Your SlideShare is downloading. ×
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Retail in India
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Retail in India

9,061

Published on

Retail sector in India

Retail sector in India

Published in: Education
1 Comment
13 Likes
Statistics
Notes
No Downloads
Views
Total Views
9,061
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
1
Likes
13
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. 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
  • 2.
    • Store Design Objectives
    • Consistent with retailers image and strategy
    • Positive influence on customer satisfaction and purchase behavior
    • Cost effective
    • Flexible
    • Meet needs of disabled
    • Tradeoff in Store Design
    • Allocation of Floor Space
    • Selling space: Merchandise displays, interaction b/w customers and sales personnel
    • Merchandise space: to stock non-displayed items
    • Employee space: Changing/rest rooms, take lunch; strictly controlled
    • Customer space: Contributes to shopping mood; lounge, benches, chairs, dressing rooms.
  • 3.
    • Area Mix in a Typical Departmental Store
    • Selling:60 % , Back area: 25 % , Circulation: 15 %
    • Types of Store Layouts
    • 1.Grid 2.Racetrack 3.Free Form 4.Spine
    • Grid Layout
    • Long gondolas in repetitive pattern.
    • Easy to locate merchandise
    • Encourages self-service
    • Does not encourage customers to explore store-Limited
    • site lines to merchandise
    • Allows more merchandise to be displayed
    • Cost efficient
    • Used in grocery and discount stores
  • 4.
    • Racetrack Layout
    • Loop with a major aisle that has access to departments and store’s multiple entrances.
    • Draws customers around the store.
    • Provide different site lines and encourage exploration, impulse buying
    • Used in department stores e.g. Shoppers’ Stop, What about Vishal ?
    • Free-Form (Boutique) Layout
    • Fixtures and aisles arranged asymmetrically
    • Pleasant relaxing ambiance doesn’t come cheap – small store experience
    • Inefficient use of space
    • More susceptible to shoplifting – salespeople can not view adjacent spaces.
    • Used in specialty stores and upscale department stores e.g. Benetton, Fab India
  • 5.
    • Display Areas
    • Feature areas
      • End caps
      • Promotional aisle
      • Freestanding fixtures
      • Point-of-sale areas
      • Walls
    • Space Planning
      • Allocating floor/shelf space locating merchandise in store (or on website)
      • Where should merchandise be displayed?
      • How much space should be allocated to each category/item?
      • How many items of each SKUs should be displayed?
  • 6.
    • Merchandise Type and Density
    • A supermarket is very dense and may average about 8000 pcs. per 100 sq. ft.
    • A large departmental store – much lower density
    • A designer wear exclusive store…
    • Space Planning Considerations
    • Sales rate
      • -More units of faster selling merchandise need to be displayed
      • Modified by:
    • Profitability of merchandise
    • Variations based on seasonal demand )vs. avg. demand)
    • Method of merchandise display
    • Items the retailer wants to emphasize
    • Where should the merchandise be
    • located in the store ?
  • 7.
    • Prime Locations for Merchandise
    • Value of space decreases further away it is from entry level floor
    • Highly trafficked areas
      • -Store entrances /escalators/ main aisles
      • -Near checkout counter
    • Highly visible areas
      • -End aisle
      • -Displays
    • Value of space decreases further away it is from entry
    • Special Considerations
    • Avoid the “butt-brush” effect.
    • Make merchandise accessible.
    • Allow a transition zone.
  • 8.
    • Evaluating Space Productivity
    • Productivity ratios are output/input
      • -Sales per square foot
      • -Sales per linear foot
      • -Gross or contribution margin per square foot
      • Merchandise Presentation Techniques
      • Idea-Oriented Presentation
      • Style/Item Presentation
      • Color Organization
      • Price Lining
      • Vertical Merchandising
      • Tonnage Merchandising
      • Frontal Presentation
  • 9.
