Store Design and Layout_STMK

39
MKE601 ± Special T opics on Marketing Management Stor e Design and Layout Stor e Design and Layout

Transcript of Store Design and Layout_STMK

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 1/39

MKE601 ± Special Topics on MarketingManagement

Store Design and LayoutStore Design and Layout

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 2/39

´Shopper found dead in local store;cause of death ² boredomµ

Stanley Marcus, Chairman-Emeritus, Neiman Marcus

y No other variable in the retailing mix influences theconsumer·s initial perceptions of a bricks & mortar retaileras much as the store itself.

y The store is ´where the action isµ and includes such minordetails as the placement of the merchandise.

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 3/39

Environmenty Get customers into the store (store image)

y

Serves a critical role in the store selection processy Important criteria include cleanliness, labeled prices,accurate and pleasant checkout clerks, and well-stockedshelves

y The store itself makes the most significant and lastimpression

y O nce they are inside the store, convert them into customersbuying merchandise (space productivity)

The more merchandise customers are exposed to that ispresented in an orderly manner, the more they tend to buy

y Retailers focusing more attention on in-store marketing ² marketingmoney spent in the store, in the form of store design, merchandisepresentation, visual displays, and in-store promotions, should lead togreater sales and profits( bottom line: it is easier to get a consumer inyour store to buy more merchandise than to get a new consumer to

come into your store)

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 4/39

Objectives of Good Store Design

Design should:

y be consistent with image and strategyy positively influence consumer behaviory consider costs versus valuey be flexibley recognize the needs of the disabled / differently

abled.

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 5/39

Typ es of Floor S pa ce in Storey Ba ck Room ± receiving a re a, stockroom

y D epartment stores (50%)y Small specialty and convenience stores (10%)y General merchandise stores (15-20%)

y Offices a nd Other Function a l S pa ce ± employee breakroom, store offices, cash office, restrooms

y A isles , Service A re a s a nd Other Non-Selling A re a sy

Moving shoppers through the store, dressing rooms,layaway areas, service desks, customer servicefacilities

y M erch a ndise S pa cey F

loor y Wall

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 6/39

Store L ay out ( a nd Tr a ffic Flow)y C onflicting objectives:

y Ease of finding merchandise versusvaried and interesting layout

y Giving customers adequate space to

shop versus use expensive spaceproductively

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 7/39

C omponents of retail atmospherics

Exterior atmosphericsInterior atmosphericsStore layoutVisual merchandising

Ex ternal atmosphericsAll aspects of the physical environment found outside the

store are external atmospherics.

Significantly affects store traffic and sales generated.Store exterior includes store entrances, main board,

marquee, windows display and lighting, height and size of the building, parking facilities, surroundings etc«...

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 8/39

I nterior atmospherics

All aspects of physical environment found inside the store,affects sales, time spent in the store and approach/avoidance

behavior of the target segment..

The retail unit environment presents various stimuli thatare perceived by the customer's senses.

Each stimulus offers many options with regard to

shopping behavior.

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 9/39

S tore layoutIs the interior retail store arrangement of

departments or groupings of merchandise.

Store arrangement:

- pays adequate attention to the expected

movement

of the customers visiting the store.

- space allotted to customers to shop.

- adequate facilities for merchandise display.

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 10/39

Grid (Str a ight) DesignBest used in retail

environments in which majorityof customers shop the entirestore

C an be confusing andfrustrating because it is difficultto see over the fixtures to other merchandise

requires more merchandisersto assist customers; mayfrustrate and cause them tolook elsewhere

Most familiar examples for

supermarkets and drugstores

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 11/39

Grid Layout is a type of store layout in which countersand fixtures are placed in long rows or ´runs,µ usually atright angles, throughout the store.

AdvantagesL

ow cost.Customer familiarity.Merchandise exposure.Ease of cleaning.

Simplified security.Possibility of self-service.

D isadvantages

Plain and uninteresting.Limited browsing.Stimulation of rushed

shopping behavior.

Limited creativity in décor.

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 12/39

C urving/Loo p (Ra cetr a ck) Design

Major customer aisle(s) begins atentrance, loops throughthe store (usually inshape of circle, squareor rectangle) andreturns customer tofront of store

Exposes shoppers tothe greatest possibleamount of merchandiseby encouragingbrowsing and cross-shopping

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 13/39

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 14/39

Loop Layout/ Racetrack layout is a type of store

layout in which a major customer aisle begins at theentrance, loops through the store, usually in the shape of acircle, square or rectangle, and then returns the customerto the front of the store.

