McGraw-Hill/IrwinRetailing Management, 6/e

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Store Design, Store Layout and Visual Merchandising

Sonali Jain – 31Priyanka Joshi-32Sahil Kulkarni-43Lekshmi Pillai-57 Anshumant Singh-72Nikhil Srivastava-76Vivek Srivastava-77

Store Design, Store Layout and Visual Merchandising

Store DesignStore Design The primary objective of store design is implementing the retailer’s strategy

Meets needs of target marketBuilds a sustainable competitive advantageDisplays the store’s image

Store Design ObjectivesStore Design Objectives

Implement retailer’s strategyInfluence customer buying behaviorControl design and maintenance costsProvide flexibilityMeet legal requirements

Impact on Customer BehaviorImpact on Customer BehaviorAttract customers to storeEnable them to easily locate merchandiseKeep them in the store for a long timeMotivate them to make unplanned purchasesProvide them with a satisfying shopping experience

TodayToday’’s Demographicss Demographics

Time limited families are spending less time planning shopping trips and making more decisions in the stores.

Retailers can: Advertise Package products differently Research the “first moment of truth”

Tradeoff in Store DesignTradeoff in Store Design

Ease of locating merchandise for planned purchases

Exploration of store, impulse purchases

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Types of Store LayoutsTypes of Store Layouts

Grid Racetrack Free Form

Grid Layout- Grid Layout- Has parallel aisles with merchandise on shelvesHas parallel aisles with merchandise on shelveson both the aisles. Its well suited for shopping trips as the customers get on both the aisles. Its well suited for shopping trips as the customers get exposed to all the merchandises and products. exposed to all the merchandises and products. Eg- D-Mart, Reliance Eg- D-Mart, Reliance FreshFresh

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Grid Layout

Advantages Disadvantages

1) Uses space efficiently

2) Easy sitting of merchandise and linking of the products

3) More customers shop at once

4) Staff and customers work alongside

5) Allows self service

1) Makes displays rigid

2) Deters browsing

3) Increases security risks

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Grid Store Layout

Fruit

Vegetables

Office & customer service

Books, magazines, seasonal display

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Exit

Entrance

Cart area

Checkouts

Racetrack Layout- Racetrack Layout- It is useful in large stores to guide the customers It is useful in large stores to guide the customers round the store and increase exposure of more distant parts from round the store and increase exposure of more distant parts from the entrance. Aisles lead off various points on the loop to allow the entrance. Aisles lead off various points on the loop to allow customers to explore particular ranges of merchandise. customers to explore particular ranges of merchandise. Eg- Shoppers Eg- Shoppers Stop, Lifestyle etc.Stop, Lifestyle etc.

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Racetrack layout

Advantages Disadvantages

1) Guides customers to the large area

2) Customers are exposed to large amount of merchandise

1) May see too much at once

2) Lack of focus

3) No island screens used

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Racetrack LayoutRacetrack Layout

RaceTrack layout

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Free-Form (Boutique) LayoutFree-Form (Boutique) LayoutFixtures and aisles arranged

asymmetricallyPleasant relaxing ambiance doesn’t

come cheap – small store experienceInefficient use of spaceMore susceptible to shoplifting –

salespeople can not view adjacent spaces.

Used in specialty stores and upscale department stores

Examples- Examples- Bata, Nike etcBata, Nike etc 18-15

Advantages Disadvantages

1) Greater flexibility

2) Maximum visual impact

3) Shopping easier

4) Encourages browsing

5) Encourages impulse buying

1) Expensive on space requirements

2) High fixture cost

3) Stock control more difficult

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Free-Form Layout

Storage, Receiving, Marketing

Underwear Dressing Rooms

Checkout counter

Clearance Items

Feature Feature

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Open Display Window Open Display Window

Usage of Signage and GraphicsUsage of Signage and Graphics

Category Signage – identifies types of products and located near the goods

Promotional Signage – relates to specific offers – sometimes in windows

Point of sale – near merchandise with prices and product information

Lifestyle images – creates moods that encourage customers to shop

Effectively Using SignageEffectively Using Signage

Coordinate signage to store’s imageUse appropriate type faces on signs Inform customersUse them as propsKeep them freshLimit text

Digital SignageDigital Signage

Visual Content delivered digitally through a centrally managed and controlled network and displayed on a TV monitor or flat panel screen

Superior in attracting attentionEnhances store environmentProvides appealing atmosphereOvercomes time-to-message hurdleMessages can target demographicsEliminates costs with printing, distribution and installing

traditional signage

Feature AreasFeature Areas

Feature areas◦End caps◦Promotional aisle◦Freestanding displays◦Cash wraps◦Walls◦Windows

Space Planning

• Productivity of allocated space

• Merchandise inventory turnover

• Impact on store sales

• Display needs for the merchandise

Space Planning ConsiderationsSpace Planning Considerations• Profitability of merchandise• Customer Buying considerations• Impulse products near front• Demand/Destination areas off the beaten path • Physical characteristics of product.• Complementary products should be adjacent • Sales rate• More units of faster selling merchandise need to be displayed

Prime Locations for MerchandisePrime Locations for Merchandise

◦Decompression zone ◦Strike zone◦Right hand side of the store

Location of Merchandise CategoriesLocation of Merchandise Categories

Impulse merchandise – near heavily trafficked areasDemand merchandise – back left-hand corner of the storeSpecial merchandise – lightly trafficked areas (glass pieces)Adjacencies – complimentary merchandise next to each other

Use of planogramUse of planogram

Retailers generate maps known as planogramsPlanogram is a diagram that shows how and where specific

SKUs should be placedLocation can be illustrated in the form of photos/ computer

output.

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Straight RackStraight Rack

Holds a lot of apparelHard to feature specific styles and colorsFound often in discount and off-price stores

Smaller than straight rackHolds a maximum amount of merchandiseEasy to move aroundCustomers can’t get frontal view of merchandise

Rounder

Smaller than straight rackHolds a maximum amount of merchandiseEasy to move aroundCustomers can’t get frontal view of merchandise

Four-WayFour-Way

Holds large amount of merchandiseAllows customers to view entire garmentHard to maintain because of styles and colorsFashion oriented apparel retailer

Four-Way

Holds large amount of merchandiseAllows customers to view entire garmentHard to maintain because of styles and colorsFashion oriented apparel retailer

Merchandise Presentation Techniques

Idea-Oriented Presentation

Style/Item Presentation

Color Organization

Price Lining

Vertical Merchandising

Tonnage Merchandising

Frontal Presentation

Creating a Store EnvironmentCreating a Store Environment

Scent

Store Atmosphere

LightingLighting

Highlight merchandise Structure space and capture a

mood Downplay features