store layout.ppt

8/10/2019 store layout.ppt

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Retailing Management 8e The McGraw-Hill Companies, All rights reserved. 17 - 1

C H A P T ER 2

C H A P T ER 1

CHAPTER 17

McGraw-Hill/Irwin

Copyri ght 2012 by The McGraw-H il l Companies, In c. All ri ghts reserved.

Store Layout, Design,

and VisualMerchandising

CHAPTER 17


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C H A P T ER 2

C H A P T ER 1

CHAPTER 17

17-2

Store Management

Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service


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C H A P T ER 2

C H A P T ER 1

CHAPTER 17

17-3

Questions

What are the critical issues retailers consider in designing a store?

What are the advantages and disadvantages of alternative store

layouts?

How is store floor space assigned to merchandise departmentsand categories?

What are the consideration in where to display products in a

category?

What are the best techniques for merchandise presentation?

How can retailers create a more appealing shopping experience?

How exciting should a store environment be?


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C H A P T ER 2

C H A P T ER 1

CHAPTER 17

17-4

Store Design Objectives

Implement Retailers strategy

Build Loyalty

Increase Sales on Visits Control Cost

Legal ConsiderationsAmericans with Disabilities Act

Design Trade-Offs


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C H A P T ER 2

C H A P T ER 1

CHAPTER 17

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Store Design and Retail Strategy

The primary objective of store design is implementing the retailers strategy

(c)BrandXPictures/PunchSto

ck

C. Borland/PhotoLink/Getty Images

Meets needs of target market

Builds a sustainable competitive advantage

Displays the stores image
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Retailing Management 8e The McGraw-Hill Companies, All rights reserved. 17 - 6

C H A P T ER 2

C H A P T ER 1

CHAPTER 17

Retailing Management, 8/e The McGraw-Hill Companies, All rights reserved. 1 - 6

Retailing Management, 8/e The McGraw-Hill Companies, All rights reserved. 1 - 6

McDonalds remodeled its stores to better appeal to European customers


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C H A P T ER 2C H A P T ER 1CHAPTER 17

17-7

In India, a retailer finds key to success is clutter


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Build Loyalty

Store design provides utilitarian benefits when it

enables customers to locate and purchase products in an

efficient and timely manner with minimum hassle

Store design provides hedonic benefits by offering

customers an entertaining and enjoyable shopping

experience.

H. Wiesenhofer/PhotoLink/Getty Images
http://www.muzak.com/http://www.muzak.com/http://www.muzak.com/


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Increase Sales on Visits

Store design has a substantial effect on which products

customers buy, how long they stay in the store, and how

much they spend during a visit.


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Control Cost

Control the cost of implementing the store design and

maintain the stores appearance

Store design influences

Shopping experience and thus sales

Labor costs

Inventory shrinkage


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Legal Considerations

Americans with Disabilities Act (ADA)

Protects people with disabilities from discrimination in

employment, transportation, public accommodations,

telecommunications and activities of state and local

government

Affects store design as disabled people need

reasonable access to merchandise and services builtbefore 1993. After 1993, stores are expected to be

fully accessible.


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17-12

32 inch wide pathways on the

main aisle and to the bathroom,

fitting rooms elevators and

around most fixtures

Lower most cash wraps and

fixtures so they can be reached

by a person in a wheelchair Make bathroom and fitting room

fully accessible

Reasonable Access

What does that mean?

Keith Brofsky/Getty Images


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17-13

Design Trade-Offs

Ease of locating

merchandise for

planned purchases

Exploration of store,

impulse purchases

Royalty-Free/CORBIS

(c)image100/Punch

Stock

Giving customers

adequate space to

shop

Productivity of using

this scarce resource

for merchandise
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17-14

Layouts

Signage and Graphics

Feature Area

Store Design Elements


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Store Layouts

To encourage customer exploration and help customersmove through the stores

Use a layout that facilitates a specific traffic pattern

Provide interesting design elements

Types of Store Layouts

Grid

Racetrack Free Form


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Easy to locate merchandise

Does not encourage customers

to explore store

Limited site lines to merchandise

Allows more merchandise

to be displayed

Cost efficient

Used in grocery, discount,

and drug stores: Why?

