LAYOUT OF RETAIL STORE

Presented By:-

Students of RAVENSHAW MANAGEMENT CENTRE

RAVENSHAW UNIVERSITY

CUTTACK

Layout• A plan according to which products or

merchandise are arranged in a retail outlet.

• Guides the customer silently about where he/she wants to go and for exposing him/her to the entire store offering.

• Store itself is the most meaningful communication between retailer & customer.

Objectives of a Store Layout

1. To guide the customer around the store and entice increased purchases.

2. To create balance between sales and shopping space.

3. To create effective merchandise presentation.

4. Use multi-levels to provide a sense of variety.

Four Types of Space

• Selling space -assigned for interior displays, product demonstrations & sales transactions• Merchandising space -allocated to items that are kept in inventory for selling• Personnel space -assigned to store employees for lockers, lunch breaks, &

restrooms• Customer space -assigned for the comfort & convenience of the customer including

a café or food court, dressing rooms, lounges, & recreation areas for children.

Five Steps of Planning Layout Arrangement

1. Selection of the overall plan or layout type

2. Division of merchandise by department

3. Allocation of selling space by department

4. Assignment of department locations

5. Organization of merchandise within departments

Steps of Consideration

• Complete Presentation of Merchandise• Encourage customer to move around the store

completely• Enhance customer to make unplanned

purchases• Should have different entry & exit point for the

store• Right balance between space for display &

service area so that ROI will be maximum.

Contd….

• Should address need of elders, women, children & disabled persons.

• Should have space for impulse products near the billing counter

• Consider parking, security, basic amenities etc.• House products as per the demand pattern of

the target audience.• Propagate Visual Merchandising

Contd…

• Customer must reach product convieniently• Costlier & Fragile merchandise should be

taken care of• Aim to minimize shoplifting

Merchandise Presentation

Merchandise presented interestingly to the

public can contribute greatly to both a store’s and a department’s image.

To achieve this goal, a retailer needs to remember how the customer sees the store and the merchandise displayed in it

Principles of Merchandise Presentation

1. The merchandise should be displayed in a manner consistent with the store’s image.

2. Consider the nature of the product (e.g., Jeans can be stacked, dresses can be hung)

3. Packaging often dictates how the product is displayed (e.g. bulk, self service vs. Packaged)

4. Profit potential influences display decisions (e.g. low profit, high turnover items require less elaborate displays.)

Types of Layout

• Grid

• Free Flow

• Loop/Boutique

• Other

Grid Layouts

• A linear design for a selling floor where fixtures are arranged to form vertical and horizontal aisles throughout the store.

• Supermarkets, discounters, grocery, drug store and other convenience –oriented retailers, typically use it.

• This layout is done for more of the store’s convenience and the need to get a lot of product out on display.

Advantages & Disadvantages

• It is efficient in terms of space use

• Allows orderly stocking• Helps shoppers see a

great number of items easily

• Is simple & predictable to navigate

• Efficient to maintain.

• Reduces the time they spend browsing.

• Not aesthetically pleasing.

• Creates a monotonous effect that makes the customers feel bored after a certain time.

Free Flow Layouts

• It is an asymmetrical arrangement of merchandise that encourages an unstructured traffic flow.

• It is mainly used in specialty stores and within departments of department stores that emphasize mainly on ambiance and personal selling.

Advantages & Disadvantages

• Does not restrict the customers who do more browsing and unplanned purchasing

• Enhances interior design, as the individual depts are easily distinguished

• Tends to provide a more relaxed atmosphere

• Personal selling is emphasized

• Inefficient use of space & customer disorientation

• Requires higher labor and security expenditures

• Lends itself to higher rates of theft because of blocked vision

• Setup is expensive

Loop or Boutique or Racetrack Layouts

• It exposes shoppers to a great deal of merchandise as they follow a perimeter traffic aisle with departments on the right and left of the circular, square, rectangular or oval racetrack.

• This layout divides the selling floor into shops within the store.

Advantages & Disadvantages

• Layout exposes shoppers to great deal of merchandise

• It forces the customer to visit multiple depts. as they pass through

• This loop effect facilitates impulse buying

• The newest merchandise is prominently displayed on main aisles

• Congestion• Enhance Shoplifting

Other Layout

• Soft Aisle Layout– Floor fixtures arranged into groups with 5ft aisle

• Minimal Floor Layout– Small section of exclusive merchandise– Used in high end retail store– Allows wide-open space in center of store

• Combination Floor Layout– Free flow layout for first third of the store– Grid clearance at the rear

Thank You !!!!!