13 store layout & design new

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13 store layout & design new

  1. 1. 1Chapter 13Store Layout and DesignChapter 13Store Layout and DesignStore ImageStore Imageis the overall perception the consumeris the overall perception the consumerhas of the store’s environment.has of the store’s environment.Store ImageStore ImageElements That ComposeElements That Composethe Store Environmentthe Store EnvironmentObjectives of the StoreObjectives of the StoreEnvironmentEnvironmentTasks to create desired store image andTasks to create desired store image andincrease productivity:increase productivity:1. Get customers into the store (market image).1. Get customers into the store (market image).2. Convert them into customers buying2. Convert them into customers buyingmerchandise once inside the store (spacemerchandise once inside the store (spaceproductivity).productivity).3. Do this in the most efficient manner possible.3. Do this in the most efficient manner possible.Store PlanningStore Planning1. Allocating Space1. Allocating Space2. Circulation2. Circulation3. Shrinkage Prevention3. Shrinkage PreventionStore PlanningStore PlanningFloorplanFloorplanis a schematic that shows whereis a schematic that shows wheremerchandise and customer servicemerchandise and customer servicedepartments are located, howdepartments are located, howcustomers circulate through the store,customers circulate through the store,and how much space is dedicated toand how much space is dedicated toeach department.each department.
  2. 2. 2Allocating SpaceAllocating SpaceTypes of space needed:Types of space needed:1. Back room1. Back room2. Office and other functional spaces2. Office and other functional spaces3. Aisles, services areas, and other3. Aisles, services areas, and other nonsellingnonsellingareas of the main sales floorareas of the main sales floor4. Wall merchandise space4. Wall merchandise space5. Floor merchandise space5. Floor merchandise spaceThese Warning Signs MayThese Warning Signs MayIndicate a Space ProblemIndicate a Space ProblemCirculationCirculationFree Flow LayoutFree Flow LayoutFree FlowAdvantages and DisadvantagesAdvantages and Disadvantagesof Free Flow Layoutof Free Flow LayoutAdvantages1. Allowance for browsingand wandering freely2. Increased impulse purchases3. Visual appeal4. FlexibilityRetailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Free FlowDisadvantages1. Loitering encouraged2. Possible confusion3. Waste of floor space4. Cost5. Difficulty of cleaningRetailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Advantages and DisadvantagesAdvantages and Disadvantagesof Free Flow Layoutof Free Flow LayoutThe Disney Store’s effective useThe Disney Store’s effective useof the Freeof the Free--Flow DesignFlow DesignApproximately 250 million consumers visit Disney’sentertainment retail outlets each year. New storedesigns showcase merchandise in an engaging andcontemporary fashion, keeping pace with evolvingretail trends. Technological elements - including afront-of-store media wallthat engages guests withDisney programming,and interactive kiosks -setting the stage forthe Disney Store in the21st century.
  3. 3. 3Advantages1. Low cost2. Customer familiarity3. Merchandise exposure4. Ease of cleaning5. Simplified security6. Possibility of self-serviceGridRetailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Advantages and Disadvantages ofAdvantages and Disadvantages ofGrid LayoutsGrid LayoutsDisadvantages1. Plain and uninteresting2. Limited browsing3. Stimulation of rushedshopping behavior4. Limited creativity indecorGridRetailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Advantages and Disadvantages ofAdvantages and Disadvantages ofGrid LayoutsGrid LayoutsCirculationCirculationLoop LayoutLoop LayoutCirculationCirculationSpine LayoutSpine LayoutFloorplanFloorplan::Clarence Sander’sClarence Sander’s PigglyPiggly WigglyWigglyFloorplanFloorplan::Kohl’sKohl’s
  4. 4. 4hhIt costs over $20 million to build a newIt costs over $20 million to build a newdepartment store and $7 to $10 million fordepartment store and $7 to $10 million fora redo.a redo.hhAn Office Depot has over 1,700 linearAn Office Depot has over 1,700 linearfeet of fixtures. A 100,000feet of fixtures. A 100,000--squaresquare--footfootBurdines Department Store has aboutBurdines Department Store has about1,000 fixtures, half are for hanging1,000 fixtures, half are for hangingapparel.apparel.Planning Fixtures andPlanning Fixtures andMerchandise PresentationMerchandise Presentation1. Fixture Types1. Fixture Types2. Merchandise Presentation Planning2. Merchandise Presentation Planning3. Selecting Fixtures and Merchandise3. Selecting Fixtures and MerchandisePresentation MethodsPresentation Methods4. Visual Merchandising4. Visual MerchandisingMerchandise Presentation PlanningMerchandise Presentation PlanningMethods of Merchandise PresentationMethods of Merchandise Presentation1. Shelving1. Shelving2. Hanging2. Hanging3. Pegging3. Pegging4. Folding4. Folding5. Stacking5. Stacking6. Dumping6. DumpingMerchandise Presentation PlanningMerchandise Presentation PlanningPsychological Factors to Consider WhenPsychological Factors to Consider WhenMerchandising StoresMerchandising Stores1. Value/fashion image1. Value/fashion image2. Angles and sightlines2. Angles and sightlines3. Vertical color blocking3. Vertical color blocking4545--Degree Customer SightlineDegree Customer Sightline Vertical Color BlockingVertical Color Blocking