Grid Layout


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17-17

Racetrack Layout (Loop)

Loop with a major aisle that has access to departments

Draws customers around the store

Provide different viewing angles and encourageexploration, impulse buying

Used in department stores


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17-18

JCPenney Racetrack Layout


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17-19

Fixtures and aisles arranged

asymmetrically

Provides an intimate, relaxing environment

that facilitates shopping and browsing Pleasant relaxing ambiance doesnt come

cheapsmall store experience

Inefficient use of space

More susceptible to shoplifting

salespeople can not view adjacent spaces.

Used in specialty stores and upscale

department stores

Free-Form (Boutique) Layout


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Usage of Signage and Graphics

Locationidentifies the location of merchandise and guides customers

Category Signageidentifies types of products and located near the goods

Promotional Signagerelates to specific offerssometimes in windows

Point of salenear merchandise with prices and product information Lifestyle imagescreates moods that encourage customers to shop

H & M effectively uses graphic

photo panels to add

personality, beauty, and

romance to its stores image


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17-21

Coordinate signage to stores

image

Use appropriate type faces on

signs

Inform customers

Use them as props

Keep them fresh Limit the text on signs

Use appropriate typefaces on

signs

Suggestions

for Effectively Using Signage


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17-22

Digital Signage

Visual Content delivered digitally through a centrally managed and

controlled network and displayed on a TV monitor or flat panel

screen

Superior in attracting attention Enhances store environment

Provides appealing atmosphere

Overcomes time-to-message hurdle

Messages can target demographics

Eliminates costs with printing, distribution and installing

traditional signage


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17-23

Areas within a store designed to get

the customers attention

Feature areas

Entrances Freestanding displays

Cash wraps (POP counters, checkout

areas)

End caps

Promotional aisles

Walls

Windows

Fitting rooms

Feature Areas

PhotoLink/Getty Images
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Space Management

The space within stores and

on the stores shelves are

fixtures is a scare resource

The allocation of store space

to merchandise categories

and brands

The location of departmentsor merchandise categories in

the store


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Space Planning

Productivity of allocated

space (sales per square foot,

sales per linear foot)

Merchandise inventory

turnover

Impact on store sales

Display needs for themerchandise


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Highly trafficked areas

Store entrances

Near checkout counter

Highly visible areas

End aisle

Displays

Prime Locations for Merchandise


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Location of Merchandise Categories

Impulse merchandisenear heavily trafficked areas

Demand/Destination merchandiseback left-hand

corner of the store

Special merchandiselightly trafficked areas (glass

pieces, womens lingerie)

Adjacenciescluster complimentary merchandise next

to each other

L ti f M h di ithi


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Location of Merchandise within a

Category: The Use of Planograms

Supermarkets and drug stores place private-label brands to the right of

national brandsshoppers read from left to right (higher priced national

brands first and see the lower-priced private-label item)

Planogram: a diagram that shows how and where specific SKUs should be

placed on retail selves or displays to increase customer purchases

L i t t d


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17-29

Learning customers movements and

decision-making

Videotaping Consumers

Learn customers movements, where they pause or move

quickly, or where there is congestion

Evaluate the layout, merchandise placement, promotion

Virtual Store Software

Learn the best place

to merchandise and

test how customers

react to new products


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17-30

A. Straight rack

B. Rounder (bulk

fixture, capacity

fixture)

C. Four-way fixture

(feature fixture)

