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Chapter 18

Chapter 18. Store Layout, Design and Visual Merchandising. Store Management. Managing the Store. Customer Service. Layout, Design and Visual Merchandising. REI’s Store Environment. Store Design Objectives. Implement retailer’s strategy Influence customer buying behavior

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Chapter 18

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  1. Chapter 18 Store Layout, Design and Visual Merchandising

  2. Store Management Managing the Store Customer Service Layout, Design andVisual Merchandising

  3. REI’s Store Environment

  4. Store Design Objectives • Implement retailer’s strategy • Influence customer buying behavior • Control design and maintenance costs • Provide flexibility • Meet legal requirements

  5. Store Design The primary objective of store design is implementing the retailer’s strategy Meets needs of target market Builds a sustainable competitive advantage Displays the store’s image (c) Brand X Pictures/PunchStock C. Borland/PhotoLink/Getty Images

  6. Impact on Customer Behavior • Attract customers to store • Enable them to easily locate merchandise • Keep them in the store for a long time • Motivate them to make unplanned purchases • Provide them with a satisfying shopping experience H. Wiesenhofer/PhotoLink/Getty Images

  7. Today’s 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” Royalty-Free/CORBIS

  8. Tradeoff in Store Design Ease of locating merchandise for planned purchases (c) image100/PunchStock Exploration of store, impulse purchases Royalty-Free/CORBIS

  9. Legal Considerations Americans with Disabilities Act (ADA) Protects people with disabilities from discrimination in employment, transportation, public accommodations, telecommunications and activities of state and local government Affects store design as disabled people need “reasonable access” to merchandise and services built before 1993. After 1993, stores are expected to be fully accessible. (c) Stockbyte/PunchStock

  10. Reasonable AccessWhat does that mean? • 32 inch wide pathways on the main aisle and to the bathroom, fitting rooms elevators and around most fixtures • Lower most cash wraps and fixtures so they can be reached by a person in a wheelchair • Make bathroom and fitting room fully accessible Keith Brofsky/Getty Images

  11. Types of Store Layouts Grid Racetrack Free Form

  12. 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? The McGraw-Hill Companies, Inc./Andrew Resek, photographer

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

  14. 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

  15. JCPenney Racetrack Layout

  16. Example of Race Track Layout PhotoLink/Getty Images

  17. 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 Jack Star/PhotoLink/Getty Images

  18. 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

  19. Example of Boutique Area Michael Evans/Life File/Getty Images

  20. Usage of Signage and Graphics • Locational – identifies location of merchandise and guides customers • 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

  21. Effectively Using Signage • Coordinate signage to store’s image • Use appropriate type faces on signs • Inform customers • Use them as props • Keep them fresh • Limit text Rim Light/PhotoLink/Getty Images

  22. Digital 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 attention • Enhances store environment • Provides appealing atmosphere • Overcomes time-to-message hurdle • Messages can target demographics • Eliminates costs with printing, distribution and installing traditional signage

  23. Feature areas End caps Promotional aisle Freestanding displays Cash wraps Walls Windows Feature Areas PhotoLink/Getty Images

  24. Space Planning • Productivity of allocated space • Merchandise inventory turnover • Impact on store sales • Display needs for the merchandise Photodisc/Getty Images

  25. 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

  26. Envirosell’s Observations • Avoid the butt-brush effect • Place merchandise where customers can readily access it • Let customers touch the merchandise • Make information accessible Royalty-Free/CORBIS

  27. Prime Locations for Merchandise Highly trafficked areas • Store entrances • Near checkout counter Highly visible areas • End aisle • Displays The McGraw-Hill Companies, Inc./Andrew Resek, photographer

  28. Location of Merchandise Categories • Impulse merchandise – near heavily trafficked areas • Demand merchandise – back left-hand corner of the store • Special merchandise – lightly trafficked areas (glass pieces) • Adjacencies – complimentary merchandise next to each other

  29. Straight Rack

  30. Straight Rack Holds a lot of apparel Hard to feature specific styles and colors Found often in discount and off-price stores Royalty-Free/CORBIS

  31. Rounder • Smaller than straight rack • Holds a maximum amount of merchandise • Easy to move around • Customers can’t get frontal view of merchandise

  32. Four-Way Holds large amount of merchandise Allows customers to view entire garment Hard to maintain because of styles and colors Fashion oriented apparel retailer

  33. Gondola

  34. Gondolas Versatile Grocery and discount stores Some department stores Hard to view apparel as they are folded Royalty-Free/CORBIS

  35. Merchandise Presentation Techniques • Idea-Oriented Presentation • Style/Item Presentation • Color Organization • Price Lining • Vertical Merchandising • Tonnage Merchandising • Frontal Presentation Royalty-Free/CORBIS

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

  37. Highlight merchandise Structure space and capture a mood Downplay features Lighting The McGraw-Hill Companies, Inc./Lars A. Niki, photographer

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