Store Layout and Design PDF

Chapter 13 Store Layout and Design  Learning Objectives List the elements of a store’s environment and define its two primary objectives. Discuss the steps involved in planning the store. Descr...

Chapter 13 Store Layout and Design  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 types of fixtures, merchandise presentation methods and techniques, and the psychology of merchandise presentation are used to increase the productivity of the sales floor. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Learning Objectives Describe why store design is so important to a store’s success. Explain the role of visual communications in a retail store. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Introduction to Store Layout Management Elements of the store environment Objectives of the store environment © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 1  Exhibit 13.1 - Elements That Compose the Store Environment © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 1  Introduction to Store Layout Management Objectives of the store environment – Developing a store image – Increasing space productivity © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 1  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. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 1  Store Planning Microretailing - Occurs when a chain store retailer operating over a wide geographic area, usually nationally, tailors its merchandise and services in each store to the needs of the immediate trading area. Stack-outs - Pallets of merchandise set out on the floor in front of the main shelves. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2  Store Planning Allocating space – Types of space needed Back room Offices and other functional spaces Aisles, service areas, and other nonselling areas Floor merchandise space Wall merchandise space – Space allocation planning Circulation Shrinkage prevention © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2  Store Planning Space allocation planning – Improving space productivity in existing stores Space productivity index - A ratio that compares the percentage of the store’s total gross margin that a particular merchandise category generates to its percentage of total store selling space used. – Space allocations for a new store – Planograms - A schematic that illustrates how and where a retailer’s merchandise should be displayed on the shelf in order to increase customer purchases. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2  Store Planning Circulation – Free-flow layout – Grid layout – Loop layout – Spine layout © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2  Store Planning Free-flow layout Fixtures and merchandise are grouped into free-flowing patterns on the sales floor. Grid layout The counters and fixtures are placed in long rows or ‘‘runs,’’ usually at right angles, throughout the store. Loop layout A major customer aisle begins at the entrance, loops through the store—usually in the shape of a circle, square, or rectangle—and then returns the customer to the front of the store. Spine layout A single main aisle runs from the front to the back of the store, transporting customers in both directions, and where on either side of this spine, merchandise departments using either a free- flow or grid pattern branch off toward the back side walls. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2  Exhibit 13.4 - Free-Flow Layout © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2  Exhibit 13.5 - Grid Layout © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2  Exhibit 13.6 - Loop Layout © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2  Exhibit 13.7 - Spine Layout © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2 © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Planning Fixtures and Merchandise Presentation On-shelf merchandising - Display of merchandise on counters, racks, shelves, and fixtures throughout the store. – It must present and display the merchandise attractively so that it is easy to understand and access. – It must be reasonably easy to maintain. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Planning Fixtures and Merchandise Presentation Fixture types Merchandise-presentation planning Selecting fixtures and merchandise- presentation methods Visual merchandising © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Fixture Types Hardlines fixtures Softlines fixtures – Bulk or capacity fixture - Display fixture that is intended to hold the bulk of merchandise without looking as heavy as a long, straight rack of merchandise. – Feature fixture - Display that draws special attention to selected features (e.g., color, shape, or style) of merchandise. Wall fixtures © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Exhibit 13.8 - Four-Way Feature Rack and Round Rack © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Merchandise Presentation Planning Shelving Hanging Pegging Folding Stacking Dumping © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Shelving - The majority of merchandise is placed on shelves that are inserted into gondolas or wall systems. Shelving is a flexible, easy to maintain merchandising method. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Hanging - Apparel on hangers can be hung from softlines fixtures such as round racks and four way racks, or from bars installed on gondolas or wall systems. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Pegging - Small merchandise can be hung from peg hooks, which are small rods inserted into gondolas or wall systems. Used in both softlines and hardlines, pegging gives a neat, orderly appearance, but can be labor intensive to display and maintain. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Folding - Higher margin or large, unwieldy softlines merchandise can be folded and then stacked onto shelves or placed on tables. This can create a high fashion image, such as when bath towels are taken off peg hooks and neatly folded and stacked high up the wall. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Stacking - Large hardline merchandise can be stacked on shelves, the base decks of gondolas, or “flats,” which are platforms placed directly on the floor. Stacking is easily maintained and gives an image of high volume and low price. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Dumping - Large quantities of small merchandise can be dumped in bins or baskets inserted into gondolas or wall systems. This method can be used in softlines (socks, wash cloths) or hardlines (batteries, candy), and creates a high volume, low cost image. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Merchandise Presentation Planning Key psychological factors to consider when merchandising stores: – Value/fashion image – Angles and sightlines – Vertical color blocking © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Exhibit 13.9 - 45-Degree Customer Sightline © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Exhibit 13.10 - Vertical Color Blocking © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Selecting Fixtures and Merchandise- Presentation Methods Proper fixtures emphasize the key selling attributes of merchandise while not being overpowering. A good guideline for selecting fixtures is to match the fixture to the merchandise, not the merchandise to the fixture. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Visual Merchandising The artistic display of merchandise and theatrical props used as scene-setting decoration in the store. – Visual displays are located in a focal point, feature area, or other area remote from the on- shelf merchandising and perhaps even out of reach of the customer. – Visuals should incorporate relevant merchandise. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3  Store Design Storefront design – The storefront must clearly identify the name and general nature of the store and give some hint as to the merchandise inside. – It includes all exterior signage and the architecture of the storefront itself. Interior design – The finishes applied to surfaces – The architectural shapes © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 4  Store Design Lighting design – Lighting greatly enhances store sales. – Contemporary lighting design requires an in-depth knowledge of electrical engineering and the effect of light on color and texture. Sounds and smells: total sensory marketing – Effective store design appeals to the human senses of sight, hearing, smell, and touch. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 4  Visual Communications Name, logo, and retail identity – Must be catchy, memorable, and reflective of the retailer’s merchandising mission. Institutional signage – Describes the merchandising mission, customer service policies, and other messages on behalf of the retail institution. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 5  Visual Communications Directional, departmental, and category signage – Directional and departmental signage are usually large and placed fairly high, so they can be seen throughout the store. – Category signage is usually smaller and is intended to be seen from a shorter distance; they are located on or close to the fixture itself where the merchandise is displayed. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 5  Visual Communications Point-of-sale signage (POS) - A relatively small signage placed very close to the merchandise, and intended to give details about specific items. – The most important function is to clearly state the price of the merchandise being signed. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 5  Visual Communications Lifestyle graphics – Lifestyle images portray either the merchandise, often as it is being used, or simply images of related items or models that convey an image conducive to buying the product. – Lifestyle photography must be kept very general so as to be attractive to the majority and offensive to none. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 5