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7/27/2019 store-layout-and-design-1224071020528910-8

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Store Layout and Design

Chapter 13

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.


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Learning Objectives

List the elements of a stores environment and defineits two primary objectives.

Discuss the steps involved in planning the store.

Describe how various types of fixtures, merchandisepresentation methods and techniques, and thepsychology of merchandise presentation are used toincrease the productivity of the sales floor.

Describe why store design is so important to a storessuccess.

Explain the role of visual communications in a retailstore.


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Introduction to Store Layout Management

Store Image is the overall perception the customer hasof the stores environment.

Space Productivity represents how effectively the

retailer utilizes its space and is usually measured bysales per square foot of selling space or gross margindollars per square foot of selling space.

LO 1


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Store Image

L.L. Bean offers relaxed,

classic apparel styles to

its customers. To help

convey this image, L.L.Beans catalog and

advertising reinforces

their image. For catalog

customers, the catalogis the store environment.

LO 1


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Store Image

By incorporating a caf

as an integral part of

Barnes & Noble

bookstores, a veryrelaxing and casual

ambiance is created.

LO 1


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Introduction to Store Layout Management

Elements of the Store Environment

Objectives of the Store Environment

LO 1


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Elements That Compose the Store Environment

LO 1: Exhibit 13.1Visual Communications

Retail Identity

Graphics

POS Signage

Store Planning

Space Allocation

Layout

Circulation

Store Design

Exterior Design

Ambiance

Lighting

Merchandising

Fixture Selection

Merchandise Presentation

Visual Merchandising

Store Image

And

Productivity


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Retailing Truism

The more merchandise customers are exposed to, the

more they tend to buy.

LO 1


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Tasks to create desired store image and increasespace productivity:

Get customers into the store (market image).

Convert them into customers buying merchandiseonce inside the store (space productivity).

Do this in the most efficient manner possible.

LO 1


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Shrinkage

Represents merchandise that cannot be accounted fordue to theft, loss, or damage.

LO 1


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Store Planning

Allocating Space

Circulation

Shrinkage Prevention

LO 2


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Store Planning

Floor Plan is a schematic that shows wheremerchandise and customer service departments arelocated, how customers circulate through the store,

and how much space is dedicated to each department.Stack-Outs are pallets of merchandise set out on thefloor in front of the main shelves.

LO 2


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These Warning Signs May Indicate a SpaceProblem

LO 2: Exhibit 13.2


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Allocating Space

Types of space needed:

Back room

Office and other functional spaces

Aisles, services areas, and other nonselling areas ofthe main sales floor

Wall merchandise space

Floor merchandise space

LO 2


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Allocating Space

Warehouse clubs areable to take advantagenot only of the width anddepth of the store, butalso the height, by usinglarge warehouse racksthat carry reachableinventory at lower levelswith large pallets or

cartons of excessinventory at higherlevels.

LO 2


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HBA Space Allocation by Mass Merchandisers

LO 2

Hand/body lotion 44.1 27.2 44.0 54.5 43.4

Creme rinse/conditioner 58.2 45.0 59.0 59.6 86.7Deodorant 107.6 82.9 103.4 130.0 93.5

Face cream/lotion 21.9 18.2 20.7 24.8 24.9

Total U.S. and by geographic regionSelected HBA categories

Average linear feet per store handling...

Total U.S. Eastern Central Southern Pacific

Hair colorings 57.7 52.6 51.4 66.2 61.1

Hair spray-womens 69.2 39.8 55.5 102.5 59.0

Mens toiletries 28.5 11.3 23.3 44.2 28.5

Oral antiseptics/rinses 55.3 36.6 49.4 76.0 39.5

Shampoo 82.3 63.5 80.5 95.8 81.3

Source: Neilsen Marketing Research


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LO 2Total U.S. and by geographic regionSelected HBA categories



