1. Chapter 13 Store Layout and Design

2. Del Frisco’s - Dallas

3. Del Frisco’s - Dallas

4. Del Frisco’s - Denver

5. Del Frisco’s - Denver

6. Del Frisco’s - Houston

7. Del Frisco’s - Houston

8. Del Frisco’s - Houston

9. Del Frisco’s – New York

10. Del Frisco’s - New York

11. Del Frisco’s – Philadelphia

12. Del Frisco’s - Philadelphia

13. Del Frisco’s - Philadelphia

14. Del Frisco’s - Philadelphia

15. Two Quick Videos on the Science of Layouts
Layout Video #1
Layout Video #2

16. Why Focus on Store Layout Management?
Dallas Morning News Headline:
“Shopper Found Dead in Local Store;
Cause of Death – Boredom.”
Stanley Marcus (Neiman Marcus) – ACRA 1993

17. Boredom & the Store Environment
Time Poverty
As consumers’ lives become increasingly time starved, customers are often entering retail stores with a negative feeling/emotion because they would rather be doing something else than shopping
Dissatisfaction with Shopping
Whether due to larger amounts of category management, cookie-cutter retailers, more time spent working, or changes in demographics…
So what?

18. A “Clash for Cash” Two Primary Objectives of the Store Environment
Store Image
How much do you spend to get customers into the store?
Affected by such things as:
Space Productivity
How much is necessary to keep customers inside the store for longer periods so that we can expose them to more products, thus increasing the probability that they purchase?
Location Employees
Promotional Activities Layout
Merchandise Lighting
Cleanliness Service Offerings

19. Elements of the Store Environment

20. Store Planning
“The better it is, the less you notice it as a customer”
Fundamentally concerned with the allocation of space and how it is used.
Floor Plan
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.

21. Types of Space Back room Office & other functional areas
Receiving areas for shipments & stockroom
Office & other functional areas
Break & training rooms, offices, and bathrooms
Aisles, service areas, and other non-selling space
Dressing rooms, service desks, etc.
Walls
Sales floor

22. Space Allocation Planning
Requires the retailer to first analyze the profitability and productivity of various merchandise lines.
On average 20% of a retailer’s merchandise is either obsolete or unwanted by the retailer’s customer base.
Any productivity metric chosen must relate some performance variable (e.g., sales, GM, etc.) to the amount of space used in the store.

23. Improving an Existing Store’s Space Productivity
Space Productivity Index
Compares the percentage of the store’s total GM for a category to the percentage of space allocated to that category (fig. 13.3)
Comparing Index Figures
1.0 is ideal
If greater,
May want to increase allocation to make more money by having more product available
If less,
It’s underperforming, and may want to remove some space
Why only “maybe remove”?

24. Space Allocations for a New Store
2 Methods for Calculating Sales per Sq. Foot:
Traditional:
Total sales / total sq. ft. in the store
Bob Kahn’s approach:
Number of customers X the length of time in the store

25. Warning Signs Indicating a Possible Space Problem

26. Layout and Circulation Patterns: Free-Flow Layout

27. Layout and Circulation Patterns: The Grid Layout

28. Layout and Circulation Patterns: The Loop Layout

29. Layout and Circulation Patterns: The Spine Layout

30. Kohl’s “Modified” Loop Layout

31. Layout and Circulation Patterns: The Spine Layout - Disney

32. The Only Patented Layout – Clarence Sander’s Piggly Wiggly

33. Planning Fixtures and Merchandise Presentation
Shrinkage Prevention
$40 billion lost annually by retailers from theft alone
Dramatically affected by one’s store layout and design
Key: Visibility of merchandise
Example: placement of offices & other security windows
Most theft occurs:
In changing rooms, blind spots, aisles crowded by “stack-outs”, or behind high displays
Traditionally, has led to display fixtures no higher than eye-level, but increased productivity of higher fixtures pushes some to overlook possibility for theft.

