store layout_space allocation
TRANSCRIPT
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STORE LAYOUT & SPACE
MANAGEMENT
LALIT CHIKKER
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Elements of the store environment Objectives of the store environment
Store Layout
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Elements That Compose
the Store Environment
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Objectives of the store
environment
Developing a store & brand image
Increasing space productivity
Commercial Returns
Store Layout Manaement
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Floor plan - schematic that sho!s !here
merchandise and customer servicedepartments are located" ho! customers
circulate through the store" and ho! much
space is dedicated to each department#
Store Plannin
LO 1
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$icro-retailing - Occurs !hen a chain store
retailer operating over a !ide geographic area"
usually nationally" tailors its merchandise andservices in each store to the needs of the
immediate trading area#
%tac-outs - 'allets of merchandise set out on the
floor in front of the main shelves#
Store Plannin
LO 2
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llocating space(ypes of space needed
)ac room
Offices and other functional spaces isles" service areas" and other non-selling areas
Floor merchandise space
*all merchandise space
%pace allocation planning
Circulation
%hrinage prevention
Store Plannin
LO 2
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%pace allocation planning
Improving space productivity in e+isting stores %pace productivity inde+ - ratio that compares the percentage
of the store,s total gross margin that a particular merchandisecategory generates to its percentage of total store selling space
used#
%pace & %ales $i+ (he right alignment bet!een %ales and
%pace provided is very important#
%pace allocations for a ne! store or floor merchandise
changeover#
'lanograms - schematic that illustrates ho! and !here a
retailer,s merchandise should be displayed on the shelf in
order to increase customer purchases#
Store Plannin
LO 2
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Circulation
Free-flo! layout
.rid layout
/oop layout%pine layout
Store Plannin
LO 2
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Store PlanninFree-flow
layout
Fixtures and merchandise are grouped into freef!o"ing patterns on
the sa!es f!oor e#g# $outi%ue or sma!! si&e Accessories stores#Categor' c!assification not c!ear# Impu!si(e )u'ing more )ut space"astage is higher#
Grid layout The counters and fixtures are p!aced in !ong ro"s or **runs+,, usua!!'at right ang!es+ throughout the store e#g# -upermar.ets# Limited
$ro"sing / !imited creati(it'#
Loop
layout
A ma0or customer ais!e )egins at the entrance+ !oops through thestoreusua!!' in the shape of a circ!e+ s%uare+ or rectang!eandthen returns the customer to the front of the store# epartmenta!stores !i.e -hoppers -top etc# Increases cross (isi)i!it' / shopping#
Spine
layoutA sing!e main ais!e runs from front to the )ac. of store+ transportingcustomers in )oth directions "ith either side there is merchandisedepartments using either a freef!o" or grid pattern )ranch off
to"ard the )ac. side "a!!s e#g# Re!iance Trends+ 3A4 fashions etc#
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!ree"!lo# Layout
LO 2
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Gri$ Layout
LO 2
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Loop Layout
LO 2
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Spine Layout
LO 2
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0ardline fi+tures 1for sports e2uipment"appliances etc#3
%oftline fi+tures 1for clothing" linen etc#3
)ul or capacity fi+ture - Display fi+ture that isintended to hold the bul of merchandise!ithout looing as heavy as a long" straightrac of merchandise#
Feature fi+ture - Display that dra!s specialattention to selected features 1e#g#" color"shape" or style3 of merchandise#
*all fi+tures
!i%ture Types
LO 5
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!our"ay !eature Ra'(
an$ Roun$ Ra'(
LO 5
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%helving
0anging
'egging
Folding
%tacing Dumping
Mer'han$ise Presentation Plannin
LO 5
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)*"+eree Customer Sihtline
LO 5
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Color ,lo'(in
LO 5
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(he artistic display of merchandise and
theatrical props used as scene-setting
decoration in the store#
4isual displays are located in a focalpoint" feature area" or other area
remote from the on-shelf
merchandising and perhaps even out
of reach of the customer#
4isuals should incorporate relevant
merchandise#
-isual Mer'han$isin
LO 5
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%torefront design
(he storefront must clearly identify the name
and general nature of the store and give some
hint as to the merchandise inside# It includes all e+terior signage" *indo!
