Chapter 13 Store Layout and Design Retailing, 6 th Edition. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved.

Learning Objectives 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.

Introduction to Store Layout Management Elements of the Store Environment Objectives of the Store Environment LO 1

Introduction to Store Layout Management Store image: Is the overall perception the consumer has of the store’s environment. LO 1

Introduction to Store Layout Management Space productivity: Represents how effectively the retailer utilizes its space and is usually measured by sales per square foot of selling space or gross margin dollars per square foot of selling space. LO 1

Elements That Compose the Store Environment LO 1Exhibit 13.1

Introduction to Store Layout Management Shrinkage: Represents merchandise that cannot be accounted for due to theft, loss, or damage. LO 1

Store Image L.L. Bean offers relaxed, classic apparel styles to its customers. To help convey this image, L.L. Bean’s catalog and advertising reinforces their image. For catalog customers, the catalog is the store environment. LO 1

Store Image By incorporating a café as an integral part of Barnes & Noble bookstores, a very relaxing and casual ambiance is created. LO 1

Store Planning Allocating Space Circulation Shrinkage Prevention LO 2

Store Planning Floor plan: Is 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. LO 2

These Warning Signs May Indicate a Space Problem LO 2Exhibit 13.2

Store Planning 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. LO 2

Store Planning Stack-outs: Are pallets of merchandise set out on the floor in front of the main shelves. LO 2

Store Planning Allocating Space Back Room Offices and Other Functional Spaces Aisles, Service Areas, and Other Nonselling Areas Floor Merchandise Space Wall Merchandise Space LO 2

Store Planning Space Allocation Planning Improving Space Productivity in Existing Stores Space Allocations for a New Store LO 2

Store Planning Space productivity index: Is a ratio that compares the percentage of the store’s total gross margin that a particular merchandise category generates to its percentage of total store selling space used. LO 2

Merchandise Productivity Analysis LO 2Exhibit 13.3 – Softlines Excerpt

Store Planning Circulation Free Flow Grid Loop Spine LO 2

Store Planning Free-flow layout: Is a type of store layout in which fixtures and merchandise are grouped into free-flowing patterns on the sales floor. LO 2

Store Planning Grid layout: Is a type of store layout in which counters and fixtures are placed in long rows or “runs,” usually at right angles, throughout the store. LO 2

Free-Flow Layout LO 2Exhibit 13.4

Grid Layout LO 2Exhibit 13.5

Store Planning Loop layout: Is a type of store layout in which 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. LO 2

Loop Layout LO 2Exhibit 13.6

Store Planning Spine layout: Is a type of store layout in which 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. LO 2

Spine Layout LO 2Exhibit 13.7

Allocating Space Warehouse clubs are able to take advantage not only of the width and depth of the store, but also the height, by using large “warehouse racks” that carry reachable inventory at lower levels with large pallets or cartons of excess inventory at higher levels. LO 2

The Disney Store’s Effective Use of the Free-Flow Design Approximately 250 million consumers visit Disney’s entertainment retail outlets each year. New store designs showcase merchandise in an engaging and contemporary fashion, keeping pace with evolving retail trends. Technological elements - including a front-of-store media wall that engages guests with Disney programming, and interactive kiosks-setting the stage for the Disney Store in the 21st century. LO 2

Floor Plan: Clarence Sander’s Piggly Wiggly LO 2

Floor Plan: Kohl’s LO 2

HBA Space Allocation by Mass Merchandisers Hand/body lotion Creme rinse/conditioner Deodorant Face cream/lotion Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling Total U.S. Eastern Central Southern Pacific Hair colorings Hair spray-women’s Men’s toiletries Oral antiseptics/rinses Shampoo Source: Neilsen Marketing Research LO 2

HBA Space Allocation by Mass Merchandisers Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S. Eastern Central Southern Pacific Shaving creams Suntan Lotion Toothpaste Acne remedies Nasal spray/drops Antacids Cold remedies-adult Cough syrup/tablets Source: Neilsen Marketing Research LO 2

HBA Space Allocation by Mass Merchandisers Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S. Eastern Central Southern Pacific Headache/pain remedies Vitamins Contact lens solution Diet aids Pregnancy test kits Laxatives Contraceptives-male Sanitary napkins Tampons Source: Neilsen Marketing Research LO 2

