Store Layout & Design

Store Layout and Design

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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.

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

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Introduction to Store Layout Management LO 1

• Store Image is the overall perception the customer has of the store’s environment.

• Space Productivity represents how effectively the

retailer utilizes its space and is usually measured by sales per square foot of selling space or gross margin dollars per square foot of selling space.

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Store Image LO 1

• L.L. Bean offers relaxed, classic apparel styles to its customers. To help convey this image, L.L. Bean’s catalog and advertising reinforces their image. For catalog customers, the catalog is the store environment.

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Store Image LO 1

• By incorporating a café as an integral part of Barnes & Noble bookstores, a very relaxing and casual ambiance is created.

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Introduction to Store Layout Management LO 1

• Elements of the Store Environment • Objectives of the Store Environment

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Elements That Compose the Store Environment LO 1: Exhibit 13.1 Visual Communications Retail Identity Graphics POS Signage

Store Planning Space Allocation Layout Circulation Store Image And Productivity

Store Design Exterior Design Ambiance Lighting

Merchandising Fixture Selection Merchandise Presentation Visual Merchandising 7

Retailing Truism LO 1

• The more merchandise customers are exposed to, the more they tend to buy.

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Objectives of the Store Environment LO 1

• Tasks to create desired store image and increase space productivity:

• Get customers into the store (market image). • Convert them into customers buying merchandise once inside the store (space productivity).

• Do this in the most efficient manner possible.

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Objectives of the Store Environment LO 1

• Shrinkage Represents merchandise that cannot be accounted for due to theft, loss, or damage.

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Store Planning LO 2

• Allocating Space • Circulation • Shrinkage Prevention

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Store Planning LO 2

• Floor Plan is 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.

• Stack-Outs are pallets of merchandise set out on the floor in front of the main shelves.

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These Warning Signs May Indicate a Space Problem LO 2: Exhibit 13.2

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Allocating Space LO 2

• Types of space needed: • Back room • Office and other functional spaces • Aisles, services areas, and other nonselling areas of the main sales floor

• Wall merchandise space • Floor merchandise space

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Allocating Space LO 2 

Warehouse clubs are able to take advantage not only of the width and depth of the store, but also the height, by using large “warehouse racks” that carry reachable inventory at lower levels with large pallets or cartons of excess inventory at higher levels.

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HBA Space Allocation by Mass Merchandisers LO 2

Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S.

Creme rinse/conditioner Deodorant Face cream/lotion Hand/body lotion Hair colorings Hair spray-women’s Men’s toiletries Oral antiseptics/rinses Shampoo Source: Neilsen Marketing Research

58.2 107.6 21.9 44.1 57.7 69.2 28.5 55.3 82.3

Eastern Central Southern

45.0 82.9 18.2 27.2 52.6 39.8 11.3 36.6 63.5

59.0 103.4 20.7 44.0 51.4 55.5 23.3 49.4 80.5

59.6 130.0 24.8 54.5 66.2 102.5 44.2 76.0 95.8

Pacific

86.7 93.5 24.9 43.4 61.1 59.0 28.5 39.5 81.3 16

HBA Space Allocation by Mass Merchandisers LO 2

Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S.

Shaving creams Suntan Lotion Toothpaste Acne remedies Antacids Cold remedies-adult Cough syrup/tablets Nasal spray/drops

24.7 45.7 71.5 31.3 31.3 34.3 13.0 7.1

Source: Neilsen Marketing Research

Eastern Central Southern

24.4 37.0 58.9 16.3 16.3 25.5 9.9 4.0

24.3 38.0 60.3 29.7 29.7 30.3 11.9 6.6

24.5 59.9 87.0 39.7 39.7 41.8 15.2 9.6

Pacific

27.8 41.4 87.6 42.6 42.6 42.9 16.7 6.0 17

HBA Space Allocation by Mass Merchandisers LO 2

Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S.

Headache/pain remedies Vitamins Contact lens solution Diet aids Pregnancy test kits Laxatives Contraceptives-male Sanitary napkins Tampons Source: Neilsen Marketing Research

49.6 64.5 53.4 23.2 5.0 24.8 11.8 91.2 26.3

Eastern Central Southern

30.5 34.0 33.5 14.3 2.4 10.6 7.2 77.8 24.8

47.8 57.6 47.4 25.2 4.2 21.3 9.9 93.7 26.4

61.1 90.2 70.3 26.0 6.6 35.7 12.8 100.8 26.0

Pacific

59.8 71.0 59.2 28.4 8.6 32.6 26.8 73.6 31.4 18

Space Allocation Planning LO 2

• Improving Space Productivity in Existing Stores • Space Productivity Index is 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

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Merchandise Productivity Analysis LO 2: Exhibit 13.3

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Merchandise Productivity Analysis LO 2: Exhibit 13.3

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Circulation LO 2 Free-Flow Layout is a type of store layout in which fixtures and merchandise are grouped into free-flowing patterns on the sales floor. Advantages •Disadvantages Allowance for browsing •Loitering encouraged and wandering freely •Possible confusion Increased impulse • Waste of floor space purchases •Cost Visual appeal •Difficulty of cleaning Flexibility 

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Circulation: Free Flow LO 2: Exhibit 13.4

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The Disney Store’s Effective Use of the Free-Flow Design LO 2 

Approximately 250 million consumers visit Disney’s entertainment retail outlets each year. New store designs showcase merchandise in an engaging and contemporary fashion, keeping pace with evolving retail trends. Technological elements including a front-of-store media wall that engages guests with Disney programming, and interactive kiosks-setting the stage for the Disney Store in the 21st century.