  5. 5. 5Examples of Visual MerchandisingExamples of Visual Merchandising“Visual Merchandising”, the art ofattracting patrons with visual cues, is central to aretailer’s ability to generate sales. VisualMerchandising got its start at the turn of thecentury, when department stores began usingtheatrical set design and lighting to create exoticdisplays. Today, the way the departments arearranged, the location of the escalators, thelighting--all are carefully planned to earn thestore more sales per square foot.Retailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Here’s sampling of the techniques stores use togenerate those sales:Retailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Get’m coming andgoing. Escalators area focal point of manystores. That makesthem ideal locationsfor promotional signsand for impulse itemslike perfume.Examples of Visual MerchandisingExamples of Visual MerchandisingLead them to temptation.Department-store designincorporates a gauntlet ofgoodies to stimulate impulsebuys. Cosmetics, a store’smost profitable department,should always be at the mainentrance to the store.Retailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Examples of Visual MerchandisingExamples of Visual MerchandisingIts all in the display. When anitem, such as a watch or a scarf,is displayed in a glass case, itimplies luxury. An item in a glasscase with a lot of space around itimplies real luxury.Retailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Examples of Visual MerchandisingExamples of Visual MerchandisingRetailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.“Bazaar? Behavior”. Even “high fashion”stores aren’t above using the “dumping”method to display gloves, leather goods,scarves, and other small items the sameway bargain stores do. These bins have away of suggesting a “good buy.”Examples of Visual MerchandisingExamples of Visual MerchandisingColor is king.Retailers believeconsumers are moreapt to buy clothes thatappear in full size andcolor assortments.Retailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Examples of Visual MerchandisingExamples of Visual Merchandising
  6. 6. 6Retailing, 3rd Edition, Dunne and Lusch Copyright © 1999 by Harcourt Brace & CompanyAll rights reserved.Suggestion positioning. Once thecustomer has already purchasedone item, it’s easier to sell anadditional item. Thus apparelretailers strategically placeimpulse buys like hair bows andcostume jewelry by the cashierthe same way supermarketcheckouts display candy andmagazines.Examples of Visual MerchandisingExamples of Visual Merchandising Store Layout ConsiderationsStore Layout Considerationshh High margin items should be placed in high trafficHigh margin items should be placed in high trafficareas.areas.hh High demand items should be placed in low trafficHigh demand items should be placed in low trafficareas.areas.hh Complementary items should be placed near each other.Complementary items should be placed near each other.hh Seasonal needs should be considered.Seasonal needs should be considered.hh Items needing frequent restocking should be placed nearItems needing frequent restocking should be placed nearstorerooms or cash registers.storerooms or cash registers.hh Larger departments should be placed in lower trafficLarger departments should be placed in lower trafficareas.areas.hh Shopping behavior and operational considerationsShopping behavior and operational considerationsshould be recognized.should be recognized.Store DesignStore Design1. Storefront Design1. Storefront Design2. Interior Design2. Interior Design3. Lighting Design3. Lighting Design4. Sounds and Smells: Total Sensory4. Sounds and Smells: Total SensoryMarketingMarketingInterior DesignInterior DesignThe low cost, no frills flooring combinedwith the low cost metal shelving help toconvey the low price image in thisdiscount retail display for Barbie.Signs and LightingSigns and LightinghhSigns and graphics provide informationSigns and graphics provide informationand can add personality, beauty, andand can add personality, beauty, andromance to a store’s imageromance to a store’s imagehhGood lighting should do more thanGood lighting should do more thanilluminate space. It can highlightilluminate space. It can highlightmerchandise, sculpt space, and capture amerchandise, sculpt space, and capture amood that enhances a store’s image.mood that enhances a store’s image.•• PoppingPopping the Merchandisethe MerchandisehhA typical 100,000 sq.ft. department storeA typical 100,000 sq.ft. department storehas over 1000 light fixtures.has over 1000 light fixtures.Lighting DesignLighting DesignContemporary lighting design requires an in-depth knowledge of electrical engineering andthe effect of light on color and texture. TheLimited, as many specialty apparel retailers,has found that lower light levels help conveya more fashion oriented image.
