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
18-8
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
18-9
Grid Store Layout
Fruit
Vegetables
Office & customer service
Books, magazines, seasonal display
Rec
eivi
ng &
stor
age
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.
18-11
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
18-12
Racetrack LayoutRacetrack Layout
RaceTrack layout
18-13
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
18-16
Free-Form Layout
Storage, Receiving, Marketing
Underwear Dressing Rooms
Checkout counter
Clearance Items
Feature Feature
Jean
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Sto
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Acc
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Pan
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Tops
Tops
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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.
18-26
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
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