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PPT 18-1 5 th Edition. PPT 18-2 McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

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Presentation on theme: "PPT 18-1 5 th Edition. PPT 18-2 McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights."— Presentation transcript:

1 PPT 18-1 5 th Edition

2 PPT 18-2 McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Store Layout, Design and Visual Merchandising Chapter 18

3 PPT 18-3 Managing the Store Store Management Layout, Design and Visual Merchandising Customer Service

4 PPT 18-4 REI’s Store Environment

5 PPT 18-5 Store Design Objectives Consistent with retailers image and strategy Positive influence on customer satisfaction and purchase behavior Cost effective Flexible Meet needs of disabled

6 PPT 18-6 Tradeoff in Store Design Easy of locating merchandise for planned purchases Exploration of store, impulse purchases

7 PPT 18-7 Types of Store Layouts Grid Racetrack Free Form

8 PPT 18-8 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?

9 PPT 18-9 Grid Store Layout Fruit Vegetables Office & customer service Books, magazines, seasonal display Receiving & storage Exit Entrance Cart area Checkouts

10 PPT 18-10 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 stores

11 PPT 18-11 JCPenney Racetrack Layout

12 PPT 18-12 Example of Race Track Layout

13 PPT 18-13 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 stores

14 PPT 18-14 Free-Form Layout Storage, Receiving, Marketing Underwear Dressing Rooms Checkout counter Clearance Items Feature Jeans Casual Wear Stockings Accessories Pants Tops Skirts and Dresses Hats and Handbags Open Display Window

15 PPT 18-15 Example of Boutique Area

16 PPT 18-16 Display Areas Feature areas –End caps –Promotional aisle –Freestanding fixtures –Point-of-sale areas –Walls

17 PPT 18-17 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 leaders

18 PPT 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?

19 PPT 18-19 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 displayed

20 PPT 18-20 Prime Locations for Merchandise Highly trafficked areas –Store entrances –Near checkout counter Highly visible areas –End aisle –Displays

21 PPT 18-21 Special Considerations Avoid the “butt-brush” effect. Make merchandise accessible. Allow a transition zone.

22 PPT 18-22 Visual Merchandising

23 PPT 18-23 Visual Merchandising

24 PPT 18-24 Visual Merchandising

25 PPT 18-25 Visual Merchandising

26 PPT 18-26 Visual Merchandising Visual Merchandising. Seven Colors Group

27 PPT 18-27 Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

28 PPT 18-28 Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

29 PPT 18-29 Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

30 PPT 18-30 Evaluating Space Productivity Productivity ratios are output/input –Sales per square foot –Sales per linear foot –Gross or contribution margin per square foot

31 PPT 18-31 Merchandise Presentation Techniques Idea-Oriented Presentation Style/Item Presentation Color Organization Price Lining Vertical Merchandising Tonnage Merchandising Frontal Presentation

32 PPT 18-32 Types of Apparel Display Fixtures Straight Rack Rounder Four-Way Gondola

33 PPT 18-33 Straight Rack

34 PPT 18-34 Rounder

35 PPT 18-35 Four-Way

36 PPT 18-36 Gondola

37 PPT 18-37 Creating a Store Environment Color Scent Music Lighting Store Atmosphere

38 PPT 18-38 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.

39 PPT 18-39 Lighting Highlight merchandise. Structure space and capture a mood. Downplay features.


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