Podcast
Questions and Answers
The primary objectives of a store environment are to develop a store image and increase space productivity.
The primary objectives of a store environment are to develop a store image and increase space productivity.
True
A well-designed store layout does not impact customer circulation through the store.
A well-designed store layout does not impact customer circulation through the store.
False
Visual communications play a crucial role in attracting customers to a retail store.
Visual communications play a crucial role in attracting customers to a retail store.
True
A floor plan is only about aesthetics and has no functional implications.
A floor plan is only about aesthetics and has no functional implications.
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The psychology of merchandise presentation is irrelevant to a store's sales productivity.
The psychology of merchandise presentation is irrelevant to a store's sales productivity.
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Microretailing involves a retailer operating over a narrow geographic area.
Microretailing involves a retailer operating over a narrow geographic area.
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Store layout management includes understanding how customers circulate through the store.
Store layout management includes understanding how customers circulate through the store.
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Merchandise presentation techniques do not influence the customer's shopping behavior.
Merchandise presentation techniques do not influence the customer's shopping behavior.
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Stack-outs refer to pallets of merchandise displayed in front of the main shelves.
Stack-outs refer to pallets of merchandise displayed in front of the main shelves.
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Space allocation planning only focuses on selling areas within a store.
Space allocation planning only focuses on selling areas within a store.
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The elements that compose the store environment include only physical features and not customer experience aspects.
The elements that compose the store environment include only physical features and not customer experience aspects.
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A Space Productivity Index compares a merchandise category's gross margin to its selling space used.
A Space Productivity Index compares a merchandise category's gross margin to its selling space used.
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Planograms are used to outline how merchandise should be displayed on the shelf.
Planograms are used to outline how merchandise should be displayed on the shelf.
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Circulation is unrelated to space allocation in store planning.
Circulation is unrelated to space allocation in store planning.
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Shrinkage prevention is a secondary consideration in store planning.
Shrinkage prevention is a secondary consideration in store planning.
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Allocating functional spaces does not include areas like offices and back rooms.
Allocating functional spaces does not include areas like offices and back rooms.
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A free-flow layout groups fixtures and merchandise into rigid patterns on the sales floor.
A free-flow layout groups fixtures and merchandise into rigid patterns on the sales floor.
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In a grid layout, counters and fixtures are typically arranged at right angles throughout the store.
In a grid layout, counters and fixtures are typically arranged at right angles throughout the store.
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A loop layout involves a major customer aisle that provides a direct path from the entrance to the back of the store without returning to the front.
A loop layout involves a major customer aisle that provides a direct path from the entrance to the back of the store without returning to the front.
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The spine layout features a single main aisle that transports customers in one direction only.
The spine layout features a single main aisle that transports customers in one direction only.
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The major feature of a loop layout is that it can take the shape of a circle, square, or rectangle.
The major feature of a loop layout is that it can take the shape of a circle, square, or rectangle.
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In a free-flow layout, the arrangement of merchandise is strictly linear.
In a free-flow layout, the arrangement of merchandise is strictly linear.
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Grid layouts are primarily designed to create a relaxed shopping atmosphere.
Grid layouts are primarily designed to create a relaxed shopping atmosphere.
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Spine layouts only allow for either a free-flow or a grid pattern, but not both.
Spine layouts only allow for either a free-flow or a grid pattern, but not both.
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On-shelf merchandising requires that merchandise be displayed attractively and be easy to access.
On-shelf merchandising requires that merchandise be displayed attractively and be easy to access.
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Hardlines fixtures are designed solely for apparel and clothing items.
Hardlines fixtures are designed solely for apparel and clothing items.
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A feature fixture is meant to draw attention to specific characteristics of merchandise.
A feature fixture is meant to draw attention to specific characteristics of merchandise.
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Bulk fixtures are generally perceived as heavy and cumbersome in display.
Bulk fixtures are generally perceived as heavy and cumbersome in display.
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Visual merchandising is not a consideration when selecting fixtures.
Visual merchandising is not a consideration when selecting fixtures.
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Fixtures used in merchandise presentation must be difficult to maintain.
Fixtures used in merchandise presentation must be difficult to maintain.
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Wall fixtures are a type of display fixture used in stores.
Wall fixtures are a type of display fixture used in stores.
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Merchandise presentation does not involve planning how products are displayed on counters or shelves.
Merchandise presentation does not involve planning how products are displayed on counters or shelves.
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Folding merchandise can help create a high fashion image.
Folding merchandise can help create a high fashion image.
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Stacking large hardline merchandise on shelves gives an image of high volume and high price.
Stacking large hardline merchandise on shelves gives an image of high volume and high price.
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Dumping small merchandise in bins creates a low volume, high cost image.
Dumping small merchandise in bins creates a low volume, high cost image.
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Key psychological factors in merchandising include angles and sightlines.
Key psychological factors in merchandising include angles and sightlines.
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Vertical color blocking is unrelated to merchandise presentation.
Vertical color blocking is unrelated to merchandise presentation.
