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Questions and Answers

Which method of merchandising uses shelves inserted into gondolas or wall systems?

  • Hanging
  • Pegging
  • Shelving (correct)
  • Dumping

What is the primary advantage of pegging in merchandise presentation?

  • It is suitable for bulk items.
  • It provides a neat, orderly appearance. (correct)
  • It allows for easy stacking of products.
  • It is less labor-intensive than shelving.

When displaying apparel, which fixture would you use for hanging merchandise?

  • Round racks (correct)
  • Stackable bins
  • Dump bins
  • Peg hooks

Which presentation method is characterized by small rods inserted into systems to display merchandise?

<p>Pegging (C)</p> Signup and view all the answers

What is a primary drawback of using pegging as a merchandising method?

<p>It may require excessive maintenance. (B)</p> Signup and view all the answers

In merchandise presentation planning, which method is considered the most flexible?

<p>Shelving (D)</p> Signup and view all the answers

Which of the following statements best describes the dumping method in merchandise display?

<p>It allows for bulk display of items without specific order. (A)</p> Signup and view all the answers

Which presentation method is often associated with providing an organized visual display with minimal space?

<p>Pegging (A)</p> Signup and view all the answers

Which layout method allows for unrestricted movement through the store and encourages exploration?

<p>Free-flow Layout (B)</p> Signup and view all the answers

What is a characteristic of a grid layout in store design?

<p>Provides clear pathways and organized displays (B)</p> Signup and view all the answers

Which layout is designed to guide customers through a specific path in the store?

<p>Loop Layout (A)</p> Signup and view all the answers

What distinguishes a spine layout in retail design?

<p>It features a main path with branching areas off to the sides. (A)</p> Signup and view all the answers

What merchandising method involves folding softlines merchandise and stacking them to create a high-fashion image?

<p>Folding (B)</p> Signup and view all the answers

Which visual merchandising technique is most effective for attracting customer attention?

<p>Incorporating dramatic lighting and focal points (B)</p> Signup and view all the answers

What should visual displays incorporate to be effective?

<p>Relevant merchandise that attracts attention (B)</p> Signup and view all the answers

Which merchandise presentation technique is characterized by placing large quantities of small items in bins?

<p>Dumping (A)</p> Signup and view all the answers

How does proper lighting design impact store sales?

<p>It enhances the shopping experience and affects product perception. (B)</p> Signup and view all the answers

Which visual merchandising technique provides an image of high volume and low price through the stacking of hardline merchandise?

<p>Stacking (C)</p> Signup and view all the answers

What is an essential guideline for selecting fixtures within a retail environment?

<p>Match the fixture to the merchandise. (A)</p> Signup and view all the answers

What aspect is crucial for maintaining a visually appealing display that attracts customer attention?

<p>Angles and sightlines (D)</p> Signup and view all the answers

Which layout is most likely to utilize vertical color blocking as a merchandising technique?

<p>Grid Layout (D)</p> Signup and view all the answers

In visual merchandising, what is intended by presenting merchandise in a high-fashion image?

<p>Creating a luxurious perception (C)</p> Signup and view all the answers

What psychological factor should be prioritized when planning merchandise presentations?

<p>Value/fashion image (C)</p> Signup and view all the answers

What is a characteristic of a Free-flow Layout in merchandising?

<p>Flexible product placement (A)</p> Signup and view all the answers

Flashcards

Fixture Selection

Matching fixtures to merchandise, not vice versa, to showcase selling attributes effectively.

Visual Merchandising

Artistically displaying merchandise and props in a store, making it engaging and eye-catching.

Storefront Design

Exterior design of a store, including signage and architecture, showing the store's identity and inventory.

Interior Design

Store's inside design, including surface finishes and architectural aspects crucial to atmosphere and layout.

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Lighting Design

Enhancement of store sales through effective lighting solutions, considering color and texture impact.

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Sensory Marketing

Store design appealing to all senses: sight, sound, smell, and touch, creating a comprehensive experience.

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Store Sales Lighting

Lighting that effectively highlights merchandise.

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Store Design Focus

Focus on showcasing merchandise, not overpowering fixtures.

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Folding Merchandise

Arranging softlines (like towels) neatly stacked on shelves or tables to create a high-fashion image.

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Stacking Merchandise

Placing large, hardline items on shelves, gondolas, or platforms (flats) for a high-volume, low-price presentation.

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Dumping Merchandise

Displaying multiple small items (like socks or candy) in bins or baskets on gondolas or walls for a high-volume, low-cost look.

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Value/Fashion Image (Merchandising)

Creating a perception of merchandise quality or style to attract customers.

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Angles and Sightlines (Merchandising)

Positioning products strategically to maximize visibility and appeal to customers' viewpoints.

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Vertical Color Blocking

Using vertical stripes or blocks of color to create visual appeal and organization in a store's displays.

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Shelving

Display method using shelves inserted into gondolas or wall systems. Offers flexibility and easy maintenance.

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Hanging

Displaying apparel on hangers, often on round racks, four-way racks, or bars on gondolas/walls.