    • Fixtures
    • Hold and display items
    • Define areas
    • Help define store image
    • Fixture Type and Density
    • Fixtures complement the type of merchandise
    • Jewelry Store: Expensive woodwork, marble and granite
    • Sportswear store: More metal and plastic
    • Density of fixtures to complement density of merchandise
    • Creating a Store Environment
  • 10.
    • Visual Communications
    • Coordinate signs and graphics with the store’s image.
    • Inform the customer.
    • Use signs and graphics as props.
    • Keep signs and graphics fresh.
    • Limit the copy of signs.
    • Use appropriate typefaces on signs
    • Create theatrical effects.
    • Lighting
    • Highlight merchandise.
    • Structure space and capture a mood.
    • Downplay features.
  • 11.
    • Music: -to suit target market; can be varied
    • - impact on shopping behavior
    • Smell : Fragrances varied as per target market, merchandise, general interiors
    • Store Exteriors
    • Building
    • Marquee: Sign displaying store name
    • Store Entrance: Number, Type (Revolving,
    • self-opening, push/pull), flooring, lighting,
    • Walkways
    • Display Windows: -identify store and offerings -induce people to enter
    • Surroundings
  • 12. UNIT 2 MODERN RETAIL FORMATS
  • 13.
    • TYPE OF MERCHANDISE
    • Variety (breadth) of Merchandise
    • Assortment (depth) of Merchandise
    • TYPE OF MERCHANDISE
    • Motor Vehicles & Parts Dealers
    • Furniture & Home furnishings Stores
    • Electronic & Appliances Stores
    • Building Material
    • Food & Beverages Stores
    • Health & Personal Care Stores
    • Petrol pumps
    • Clothing & clothing accessory stores
    • Sporting goods, hobby books & music stores
    • General merchandise stores
    • Food Services & Drinking Places
    • Miscellaneous Store Retailers
    • Non-Store retailers
  • 14.
    • Food and Grocery Retail
    • -Coffee house chains
    • -Fast food chains
    • -Groceries
    • Clothing and Footwear
    • Health and Beauty Retailing/Pharma Retailing
    • Consumer Durables
    • Jewelry Retail
    • Home Furniture and Household Goods
    • Books and Music
    • Classification by Merchandise
    • Food-Based Retailers
    • Non-Food Based Retailers
  • 15.
    • FOOD-BASED RETAILERS
    • Convenience Stores
    • Supermarkets
    • Supercentres
    • Hypermarkets
    • FOOD ORIENTED RETAILERS CONVENIENCE STORES
    • Typically a well-located , food-oriented
    • retailer that is open long-hours & carries a
    • moderate number of items.
    • Store facility is small
    • Average to above average (MRP) prices.
    • Average atmosphere & customer service.
    • Advantage include
      • Convenient location
      • Availability of fill-in items
      • Long hours
  • 16.
    • Average transactions tend to be small
    • Customers shop multiple times in a week
    • Due to ltd. shelf-space, stores receive frequent deliveries & there are high handling costs.
    • Examples: - Neighborhood shops
    • - Subiksha ( tho. Low prices < mrp)
    • BIG APPLE ( Express Retail Services Private Limited)
    • Convenience Store Format / 7 to 11.
    • 1500 to 1800 Sq. Ft.
    • Stocks avg. of 2500 products.
    • Tie up with farmers in Haryana, Rajasthan, HP & UP.
    • Plan of 100 stores ‘ in NCR Delhi’.
    • Second Phase Karnataka & Gujarat.
  • 17.
    • BIG BOX FOOD RETAILERS
    • Conventional Supermarket
    • A Departmentalized self-services food store with a wide range of food & related products; sales of Gen. Merchandise limited.
    • Lets retailer combine volume, self-service & low prices.
    • Self- service: lowered personnel costs increased impulse buying
    • In U.S two types of conventional supermarkets.
  • 18.
    • SUPERCENTRES
    • Super markets that are larger in size & sell a broader range of merchandise.
    • Very large in size.
    • Offer wide variety of food ( 30-40%) & nonfood merchandise ( 60-70%()
    • Provide a one-shop stopping experience
    • Customers typically wiling to travel farther to shop
    • Food items priced aggressively to draw customers.