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Circulation LO 2 Grid Layout is a type of store layout in which counters and fixtures are placed in long rows or “runs,” usually at right angles, throughout the store. Advantages Low cost Customer familiarity Merchandise exposure Ease of cleaning Simplified security Possibility of self-service

Disadvantages •Plain and uninteresting •Limited browsing •Stimulation of rushed shopping behavior •Limited creativity in decor

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Circulation: Grid Layout LO 2: Exhibit 13.5

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Circulation LO 2 

Loop Layout is a type of store layout in which a major customer aisle begins at the entrance, loops through the store, usually in the shape of a circle, square, ar rectangle, and then returns the customer the front of the store.

Advantages Exposes customers to the greatest amount of merchandise 

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Circulation: Loop Layout LO 2: Exhibit 13.6

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Floor Plan: Kohl’s LO 2

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Circulation LO 2 

Spine Layout is a type of store layout in which a single main aisle runs from the front to the back of the store, transporting customers in both directions, and where on either side of this spine, merchandise departments using either a free-flow or grid pattern branch off toward the back aisle walls.

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Circulation: Spine Layout LO 2: Exhibit 13.7

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Floor Plan: Clarence Sander’s Piggly Wiggly LO 2

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Shrinkage Prevention LO 2 

One of the most important considerations when planning the layout is visibility of the merchandise.

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Planning Fixtures and Merchandise Presentation LO 3 

On-Shelf Merchandising Is the display of merchandise on counters, racks, shelves, and fixtures throughout the store.

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Planning Fixtures and Merchandise Presentation LO 3

• Fixture Types • Merchandise Presentation Planning • Selecting Fixtures and Merchandise Presentation Methods

• Visual Merchandising

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Fixture Types LO 3

• Hardlines Fixtures • Softlines Fixtures • Wall Fixtures

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Fixture Types LO 3

• Softlines Fixtures • Bulk or Capacity Fixture is a display fixture that is intended to hold the bulk of merchandise without looking as heavy as a long straight rack of merchandise.

• Feature Fixture is a display that draws special

attention to selected features (e.g., color, shape, or style) of merchandise.

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Four-Way Feature Rack and Round Rack LO 3: Exhibit 13.8

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Merchandise Presentation Planning LO 3

• Methods of Merchandise Presentation: • Shelving • Hanging • Pegging • Folding • Stacking • Dumping

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Merchandise Presentation Planning LO 3

• Psychological Factors to Consider When Merchandising Stores:

• Value/fashion image • Angles and sightlines • Vertical color blocking

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45-Degree Customer Sightline LO 3: Exhibit 13.9

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Vertical Color Blocking LO 3: Exhibit 13.10

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Visual Merchandising LO 3

• Visual Merchandising Is the artistic display of merchandise and theatrical props used as scene-setting decoration in the store.

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Visual Merchandising LO 3

• Here’s sampling of the

techniques stores use to generate those sales: Get’m coming and going. Escalators are a focal point of many stores. That makes them ideal locations for promotional signs and for impulse items like perfume.

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Visual Merchandising LO 3

• Lead them to temptation. Department-store design incorporates a gauntlet of goodies to stimulate impulse buys. Cosmetics, a store’s most profitable department, should always be at the main entrance to the store.

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Visual Merchandising LO 3

• Its all in the display. When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury.

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Visual Merchandising LO 3

• Color is king. Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments.

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Visual Merchandising LO 3 • Suggestion positioning. Once the customer has already purchased one item, it’s easier to sell an additional item. Thus apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines.

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Question to Ponder • How do fixtures and merchandise presentation interact to influence consumers in different types of retailers?

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Store Design LO 4

• Ambience Is the overall feeling or mood projected by a store through its aesthetic appeal to human senses.

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Store Design LO 4

• Storefront Design • Interior Design • Lighting Design • Sounds and Smells: Total Sensory Marketing

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Lighting Design LO 4

• Crate & Barrel makes effective use of lighting to highlight and feature merchandise on display.

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Total Sensory Marketing LO 4

• Crabtree & Evelyn makes effective use of fragrances and odors to generate smells that reinforce its store ambiance.

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Visual Communications LO 5

• Name, Logo, and Retail Identity • Institutional Signage • Directional, Departmental, and Category Signage • Point-of-Sale (POS) Signage • Lifestyle Graphics

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Directional, Departmental, and Category Signage LO 5

• Directional and Departmental Signage are large signs

that are usually placed fairly high, so they can be seen throughout the store.

• Category Signage are smaller than directional and

departmental signage and are intended to be seen from a shorter distance; they are located on or close to the fixture itself where the merchandise is displayed.

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Departmental Signage LO 5 

Departmental signage serve as the highest level of organization in an overall signage program. These signs are usually large and placed fairly high to they can be seen throughout the store.

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Category Signage LO 5 

Category signage helps consumers negotiate throughout the store to find the product categories they are looking for. The size of category signage varies widely from a lettering that is a few feet in height to merely inches.

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Point-of-Sale (POS) Signage LO 5

• Point-of-Sale Signage Is relatively small signage that is placed very close to the merchandise and is intended to give details about specific items.

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Point-of-Sale (POS) Signage LO 5

• POS signage for clearance and sale items tend to be in red to draw a consumer’s attention.

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Lifestyle Graphics LO 5 

The Limited uses lifestyle graphics to convey the image of the product to the consumer. Here the Limited conveys the casual nature of one apparel line.

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