Shaving creams 24.7 24.4 24.3 24.5 27.8Suntan Lotion 45.7 37.0 38.0 59.9 41.4

Toothpaste 71.5 58.9 60.3 87.0 87.6

Acne remedies 31.3 16.3 29.7 39.7 42.6

Nasal spray/drops 7.1 4.0 6.6 9.6 6.0

Antacids 31.3 16.3 29.7 39.7 42.6Cold remedies-adult 34.3 25.5 30.3 41.8 42.9

Cough syrup/tablets 13.0 9.9 11.9 15.2 16.7



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LO 2Total U.S. and by geographic regionSelected HBA categories



Headache/pain remedies 49.6 30.5 47.8 61.1 59.8Vitamins 64.5 34.0 57.6 90.2 71.0

Contact lens solution 53.4 33.5 47.4 70.3 59.2

Diet aids 23.2 14.3 25.2 26.0 28.4

Pregnancy test kits 5.0 2.4 4.2 6.6 8.6

Laxatives 24.8 10.6 21.3 35.7 32.6

Contraceptives-male 11.8 7.2 9.9 12.8 26.8

Sanitary napkins 91.2 77.8 93.7 100.8 73.6

Tampons 26.3 24.8 26.4 26.0 31.4



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Space Allocation Planning

Improving Space Productivity in Existing Stores

Space Productivity Index is a ratio that compares thepercentage of the stores total gross margin that a

particular merchandise category generates to itspercentage of total store selling space used.

Space Allocations for a New Store

LO 2


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Merchandise Productivity Analysis

LO 2: Exhibit 13.3


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Merchandise Productivity Analysis

LO 2: Exhibit 13.3


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Circulation

Free-Flow Layout is a type of store layout in whichfixtures and merchandise are grouped into free-flowingpatterns on the sales floor.

Advantages

Allowance for browsing

and wandering freely

Increased impulse

purchases

Visual appealFlexibility

LO 2

DisadvantagesLoitering encouraged

Possible confusion

Waste of floor space

Cost

Difficulty of cleaning


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Circulation: Free Flow

LO 2: Exhibit 13.4


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The Disney Stores Effective Useof the Free-Flow Design

Approximately 250 millionconsumers visit Disneysentertainment retail outletseach year. New store designsshowcase merchandise in anengaging and contemporaryfashion, keeping pace withevolving retail trends.Technological elements -including a front-of-storemedia wall that engages

guests with Disneyprogramming, and interactivekiosks-setting the stage forthe Disney Store in the 21stcentury.

LO 2


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Circulation

Grid Layout is a type of store layout in which countersand fixtures are placed in long rows or runs, usuallyat right angles, throughout the store.

Advantages

Low cost

Customer familiarity

Merchandise exposure

Ease of cleaning

Simplified securityPossibility of self-service

LO 2

Disadvantages

Plain and uninteresting

Limited browsing

Stimulation of rushed shopping

behavior

Limited creativity in decor


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Circulation: Grid Layout

LO 2: Exhibit 13.5


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Circulation

Loop Layout is a type of store layout in which a majorcustomer aisle begins at the entrance, loops throughthe store, usually in the shape of a circle, square, arrectangle, and then returns the customer the front of

the store.

Advantages

Exposes customers to the greatest amount of merchandise

LO 2


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Circulation: Loop Layout

LO 2: Exhibit 13.6


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Floor Plan: Kohls

LO 2


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Circulation

Spine Layout is a type of store layout in which a singlemain aisle runs from the front to the back of the store,transporting customers in both directions, and whereon either side of this spine, merchandise departments

using either a free-flow or grid pattern branch offtoward the back aisle walls.

LO 2


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Circulation: Spine Layout

LO 2: Exhibit 13.7


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Floor Plan: Clarence Sanders Piggly Wiggly

LO 2


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Shrinkage Prevention

One of the most important considerations whenplanning the layout is visibility of the merchandise.

LO 2


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Planning Fixtures and Merchandise Presentation

On-Shelf Merchandising

Is the display of merchandise on counters, racks,shelves, and fixtures throughout the store.

