Store layout, design and merchandising

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Store layout, design and merchandising

  1. 1. 5th EditionPPT 18-1
  2. 2. Chapter 18 Store Layout, Design and Visual MerchandisingMcGraw-Hill/IrwinPPT 18-2Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
  3. 3. Store Management Customer Service Managing the Store Layout, Design and Visual MerchandisingPPT 18-3
  4. 4. REI’s Store EnvironmentPPT 18-4
  5. 5. Store Design Objectives • Consistent with retailers image and strategy • Positive influence on customer satisfaction and purchase behavior • Cost effective • Flexible • Meet needs of disabledPPT 18-5
  6. 6. Tradeoff in Store Design Easy of locating merchandise for planned purchases Exploration of store, impulse purchasesPPT 18-6
  7. 7. Types of Store Layouts • Grid • Racetrack • Free FormPPT 18-7
  8. 8. Grid Layout Long gondolas in repetitive pattern. • Easy to locate merchandise • Does not encourage customers to explore store – Limited site lines to merchandise • Allows more merchandise to be displayed • Cost efficient Used in grocery, discount, and drug stores. Why?PPT 18-8
  9. 9. Grid Store Layout Receiving & storage Fruit Books, magazines, seasonal Cart display area Vegetables Checkouts Entrance Office & customer service ExitPPT 18-9
  10. 10. 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 storesPPT 18-10
  11. 11. JCPenney Racetrack LayoutPPT 18-11
  12. 12. Example of Race Track LayoutPPT 18-12
  13. 13. 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 storesPPT 18-13
  14. 14. Free-Form Layout Storage, Receiving, Marketing Hats and Handbags Underwear Dressing Rooms Stockings Accessories Tops Checkout counter Casual Wear Tops Pants Clearance Skirts and Dresses Items Jeans Feature Feature Open Display Window Open Display WindowPPT 18-14
  15. 15. Example of Boutique AreaPPT 18-15
  16. 16. Display Areas Feature areas – End caps – Promotional aisle – Freestanding fixtures – Point-of-sale areas – WallsPPT 18-16
  17. 17. Designing a Webpage: Lessons from Store Design • Simplicity matters • Getting around • Prioritize • Design layout based on what you want to accomplish • Follow the standards of the industry leadersPPT 18-17
  18. 18. 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?PPT 18-18
  19. 19. Space Planning Considerations • Profitability of merchandise • Customer Buying considerations – Impulse products near front – Demand/Destination areas off the beaten path • Physical characteristics of product. • Complementary products should be adjacent • Sales rate – More units of faster selling merchandise need to be displayedPPT 18-19
  20. 20. Prime Locations for Merchandise • Highly trafficked areas – Store entrances – Near checkout counter • Highly visible areas – End aisle – DisplaysPPT 18-20
  21. 21. Special Considerations • Avoid the “butt-brush” effect. • Make merchandise accessible. • Allow a transition zone.PPT 18-21
  22. 22. Visual MerchandisingPPT 18-22
  23. 23. Visual MerchandisingPPT 18-23
  24. 24. Visual MerchandisingPPT 18-24
  25. 25. Visual MerchandisingPPT 18-25
  26. 26. Visual Merchandising• Visual Merchandising.• Seven Colors GroupPPT 18-26
  27. 27. Financial Comparison Report for Existing & Proposed Salad Dressing Planogram Gross Margin Sales Unit Sales Inventory Brand Per Week Per Week Per Week Turnover Section: Salad Dressing current 1. 7SEAS $50.33 $273.68 222.00 35.52 2. HV RANCH 26.01 165.13 90.80 22.59 3. KENS STK 46.76 330.14 266.00 27.61 4. KRAFT 59.83 336.42 238.00 23.48 5. NWMN OW 32.63 186.06 114.00 34.87 6. PRS CHOI 27.88 122.18 82.00 59.22 7. WLD FRMS 20.80 109.85 65.00 45.07 8. WSHBN _102.76 __590.03 __431.00 25.73 TOTALS $367.00 $2,113.49 1,508.80 28.53PPT 18-27
  28. 28. Financial Comparison Report for Existing & Proposed Salad Dressing Planogram Gross Margin Sales Unit Sales Inventory Brand Per Week Per Week Per Week Turnover Section: Salad Dressing revised 1. 7SEAS $50.33 $273.68 222.00 35.52 2. DUNNE 6.97 46.20 44.00 26.00 2. HV RANCH 26.01 165.13 90.80 22.59 3. KENS STK 46.76 330.14 266.00 27.61 4. KRAFT 58.40 336.42 229.00 27.13 5. NWMN OW 32.63 186.06 114.00 34.87 6. PRS CHOI 27.88 122.18 82.00 59.22 7. WLD FRMS 20.80 109.85 65.00 45.07 8. WSHBN _102.76 __590.03 __431.00 25.73 TOTALS $367.54 $2,150.24 1,543.80 29.19PPT 18-28
  29. 29. Financial Comparison Report for Existing & Proposed Salad Dressing Planogram Gross Margin Sales Unit Sales Inventory Brand Per Week Per Week Per Week Turnover Net Change 1. 7SEAS $0.00 $0.00 0.00 0.00 2. DUNNE 6.97 46.20 44.00 26.00 2. HV RANCH $0.00 $0.00 0.00 0.00 3. KENS STK $0.00 $0.00 0.00 0.00 4. KRAFT ($1.43) ($9.45) -9.00 3.64 5. NWMN OW $0.00 $0.00 0.00 0.00 6. PRS CHOI $0.00 $0.00 0.00 0.00 7. WLD FRMS $0.00 $0.00 0.00 0.00 8. WSHBN $0.00 _$0.00 0.00 0.00 TOTALS $5.54 $36.75 35.00 0.66PPT 18-29
  30. 30. Evaluating Space Productivity Productivity ratios are output/input – Sales per square foot – Sales per linear foot – Gross or contribution margin per square footPPT 18-30
  31. 31. Merchandise Presentation Techniques • Idea-Oriented Presentation • Style/Item Presentation • Color Organization • Price Lining • Vertical Merchandising • Tonnage Merchandising • Frontal PresentationPPT 18-31
  32. 32. Types of Apparel Display Fixtures Gondola Straight Rack Rounder Four-WayPPT 18-32
  33. 33. Straight RackPPT 18-33
  34. 34. RounderPPT 18-34
  35. 35. Four-WayPPT 18-35
  36. 36. GondolaPPT 18-36
  37. 37. Creating a Store Environment Color Lighting Store Atmosphere Scent MusicPPT 18-37
  38. 38. 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.PPT 18-38
  39. 39. Lighting • Highlight merchandise. • Structure space and capture a mood. • Downplay features.PPT 18-39

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