Layout and Design of a Store 4/20/2017

Objective: Define the terms in this discipline of Layout and Design 4/20/2017

Terms Impulse items Demand items Convenience Stores Shopping Stores Specialty Stores Spine Layout Racetrack Layout Grid Layout Boutique Layout Merchandising Profit Perimeter Cherry Picker Fixture Marquee Eye Level Facing Slotting Fees Loss Leader Point of Purchase (POP)

There are three types of retail stores Convenience Shopping Specialty 4/20/2017

Convenience Examples of this store is 7-11, Circle K or a liquor store Pricing is usually more expensive and items are a smaller size. 4/20/2017

Specialty Store Specialty Stores sell one kind of item, plus accessories. Examples are: Men’s clothing stores Tobacco related products stores Payless shoes 4/20/2017

Shopping Stores The goal of shopping stores are to keep the customers in the store. Example of Shopping Stores are: Supermarkets Department stores Mass Merchandisers 4/20/2017

Layouts of stores There are four types of Layouts of stores Grid or Supermarket layout Boutique Racetrack Spine 4/20/2017

Grid Layout Long isles in repetitive pattern. Easy to locate merchandise Does not encourage customers to explore the store Limited site lines to merchandise Allows more merchandise to be displayed Cost efficient Used in grocery, discount, and drug stores. 4/20/2017 The McGraw-Hill Companies, Inc./Andrew Resek, photographer

Office & customer service Grid Store Layout Fruit Vegetables Office & customer service Books, magazines, seasonal display Receiving & storage Exit Entrance Cart area Checkouts 4/20/2017

Grid Layouts Advantages 1. Low cost 2. Customer familiarity 3. Merchandise exposure 4. Ease of cleaning 5. Simplified security 6. Possibility of self-service 4/20/2017

Grid Layouts Disadvantages 1. Plain and uninteresting 2. Limited browsing 3. Stimulation of rushed shopping behavior 4. Limited creativity in decor 4/20/2017

Boutique Layout Fixtures and aisles arranged asymmetrically Pleasant relaxing ambiance doesn’t come cheap – small store experience Used in specialty stores and upscale department stores Jack Star/PhotoLink/Getty Images 4/20/2017

Boutique Layout Storage, Receiving, Marketing Dressing Rooms Underwear Checkout counter Clearance Items Feature Jeans Casual Wear Stockings Accessories Pants Tops Skirts and Dresses Hats and Handbags Open Display Window 4/20/2017

Boutiques Advantages 1. Allowance for browsing and wandering freely 2. Increased impulse purchases 3. Visual appeal 4. Flexibility 4/20/2017

Boutiques Disadvantages 1. Loitering encouraged 2. Possible confusion 3. Waste of floor space 4. Cost 5. Difficulty of cleaning 6. Difficult to see all area, easier to shoplift 4/20/2017

JC Penney Racetrack Layout 4/20/2017

Racetrack Layout AKA “Loop” has one major circular 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 4/20/2017

Store Planning - Circulation Pattern Spine Layout - The major customer aisle runs from the front to the back of the store, with merchandise departments branching off to the back side walls 4/20/2017

Key Psychological Factors, Spine Layouts ll 45 degree angle sightlines Value / Fashion Image - presentation of product influences image customer has regarding that product Angles and Sightlines - Customers view product at 45 degree angle and at eye level. Where a product is placed on shelves influences sales Vertical Color Blocking - Display product in vertical bands of color 4/20/2017

Merchandising is The art of attracting customers to products 4/20/2017 21

Two types of items (products) customers buy they are: Demand and Impulse items. Anything can be an impulse item and anything can be a demand item. However, if you are shopping in an clothing store, you don’t expect to buy food, right? 4/20/2017 22 22

Profit Perimeter Profit Perimeters are the inside walls of a store where demand items are sold. 4/20/2017

Demand Items Items that the customer came to the store to buy. Examples of demand items in a supermarket is Milk, Bread, Liquor, Meat or Produce. 4/20/2017 24 24

Point of Purchase P.O.P., Point of Purchase is: Where the cash registers are located. This is the last chance to sell things to customers. Many impulse items are found at POP. 4/20/2017

Impulse Items Items that the customer bought but didn’t plan on buying when they walked into the store. Examples of this could be magazines, horoscopes, razors, gum and candy. 4/20/2017 26 26

Fixtures are: Anything permanent that helps sell products. Examples of fixtures are: Displays, shelving, electrical outlets, tile, lighting, carpeting as well as paint on the wall. 4/20/2017

Marquee Large sign with interchangeable numbers and letters 4/20/2017 28 28

Display Types On-shelf vs. On Floor Gondola - Common for Hard lines, canned goods Racks - Common for Soft lines, clothing Wall Fixtures End Caps Checkout Fixtures 4/20/2017

Eye Level Is the best selling area on the shelf. Producers fight for this position. 4/20/2017

Slotting Fees Slotting fees is the money paid to retailers from producers (manufactures) to have a shelf position in a retail store. 4/20/2017

Facing Width, length and depth of a product, but is also showing the label for product identification. (logo) 4/20/2017

Loss Leader Loss Leaders are products that retailers sell below cost to bring customers into the store. This is an advertising ploy. For every item a customer comes into a store to buy, they purchase 5-7 items 4/20/2017

A good Loss Leader in the supermarket business is steak. If you buy steak, you could complete the meal and also buy: Potatoes, lettuce, salad dressing, briquettes, lighter fluid, steak sauce, a vegetable, wine, garlic bread and dessert.

Cherry Pickers are customers that buy only Loss Leaders. 4/20/2017