    • General merchandise has higher margins
    • Because of large size some customer find it inconvenient to find items
    • Wal Mart super centres.
    • Target Supercentres.
  • 19.
    • Hypermarkets
    • Very Large in Size.
    • Combination of food ( 60-70%) & gen. merchandise ( 30-40%).
    • Could be called a superstore that combines a supermarket & a department store. Displays an enormous range of products under one roof.
    • Provide Customer with all routine shopping needs in one trip.
    • World’s largest chain of hypermarket today are Wal-Mart, followed by Carrefour of France. Tesco in UK
    • India has about 25 hypermarkets today and estimated that it can accommodate over 1,000 hypermarkets in 67 retail destinations by 2010.
      • Hypercity in Malad, Mumbai ( K.Raheja) ( Less than 50%->food, More than 50%->non food) Food Bazar
  • 20.
    • 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.
  • 21.
    • GENERAL MERCHANDISE RETAILERS
    • SPECIALITY STORES
    • Concentrate on selling one good or service line- eg: men’s apparel, Jewelery, home furnishing, books, electronics.
    • Carries narrow but deep assortment
    • Customers often shop at specialty stores because of variety of choice in category, knowledgeable sales personnel intimate store size & atmosphere.
    • Higher levels of customer service
    • Egs: Tanishq, Raymonds, FabIndia
    • Prices tend to be high.
  • 22.
    • DEPARTMENT STORE
    • Carry a broad variety & deep assortment.
    • organized into separate departments – specific selling space allocated, a post terminal , sales people to assist customers.
    • May resemble a collection of specialty stores
    • Prices may range from moderate to above average.
      • Ebony
      • Shoppers Stop
      • Pantaloon Stores
    • Typical lines include apparel, cosmetics, fragrances, accessories, home-ware, electronics.
    • Limitations
    • Price-conscious consumers more attracted to discount stores.
    • Specialty stores offer better assortment in the line
    • Department stores may have a fuzzy image.
  • 23.
    • DISCOUNT STORES
    • Broad variety of merchandise
    • Limited service
    • Low prices
    • Conveys image of hi-volume, low cost outlets selling a broad assortment for less than conventional prices.
    • Shopping carts & centralized check-out.
    • Building equipment & fixtures are less expensive & operative & specialty stores.
    • Eg. Wal Mart, Big Bazar
  • 24.
    • CATEGORY KILLER
    • Especially large specialty store
    • Enormous selection in its category
    • Relatively low prices
    • Department stores & full-line discount stores located near cat. Specialists often have to reduce their offering in the category
    • eg.; Toys ‘R’ US, Barnes & Noble, Sports Authority, Home Depot
    • Emergence of another specialty format – ‘ gnategory killer’ micro specialty store specializing in one item with in already narrow category.Usually a small-size category
    • Eg: Sunglass Hut:>1000 Models of sunglasses, Tie Rack Joy of Socks
    • Consumer looking for one / few basic items & quick check out may be unwilling to search through huge merchandise.
    • Fails to attract customers interested in one stop shopping for multiple products.
    • Adverse effects of seasonality or decline in popularity of product.
  • 25.
    • VARIETY STORES
    • Handles assortment of inexperience & popularly priced goods ( apparel, accessories, customer, jewellery, candy, toys)
    • OFF-PRICE STORE
    • Features brand name ( sometimes designers) apparel & accessories, footwear, linen, fabrics, house ware at EDLP.
    • Low Service
    • Stores buys merchandise opportunistically ( other retailer’s cancelled orders mfgrt over sum end-of –season item)
    • Eg. The Loot
  • 26. 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.
  • 27. 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)
  • 28. CLASSIFICATION OF RETAILERS ON BASIS OF METHOD OF CUSTOMER INTERACTION
    • Store Retailers
    • Non-Store Retailers
    • Non-Store Retailers
    • 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.