Planning Fixtures and Merchandise Presentation Fixture Types Merchandise Presentation Planning Selecting Fixtures and Merchandise Presentation Methods Visual Merchandising LO 3

Planning Fixtures and Merchandise Presentation On-shelf merchandising: Is the display of merchandise on counters, racks, shelves, and fixtures throughout the store. LO 3

Planning Fixtures and Merchandise Presentation Fixture Types Hardlines Fixtures Softlines Fixtures Wall Fixtures LO 3

Planning Fixtures and Merchandise Presentation Bulk or capacity fixture: Is a display fixture that is intended to hold the bulk of merchandise without looking as heavy as a long, straight rack of merchandise. LO 3

Planning Fixtures and Merchandise Presentation Feature fixture: Is a display that draws special attention to selected features (e.g., color, shape, or style) of merchandise. LO 3

Four-Way Feature Rack and Round Rack LO 3Exhibit 13.8

Planning Fixtures and Merchandise Presentation Merchandise Presentation Planning; Six Methods 1.Shelving 2.Hanging 3.Pegging 4.Folding 5.Stacking 6.Dumping LO 3

Planning Fixtures and Merchandise Presentation Merchandise Presentation Planning; Key Psychological Factors to Consider 1.Value/fashion image 2.Angles and sightlines 3.Vertical color blocking LO 3

45-Degree Customer Sightline LO 3Exhibit 13.9

Vertical Color Blocking LO 3Exhibit 13.10

Planning Fixtures and Merchandise Presentation Visual merchandising: Is the artistic display of merchandise and theatrical props used as scene-setting decoration in the store. LO 3

Visual Merchandising Lead them to temptation. Department-store design incorporates a gauntlet of goodies to stimulate impulse buys. Cosmetics, a store’s most profitable department, should always be at the main entrance to the store. LO 3

Visual Merchandising Here’s sampling of the techniques stores use to generate those sales: Get’m coming and going. Escalators are a focal point of many stores. That makes them ideal locations for promotional signs and for impulse items like perfume. LO 3

Visual Merchandising Its all in the display. When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury. LO 3

Visual Merchandising Color is king. Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments. LO 3

Visual Merchandising Suggestion positioning. Once the customer has already purchased one item, it’s easier to sell an additional item. Thus apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines. LO 3

Store Design Storefront Design Interior Design Lighting Design Sounds and Smells: Total Sensory Marketing LO 4

Lighting Design Crate & Barrel makes effective use of lighting to highlight and feature merchandise on display. LO 4

Total Sensory Marketing Crabtree & Evelyn makes effective use of fragrances and odors to generate smells that reinforce its store ambiance. LO 4

Visual Communications Name, Logo, and Retail Identity Institutional Signage Directional Departmental, and Category Signage Point-of-Sale (POS) Signage Lifestyle Graphics LO 5

Visual Communications Directional and departmental signage: Are large signs that are usually placed fairly high, so they can be seen throughout the store. LO 5

Visual Communications Category signage: Are smaller than directional and departmental signage and are intended to be seen from a shorter distance; they are located on or close to the fixture itself where the merchandise is displayed. LO 5

Visual Communications Point-of-sale signage: Is relatively small signage that is placed very close to the merchandise and is intended to give details about specific items. LO 5

Departmental Signage Departmental signage serve as the highest level of organization in an overall signage program. These signs are usually large and placed fairly high to they can be seen throughout the store. LO 5

Category Signage Category signage helps consumers negotiate throughout the store to find the product categories they are looking for. The size of category signage varies widely from a lettering that is a few feet in height to merely inches. LO 5

Point-of-Sale (POS) Signage POS signage for clearance and sale items tend to be in red to draw a consumer’s attention. LO 5

Lifestyle Graphics The Limited uses lifestyle graphics to convey the image of the product to the consumer. Here the Limited conveys the casual nature of one apparel line. LO 5

Additional Slides

Store Planning Shrinkage Prevention Circulation Allocating Space LO 2

Planning Fixtures and Merchandise Presentation Fixture types Merchandise presentation planning Selecting fixtures and merchandise presentation methods Visual merchandising LO 3

Store Design Storefront Design Interior Design Lighting Design Sounds and Smells LO 3