Store Layout, Design and Visual Merchandising Store Management Customer Service Managing the Store Layout, Design and Visual Merchandising Atmospherics Stores physical characteristics that project an image and draw the customer; the psychological feeling a customer gets when visiting a store. Elements of atmosphere: -Exteriors -Store Layout -Internal display and visual merchandising - General Interiors
Hypermarkets typically stock less than supercenters
Merchandise ranges from groceries, & sports equipment to furniture, appliances to computer & electronics.
Fresh foods- dairy produce, meat, fish , vegetables are their speciality.
Hypermarket is somewhat of a big discount store that, ideally, stocks 60 per cent food and 40 per cent non-food items. Hypermarkets are designed to generate higher revenues and delivery gains in terms of branding, merchandising, display, variety and choice. Owing to the huge volume of sales generated at hypermarkets, overheads stay low enabling them to function like discount stores.
Globally, hypermarkets account for 60 per cent of the retail sales. But in India established retailers are cautious of entering into the hypermarket structure. Subhiksha’s in Chennai which has over 70 stores across Chennai have distanced from hypermarkets. At the same time RPG group, which runs Foodworld, opened its hypermarket called “Giant” in Hyderabad. Similarly, Pantaloon group opened its hypermarkets – Big Bazaar in Hyderabad, Kolkata and Bangalore. Initially, hypermarkets started in Southern part of the country and slowly moved to Metro cities.
Features brand name ( sometimes designers) apparel & accessories, footwear, linen, fabrics, house ware at EDLP.
Stores buys merchandise opportunistically ( other retailer’s cancelled orders mfgrt over sum end-of –season item)
Eg. The Loot
FACTORY OUTLET Reliance Retail : Investment of Us$ 3.77 billion for setting up 205 stores. Spencers: 500 stores by June 2008 with investment of US $ 125.89 million planning. Hyper city: 250 Express city stores in the convenience store format across country in next 5 years. DLF: Planning investment of US$ 4.02 billion over 4 years to develop 20 large shopping malls. Plaza Center PVV ( Israeti Mall Developer): Planning to invest US $ 1.25 billion over next 5-7 years to set up 50 malls in India.
STORE FORMAT BY PRICE: Discount Formats Retail Merchandise at lower than MRP Everyday-low-price (EDLD): Wal-Mart, Big Bazar,S_Kumars_S.Mart Discount Chain, Subiksha Category Killer: A large specialty store featuring enormous selection of its product category at relatively low prices. Factory Outlet: Owned & operated by mfgr selling discontinued merchandise, factory seconds, cancelled orders etc. Textile mills ( Bombay Dying, Morarjee Mills have factory outlets in premices. Warehouse Format: Large scale of discounted merchandise in the free access ambience of a ware-house. Has large width & depth in many categories in the retail. Single-Price denomination Format: Retails scrambled merchandise lines at just one price point, generally a low one. Dollar store; ( Rs. 99)
CLASSIFICATION OF RETAILERS ON BASIS OF METHOD OF CUSTOMER INTERACTION
Catalogue & Direct Mail Retailing
In west catalogue retailing became a means of tapping rural markets which lacked access to retail centers stores. With emergence of double-income families this got a further boost.
Formats Adopted by Key Players in India Retailer Original formats Later formats RPG Retail Supermarket (Foodworld) Hypermarket (Spencer's, Giant), Specialty Store (Health and Glow) Piramal's Department Store (Piramyd Megastore) Discount Store (TruMart) Pantaloon Retail Small format outlets (Shoppe) Department Store (Pantaloon) Supermarket (Food Bazaar), Hypermarket (Big Bazaar), Mall (Central) K Raheja Group Department Store (Shopper's Stop) Specialty Store (Crossword) Supermarket, Hypermarket (HyperCity) Tata/ Trent Department Store (Westside) Hypermarket (Star India Bazaar) Landmark Group Department Store (Lifestyle) < (Max) Hypermarket> Ebony Department Store Quasi-mall, smaller outlets, adding food retail Crossword Larger bookstore Corner shop Piramyd Department store Quasi-mall, food retail Foodworld Food Supermarket Hypermarket, Foodworld Express Metro -- Cash and carry Others Discount Store (S Kumar’s, Margin Free, Apna Bazaar), Supermarket (Nilgiri's),
Proactive, integrated atmospherics approach to create a certain look, properly display products, stimulate shopping behavior
Is the artistic display of merchandise and theatrical props used as scene-setting decoration in the store.
Here’s sampling of the techniques stores use to generate those sales: Get’m coming and going . Escalators are a focal point of many stores. That makes them ideal locations for promotional signs and for impulse items like perfume.
Lead them to temptation . Department-store design incorporates a gauntlet of goodies to stimulate impulse buys. Cosmetics, a store’s most profitable department, should always be at the main entrance to the store.
Its all in the display . When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury.
Color is king . Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments.
Suggestion positioning . Once the customer has already purchased one item, it’s easier to sell an additional item. Thus apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines.
Directional and Departmental Signage are large signs that are usually placed fairly high, so they can be seen throughout the store.
Category Signage are smaller than directional and departmental signage and are intended to be seen from a shorter distance; they are located on or close to the fixture itself where the merchandise is displayed.
Departmental signage serve as the highest level of organization in an overall signage program. These signs are usually large and placed fairly high to they can be seen throughout the store.
Category signage helps consumers negotiate throughout the store to find the product categories they are looking for. The size of category signage varies widely from a lettering that is a few feet in height to merely inches.
Point-of-Sale (POS) Signage
Is relatively small signage that is placed very close to the merchandise and is intended to give details about specific items.
Point-of-Sale (POS) Signage
POS signage for clearance and sale items tend to be in red to draw a consumer’s attention.
The Limited uses lifestyle graphics to convey the image of the product to the consumer. Here the Limited conveys the casual nature of one apparel line.