Store Layout

Departmentalization Space allocation Layout Design

Rajnish Kumar

Departmentalization



Why it is required



How it is done



What is the best way ??

A look at the Market …. Category

Mkt size '06 % share '06 growth rate

US $bn

Mkt size '10 % share '10 growth rate

btw 20052010

US $bn

Mkt size '15 % share '15

btw 20152010

US $bn

Food beverage & tobacco

195

65%

7%

256

60%

6%

342

54%

Personal care

15

5%

11%

23

5%

9%

35

5%

Apparel

21

7%

11%

33

8%

9%

50

8%

Footwear

5

2%

11%

7

2%

9%

11

2%

Furnishings

4

1%

15%

7

2%

12%

12

2%

Consumer durables & IT

14

5%

15%

24

6%

12%

43

7%

Furniture

9

3%

15%

16

4%

12%

28

4%

Jewelery & watches

15

5%

12%

24

6%

9%

37

6%

Medical & health services

8

3%

12%

12

3%

12%

21

3%

Recreation

2

1%

1%

3

1%

15%

7

1%

Others

12

4%

18%

23

5%

16%

53

8%

Total

300

428

639

How has it changed Impact on consumer spending/shopping behavior: In 1991 there were just 7 categories accounting for 80% of consumer spending. These have expanded to 18 in 2008 and the list is expanding !

1991

1.Food & Grocery 2.Clothing 3.Footwear 4.Consumer durables 5.Home Linen 6.Movies & theatre 7.Eating out

2008 1.Food & Grocery 2.Clothing 3.Footwear 4.Consumer durables 5.Expenditure on DVDs & VCDs 6.Home Linen 7.Home accessories 8.Accessories 9.Gifts 10.Take away/ pre-cooked/RTE meals 11.Movies & theatre 12.Eating out 13.Entertainment parks 14.Mobile phones & service 15.Household help 16.Travel packages 17.Club membership 18.Computer peripheral & Internet usage

Customer : 

Demographics:

   

SEC A/B/C of Tier-II towns Mostly families from town, business/service class Age: 25-40 years, males/females

Psychographics:

    

Progressive/exposed to current trends Shopping is an experience v/s. shopping as a chore Is a discerning shopper – seeks good quality products and wants to stretch his wallet Wants to emulate friends in Metros Takes his Indian’ness seriously and has strong peer pressure

Category Role Category Role

Retailer View

Customer View

Example

Traffic Builder

Lower Margin High Frequency

Saving Top Ups/Convenience

Fruits and Vegetables Eggs FMCG

Cash Cow

High Margin Destination

Aspiration High cost of acquisition from alternate source

Toys and Games Home Linen Branded Luggage

Perception builder

Medium Margin High Fashion

Value Pricing Lifestyle

Apparel

Merchandise Mix       

Apparel Footwear Toys Soft Home Hard Home CD FMCG -

20 % 10 % 5% 10 % 20 % 15 % 30 %

Departments All Store

FMCG

** On the basis of sales Turnover Grocery

Personal care

Hard lines

CD

For The Home

Soft lines

Apparel

Home Linen

Space Allocation 

Who does it and how is it done



Evaluation

Space Allocation Store Planner’s Responsibility Department Locations Entrance Which Floor Position on the floor Store traffic flow Near Elevator / Escalator Men’s/Women’s Category Demand / Destination Areas Impulse Products Physical Characteristics of Merchandise

Trivia – 50% of Women get their ideas for clothes from store displays or window Shopping 9

Space Allocation 

Department adjacencies



Avoid Butt Brush



Factors for Merchandise display What Merchandise How Much Merchandise? How Much Space? Where to Place? Total Expected Sales within dept



Evaluation  Sales Per Square Foot  Sales Per Linear Foot

10

Space Allocation Plan 1 ST Floor - 6600 Sq Ft. Department

Area Allocated (Square Feet)

Apparel Men's wear

1500

Tailor for alterations

100

Trial Rooms(2)

100

Women's wear

500

Trial Rooms(2)

100

Kid's wear

1000

Footwear

800

Toys

400

Soft Home

500

Hard Home Stainless Steel Utensils

100

Plastic household items

100

Melamine

100

Non-stick

100

Thermo ware

100

Crockery/ Glassware

200

Luggage

100

Furniture

400

Mobiles

100

Watches

100

Bakery/ Cafeteria

200

Total

6600

**In case the floor area is lesser the space will be allocated either proportionately or based on the market potential

Plano gram of Hard Lines Department

12

Evaluation – Space productivity Index

Subcategories with Low SPI need to be evaluated

13

Store Layout • The way in which the Fixtures and furniture is arranged within a store • It controls the movement and flow of traffic within the Store • It also plays a major role in determining ‘shopping experience’ •Is important for the image of the store

14

Store Layout - Types

 Grid  Race Track  Free Flow  Spine  Herringbone

15

Store Layout - Types

Grid

16

Why Grid Layout  Food World, Food Bazaar, Reliance Fresh, Etc.  Grocery Stores  Long Gondolas  More Shelves  Repetitive Pattern  Lesser Aisle Space  Customer Familiarity  More Cost Effective  Higher Space productivity

Disadvantages – Poor Product Exposure , Rushed Shopping behavior & Poor aesthetics

17

Store Layout - Types

Race Track / Loop Layout

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Why Race Track / Loop Layout        

Lifestyle, Shopper’s Stop, Central, Etc Main Aisle loops through the store View of multiple departments Access to multiple departments Exposes more merchandise Most important departments on the rear of the Store Department Flooring, Lighting & Ambience change Encourages  Exploring new merchandise  Impulse Buying

Disadvantages – Takes time to shop and move around. Offers little familiarity 19

Store Layout - Types

Free Flow/ Free Form Layout

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Why Free Flow

    

West Side, Wills Lifestyle, Etc. Fixtures & Aisles asymmetric Boutique Layout Specialty Stores or Within Departments of large stores Expensive fixtures

Disadvantage Wastage of Space No control of flow of traffic

Store Layout - Types

  

Spine Layout

Tanishq, Titan Eye Plus , Raymond’s, Etc. Single Main Aisle runs from front to rear Both directions

22

Store Layout - Types

Herringbone Layout

  

Croma Apt for Consumer Durables & Hardlines Single Main Aisle runs from front to rear

23