hardlines fixtures• Softlines fixtures• Bulk or capacity fixture: Display fixture that is
intended to:• Hold the bulk of merchandise without looking as heavy
as a long, straight rack of merchandise.• Feature fixture: Display that draws special
attention to selected features of merchandise• Wall fixtures
LO 3
Exhibit 13.9 - Four-Way Feature Rack and Round Rack
LO 3
Merchandise Presentation Planning
• Shelving- Merchandise is placed on shelves that are inserted into gondolas or wall systems
• Hanging- Hangers hung from softlines fixtures• Pegging• Merchandise can be hung from peg hooks• Suitable for small merchandise
LO 3
Merchandise Presentation Planning
• Folding• large, unwieldy softlines merchandise folded and
then stacked onto shelves • Stacking- Large hardlines merchandise stacked
on:• Shelves, base decks of gondolas, or flats
• Dumping- Merchandise dumped in bins or baskets inserted into gondolas or wall systems• Effective promotional method
L O 3
Merchandise Presentation Planning
• Key psychological factors to consider when merchandising stores:• Value/fashion image• Angles and sightlines• Vertical color blocking
LO 3
Exhibit 13.10- 45-Degree Customer Sightline
LO 3
Exhibit 13.11 - Vertical Color Blocking
LO 3
Selecting Fixtures and Merchandise-Presentation Methods
• Proper fixtures should • Emphasize the key selling attributes of
merchandise while not being overpowering• Match to the merchandise
LO 3
Visual Merchandising
• Artistic display of merchandise• Theatrical props used as scene-setting
decoration in the store• Located in a focal point, feature area
LO 3
Store Design
• Creates a distinctive and memorable store image
• Includes both exterior and interior of the store• Exterior- Storefront, signage, and entrance• Interior- Architectural elements and finishes on all
surfaces• Ambience• Overall feeling or mood projected by a store
through its aesthetic appeal to the human senses
Store Design• Storefront design• Identifies the name
and general nature of the store
• Gives some hint as to the merchandise inside
• Includes all exterior signage and the architecture of the storefront itself
LO 4
Store Design
• Interior design • The finishes applied to surfaces • The architectural shapes
LO 4
Store Design
• Lighting design• Helps enhance store sales• Requires an in-depth knowledge of:• Electrical engineering and the effect of light on color
and texture
• Sounds and smells: total sensory marketing• Effective store design appeals to the human
senses of sight, hearing, smell, and touch
LO 4
Visual Communications
• Name, logo, and retail identity• Must be catchy, memorable, and reflective of the
retailer’s merchandising mission• Institutional signage• Describes the merchandising:• Mission, customer service policies, and other messages
on behalf of the retail institution
LO 5
Visual Communications
• Directional, departmental, and category signage • Are large and placed fairly high, so they can be
seen throughout the store• Category signage is: • Smaller• Intended to be seen from a shorter distance• Located on or close to the fixture itself
LO 5
Visual Communications
• Point-of-sale signage (POS)• Small signage placed very close to the
merchandise• Gives details about specific items• Clearly states the price of the merchandise being
signed
LO 5
Visual Communications
• Lifestyle graphics - Portray the merchandise:• As it is being used• Through images of related items or models that
convey an image conducive to buying the product• Lifestyle photography • Must be kept general so as to be attractive to the
majority and offensive to none
LO 5
