*Chapter 4Store Planning, Design & LayoutFaiza

*Location PlanningLocation Mapping:Location is mapped so that the extent of each stores reach to the customers is well defined.

Location Parameters:Defining the store locations identification parameters to evaluate if the desired attributes are available.

*Site SelectionTarget Market AreaPopulation characteristics (consumer base / flow)Economic base characteristicsCompetition and level of saturation (nature of nearby stores)Demand & supply situationType of Building / Store requirementAffordabilityOwnership / LeaseFaade requirementsSize requirementsFacilities (parking, electricity, transportation access)Other costsLength of agreementLegal restrictionsTraffic scenario

*Store Design & The Retailing Image MixEmployee type and densityMerchandise type and densityFixture type and densitySound type and densityOdor type and densityVisual type and density

*Managing Space Mix

*Managing Space MixIf store has an extra area, it is given to concessionaires (ATM, Kiosks)Consumer perception analysis is done before allocation.Product category length, width and depth are consideredQuantity of Staple (core merchandise, constitute 55%, like shirts and trousers in dept. stores), Convenience (constitute 30%, basic white T-shirts, socks) and Impulse merchandise (constitute 15%, hair accessories in a fashion store) determines the space allocation.

*Effective Retail Space ManagementStore Image is the overall perception the customer has of the stores environment.Space Productivity represents how effectively the retailer utilizes its space and is usually measured by sales per square foot of selling space or gross margin dollars per square foot of selling space.Store Environment

*Elements That Compose the Store Environment

Visual CommunicationsRetail IdentityGraphicsPOS SignageStore PlanningSpace AllocationLayoutCirculationStore DesignExterior DesignAmbianceLightingMerchandisingFixture SelectionMerchandise PresentationVisual MerchandisingStore ImageAnd Productivity

*Effective Retail Space ManagementManaging store faade

Advantages:Enables smooth and efficient customer flowFacilitates customer reach and access to the merchandiseMakes shopping comfortable and pleasantAesthetics of a well-planed floor are a visual feastFacilitates selling effectively and retaining the customers.

*Store Layout: The Circulation Plan1. Free flow circulation: where the merchandise and fixtures are grouped in clusters as in boutiques

AdvantagesAllowance for browsing and wandering freelyIncreased impulse purchasesVisual appealFlexibilityDisadvantagesLoitering encouragedPossible confusion Waste of floor spaceCostDifficulty of cleaning

*The Disney Stores Effective Useof the Free-Flow DesignApproximately 250 million consumers visit Disneys entertainment retail outlets each year. New store designs showcase merchandise in an engaging and contemporary fashion, keeping pace with evolving retail trends. Technological elements - including a front-of-store media wall that engages guests with Disney programming, and interactive kiosks-setting the stage for the Disney Store in the 21st century.

*Store Layout: The Circulation Plan2. Grid circulation: where aisles and fixtures are at right angles to each other like in supermarkets

AdvantagesLow costCustomer familiarity Merchandise exposureEase of cleaningSimplified securityPossibility of self-serviceDisadvantagesPlain and uninterestingLimited browsing Stimulation of rushed shopping behaviorLimited creativity in decor

*Store Layout: The Circulation Plan3. Race track circulation: used in larger & wider store, where customer is made to circle around the floor and get back to the beginning, usually the lift or the staircase lobby, to move to the next level of the store

*4. Herringbone circulation: used for a narrow store where the highway is a single two-way one having side roads leading to the walls from it5. The Spine: is a Herringbone structure excluding side roads

Store Layout: The Circulation Plan

*Floor Space ManagementParameters to judge space performanceSales per square foot / top line plan (sales)Margins per square foot / bottom line plan (gross margin returns on footage)Stock-holding per square foot / bottom line tool (gross margin returns on inventory)

It can be for any SKU, Department, Division, Category, Sub-category, A Brand, Any specific style / size option

*Floor Space ManagementSpace Audit: Non-treaded space and Black holesHot spot analysis: Hot spots have highest off-take of merchandiseWarm & Cold spots face lower merchandise salesNon-treaded space is where there is no customer trafficLess treaded space is where there is less customer traffic

Efficiency of Selling to Non-selling space

*Floor Space ManagementGround rules for successful Space & Layout ManagementFloor space planning and management for customers convenienceBrowsing should be facilitated as it leads to buyingOptimize trading area without compromising on non-trading area. Ensure customer spend longer time thereRight floor space managementAppeal to all the five senses