STORES FORMAT, STORES LAYOUT, SPACE ALLOCATION AND

STORES SIZE

GROUR MEMBERS Group 6

NIZAM JALEELNABEELAAZHAR KPSAJID

STORE FORMAT

Positioning and differentiation create a distinct image of the store among

its customers

Store Format by

• Location• Ownership• Merchandise categories• Size• Price

Store Format by Location:-

• Chain Store Format• High Street Format• Destination Format• Convenience Store Format

Store Format by Ownership :-

• Franchise Format• Independent format

Store Format by Merchandise Categories :-

• Family Store• Specialty Store• Department Store• Supermarket• Emporium

Store Format by Size :-

• Shopping Mall• Shopping Centre• Hyper Market

Store Format by Price :-

• Discount Format• EDLP Format• Factory Outlet Format• Warehouse Format

Stores Layout

The layout of a store is the arrangement and location of fixtures, fittings, equipment, merchandise aisles and non-selling areas such as checkouts and dressing rooms.

Laying out a store

• Three main factors area) Fixtures &fittingsb) Merchandisec) Customer circulation

Kinds of layouts

Grid layout

It is often used in supermarkets, aids and directs customer flow and is designed to enhance efficiency

Boutique layout It arranges the sales floor into partially separated

areas to create an unusual and interesting shopping experience.

Free flow layout

It encourages browsing and is used most by clothing stores.

SPACE ALLOCATION• Retailers often place considerable emphasis

on space allocation• Selling area space is at a most retail outlets,

particularly those that depend on high sales volume.

• It is an attempt to optimize the selling area space used with its cost, space for individual lines is allocated as far possible in line with their contribution to sales and profitability

Approaches to Space Allocation

• Top-down space management approach

Total available store space

Divides the space

Stores product layout

• Bottom-up Space management approach

Individual Product Level

Category

Total Store

Company Level

Importance of correct Shelf Allocation

• Improves profitability• Optimization• Maximum exposure• Adequate use of space• Reduce out of stock• More concentrated and less frequent• Automatic elimination of slow moving

products

Space Planning

• Retailer must consider how much space to devote to each product and at the same time, also keep in mind the physical characteristics of the display area

Factors to be considered for effective Space Planning

• Profitability of the merchandise• Analysis of Stock to Sales Ratio• Product Shelf Life• Considering the best Presentation Method• Examining the Pack Size• Emphasizing the Focus Category of the retailer• Complementary Neighbours• Future Sales Potential

STORE SIZEThere had been an increase in the average store size for general merchandise stores. Stores had to make better use of space because rents are rapidly increasing. The largest increase in store size in recent years has been in drugstores. In addition to drugs, these stores sell many different unrelated items such as food products, convenience goods, greeting cards and seasonal items. This phenomenon is referred to as scrambled merchandising.

Scrambled Merchandising

It exists when a retailer handles many different and unrelated items. It also applies to services , such as ATM’s, Phone cards, and car wash services at convenience stores.

Category Killer

It is a retailer that carries such a large amount of merchandise in a single category at such good prices that it makes it impossible for the customers to walkout without purchasing what they need, thus killing the competition.

Adapting the Retail OfferingIt is a bundle of benefits that the customer purchases when entering the store. The offering consists of products and services., the image and reputation of the store and other intangible benefits.

Size of Business

The size of the business can be measured by the number of outlets or stores that a business operates, which indicates its breadth of its market presence across the country, or by the business’s annual sales, which indicates its total market penetration.

Advantages

• Deliver greater value to the customer.• Cost advantage over smaller firms.

a) Purchasing and distributionb) Management and personnelc) Marketingd) Financee) Risk

• Restrict the ability of Competitors.