LO 3


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Planning Fixtures and Merchandise Presentation

Fixture Types

Merchandise Presentation Planning

Selecting Fixtures and Merchandise PresentationMethods


LO 3


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Fixture Types

Hardlines Fixtures

Softlines Fixtures

Wall Fixtures

LO 3


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Fixture Types

Softlines Fixtures

Bulk or Capacity Fixture is a display fixture that isintended to hold the bulk of merchandise without

looking as heavy as a long straight rack ofmerchandise.

Feature Fixture is a display that draws specialattention to selected features (e.g., color, shape, orstyle) of merchandise.

LO 3


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Four-Way Feature Rack and Round Rack

LO 3: Exhibit 13.8


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Methods of Merchandise Presentation:

Shelving

Hanging

Pegging

Folding

Stacking

Dumping

LO 3


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Psychological Factors to Consider WhenMerchandising Stores:

Value/fashion image

Angles and sightlines

Vertical color blocking

LO 3


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45-Degree Customer Sightline

LO 3: Exhibit 13.9


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Vertical Color Blocking

LO 3: Exhibit 13.10


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Is the artistic display of merchandise and theatricalprops used as scene-setting decoration in the store.

LO 3


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Heres sampling of thetechniques stores use togenerate those sales:Getm coming andgoing. Escalators are afocal point of manystores. That makesthem ideal locations forpromotional signs andfor impulse items like

perfume.

LO 3


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Lead them to temptation.

Department-store design

incorporates a gauntlet

of goodies to stimulateimpulse buys.

Cosmetics, a stores

most profitable

department, should

always be at the main

entrance to the store.

LO 3


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Its all in the display.

When an item, such as a

watch or a scarf, is

displayed in a glasscase, it implies luxury.

An item in a glass case

with a lot of space

around it implies real

luxury.

LO 3


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Color is king. Retailers

believe consumers are

more apt to buy clothes

that appear in full sizeand color assortments.

LO 3


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Suggestion positioning.

Once the customer has

already purchased one item,

its easier to sell an additional

item. Thus apparel retailersstrategically place impulse

buys like hair bows and

costume jewelry by the

cashier the same way

supermarket checkoutsdisplay candy and

magazines.

LO 3


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Question to Ponder

How do fixtures and merchandise presentation interactto influence consumers in different types of retailers?


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Store Design

Ambience

Is the overall feeling or mood projected by a storethrough its aesthetic appeal to human senses.

LO 4


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Store Design

Storefront Design

Interior Design

Lighting Design

Sounds and Smells: Total Sensory Marketing

LO 4


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Lighting Design

Crate & Barrel makes

effective use of lighting

to highlight and feature

merchandise on display.

LO 4


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Total Sensory Marketing

Crabtree & Evelyn

makes effective use of

fragrances and odors to

generate smells thatreinforce its store

ambiance.

LO 4


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Visual Communications

Name, Logo, and Retail Identity

Institutional Signage

Directional, Departmental, and Category Signage

Point-of-Sale (POS) Signage

Lifestyle Graphics

LO 5


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Directional, Departmental, and Category Signage

Directional and Departmental Signage are large signsthat are usually placed fairly high, so they can be seenthroughout the store.

Category Signage are smaller than directional anddepartmental signage and are intended to be seenfrom a shorter distance; they are located on or close tothe fixture itself where the merchandise is displayed.

LO 5


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Departmental Signage

Departmental signageserve as the highestlevel of organization inan overall signage

program. These signsare usually large andplaced fairly high to theycan be seen throughoutthe store.

LO 5


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Category Signage

Category signage helpsconsumers negotiatethroughout the store tofind the product

categories they arelooking for. The size ofcategory signage varieswidely from a letteringthat is a few feet in

height to merely inches.

LO 5


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Point-of-Sale Signage

Is relatively small signage that is placed very close tothe merchandise and is intended to give details about

specific items.

LO 5


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POS signage for

clearance and sale items

tend to be in red to draw

a consumers attention.

LO 5


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Lifestyle Graphics

The Limited useslifestyle graphics toconvey the image of theproduct to the

consumer. Here theLimited conveys thecasual nature of oneapparel line.

LO 5

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store-layout-and-design-1224071020528910-8