Store Design Objectives

1. Store Design Objectives • Consistent with retailers image and strategy • Positive influence on customer satisfaction and purchase behavior • Cost effective • Flexible • Meet needs of disabled

2. Tradeoff in Store Design Easy of locating merchandise for planned purchases Exploration of store, impulse purchases

3. Types of Store Layouts • Grid • Racetrack • Free Form

4. Grid Layout Long gondolas in repetitive pattern. • Easy to locate merchandise • Does not encourage customers to explore store • Limited site lines to merchandise • Allows more merchandise to be displayed • Cost efficient Used in grocery, discount, and drug stores. Why?

5. Receiving & storage Fruit Books, magazines, seasonal display Cart area Vegetables Checkouts Entrance Office & customer service Exit Grid Store Layout

6. Racetrack Layout Loop with a major aisle that has access to departments and store’s multiple entrances. • Draws customers around the store. • Provide different site lines and encourage exploration, impulse buying • Used in department stores

7. Free-Form (Boutique) Layout Fixtures and aisles arranged asymmetrically • Pleasant relaxing ambiance doesn’t come cheap – small store experience • Inefficient use of space • More susceptible to shoplifting – salespeople can not view adjacent spaces. Used in specialty stores and upscale department stores

8. Storage, Receiving, Marketing Dressing Rooms Underwear Tops Accessories Jeans Casual Wear Stockings Checkout counter Skirts and Dresses Hats and Handbags Pants Tops Clearance Items Feature Feature Open Display Window Open Display Window Free-Form Layout

9. Display Areas Feature areas • End caps • Promotional aisle • Freestanding fixtures • Point-of-sale areas • Walls

10. Designing a Webpage: Lessons from Store Design • Simplicity matters • Getting around • Prioritize • Design layout based on what you want to accomplish • Follow the standards of the industry leaders

11. Space Planning Allocating floor/shelf space locating merchandisein store (or on website) Where should merchandise be displayed? How much space should be allocated to each category/item? How many items of each SKUs should be displayed?

12. Space 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

13. Prime Locations for Merchandise • Highly trafficked areas • Store entrances • Near checkout counter • Highly visible areas • End aisle • Displays

14. Special Considerations • Avoid the “butt-brush” effect. • Make merchandise accessible. • Allow a transition zone.

15. Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

16. Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

17. Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

18. Evaluating Space Productivity Productivity ratios are output/input • Sales per square foot • Sales per linear foot • Gross or contribution margin per square foot

19. Merchandise Presentation Techniques • Idea-Oriented Presentation • Style/Item Presentation • Color Organization • Price Lining • Vertical Merchandising • Tonnage Merchandising • Frontal Presentation

20. Creating a Store Environment Color Lighting Store Atmosphere Scent Music

21. Visual Communications • Coordinate signs and graphics with the store’s image. • Inform the customer. • Use signs and graphics as props. • Keep signs and graphics fresh. • Limit the copy of signs. • Use appropriate typefaces on signs • Create theatrical effects.

22. Lighting • Highlight merchandise. • Structure space and capture a mood. • Downplay features.