Chapter 13 Store Layout and Design

Learning Objectives List the elements of a store’s environment and define its two primary objectives. Discuss the steps involved in planning the store. 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.

Learning Objectives Describe why store design is so important to a store’s success. 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

Exhibit 13.1 - Elements That Compose the Store Environment LO 1

Introduction to Store Layout Management Objectives of the store environment Developing a store image Increasing space productivity LO 1

Store Planning 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. LO 1

Exhibit 13.2 - These Warning Signs may Indicate a Space Problem LO 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. Stack-outs - Pallets of merchandise set out on the floor in front of the main shelves. LO 2

Store Planning Allocating space Circulation Shrinkage prevention Types of space needed Back room Offices and other functional spaces Aisles, service areas, and other nonselling areas Floor merchandise space Wall merchandise space Space allocation planning Circulation Shrinkage prevention LO 2

Store Planning Space allocation planning Improving space productivity in existing stores Space productivity index - 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. Space allocations for a new store Planograms - A schematic that illustrates how and where a retailer’s merchandise should be displayed on the shelf in order to increase customer purchases. LO 2

Store Planning Circulation Free-flow layout Grid layout Loop layout Spine layout LO 2

Store Planning Free-flow layout Fixtures and merchandise are grouped into free-flowing patterns on the sales floor. Grid layout The counters and fixtures are placed in long rows or ‘‘runs,’’ usually at right angles, throughout the store. Loop layout 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. Spine layout 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

Exhibit 13.4 - Free-Flow Layout

Exhibit 13.5 - Grid Layout LO 2

Exhibit 13.6 - Loop Layout LO 2

Exhibit 13.7 - Spine Layout LO 2

Planning Fixtures and Merchandise Presentation On-shelf merchandising - Display of merchandise on counters, racks, shelves, and fixtures throughout the store. It must present and display the merchandise attractively so that it is easy to understand and access. It must be reasonably easy to maintain. LO 3

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

Fixture Types Hardlines fixtures Softlines fixtures Wall fixtures Bulk or capacity fixture - Display fixture that is intended to hold the bulk of merchandise without looking as heavy as a long, straight rack of merchandise. Feature fixture - Display that draws special attention to selected features (e.g., color, shape, or style) of merchandise. Wall fixtures LO 3

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

Merchandise Presentation Planning Shelving Hanging Pegging Folding Stacking Dumping LO 3

Merchandise Presentation Planning Key psychological factors to consider when merchandising stores: Value/fashion image Angles and sightlines Vertical color blocking LO 3

Exhibit 13.9 - 45-Degree Customer Sightline LO 3

Exhibit 13.10 - Vertical Color Blocking

Selecting Fixtures and Merchandise-Presentation Methods Proper fixtures emphasize the key selling attributes of merchandise while not being overpowering. A good guideline for selecting fixtures is to match the fixture to the merchandise, not the merchandise to the fixture. LO 3

Visual Merchandising The artistic display of merchandise and theatrical props used as scene-setting decoration in the store. Visual displays are located in a focal point, feature area, or other area remote from the on-shelf merchandising and perhaps even out of reach of the customer. Visuals should incorporate relevant merchandise. LO 3

Store Design Storefront design Interior design The storefront must clearly identify the name and general nature of the store and give some hint as to the merchandise inside. It includes all exterior signage and the architecture of the storefront itself. Interior design The finishes applied to surfaces The architectural shapes LO 4

Store Design Lighting design Lighting greatly enhances store sales. Contemporary lighting design requires an in-depth knowledge of electrical engineering and the effect of light on color and texture. Sounds and smells: total sensory marketing Effective store design appeals to the human senses of sight, hearing, smell, and touch. LO 4

Visual Communications Name, logo, and retail identity Must be catchy, memorable, and reflective of the retailer’s merchandising mission. Institutional signage Describes the merchandising mission, customer service policies, and other messages on behalf of the retail institution. LO 5

Visual Communications Directional, departmental, and category signage Directional and departmental signage are usually large and placed fairly high, so they can be seen throughout the store. Category signage is usually smaller and is 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 (POS) - A relatively small signage placed very close to the merchandise, and intended to give details about specific items. The most important function is to clearly state the price of the merchandise being signed. LO 5

Visual Communications Lifestyle graphics Lifestyle images portray either the merchandise, often as it is being used, or simply images of related items or models that convey an image conducive to buying the product. Lifestyle photography must be kept very general so as to be attractive to the majority and offensive to none. LO 5