2. 1. List the elements of a store’s environment and define
its two primary objectives
2. Discuss the steps involved in planning the store
3. Describe how various types of fixtures, merchandise-
presentation methods and techniques, and the
psychology of merchandise presentation are used to
increase the productivity of the sales floor
4. Describe why store design is so important to a store’s
success
5. Explain the role of visual communications in a retail
store
Learning Objectives
3. This chapter examines another method retailers
can use to initiate and continue this relationship-
the retail store itself. Retailers must never forget
the old axiom that “we all sell discretionary
merchandise; therefore, we must package it with
theater and excitement.” They must also
recognize that a retail store is different than an
Internet site because “shopping is a contact sport”
and how the store engages and interacts with the
shopper is critical to its success.
Introduction to Store Layout Managemen
4. • Keep content current. Online Consumers browse frequently,
so it is very important to continually update information on the
site.
Two Aspect should be consider:
1. Merchandise presentation- the web offers e-tailers a
plethora of presentation options. Not limited by physical
restraints- e-tailers can provide consumers with 3- D
presentation that allow a 360-degree view of
merchandise .
2. Merchandise description- write in “web-ese.” Online
consumers scan information as opposed to reading it.
Fundamentals forE- tailers
5. •Make the site easy and enjoyable to use. Ease of use is
a primary concern for online consumers. This means that
users with little or no experience either online or with your
product category should be able to move easily about the
site and find the information they desire. Much like signage
in a bricks-and-mortar world, e-tailers must clearly show the
way for online consumer.
6. • Structure an online community where
consumers can interact with one another or
contribute to the site’s content. The virtual
world allows for new methods of integrating
customers a retailer’s business
8. Three basic tasks of retailing
1.Get customers into the store (market image)
2. Once customers are inside the store, convert
them into customers buying merchandise (space
productivity)
3.Do this in the most efficient manner possible
Objective of the Store Environment
9. 1.Developing a store Image- The starting point in creating
this image, of course, is there merchandise carried in the
store, along with the retailer’s promotional activities,
customer service, cleanliness, and sales force.
2. Increasing space productivity- A store must increase
its space productivity a goal that is summarized in a simple
but powerful truism in retailing . The more merchandise
customers are exposed to that is presented in an orderly
manner, the more they tend to buy.
Two primary objectives of the
store environment
10. Floor plan - A schematic that shows where merchandise and customer service
departments are located, how customers circulate through the store, and how
much space is dedicated to each department.
Store Planning
11. Microretailing - Occurs when a chain store retailer operating over a wide
geographic area, usually nationally, tailors its merchandise and services in each
store to the needs of the immediate trading area.
12. Stack-outs - Pallets of merchandise set out on the floor in front of the
main shelves.
13. The starting point for developing a floor plan is analysing
how the available store space, usually measured in square
footage, should be allocated to various departments. This
allocation can be based on mathematical calculation of the
returns generated by different types of merchandise.
Allocating Space
14. 1.Back room- includes the receiving area to process
arriving merchandise and the stock room to store
surplus merchandise.
2.Offices and other functional spaces- every store
must contain a certain amount of office and other
functional space. This often includes a break room for
associates, a training room, offices for the store
manager and assistant managers, a cash office,
bathroom facilities for both customers and employees,
and perhaps other areas.
Typesof SpaceNeeded
15. 3. Aisles, Service Areas, and other Nonselling Areas- Even
on the main sales floor, some space must be given up to
nonselling functions, the most obvious of which is moving
shoppers through the store
4. Wall merchandise space- The walls are one of the most
important elements of a retail store. They serve as fixtures
holding tremendous amounts of merchandise as well as
providing a visual backdrop for less than 18 feet but usually 100
or 200 feet in depth.
5. Floor merchandise space- Finally, we come to the store
space with which we as shoppers are most familiar- the floor
merchandise space.
16. To determine the most productive allocation of space,
the retailer must first analyze the profitability and
productivity of various categories of merchandise.
According to one study, around 20 percent of the
average retailer’s inventory is either obsolete or not
wanted by the retailers target market. Such a high
percentage indicates the important to retailers of
analyzing the profitability and productivity of all
merchandise.
Space- Allocation Planning
17. Improving space productivity in existing stores
A retailer that has been in business for some time can develop a sales
history on which to evaluate merchandise performance, refine space
allocations, and enhance space productivity.
Space allocation for a new store
When a retailer is creating a new store format, no productivity and
profitability data are available on which to base the allocation of space.
In these situations, the retailers bases space allocation on industry
standards, previous experience with similar formats, or more
frequently, the space required to carry the number of items specified by
the buyers.
18. Planograms - A schematic that illustrates how and where a retailer’s
merchandise should be displayed on the shelf in order to increase customer
purchases.
19. The circulation pattern not only ensures efficient
movement of large numbers of shoppers through the
store, exposing them to more merchandise, but also
determines the character of the stores. For instance,
upon entering a Bass Pro Shops Outdoor World, the
consumer views outdoor scenes through graphic and
physical design elements.
Circulation
20. Free Flow- in which fixtures and merchandise are grouped into free-flowing
patterns on the sales floor.
Types of Store Layout
21. Grid Layout- the counters and fixtures are placed in long rows or “runs,” usually
at right angles, throughout the store.
22. Loop Layout- A major customer aisle begins at the entrance, loops through the
store- usually in the shape of a circle, square, or rectangle- and then returns the
customer to the front of the store.
23. Spine Layout- A single main aisle runs from the front to the back of the store,
transporting customers in both directions, and where on either side of this spine,
merchandise departments using either a free-flow or grid pattern branch off toward
the back side walls.
