Chapter 13 Store Layout and Design

1. Chapter 13 Store Layout and Design

2. Learning Objectives • List the elements of a store’s environment and define its two primary objectives. • Discuss the steps involved in planning the store. • Describe how various types of fixtures, merchandise presentation methods and techniques, and the psychology of merchandise presentation are used to increase the productivity of the sales floor.

3. Learning Objectives • Describe why store design is so important to a store’s success. • Explain the role of visual communications in a retail store.

4. Introduction to Store Layout Management • Elements of the store environment • Objectives of the store environment LO 1

5. Exhibit 13.1 - Elements That Composethe Store Environment LO 1

6. Introduction to Store Layout Management • Objectives of the store environment • Developing a store image • Increasing space productivity LO 1

7. Store Planning • Floor plan - A schematic that shows where merchandise and customer service departments are located, how customers circulate through the store, and how much space is dedicated to each department. LO 1

8. Exhibit 13.2 - These Warning Signs mayIndicate a Space Problem LO 2

9. Store Planning • Microretailing - Occurs when a chain store retailer operating over a wide geographic area, usually nationally, tailors its merchandise and services in each store to the needs of the immediate trading area. • Stack-outs - Pallets of merchandise set out on the floor in front of the main shelves. LO 2

10. Store Planning • Allocating space • Types of space needed • Back room • Offices and other functional spaces • Aisles, service areas, and other nonselling areas • Floor merchandise space • Wall merchandise space • Space allocation planning • Circulation • Shrinkage prevention LO 2

11. Store Planning • Space allocation planning • Improving space productivity in existing stores • Space productivity index - A ratio that compares the percentage of the store’s total gross margin that a particular merchandise category generates to its percentage of total store selling space used. • Space allocations for a new store • Planograms - A schematic that illustrates how and where a retailer’s merchandise should be displayed on the shelf in order to increase customer purchases. LO 2

12. Store Planning • Circulation • Free-flow layout • Grid layout • Loop layout • Spine layout LO 2

13. Store Planning LO 2

14. Exhibit 13.4 - Free-Flow Layout LO 2

15. Exhibit 13.5 - Grid Layout LO 2

16. Exhibit 13.6 - Loop Layout LO 2

17. Exhibit 13.7 - Spine Layout LO 2

18. Planning Fixtures and Merchandise Presentation • On-shelf merchandising - Display of merchandise on counters, racks, shelves, and fixtures throughout the store. • It must present and display the merchandise attractively so that it is easy to understand and access. • It must be reasonably easy to maintain. LO 3

19. Planning Fixtures and Merchandise Presentation • Fixture types • Merchandise-presentation planning • Selecting fixtures and merchandise-presentation methods • Visual merchandising LO 3

20. Fixture Types • Hardlines fixtures • Softlines fixtures • Bulk or capacity fixture - Display fixture that is intended to hold the bulk of merchandise without looking as heavy as a long, straight rack of merchandise. • Feature fixture - Display that draws special attention to selected features (e.g., color, shape, or style) of merchandise. • Wall fixtures LO 3

21. Exhibit 13.8 - Four-Way Feature Rackand Round Rack LO 3

22. Merchandise Presentation Planning • Shelving • Hanging • Pegging • Folding • Stacking • Dumping LO 3

23. Merchandise Presentation Planning • Key psychological factors to consider when merchandising stores: • Value/fashion image • Angles and sightlines • Vertical color blocking LO 3

24. Exhibit 13.9 - 45-Degree Customer Sightline LO 3

25. Exhibit 13.10 - Vertical Color Blocking LO 3

26. Selecting Fixtures and Merchandise-Presentation Methods • Proper fixtures emphasize the key selling attributes of merchandise while not being overpowering. • A good guideline for selecting fixtures is to match the fixture to the merchandise, not the merchandise to the fixture. LO 3

27. Visual Merchandising • The artistic display of merchandise and theatrical props used as scene-setting decoration in the store. • Visual displays are located in a focal point, feature area, or other area remote from the on-shelf merchandising and perhaps even out of reach of the customer. • Visuals should incorporate relevant merchandise. LO 3

28. Store Design • Storefront design • The storefront must clearly identify the name and general nature of the store and give some hint as to the merchandise inside. • It includes all exterior signage and the architecture of the storefront itself. • Interior design • The finishes applied to surfaces • The architectural shapes LO 4

29. Store Design • Lighting design • Lighting greatly enhances store sales. • Contemporary lighting design requires an in-depth knowledge of electrical engineering and the effect of light on color and texture. • Sounds and smells: total sensory marketing • Effective store design appeals to the human senses of sight, hearing, smell, and touch. LO 4

30. Visual Communications • Name, logo, and retail identity • Must be catchy, memorable, and reflective of the retailer’s merchandising mission. • Institutional signage • Describes the merchandising mission, customer service policies, and other messages on behalf of the retail institution. LO 5

31. Visual Communications • Directional, departmental, and category signage • Directional and departmental signage are usually large and placed fairly high, so they can be seen throughout the store. • Category signage is usually smaller and is intended to be seen from a shorter distance; they are located on or close to the fixture itself where the merchandise is displayed. LO 5

32. Visual Communications • Point-of-sale signage (POS) - A relatively small signage placed very close to the merchandise, and intended to give details about specific items. • The most important function is to clearly state the price of the merchandise being signed. LO 5

33. Visual Communications • Lifestyle graphics • Lifestyle images portray either the merchandise, often as it is being used, or simply images of related items or models that convey an image conducive to buying the product. • Lifestyle photography must be kept very general so as to be attractive to the majority and offensive to none. LO 5