Retail Space Planning Quiz

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Questions and Answers

What is microretailing?

A practice of customizing merchandise to meet local consumer needs. (correct)

A strategy where retailers standardize merchandise in all locations.

A method of increasing overall store size to boost sales.

A form of online retailing that targets national markets.

Which of the following is NOT a type of space needed for store planning?

Online sales space (correct)

Floor merchandise space

Aisles and service areas

Back room and offices

What does the space productivity index measure?

The comparison between customer foot traffic and merchandise display area.

The ratio of gross margin generated by a category to its selling space. (correct)

The percentage of stock that is unsold at the end of the season.

The ratio of a store's total sales to its operating expenses.

What is a planogram used for?

To illustrate the ideal layout and display of merchandise on shelves. Signup and view all the answers

Which area is primarily focused on circulation in a store?

The aisles and pathways customers navigate through. Signup and view all the answers

What is the purpose of allocating space in retail planning?

To provide effective areas for different functions such as selling or storage. Signup and view all the answers

What do stack-outs refer to in a retail environment?

Pallets of merchandise positioned in front of main shelves. Signup and view all the answers

Which of these factors is important for shrinkage prevention?

Implementing security measures and inventory controls. Signup and view all the answers

What is a key feature of shelving as a merchandising method?

It allows for easy maintenance and flexibility. Signup and view all the answers

Which merchandising method involves using small rods to display items?

Pegging Signup and view all the answers

What does the term 'dumping' in merchandise presentation refer to?

Displaying items in a haphazard manner. Signup and view all the answers

Which type of fixtures is commonly used for hanging apparel?

Round racks and four-way racks Signup and view all the answers

What is a disadvantage of pegging as a merchandising method?

It can be labor-intensive to display and maintain. Signup and view all the answers

For which item type is shelving most commonly employed?

Clothing and accessories Signup and view all the answers

Which of the following is NOT a method of merchandise presentation mentioned?

Grouping Signup and view all the answers

What is the primary benefit of using hanging as a presentation method?

It can showcase items effectively and save space. Signup and view all the answers

What is the primary goal of on-shelf merchandising?

To present merchandise attractively and accessibly Signup and view all the answers

Which type of fixture is intended to hold a large amount of merchandise while maintaining an appealing appearance?

Bulk or capacity fixture Signup and view all the answers

What characteristic distinguishes a feature fixture from other types of fixtures?

It highlights specific features of merchandise such as color or style. Signup and view all the answers

What is one requirement for effective merchandise presentation?

It must be reasonably easy to maintain. Signup and view all the answers

What is a common feature of hardlines fixtures?

They often support heavier merchandise. Signup and view all the answers

Which of the following best describes visual merchandising?

It encompasses presentation methods for displaying merchandise attractively. Signup and view all the answers

Which of the following is a characteristic of softlines fixtures?

They primarily showcase textiles and clothing. Signup and view all the answers

What is a key consideration when selecting fixtures for merchandise presentation?

Balancing aesthetic appeal with functionality Signup and view all the answers

What merchandising method is best for creating a high fashion image?

Folding Signup and view all the answers

Which presentation method conveys a sense of high volume and low price?

Dumping Signup and view all the answers

Which factor is NOT mentioned as a psychological consideration for merchandising?

Customer engagement Signup and view all the answers

What is the primary use of vertical color blocking in merchandising?

To enhance sightlines Signup and view all the answers

Where is stacking typically used for hardline merchandise?

On shelves and gondolas Signup and view all the answers

What merchandise type is primarily associated with the dumping method?

Both softlines and hardlines Signup and view all the answers

How can the method of stacking affect the perception of merchandise?

It communicates a low price point Signup and view all the answers

What is a disadvantage of using the dumping method?

Creates a cluttered appearance Signup and view all the answers

What is the primary characteristic of a retailer's name, logo, and retail identity?

It should be catchy, memorable, and reflect the merchandising mission. Signup and view all the answers

Which type of signage provides information about the store's merchandising mission and customer service policies?

Institutional signage Signup and view all the answers

Where is category signage typically located in a retail environment?

On or close to the product fixtures Signup and view all the answers

What is the main purpose of point-of-sale (POS) signage?

To clearly state the price of the merchandise Signup and view all the answers

What is a key aspect of lifestyle graphics in visual merchandising?

They must be general to appeal to a wide audience and avoid offense. Signup and view all the answers

How are directional and departmental signage typically positioned within a store?

High and large for visibility across the store Signup and view all the answers

What is the common size characteristic of category signage compared to directional signage?

Smaller and meant for closer viewing Signup and view all the answers

Which of the following best describes the role of lifestyle photography in retail?

To illustrate the product in its intended use or related scenarios Signup and view all the answers

What is the primary guideline for selecting fixtures in a store?

To match the fixture to the merchandise Signup and view all the answers

What is a key characteristic of visual merchandising?

It should incorporate relevant merchandise into the displays. Signup and view all the answers

What is an essential aspect of storefront design?