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Softlines merchandise includes items like batteries and candy.
Softlines merchandise includes items like batteries and candy.
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Merchandise presentation planning does not involve considering the value/fashion image.
Merchandise presentation planning does not involve considering the value/fashion image.
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Peg hooks are primarily used for displaying hardline merchandise only.
Peg hooks are primarily used for displaying hardline merchandise only.
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Directional signage is usually small and placed near the merchandise displays.
Directional signage is usually small and placed near the merchandise displays.
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Point-of-sale signage primarily focuses on displaying the price of merchandise.
Point-of-sale signage primarily focuses on displaying the price of merchandise.
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Lifestyle graphics must appeal to a specific demographic to be effective.
Lifestyle graphics must appeal to a specific demographic to be effective.
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Category signage is intended to be seen from a longer distance than departmental signage.
Category signage is intended to be seen from a longer distance than departmental signage.
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The name, logo, and retail identity must reflect the retailer’s merchandising mission.
The name, logo, and retail identity must reflect the retailer’s merchandising mission.
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Institutional signage describes customer service policies and the store's merchandising mission.
Institutional signage describes customer service policies and the store's merchandising mission.
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All signage types in retail serve the same purpose regardless of their placement or size.
All signage types in retail serve the same purpose regardless of their placement or size.
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Departmental signage is placed low to the ground to enhance visibility.
Departmental signage is placed low to the ground to enhance visibility.
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Study Notes
Learning Objectives
- List elements of a store's environment and define its primary objectives.
- Discuss steps involved in planning a 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 important for a store's success.
- Explain the role of visual communications in a retail store.
Introduction to Store Layout Management
- Elements of the store environment
- Objectives of the store environment (developing a store image, 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)
Objectives of the Store Environment
- Developing a store image
- Increasing space productivity
Store Planning
- Floor plan: A schematic showing merchandise and customer service locations, customer circulation, and space allocation for each department.
- Microretailing: A chain retailer tailoring merchandise and services to the needs of the immediate trading area.
- Stack-outs: Pallets of merchandise displayed 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 (space productivity index), space allocations for a new store (planograms).
- Circulation: Free-flow layout, grid layout, loop layout, spine layout.
Store Planning Details
- Free-flow layout: Fixtures and merchandise grouped into free-flowing patterns.
- Grid layout: Counters and fixtures are arranged in long rows at right angles.
- Loop layout: A major customer aisle loops through the store, returning customers to the front.
- Spine layout: A main aisle runs from front to back, with merchandise departments branching off either side.
Planning Fixtures and Merchandise Presentation
- On-shelf merchandising: Displaying merchandise on counters, racks, shelves, and fixtures. (Attractive presentation, easy understanding, reasonable maintenance)
Fixture Types
- Hardlines fixtures: Hardware fixtures (often expensive).
- Softlines fixtures: Clothing fixtures.
- Bulk or capacity fixture: A display fixture for holding large amounts of merchandise without looking bulky.
- Feature fixture: A display emphasizing specific features of merchandise (color, shape, style).
- Wall fixtures
Merchandise Presentation Planning
- Shelving: Placing merchandise on shelves in gondolas or wall systems (flexible, easily maintained).
- Hanging: Apparel hung from softline fixtures like round racks or four-way racks.
- Pegging: Hanging small merchandise from peg hooks (neat, orderly, labor-intensive).
- Folding: Folding and stacking softlines items (creates high fashion image).
- Stacking: Stacking large hardline items on shelves (gives a high volume, low-price impression).
- Dumping: Large quantities of small items placed in bins (high volume, low cost).
Merchandise Presentation Planning- Psychological factors
- Value/fashion image
- Angles and sightlines
- Vertical color blocking
Selecting Fixtures and Merchandise-Presentation Methods
- Proper fixtures emphasize key selling attributes without overpowering.
- Match the fixture to the merchandise, not the other way around.
Visual Merchandising
- Artistic and theatrical display of merchandise as decor.
- Visual displays located centrally or remotely to the on-shelf merchandise.
- Incorporate relevant merchandise into the visuals.
Store Design
- Storefront design: Clearly identifies store name and nature, includes exterior signage and storefront architecture.
- Interior design: Finishes (materials) and architectural shapes.
- Lighting design: Enhances sales (contemporary lighting requires electrical engineering knowledge).
- Sounds and smells: Total sensory marketing—appeals to human senses (sight, hearing, smell, touch).
Visual Communications
- Name, logo, and retail identity: Catchy, memorable, reflective of retailer's mission.
- Institutional signage: Describes merchandising mission, customer service policies.
- Directional, departmental, and category signage: Large for thorough visibility. Smaller category signage is close to merchandise.
- Point-of-sale (POS) signage: Relatively small, displays item price.
- Lifestyle graphics: Images for merchandise use cases, general and non-offensive representations.
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Description
Test your knowledge on the critical components of retail store environments, including store layout, merchandise presentation, and customer circulation. This quiz will explore how various factors impact store image and sales productivity. See how well you understand the psychology behind shopping behavior.
