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Advanced Merchandising

Advanced Merchandising. Lesson 12. Objectives. Describe the characteristics of good store layout and its impact on sales Give real-world examples of the four main types of store layout – grid, loop, free flow, and spine Explain the importance of a well designed store entrance

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Advanced Merchandising

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  1. Advanced Merchandising

    Lesson 12
  2. Objectives Describe the characteristics of good store layout and its impact on sales Give real-world examples of the four main types of store layout – grid, loop, free flow, and spine Explain the importance of a well designed store entrance Computer sales per square foot of space and linear foot of shelving Calculate short- and long- term payments on leased vs. purchased store fixtures Evaluate the pros and cons of new equipment, and impact on sales, by analyzing financial statements Plan an effective store layout to meet sales goals
  3. Why is Store Layout Important? Store Layout: Arrangement of store fixtures, equipment, and merchandise Major influence on sales and important to image and appearance of the store Cash registers
  4. Measuring Productivity Most retailers use sales per square foot Some use sales per linear foot 20 ft 25 ft
  5. Creating a Store Layout Encourage customers to move around the store. Tend to view more merchandise Provide a space that is sufficient for customers to shop in and that is useful for maximum productivity Not to cluttered
  6. Types of Store Layouts Grid: Characterized by long rows of shelving with aisles between the rows Hold large amount of merchandise Grocery or drug stores
  7. Loop: Designed to lead customers from the front of the store, through the store, and back to the front See the most merchandise Department Stores
  8. Free Flow: Merchandise on fixtures that are arranged in asymmetrical or free flowing patterns on the sales floor Casual layout that encourages customers to browse as they travel through the store Specialty stores
  9. Spine: Features a center aisle that extends from the front of the store to the back Some drug stores
  10. Fixtures – Purchase or Lease? Purchasing: Become the property of the store Can get a tax deduction, but they loose there value Leasing: Rent for a period of time
  11. The Importance of a Good Entrance Provides the first view customers have of a store Sets the tone and provides a good first impression
  12. MATH CONCEPTS Sales Per Square Foot Of Selling Space: Total Net Sales / Total Square Feet of Selling Space Sales Per Linear Foot of Shelving: Total Net Sales / Total Linear Feet of Shelving
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