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Customer Sightlines

The lines of sight a customer has when viewing displayed merchandise.

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Pegging

Using peg hooks to display small items, creating a neat and orderly appearance. Common in softlines and hardlines.

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Merchandise Presentation Planning

Strategic planning of displays to maximize sales using psychological factors.

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Folding

Presenting merchandise neatly by folding it, often displayed on tables or shelves.

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Stacking

Arranging merchandise in piles, usually for bulk displays or to create a visual impact.

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Dumping

Displaying merchandise in a loose, casual way, often used for sale items or promotions.

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Four-Way Rack

A freestanding fixture with shelves and hanging bars, offering a wide range of display options.

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Round Rack

A circular fixture for clothing, usually with hanging bars for displaying apparel.

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Study Notes

Learning Objectives

  • List the elements of a store's environment and define its two primary objectives.
  • Discuss the steps involved in planning a 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.

Introduction to Store Layout Management

  • Elements of the store environment: Visual communications, retail identity, graphics, POS signage, store planning, space allocation, layout, circulation, store design, exterior design, ambience, lighting, merchandising, fixture selection, merchandise presentation, visual merchandising, store image, and productivity.
  • Objectives of the store environment: Developing a store image and increasing space productivity.

Exhibit 13.1 - Elements That Compose the Store Environment

  • Visual Communications (Retail Identity Graphics, POS Signage)
  • Store Planning (Space Allocation, Layout, Circulation)
  • Store Image and Productivity
  • Store Design (Exterior Design, Ambience, Lighting)
  • Merchandising (Fixture Selection, Merchandise Presentation, Visual Merchandising)

Introduction to Store Layout Management (continued)

  • Objectives of the store environment: Developing a store image, increasing space productivity.

Store Planning

  • Floor plan: A schematic showing locations of merchandise and customer service departments, customer circulation, and space allocation per department.
  • Microretailing: A chain store adjusting merchandise and services in each store for the demands of its immediate trading area.
  • Stack-outs: Merchandise pallets displayed in front of main shelves.

Store Planning (continued)

  • Allocating space: Types of space needed (back room, offices, aisles, service areas, nonselling areas, floor merchandise space, wall merchandise space), space allocation planning, circulation, and shrinkage prevention.

Store Planning (continued)

  • Space allocation planning: Improving space productivity (space productivity index - a ratio of store gross margin generated by a merchandise category to its percentage of store selling space), space allocations for a new store, planograms.
  • Circulation: free-flow, grid, loop, spine layouts.

Store Planning (detailed layout types)

  • Free-flow layout: Fixtures and merchandise grouped into free-flowing patterns on the sales floor.
  • Grid layout: Counters and fixtures arranged in long rows, often at right angles.
  • Loop layout: A major aisle loops through the store, usually in a circle, square, or rectangle shape, returning customers to the front.
  • Spine layout: A single main aisle runs from front to back, with merchandise departments branching off.

Planning Fixtures and Merchandise Presentation

  • On-shelf merchandising: Displaying merchandise on counters, racks, shelves, and fixtures throughout the store. It must be attractive, understandable by consumers, and easy to maintain.

Planning Fixtures and Merchandise Presentation (continued)

  • Fixture types: Hardlines, Softlines, Bulk/Capacity, Feature.
  • Merchandise-presentation planning: Methods include shelving, hanging, pegging, folding, stacking, and dumping.

Merchandise Presentation Planning (detailed)

  • Shelving: Merchandise placed on shelves in gondolas or wall systems.
  • Hanging: Apparel hung on hangers from softlines fixtures like round or four-way racks.
  • Pegging: Small merchandise hung from peg hooks, suitable for softlines and hardlines.
  • Folding: Large, higher-margin items like softlines folded and stacked on shelves and tables.
  • Stacking: Large hardline merchandise stacked on shelves, gondolas, or platforms, suggesting high volume/low price.
  • Dumping: Large quantities of small items stored in bins, baskets, or containers (softlines/hardlines).

Merchandise Presentation Planning (continued)

  • Key psychological factors for store design: Value/fashion image, angles & sightlines, vertical color blocking.

Store Design

  • Storefront design: Must clearly identify the store name and merchandise nature, including signage and architecture.
  • Interior design: Finishes and architectural shapes influence the store's look.
  • Lighting design: Plays a vital role in enhancing sales, necessitating knowledge of electrical engineering and its impact on color and texture.
  • Sounds and smells: Effective store design involves considering total sensory marketing (appealing to sight, sound, smell, and touch).

Visual Communications

  • Name, logo, and retail identity: Catchy, memorable, and reflective of the retailer's mission.
  • Institutional signage: Messaging on merchandising mission, customer service, policies, and the retail institution.
  • Directional, departmental, and category signage: Large directional signage for wide visibility; smaller category signage placed close to merchandise for easy viewing.
  • Point-of-sale (POS) signage: Relatively small; provides details about specific items, including price.
  • Lifestyle graphics: Lifestyle images of related products portraying use and image helpful for convincing customers.

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