  7. 7. 7Visual CommunicationsVisual Communications1. Name, Logo, and Retail Identity1. Name, Logo, and Retail Identity2. Institutional Signage2. Institutional Signage3. Directional, Departmental, and Category3. Directional, Departmental, and CategorySignageSignage4. Point4. Point--ofof--Sale (POS) SignageSale (POS) Signage5. Lifestyle Graphics5. Lifestyle GraphicsName, Logo and Retail Identity atName, Logo and Retail Identity at KMartKMartKmart changed its logo tothe big red “K” in an effortto reflect its move into anupscale environment andaway from its old polyesterand blue-light image.Directional, Departmental,Directional, Departmental,and Category Signageand Category SignageDirectional and Departmental SignageDirectional and Departmental Signageare large signs that are usually placed fairlyare large signs that are usually placed fairlyhigh, so they can be seen throughout thehigh, so they can be seen throughout thestore.store.Departmental SignageDepartmental SignageDepartmental signage serve as the highestlevel of organization in an overall signageprogram. These signs are usually largeand placed fairlyhigh to they canbe seen throughoutthe store.Directional, Departmental,Directional, Departmental,and Category Signageand Category SignageCategory SignageCategory Signageare smaller than directional and departmentalare smaller than directional and departmentalsignage and are intended to be seen from asignage and are intended to be seen from ashorter distance; they are located on or closeshorter distance; they are located on or closeto the fixture itself where the merchandise isto the fixture itself where the merchandise isdisplayed.displayed.Category SignageCategory SignageCategory signage helps consumersnegotiate throughout the store to findthe product categories they are lookingfor. The size of category signagevaries widely from a letteringthat is a few feet in height tomerely inches.
  8. 8. 8PointPoint--ofof--Sale (POS) SignageSale (POS) SignagePointPoint--ofof--Sale SignageSale Signageis relatively small signage that is placedis relatively small signage that is placedvery close to the merchandise and isvery close to the merchandise and isintended to give details about specificintended to give details about specificitems.items.POS signage for clearanceand sale items tend to be inred to draw a consumer’sattention.PointPoint--ofof--Sale (POS) SignageSale (POS) SignageSpace ProductivitySpace ProductivitySpace ProductivitySpace Productivityrepresents how effectively the retailerrepresents how effectively the retailerutilizes its space and is usuallyutilizes its space and is usuallymeasured by sales per square foot ofmeasured by sales per square foot ofselling space or gross margin dollarsselling space or gross margin dollarsper square foot of selling space.per square foot of selling space.Merchandise Productivity AnalysisMerchandise Productivity AnalysisCategoryTotal SalesSale as % TotalTotal Sq. Ft.Sq. Ft % TotalSales per Sq. Ft.Total G.M. $G.M. $ % TotalSpace Productivity IndexJuniors259,6453.91,6022.9162.08211,4974.571.58CategoryTotal SalesSale as % TotalTotal Sq. Ft.Sq. Ft % TotalSales per Sq. Ft.Total G.M. $G.M. $ % TotalSpace Productivity IndexWomens170,8192.61.9343.588.33148,8993.22.092Merchandise Productivity AnalysisMerchandise Productivity AnalysisCategoryTotal SalesSale as % TotalTotal Sq. Ft.Sq. Ft % TotalSales per Sq. Ft.Total G.M. $G.M. $ % TotalSpace Productivity IndexMens751,60411.33,5916.5209.30603,33013.052.01Merchandise Productivity AnalysisMerchandise Productivity Analysis
  9. 9. 9Housewares457,7956.83,5916.5127.48254,9795.510.85CategoryTotal SalesSale as % TotalTotal Sq. Ft.Sq. Ft % TotalSales per Sq. Ft.Total G.M. $G.M. $ % TotalSpace Productivity IndexMerchandise Productivity AnalysisMerchandise Productivity AnalysisCosmetics75,1601.16081.1123.6255,9131.211.10CategoryTotal SalesSale as % TotalTotal Sq. Ft.Sq. Ft % TotalSales per Sq. Ft.Total G.M. $G.M. $ % TotalSpace Productivity IndexMerchandise Productivity AnalysisMerchandise Productivity AnalysisTotal Hardlines3,655,48054.829,06152.6125.792,084,91445.080.86CategoryTotal SalesSale as % TotalTotal Sq. Ft.Sq. Ft % TotalSales per Sq. Ft.Total G.M. $G.M. $ % TotalSpace Productivity IndexMerchandise Productivity AnalysisMerchandise Productivity AnalysisNon-Selling----------2,6524.8--------------------CategoryTotal SalesSale as % TotalTotal Sq. Ft.Sq. Ft % TotalSales per Sq. Ft.Total G.M. $G.M. $ % TotalSpace Productivity IndexMerchandise Productivity AnalysisMerchandise Productivity AnalysisTotal Scores6,675,564100.055,250100.04,624,480100.01.00CategoryTotal SalesSale as % TotalTotal Sq. Ft.Sq. Ft % TotalSales per Sq. Ft.Total G.M. $G.M. $ % TotalSpace Productivity IndexMerchandise Productivity AnalysisMerchandise Productivity Analysis

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