Display appeal and the architecture of the
storefront itself#
Interior design (he finishes applied to surfaces
(he architectural shapes
Store +esin
LO 6
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/ighting design
/ighting greatly enhances store sales#
Contemporary lighting design re2uires an in-
depth no!ledge of electrical engineering and
the effect of light on color and te+ture#
%ounds and smells5 total sensory mareting
Effective store design appeals to the human
senses of sight" hearing" smell" and touch#
Store +esin
LO 6
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6ame" logo" and retail identity
$ust be catchy" memorable" and
reflective of the retailer,s merchandisingmission#
Institutional signage
Describes the merchandising mission"
customer service policies" and other
messages on behalf of the retail
institution#
-isual Communi'ations
LO 7
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Directional" departmental" and category signage
Directional and departmental signage are
usually large and placed fairly high" so they
can be seen throughout the store#
Category signage is usually smaller and is
intended to be seen from a shorter distance7
they are located on or close to the fi+ture itself
!here the merchandise is displayed#
-isual Communi'ations
LO 7
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'oint-of-sale signage 1'O%3 - relatively small
signage placed very close to the merchandise"
and intended to give details about specific items#
(he most important function is to clearly state
the price of the merchandise being signed#
-isual Communi'ations
LO 7
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/ifestyle graphics
/ifestyle images portray either the
merchandise" often as it is being used" or
simply images of related items or models that
convey an image conducive to buying the
product#
/ifestyle photography must be ept very
general so as to be attractive to the majorityand offensive to none#
-isual Communi'ations
LO 7
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Spa'eManaement
Overvie#E%'ee$in 'ustomer
e%pe'tations
throuhmer'han$isin
e%'ellen'e
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Spa'e is the me$ium that
#e use to. Display and promote our products
Racs and%helves
.ondolas and
Endcaps
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Spa'e is the me$ium that
#e use to. Communicate the brand
InteractiveDisplays
Creative
%ignage
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The ,est ,uy E%perien'e
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Spa'e Manaement
Goals Enhance the )est )uy brand by improving
our customer,s shopping e+perience#
'rovide Retail !ith easy-to-e+ecute $aps
and 'lanograms
naly8e category and item effectiveness
to determine the optimal use of space
'rovide customi8ed maps and planogramsto support maret specific assortments
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Mer'han$ise Layout
Each small
bloc is an
individual9section:
%tore maps are created using
utoCD
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/E$u'ate$0 Layout
Financial Objectives Revenues" (urns" $argins" etc#
Operational Objectives
isle *idth" ; of Registers" /' Dess" %toc Capacity" etc#
esthetic Objectives )est )uy )randing" Clear %ight /ines" Fun Interactives" etc#
Each and every store needs to be designed
!ith the follo!ing criteria in mind5
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hat is a Planoram1
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2o# to rea$ a Planoram
Displays
Boxstock
Product Listing
Fixture Placement
Signage
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Ne# Planoram1
*hen section performance is do!n
6e! products are added to assortment
$ajor trends indicate changes
Competition demands
%easonal space needs
Other categories need space
$odification of store plans
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Spa'e Allo'ation
%2uare Foot nalysis 1%tore" Dept" Class"
%ubclass3
%tore Capacity and Cubic %pace
%tore Overstoc and Closeout nalysis
djacency Recommendations
$arginal Return on %pace nalysis
d 0oc Retail %pace Related Investigations
O34e'tive.
,est Utilisation o5 retail spa'e 5rom the point o5 vie# o5 .+isplay 'apa'ity6 relevant Cateory 7 Su3"'ateory
representation & sta'(in story6 -isual appeal6 Customer
'onvenien'e & easy 3ro#sin6 3est 'ommer'ial returns6
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Spa'e Allo'ation
%trategic plan on $erchandise sales enhancement
%tore capacity & 'lanned %tocs density
6umber of Categories < %ub-categories
%tyle Options
Colour Options
%i8e Options
'rice Options
Offer Options
'lanned commercial output
8S +ONE ,ASE+ ON.
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,ene5its to Stores
)alanced inventory Reduces costly or non performing stocs
Eliminates !asteful overstocs
Cuts in-store inventory costs
Increases inventory turnover
Influence shopping behavior $erchandise $i+ matches !ith the demand
'ositions product as per retailer,s goal
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,ene5its to Stores
Improve customer service
Organises the floor for shopping ease
.ives neat or right loo to in-store display
Increase store efficiencies Ensure optimum case pacs
Cuts bacroom overstocing
%peeds up planogram implementation and replicatesit correctly on the floor#
'roper placement for ne! items
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Spa'e Plannin
ll the 9Right: stuff
%pace
llocation
'ositioning
djacency &
ttachment
(he Right
'lace
(he Right
6eighbors
(he Right
%pace
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Positionin
(he Right 'lace
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A$4a'en'y
(he Right 6eighbors
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(06= >O?