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5th Edition.

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Presentation on theme: "5th Edition."— Presentation transcript:

1 5th Edition

2 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.

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

4 REI’s Store Environment

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 Tradeoff in Store Design
Easy of locating merchandise for planned purchases Exploration of store, impulse purchases

7 Types of Store Layouts Grid Racetrack Free Form

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

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 JCPenney Racetrack Layout

12 Example of Race Track Layout

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 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

15 Example of Boutique Area

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

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

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

22 Visual Merchandising

23 Visual Merchandising

24 Visual Merchandising

25 Visual Merchandising

26 Visual Merchandising Visual Merchandising. Seven Colors Group

27 Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

28 Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

29 Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

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

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

33 Straight Rack

34 Rounder

35 Four-Way

36 Gondola

37 Creating a Store Environment
Color Lighting Store Atmosphere Scent Music

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 Lighting Highlight merchandise. Structure space and capture a mood.
Downplay features.

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