The document discusses principles of store layout, design, and visual merchandising. It explains that store design should tell a story from the entrance to checkout. The entrance sets expectations, the inside allows discovery, and checkout is the climax. There are different layout types - grid is efficient but less exploratory, racetrack draws customers around the store, and free-form is relaxing but less efficient. Key considerations for space planning include traffic flow, product profitability and customer needs. Atmospherics like lighting, music and scent also influence shopping experiences. Visual merchandising aims to transform shoppers through strategic product presentation using design elements like color, texture and line.

1. Store Layout, Design and Visual
Merchandising - Principles & Optimization

2. Store Design, Layout, Visual
Merchandising
• Opportunity for competitive advantage and
increased sales
• Store as a “good story” – a beginning, middle,
end
Entrance sets up the story – creates expectations,
contains promises, entices, hints, teases
o Inside the store is the middle of the story
o
 should start slow (uncluttered) to allow consumers to orient
themselves
 should lead customers on a journey of discovery, using layout,
lighting, visuals, other atmospherics
o
Checkout area is the store’s climactic ending

3. Five Major Store Design
Objectives
•
•
•
•
Consistent with retailer’s image, positioning, strategy
Positive influence on purchase behavior
Cost effective – space productivity
Sales-per-square-foot (most common, racetrack and boutique layout)
o Sales-per-linear-foot (e.g., supermarkets, drug stores, etc. with
long gondolas in grid layout)
o Sales-per-cubic-foot (e.g., wholesale clubs with multiple layers of
merchandise)
• Flexible

4. Tradeoffs in Store Design
• Ease of locating merchandise for
planned purchases
• Aesthetics, space to shop
comfortably
• Relaxed environment
• Exploration of store,
impulse purchases
• Productivity of
space
• Energy, excitement

5. Grid Layout

6. Grid Layout
• Linear design, checkerboard pattern.
• Vertical and horizontal aisles
o
May have one main aisle and many
secondary aisles.
• Efficient use of space
• Simple and predictable to navigate
• Focal points at aisle ends

7. Racetrack Layout
Major and minor loops with multiple entrances &
multiple sight lines, draws shopper around the
store, encourages exploration, impulse buying
Location of departments) men’s vs. women’s
impulse goods – near entrances, to the right, escalators, point-of-sale
demand/destination – upper floors, back corners; complementary – adjacent
Display areas) – bulk-of-stock + feature areas (walls, promotional areas, point- of-sale
areas, feature fixtures, windows)
Fixtures– feature fixtures – four-way, free-standing/mannequins, glass cases
+ gondolas, rounders & straight racks for bulk-of-stock & sale merchandise

8. Free-Form (Boutique) Layout
Storage, Receiving, Marking
Storage, Receiving, Marking
Tops
Accessories
ual Wear Stockings
Pants
+ Aesthetically
pleasing, relaxing,
asymmetrical, invites
browsing
- Less efficient, more
costly, more sales
assistance needed,
more theft
Checkout
Skirts and Dresses Hats and
Tops
Clearance
Items
Feature
Fixtures
•
Bulk-of-stock
Handbags- straight
racks,
gondolas,
rounders (very
flexible)
•
Feature –
glass cases,
4-way, freestanding,
custom-built
fixtures
Feature areas
Windows, walls,
feature fixtures,
point-of-sale

9. Free-Flow Layouts
• Opposite of grid layout.
• Ease of customer movement.
o
Must provide enough room between
fixtures.
• Fixtures arranged in interesting
formations
o
Encourages browsing.

10. Space Planning Considerations
• High traffic & highly visible areas
o
Entrances, escalators, check-out area, end aisles,
feature areas
• Profitability of merchandise
o
Private brand, higher margin categories
• Customer buying considerations
o
o
Impulse products near front
Demand/destination areas in back, off the beaten path
• Physical characteristics of product
o
Bulky vs. small/easily stolen
• Complementary products should be adjacent
• Sales rate
o
Display more units of fast-selling merchandise (tonnage
merchandising

11. Atmospherics attention,
Inform; draw
Signs
highlight merchandise,
dramatize, decorate
Lighting
Color
Warm versus cool
colors – attract/ hurry
vs. relax; value vs.
prestige
Store Atmosphere
Pop merchandise, set a
mood, downplay
unsightly areas, show
accurate color
Music
Scent
Most direct effect
on emotions and
memory
Easily changed - match
demographics, influence
shopping mood & crowd
control

12. Location of Merchandise Planograms (map – photos, drawings, computer
generated)
•
•
•
vertical merchandising - eye movement - left to right & down
high margin merchandise - 15% below horizontal (51” - 53” & 56” 58”)
not alphabetical, “flank” new & private label with popular national
brands

13. Visual Merchandising is:
• Showing merchandise with the end purpose of making a
sale.
• Presenting an image of who/what the shopper can be when
using the merchandise displayed.
• Making the shopper a “stopper” and a walk-in rather than a
walk -by.
• Keeping the interior presentation the same as what is
promised on the outside/in the window.
• A combination of skills including creativity, order, artistic
knowledge and understanding of store design.

14. Design Elements
• Color
• Texture
• Line