AdvantagesExposes customers to the greatest amount of merchandise

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 15/39

Free-Flow Layout Fixtures and

merchandisegrouped into free-flowing patterns

on the sales floor ± no defined trafficpattern

Works best insmall stores(under 5,000

square feet) inwhich customerswish to browse

Works best whenmerchandise is of the same type,

such as fashionapparel

If there is a greatvariety of merchandise, failsto provide cues as

to where onede artment sto s

Storage,Receiving, Marketing

Underwear DressingRooms

Checkout counter

Clearance Items

Feature Feature J e a n s

C a s u a l W e a r

S t o c k i n g s

A c c e s s o r i e s

P a n t s T o p s

T o p s

S k i r t s a n d D r e s s e s

H a t s a n d H a n d b a g s

Open D isplay Window OpenD isplay Window

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 16/39

F ree- F low Layout is a type of store layout in whichfixtures and merchandise are grouped into free-flowingpatterns on the sales floor.

AdvantagesAllowance for browsingand wandering freely.Increased impulse

purchasesVisual appealFlexibility

D isadvantagesLoitering encouraged.Possible confusion.Waste of floor space.Cost.D ifficulty of cleaning.

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 17/39

Spin e Layout Variation of grid, loop andfree-form layouts

Based on single main aislerunning from the front to theback of the store (transportingcustomers in both directions)

O n either side of spine,merchandise departmentsbranch off toward the back or side walls

Heavily used by medium-

sized specialty stores rangingfrom 2,000 ± 10,000 squarefeet

In fashion stores the spine isoften subtly offset by a changein floor coloring or surface and

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 18/39

Ex terior Atmospherics

S torefront AccessibilityMarquee E ntrancesVisibility ParkingS ize of buildingD isplay windowsAdjoining S tores

S tore Layout

F loor space allocation for selling,

merchandise display,and customer traffic flowD epartment locationS pace/merchandise categoryS ignage

I nterior Atmospherics

F looring WallD ead area Trial roomLighting AislesPersonnel O dourTemperature C leanlinessF ix tures

Visual Merchandising

Assortment\ThemeRacks and shelvesPayment C ounters

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 19/39

Lay out Selection- C hief C onsider a tions

A good layouty encourages customers to move around the

complete storey strikes the right balance between space used for

displays and service areasy considers the needs of women, the elderly, children

and disabled persons who may visit the storey keeps in mind the kind of merchandise a retailer

intends to sell

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 20/39

Fe a ture A re a sy The areas within a store designed to get the

customer¶s attention which include:

y End caps ± displays located at the end of theaisles

y Promotional aisle/areay F reestanding fixturesy

Windowsy Wallsy Point-of-sale (P O S) displays/areas

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 21/39

Fixture Ty pesy Straight Rack ± long pipe

suspended with supports to thefloor or attached to a wall

y Gondola ± large base with avertical spine or wall fitted withsockets or notches into which avariety of shelves, peghooks,bins, baskets and other hardware can be inserted.

y F our-way F ixture ± twocrossbars that sit perpendicular to each other on a pedestal

y Round Rack ± round fixture thatsits on pedestal

y O ther common fixtures: tables,large bins, flat-based decks

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 22/39

Fixture Ty pesy Wall F ixtures

y To make store¶s wallmerchandisable, wall usuallycovered with a skin that is fittedwith vertical columns of notchessimilar to those on a gondola,into which a variety of hardwarecan be inserted

y Can be merchandised muchhigher than floor fixtures (max of

42´ on floor for round racks onwall can be as high as 72´

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 23/39

R ole Of V isual Mercha ndi s ing y Enables sales of the products/services sold by the

retailer y Educates the consumer about the product/services

in the storey Informs customers about colours, sizes, prices and

the basic location of the producty C reates and enhances the store¶s image

Visual Mercha ndi s ing y A

rt of persuasion through presentation, which putsthe merchandise in focus.

