Podcast
Questions and Answers
Which method of merchandising uses shelves inserted into gondolas or wall systems?
Which method of merchandising uses shelves inserted into gondolas or wall systems?
What is the primary advantage of pegging in merchandise presentation?
What is the primary advantage of pegging in merchandise presentation?
When displaying apparel, which fixture would you use for hanging merchandise?
When displaying apparel, which fixture would you use for hanging merchandise?
Which presentation method is characterized by small rods inserted into systems to display merchandise?
Which presentation method is characterized by small rods inserted into systems to display merchandise?
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What is a primary drawback of using pegging as a merchandising method?
What is a primary drawback of using pegging as a merchandising method?
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In merchandise presentation planning, which method is considered the most flexible?
In merchandise presentation planning, which method is considered the most flexible?
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Which of the following statements best describes the dumping method in merchandise display?
Which of the following statements best describes the dumping method in merchandise display?
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Which presentation method is often associated with providing an organized visual display with minimal space?
Which presentation method is often associated with providing an organized visual display with minimal space?
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Which layout method allows for unrestricted movement through the store and encourages exploration?
Which layout method allows for unrestricted movement through the store and encourages exploration?
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What is a characteristic of a grid layout in store design?
What is a characteristic of a grid layout in store design?
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Which layout is designed to guide customers through a specific path in the store?
Which layout is designed to guide customers through a specific path in the store?
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What distinguishes a spine layout in retail design?
What distinguishes a spine layout in retail design?
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What merchandising method involves folding softlines merchandise and stacking them to create a high-fashion image?
What merchandising method involves folding softlines merchandise and stacking them to create a high-fashion image?
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Which visual merchandising technique is most effective for attracting customer attention?
Which visual merchandising technique is most effective for attracting customer attention?
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What should visual displays incorporate to be effective?
What should visual displays incorporate to be effective?
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Which merchandise presentation technique is characterized by placing large quantities of small items in bins?
Which merchandise presentation technique is characterized by placing large quantities of small items in bins?
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How does proper lighting design impact store sales?
How does proper lighting design impact store sales?
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Which visual merchandising technique provides an image of high volume and low price through the stacking of hardline merchandise?
Which visual merchandising technique provides an image of high volume and low price through the stacking of hardline merchandise?
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What is an essential guideline for selecting fixtures within a retail environment?
What is an essential guideline for selecting fixtures within a retail environment?
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What aspect is crucial for maintaining a visually appealing display that attracts customer attention?
What aspect is crucial for maintaining a visually appealing display that attracts customer attention?
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Which layout is most likely to utilize vertical color blocking as a merchandising technique?
Which layout is most likely to utilize vertical color blocking as a merchandising technique?
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In visual merchandising, what is intended by presenting merchandise in a high-fashion image?
In visual merchandising, what is intended by presenting merchandise in a high-fashion image?
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What psychological factor should be prioritized when planning merchandise presentations?
What psychological factor should be prioritized when planning merchandise presentations?
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What is a characteristic of a Free-flow Layout in merchandising?
What is a characteristic of a Free-flow Layout in merchandising?
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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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