5th Edition

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

Store Management Managing the Store Customer Service Layout, Design and Visual Merchandising

REI’s Store Environment

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 Easy of locating merchandise for planned purchases Exploration of store, impulse purchases

Types of Store Layouts Grid Racetrack Free Form

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?

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

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

JCPenney Racetrack Layout

Example of Race Track Layout

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

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

Example of Boutique Area

Display Areas Feature areas End caps Promotional aisle Freestanding fixtures Point-of-sale areas Walls

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

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?

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

Prime Locations for Merchandise Highly trafficked areas Store entrances Near checkout counter Highly visible areas End aisle Displays

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

Visual Merchandising

Visual Merchandising

Visual Merchandising

Visual Merchandising

Visual Merchandising Visual Merchandising. Seven Colors Group

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

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

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

Straight Rack

Rounder

Four-Way

Gondola

Creating a Store Environment Color Lighting Store Atmosphere Scent Music

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.