    Catalogue Retailing Specialty merchandises Catalogues (cusmetics & designer Wear) General Merchandise Catalogues
  • 29. CLASSIFICATION OF RETAILERS ON BASIS OF METHOD OF CUSTOMER INTERACTION (contd…)
    • Catalogue Retailing Offers Customers
    • Convenience
    • Time-Saving
    • Information in detail
    • No time-schedules
    • Catalogue Retailing Offers sellers:
    • Opportunity to project co. image as planned
    • Space for unlimited product display
    • Lower overheads & costs of sales
    • Better inventory control
    • Customer reach is not limited by geographic location
    • Toll-free telephone lines & call centres enable business to operate 24/7
    • Modern direct marketing techniques allow prospective customers to be tgtd, based on their known intrests.
  • 30.
    • Ownership Forms
    • Independent
    • Chain
    • Franchise
    • Leased department
    • Vertical marketing system
    • Consumer cooperative
  • 31.  
  • 32.  
  • 33. 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),
  • 34.  
  • 35.  
  • 36.
    • STORE DESIGN AND VISUAL MERCHANDISING
    • Visual Merchandising
    • Proactive, integrated atmospherics approach to create a certain look, properly display products, stimulate shopping behavior
    • Visual Merchandising
    • 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.
  • 37.
    • 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.
  • 38.
    • Question to Ponder
    • How do fixtures and merchandise
    • presentation interact to influence
    • consumers in different types of retailers?
    • Display Areas
    • Feature areas
      • -End caps
      • -Promotional aisle
      • -Freestanding fixtures
      • -Point-of-sale areas
      • -Walls
    • Fixtures
    • Hold and display items
    • Define areas
    • Help define store image
  • 39.
    • Fixture Types
    • Hardlines Fixtures
    • Softlines Fixtures
    • Wall Fixtures
    • Fixture Types
    • Softlines Fixtures
    • Bulk or Capacity Fixture is a display fixture that is intended to hold the bulk of merchandise without looking as heavy as a long straight rack of merchandise.
    • Feature Fixture is a display that draws special attention to selected features (e.g., color, shape, or style) of merchandise.
  • 40.
    • Fixture Type and Density
    • Fixtures complement the type of merchandise
    • Jewelry Store: Expensive woodwork, marble and granite
    • Sportswear store: More metal and plastic
    • Density of fixtures to complement density of merchandise
    • Types of Apparel Display Fixtures
    • Gondola
    • Straight Rack
    • Rounder
    • Four-Way
    • Creating a Store Environment
    • Store Atmosphere
    • Color Lighting Scent Music
  • 41.
    • Merchandise Presentation Techniques
      • Idea-Oriented Presentation
      • Style/Item Presentation
      • Color Organization
      • Price Lining
      • Vertical Merchandising
      • Tonnage Merchandising
      • Frontal Presentation
  • 42.
    • Lighting
    • Highlight merchandise.
    • Structure space and capture a mood.
    • Downplay features.
    • Lighting Design
    • make effective use of lighting to highlight and feature merchandise on display.
    • Music: -to suit target market; can be varied
    • - impact on shopping behavior
    • Smell : Fragrances varied as per target
    • market, merchandise, general
    • interiors
  • 43.
    • Total Sensory Marketing
    • making effective use of fragrances and odors to generate smells that reinforce its store ambiance.
    • Visual Communications
    • Coordinate signs and graphics with the store’s image.
    • Inform the customer.
    • Use signs and graphics as props.
    • Keep signs and graphics fresh.
    • Limit the copy of signs.
    • Use appropriate typefaces on signs
    • Create theatrical effects.
    • Name, Logo, and Retail Identity
    • Institutional Signage
    • Directional, Departmental, and Category Signage
    • Point-of-Sale (POS) Signage
    • Lifestyle Graphics
  • 44.
    • Directional, Departmental, and Category Signage
    • 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
    • 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.
  • 45.
    • Category Signage
    • 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
    • Point-of-Sale 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.
    • Lifestyle Graphics
    • 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.

×