It should clearly identify the store's name and nature. Signup and view all the answers

Why is lighting design significant in store design?

It enhances store sales and affects the perception of color and texture. Signup and view all the answers

Which sensory aspect is involved in total sensory marketing?

Sight, sound, smell, and touch. Signup and view all the answers

What is a consequence of poorly designed fixtures?

Diminished visual appeal that can obscure merchandise attributes. Signup and view all the answers

Which element is NOT typically considered in effective store design?

The color of merchandise tags Signup and view all the answers

How should merchandise be presented according to proper fixture selection?

Fixtures must highlight key attributes of merchandise. Signup and view all the answers

Study Notes

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 fixtures, merchandise presentation methods, and techniques, and the psychology of merchandise presentation are used to increase sales floor productivity.
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: This includes visual communications (retail identity, graphics, point-of-sale signage), store planning (space allocation, layout, circulation), store image and productivity, store design (exterior design, ambience, lighting), and merchandising (fixture selection, merchandise presentation, visual merchandising).
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 and increasing space productivity.

Store Planning

Floor plan: 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.
Microretailing: Occurs when a chain store retailer tailors its merchandise and services to the needs of the immediate trading area.
Stack-outs: Pallets of merchandise are set out on the floor in front of main shelves.
Allocating space: Types of space needed (back room, offices, service areas, aisles, floor merchandise space, wall merchandise space); space allocation planning, circulation, shrinkage prevention.
Space allocation planning: Improving space productivity in existing stores using the space productivity index (a ratio comparing the percentage of store gross margin generated by a merchandise category to the percentage of store selling space used by that category), space allocations for a new store.
Planograms: Schematic illustrating how and where a retailer's merchandise should be displayed to increase customer purchases.
Circulation: Includes free-flow, grid, loop, and spine layouts.
Free-flow layout: Fixtures and merchandise grouped into free-flowing patterns on the sales floor.
Grid layout: Counters and fixtures arranged in long rows ("runs") at right angles.
Loop layout: Major customer aisle starts at the entrance, loops through the store (often circular, square, or rectangular), then returns customers to the front.
Spine layout: A single main aisle runs from the front to back of the store, with departments branching off to either side, possibly using free-flow or grid patterns.

Planning Fixtures and Merchandise Presentation

On-shelf merchandising: Display of merchandise on counters, racks, shelves, and fixtures throughout the store. Merchandise presentation must be attractive, easy to understand and access, and reasonably easy to maintain.
Fixture types: Hardlines (e.g., hardware), often expensive, softlines (e.g., clothing), bulk or capacity fixtures intended to display bulk without a heavy appearance, feature fixtures drawing attention to product aspects (color, shape, style), wall fixtures.
Merchandise presentation planning: Different methods such as Shelving, Hanging, Pegging, Folding, Stacking, Dumping.
Shelving: The majority of merchandise placed on shelves in gondolas or wall systems, which is flexible and easy to maintain.
Hanging: Apparel hung on hangers from softlines fixtures (e.g., round racks, four-way racks, or bars installed on gondolas or wall systems.)
Pegging: Small merchandise can be hung from peg Hooks inserted into gondolas or wall systems; offers a neat, orderly presentation, although labor intensive.
Folding: Can be used for higher-margin softlines and large merchandise, which can be folded and stacked onto shelves or placed on tables to create a high-fashion image.
Stacking: Large hardline merchandise can be stacked on shelves, base decks of gondolas, or platforms (flats) directly on the floor; this offers a high-volume, low-price image.
Dumping: Large quantities of small merchandise are dumped in bins or baskets inserted into gondolas or wall systems, suitable for softlines (e.g., socks, washcloths) or hardlines (e.g., batteries, candy); creates a high-volume, low-cost image.
Key psychological factors: Value/fashion image, angles and sightlines, vertical color blocking.

Store Design

Storefront design: Must clearly identify store name and nature; includes exterior signage and storefront architecture.
Interior design: Surface finishes (materials used) and architectural shapes.
Lighting design: Lighting greatly enhances store sales; requires in-depth knowledge of electrical engineering and how light affects color and texture.
Sounds and smells: Store design should appeal to all human senses for total sensory marketing.

Visual Communications

Name, logo, and retail identity: Must be catchy, memorable, and reflective of the retailer's mission.
Institutional signage: Describes merchandising mission, customer service policies, and other retailer messages.
Directional, departmental, and category signage: Large for easy visibility; category signage is smaller, placed near the merchandise.
Point-of-sale signage (POS): Relatively small signage placed near merchandise to clearly state prices.
Lifestyle graphics: Lifestyle images often display merchandise in use or with related items to convey a buying image. Photography should be generally attractive, avoiding offense to any group.

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Description

Test your knowledge on retail space planning concepts and merchandising methods. This quiz covers various aspects such as store planning, product display techniques, and space allocation in retail environments. Answer questions about key terms and practices that are vital for effective retail management.