D. Gondolas

Visual Merchandising: Fixtures


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17-31

Straight Rack

Holds a lot of apparel

Hard to feature specific styles and

colors

Found often in discount and off-

price stores

Royalty-Free/COR

BIS
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Smaller than straight

rack

Holds a maximum

amount of merchandise

Easy to move around

Customers cant get

frontal view ofmerchandise

Rounder


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Holds large amount of

merchandise

Allows customers to

view entire garment

Hard to maintain

because of styles and

colors Fashion oriented

apparel retailer

Four-Way


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Gondolas

Versatile

Grocery and discount stores

Some department stores Hard to view apparel as they

are folded

Royalty-Free/CORBIS


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Idea-Oriented Presentation

Style/Item Presentation

Color Organization

Price Lining

Vertical Merchandising

Tonnage Merchandising

large quantities of merchandise

displayed together

Frontal Presentation

display as much of the product as

possible to catch the customers eye

Merchandise Presentation Techniques


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Present merchandise

based on a specific idea or

the image of the store

Encourage multiplecomplementary purchases

Womens fashion

Furniture combined in room

settings

Sony Style mini-living rooms

Idea-Orientation Presentation

Fifty percent of women get their ideas for clothes from store displays or

window shopping


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Creating an Appealing Store Atmosphere

The design of an environment through visual

communications, lighting, colors, music, and scent to

stimulate customers perceptual and emotional responses

and ultimately to affect their purchase behavior


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Lighting

Highlight merchandise

Structure space and capture a mood

Energy efficient lighting Downplay features

The McGraw-Hill Companies, Inc./Lars A. Niki, photographer


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Warm colors (red, gold,

yellow) produce emotional,

vibrant, hot, and active

responses Cool colors (white, blue,

green) have a peaceful,

gentle, calming effect

Culturally bounded French-Canadiansrespond

more to warm colors

Anglo-Canadiansrespond more

to cool colors

Color

The McGraw-Hill Companies, Inc./Lars Niki, photographer


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17-40

Music

Control the pace of store traffic, create an image, and

attract or direct consumers attention

A mix of classical or soothing music encourage shoppers

to slow down, relax, and take a good look at the

merchandise

thus to stay longer and purchase more


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Music

J.C. Penneydifferent music at different times of the day

Jazzy music in the morning for older shoppers

Adult contemporary music in the afternoon for 35-40year old shoppers

U.S. firm Muzaksupplies 400,000 shops, restaurants,

and hotels with songs tailed to reflect their identity
http://www.muzak.com/http://www.muzak.com/


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Has a positive impact on

impulse buying behavior

and customer satisfaction

Scents that are neutralproduce better

perceptions of the store

than no scent

Customers in scentedstores think they spent less

time in the store than

subjects in unscented

stores

Scent

The McGraw-Hill Companies, Inc./Gary He, photographer


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How Exciting Should a Store Be?

Depends on the Customers Shopping Goals

Task-completion:

a simple atmosphere with slow music, dimmer lighting, and

blue/green colors

Fun:

an exciting atmosphere with fast music, bright lighting, and

red/yellow colors


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Web Site Design

Simplicity Matters

Getting AroundEasy Navigation

Let Them See It

Example: Lands End My Virtual Model

Blend the Web Site with the Store

Prioritize
http://www.mvm.com/cs/http://www.mvm.com/cs/


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Web Site Design

Type of Layout

When shopping on the Web, customer are interested

in speed, convenience, ease of navigation, not

necessarily fancy graphics

Checkout

Make the process clear and appear simple

Enclose the checkout process

Make the process navigable without loss of information

Reinforce trust in the checkout process


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C H A P T ER 2C H A P T ER 1CHAPTER 17Keywords

shrinkage An inventory reduction that is caused by shoplifting by employees or

customers, by merchandise being misplaced or damaged, or by poor

bookkeeping.

sales per linear foot A measure of space productivity used when most

merchandise is displayed on multiple shelves of long gondolas, such as ingrocery stores.

sales per square foot A measure of space productivity used by most retailers

since rent and land purchases are assessed on a per-square-foot basis.

impulse merchandise Products that are purchased by customers without prior

plans. These products are almost always located near the front of the store,where theyre seen by everyone and may actually draw people into the store.

demand/destination area Department or area in a store in which demand for

the products or services offered is created before customers get to their

destination.

store layout.ppt

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