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 24/39

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 25/39

Mercha ndi se D is p lay Pla nning y Shelving ± flexible, easy to maintain

y H anging

y Pegging ± small rods inserted into gondolas or wall systems ±can be labor intensive to display/maintain but gives neat/orderly

appearance

y F olding ± for softlines can be folded and stacked on shelves or tables - creates high fashion image

y Stacking ± for large hardlines can be stacked on shelves, basedecks of gondolas or flats ± easy to maintain and gives image of high volume and low price

y D umping ± large quantities of small merchandise can be dumpedinto baskets or bins ± highly effective for softlines (socks, washcloths) or hardlines (batteries, candy, grocery products) ± creates

high volume, low cost image

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 26/39

Three Ps ychologic a l F a ctors toC onsider in M erch a ndising Stores

y Value/fashion imagey Trendy, exclusive, pricy vs value-oriented

y A ngles and Sightlinesy C

ustomers view store at 45 degree angles from thepath they travel as they move through the storey Most stores set up at right angles because it¶s

easier and consumes less space

y Vertical color blockingy Merchandise should be displayed in vertical bands

of color wherever possible ± will be viewed asrainbow of colors if each item displayed vertically bycolor

y C reates strong visual effect that shoppers areexposed to more merchandise (which increases

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 27/39

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 28/39

Tools Used F or V isualMerchandising

y C olours & Texturesy F ixtures and merchandise presentationy Signagesy Windowsy Propsy Lightingy Mannequins

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 29/39

V isu a l M erch a ndisingy Several key characteristics

y Not associated with shop-able fixture but located asa focal point or other area remote from the on-shelf merchandising (and perhaps out of the reach of customers)

y Use of props and elements in addition tomerchandise ± visuals don¶t always includemerchandise; may just be interesting display of items related to merchandise or to mood retailer wishes to create

y V isuals should incorporate relevant merchandise tobe most effective

y Retailers should make sure displays don¶t createwalls that make it difficult for shoppers to reachother areas of the store

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 30/39

Store Front Design

Storefronts must:y C learly identify the name and general nature

of the storey Give some hint as to the merchandise insidey Includes all exterior signagey In many cases includes store windows ± an

advertising medium for the store ± windowdisplays should be changed often, befun/exciting, and reflect merchandise offeredinside

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 31/39

A tmos p hericsThe design of an environment via:

y visual communicationsy lightingy color y soundy scent

to stimulate customers¶ perceptual and emotionalresponses and ultimately influence their purchasebehavior

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 32/39

V isu a l C ommunic a tionsy Name, logo and retail identity

y Institutional signage

y D irectional, departmental and category signage

y Point-of-Sale (P O S) Signage

y Lifestyle Graphics

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 33/39

V isu a l C ommunic a tions

y C oordinate signs and graphics with store¶s imagey Inform the customer y Use signs and graphics as propsy Keep signs and graphics freshy Limit sign copyy Use appropriate typefaces on signsy C reate theatrical effects

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 34/39

Lightingy Important but often overlooked element in

successful store design

y H ighlight merchandise

y C apture a mood

y Level of light can make a differencey B lockbuster y F ashion D epartments

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 35/39

C olor

C an influence behavior

y Warm colors increase blood pressure, respiratory

rate and other physiological responses ± attractcustomers and gain attention but can also bedistracting

y C ool colors are relaxing, peaceful, calm andpleasant ± effective for retailers selling anxiety-causing products

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 36/39

Sound & Scent

y Soundy Music viewed as valuable marketing tooly O ften customized to customer demographicsy C

an use volume and tempo for crowd control

y Scenty Smell has a large impact on our emotionsy

V ictoria Secret, The Magic Kingdom, The KnotShopy C an be administered through time release

atomizers or via fragrance-soaked pellets placed onlight fixtures

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 37/39

C ommo n Errors I n C reat ing A Dis p lay

y C lutter y Lack of an underlying themey Too many propsy D irty floorsy Poor Lighting

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 38/39

Pl a nogr a mIs a tool used by the retailer, which helpsto determine the location of merchandise

within a department.It is a diagram that visually communicate

how merchandise physically fit on to a storefixture or window, to allow for proper visibilityand price point options.

List the exact number of square feetused for the various products and the exactno. of products to be displayed in a particular area.

8/3/2019 Store Design and Layout_STMK

http://slidepdf.com/reader/full/store-design-and-layoutstmk 39/39

F loor Plan:

Is a schematic illustration that shows wheremerchandise and customer service departments are located,how customers circulate through the store, and how muchspace is dedicated to each department.