24. When planning a store’s layout and design, the prevention
of shrinkage due to theft, damage, and loss must be
considered. This is especially important because $40
billion is lost annually by retailers to theft alone. Some
layouts will minimize vulnerability to shoplifters. One of the
most important considerations when planning the layout is
visibility of the merchandise.
Shrinkage Prevention
25. Retailing is theater, and in no area is that more true than in merchandise
presentation. Recently, retailers have been increasing their emphasis on
presentation as competition has grown and stores try to squeeze more
sales out of existing square footage.
On-shelf merchandising - Display of merchandise on counters, racks,
shelves, and fixtures throughout the store.
It must present and display the merchandise attractively so that it is
easy to understand and access.
It must be reasonably easy to maintain.
Planning Fixtures and
Merchandise Presentation
26. 1. Hardlines Fixture- The workhome fixture in most hardlines departments
is known as the gondola, so named because it is a long structure
consisting of a large base and a vertical spine or wall sticking up as high as
eight feet, fitted with sockets or notches into which a variety of shelves, peg
hooks, bins, baskets, and other hardware can be inserted.
Fixture Types
27. Softlines Fixtures
Bulk or capacity fixture - Display fixture that is intended to hold the bulk
of merchandise without looking as heavy as a long, straight rack of
merchandise.
Feature fixture - Display that draws special attention to selected features
(e.g., color, shape, or style) of merchandise.
28. Wall Fixtures- Is designed to be hung on the wall. To make a store’s plain
wall merchandisable, it is usually covered with a skin is fitted with vertical
columns of notches similar to those on the gondola, into which a variety of
hardware can be inserted.
29. 1. Shelving- the majority of merchandise is placed on shelves that are
inserted into gondolas or wall systems. Shelving is a flexible, easy to
maintain merchandise presentation method.
Merchandise Presentation Planning
30. 2. Hanging - Apparel on hangers can be hung from softlines fixtures, such
as round racks and four way racks, or from bars installed on gondolas or
wall systems.
31. 3. Pegging- Small merchandise can be hung from peg hooks, which are small
rods, inserted into gondolas or wall systems.
32. 4. Folding- Higher-margin or large, unwieldy softlines merchandise can be
folded and then stacked onto shelves or placed on tables. This can create
a high-fashion image, such as when towels are taken off peg hooks and
neatly folded and stacked high up the wall.
33. 5. Stacking- Large hardlines merchandise can be stacked on shelves, the
base decks of gondolas, or flats, which are platforms placed directly on the
floor. Stacking is easily maintained and gives an image of high volume and
low price.
34. 6. Dumping- Large quantities of small merchandise can be dumped in bins
or baskets inserted into gondolas or wall systems. This highly effective
promotional method can be used in softlines (socks, washcloths) or
hardlines (batteries, grocery products, candy), and creates a high volume,
low-cost image.
35. Three Key psychological factors to
considerwhen merchandising
store:
1.Value and Fashion Image- one of merchandise presentation’s most
important psychological effects is to foster an image in the customer’s mind
of how trendy, exclusive, pricey, of value oriented the merchandise is.
36. 2. Angles and sight lines- Research has shown that as customers move
through a retail store, they view the store at approximately 45- degree
angles from the path of travel.
37. 3. Vertical color blocking- to be most effective, merchandise should be
displayed in vertical bands of color wherever possible. As customers move
through the store, their eyes naturally view “swath” approximately two feet
high, parallel to the floor. At about eye level.
38. Proper fixtures emphasize the key selling attributes of
merchandise while not being overpowering. A good
guideline for selecting fixtures is to match the fixture to the
merchandise, not the merchandise to the fixture.
Selecting Fixtures and
Merchandise- Presentation
Methods
39. The artistic display of merchandise and theatrical props used as scene-
setting decoration in the store.
• Visual displays are located in a focal point, feature area, or other
area remote from the on-shelf merchandising and perhaps even
out of reach of the customer.
• Visuals should incorporate relevant merchandise.
Visual Merchandising
40. Store Design
Is the element most responsible for the first of our goals
in planning the store environment: creating a distinctive
and memorable store image. Store design
encompasses both the exterior and the interior of the
store. On the exterior, we have the storefront, signage,
and entrance, all of which are critical to attracting
passing shoppers and enticing them to enter.
41. If the retail store can be compared to a book, then the storefront exterior, is
like the book cover.
Storefront Design
42. Unless you have ever been responsible for redecorating a house or room,
you may be unaware of the dozens of design elements that go into a
physical space.
1. Finishes applied to surfaces
2. Architectural shapes
InteriorDesign
43. Lighting Design
Another important, though often overlooked, element in a successful store
design is lighting. Retailers have come to understand how lighting can
greatly enhance store sales.
44. Sounds and Smells:
Total Sensory Marketing
Effective store design appeals to the human
senses of sight, hearing, smell. And touch.
Obviously, the majority of design activity in a
retail store is focused on affecting sight.
45. Name, Logo, and Retail Identity- the first and most
visible element in a comprehensive visual communications
program is the retailer’s identity, which is composed of the
store name, logo and supporting visual elements.
Institutional Signage- inside the store, the first level of
visual communication is known as institutional signage, or
signage that describes the merchandising mission,
customer-service policies, and other messages on behalf of
the retail institution
Visual Communication
46. Directional, Departmental, and Category Signage-
Directional and departmental signage as the highest level
of organization in an overall signage program.
Point of Sale Signage- The next level of signage-even
smaller and placed closer to the merchandise- is known as
point-of- sale (POS) signage. Because POS signage is
intended to give details about specific merchandise
Lifestyle Graphics- Visual communication encompass
more than just words. Many stores incorporate large
graphics panels showing so called lifestyle images in
important departments.