34. Planning Fixtures and Merchandise Presentation
Increased emphasis on presentation as retailer seek to maximize sales out of existing square footage.
Two basic types of merchandise presentation:
On-shelf merchandising
The display of merchandise on counters, racks, shelves, and other fixtures throughout the store
Visual merchandising
The artistic display of merchandise and theatrical props used as scene-setting decoration in the store.
Typically not shoppable, but impacts affect and accessorization
Another example of how retailers can offer service without people – helps customers know what to buy

35. Example of Visual Merchandising

36. On-shelf Merchandising
“Shopping is a ‘contact’ sport”
Fixtures must not only present merchandise attractively, but also display in such a way that it’s easy to understand and is accessible.
It must also:
Be easy to maintain by the staff, as well as the customer
Eliminate any fear in the customer to actually touch because of fear of damaging the product or themselves

37. Planning Fixtures and Merchandise Presentation
General Rule of Thumb:
“Match the fixture to the merchandise, not the merchandise to the fixture.”
Three categories of store fixtures:
Hardline fixtures
Examples: Gondola, tables, bins, flat-base deck
Softline fixtures
Bulk or capacity fixture
Examples: Straight rack and Round rack (both sleeve-out)
Feature fixture
Example: Four-way rack (face-out presentation)
Wall fixtures

38. Four-Way Rack and Round Rack

39. Merchandise Presentation and Likely Customer Affect & Price Image
Methods of merchandise presentation:
Shelving
Hanging
Pegging
Folding
Stacking
Dumping

40. Merchandise Presentation and Likely Customer Angles or Sightlines

41. Merchandise Presentation and Vertical Color Blocking

42. Store Design Overall goal is to create a desirable ambience
A function of at least four different factors:
Storefront design
Interior design
Lighting design
Sounds and smells

43. Storefront Design
All successful retailers will have storefronts that are:
Noticeable
Memorable
Easily identifiable
Includes not only the store front décor, architecture, and building materials, but also window displays and any advertising
Poor performance here will dramatically lessen one’s overall traffic

44. Storefront Design – Example: Victor Churchill Butcher Shop

45. Storefront Design

46. Interior Design Focuses on two general elements:
Finishes applied to surfaces
Flooring – Marble, wood, paint/stain, bare
Wall coverings – color, sheen, texture, and fabrics/materials
Architectural shapes
Archways
Ceilings – vaulted versus fully-exposed
Staircases
Sunken floors

47. Interior Design – Kubrick Bookshop (Beijing)

48. Interior Design – Target

49. Lighting Design
Lighting can greatly impact store sales; yet not always in a positive way.
Bright lighting
Pushes for customers to handle merchandise which may increase conversion
May suggest a discount-store image, particularly for fashion
Lighting to dissuade “undesirables”
Contemporary lighting design requires an in-depth knowledge of electrical engineering and the effect of light on color and texture.

50. Lighting Design – Brother & Sister (Hong Kong)

51. Sound & Smell Design Total Sensory Marketing
Effective design appeals to four of the five human senses
Sight, Hearing, Smell, and Touch
The “Decompression Chamber”
While “sight” may the focal point, “smell” is believed to be most highly linked to memory and emotion.
Examples: Nike & old shoes; Disney & baked cookies
Sound can affect shopping speed

52. Visual Communications
5 General Areas of Visual Communication:
Name, Logo, and Retailer Identity
Institutional signage
Directional, Departmental, and/or Category signage
Point-of-Purchase (POP) signage
Lifestyle Graphics

53. What You Should Have Learned… Chapter’s Learning Objectives
The elements of a store’s environment & its two primary objectives.
The steps involved in planning the store.
How various types of fixtures, merchandise presentation methods & techniques, and the psychology of merchandise presentation are used to increase the productivity of the sales floor.
Why store design is so important to a store’s success.
The role of visual communications in a retail store.