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  1. 1. Store Layout, Design and Visual Merchandising - Principles & Optimization
  2. 2. Store Design, Layout, Visual Merchandising • Opportunity for competitive advantage and increased sales • Store as a “good story” – a beginning, middle, end Entrance sets up the story – creates expectations, contains promises, entices, hints, teases o Inside the store is the middle of the story o  should start slow (uncluttered) to allow consumers to orient themselves  should lead customers on a journey of discovery, using layout, lighting, visuals, other atmospherics o Checkout area is the store’s climactic ending
  3. 3. Five Major Store Design Objectives • • • • Consistent with retailer’s image, positioning, strategy Positive influence on purchase behavior Cost effective – space productivity Sales-per-square-foot (most common, racetrack and boutique layout) o Sales-per-linear-foot (e.g., supermarkets, drug stores, etc. with long gondolas in grid layout) o Sales-per-cubic-foot (e.g., wholesale clubs with multiple layers of merchandise) • Flexible
  4. 4. Tradeoffs in Store Design • Ease of locating merchandise for planned purchases • Aesthetics, space to shop comfortably • Relaxed environment • Exploration of store, impulse purchases • Productivity of space • Energy, excitement
  5. 5. Grid Layout
  6. 6. Grid Layout • Linear design, checkerboard pattern. • Vertical and horizontal aisles o May have one main aisle and many secondary aisles. • Efficient use of space • Simple and predictable to navigate • Focal points at aisle ends
  7. 7. Racetrack Layout Major and minor loops with multiple entrances & multiple sight lines, draws shopper around the store, encourages exploration, impulse buying Location of departments) men’s vs. women’s impulse goods – near entrances, to the right, escalators, point-of-sale demand/destination – upper floors, back corners; complementary – adjacent Display areas) – bulk-of-stock + feature areas (walls, promotional areas, point- of-sale areas, feature fixtures, windows) Fixtures– feature fixtures – four-way, free-standing/mannequins, glass cases + gondolas, rounders & straight racks for bulk-of-stock & sale merchandise
  8. 8. Free-Form (Boutique) Layout Storage, Receiving, Marking Storage, Receiving, Marking Tops Accessories ual Wear Stockings Pants + Aesthetically pleasing, relaxing, asymmetrical, invites browsing - Less efficient, more costly, more sales assistance needed, more theft Checkout Skirts and Dresses Hats and Tops Clearance Items Feature Fixtures • Bulk-of-stock Handbags- straight racks, gondolas, rounders (very flexible) • Feature – glass cases, 4-way, freestanding, custom-built fixtures Feature areas Windows, walls, feature fixtures, point-of-sale
  9. 9. Free-Flow Layouts • Opposite of grid layout. • Ease of customer movement. o Must provide enough room between fixtures. • Fixtures arranged in interesting formations o Encourages browsing.
  10. 10. Space Planning Considerations • High traffic & highly visible areas o Entrances, escalators, check-out area, end aisles, feature areas • Profitability of merchandise o Private brand, higher margin categories • Customer buying considerations o o Impulse products near front Demand/destination areas in back, off the beaten path • Physical characteristics of product o Bulky vs. small/easily stolen • Complementary products should be adjacent • Sales rate o Display more units of fast-selling merchandise (tonnage merchandising
  11. 11. Atmospherics attention, Inform; draw Signs highlight merchandise, dramatize, decorate Lighting Color Warm versus cool colors – attract/ hurry vs. relax; value vs. prestige Store Atmosphere Pop merchandise, set a mood, downplay unsightly areas, show accurate color Music Scent Most direct effect on emotions and memory Easily changed - match demographics, influence shopping mood & crowd control
  12. 12. Location of Merchandise Planograms (map – photos, drawings, computer generated) • • • vertical merchandising - eye movement - left to right & down high margin merchandise - 15% below horizontal (51” - 53” & 56” 58”) not alphabetical, “flank” new & private label with popular national brands
  13. 13. Visual Merchandising is: • Showing merchandise with the end purpose of making a sale. • Presenting an image of who/what the shopper can be when using the merchandise displayed. • Making the shopper a “stopper” and a walk-in rather than a walk -by. • Keeping the interior presentation the same as what is promised on the outside/in the window. • A combination of skills including creativity, order, artistic knowledge and understanding of store design.
  14. 14. Design Elements • Color • Texture • Line