Lay outing in Retail Business

. According to Duncan, et al, layouting is the arrangement of equipment, fixtures, merchandises, displays, check-out stands, aisles, counters, cabinets, etc. in relationship to each other, as planned. In retail stores, restaurants, libraries, and even in the kitchen, layouting is very important.

. Generally speaking, a layout affects the behavior of customers by having suggestive displays which contribute with the promotion of sales. According to Brand a good layout encourages self- selection and impulse buying.

. In a display, the eye level display is very catching, and has the tendency to increase sales, and arrangement should be made in a manner that customers will have a chance to pass by the different displays of merchandise.

. The production and Marketing Administration of the U.S. Dept. of Agriculture and the Selling Research, Inc. have these findings: 1. At a certain point in the display of an item, returns being to diminish rapidly and it is questionable whether extra space beyond the point should be given to the item.

. 2. That display for many grocery items could be cut down to make room for additional merchandise at premium profits. 3. It may be wiser to add new items to the shelf before increasing the display beyond two rows, except for fast moving items.

. Color and lighting effect should be attractive to customers. J.R Gomez suggests that stock arrange which has been found successful are the following: 1. Cereal in the bottom shelf with candy on the upper shelves. 2. Cereal in the bottom shelf with jellies, peanut butter and condiments on the upper shelves. 3. Sanitary napkins on the bottom shelf with drugs on the upper shelves.

. 3. Sanitary napkins on the bottom shelf with drugs on the upper shelves. 4. Canned soups in the bottom shelf with canned beans and prepared foods on the upper shelves. 5. Bar soaps on the bottom shelf with drugs on the upper shelves.

‘ 6 Liquid bleaches on the bottom shelf with dry bleaches waxes, and household cleaners on the upper shelves. 7. Soap powder on the bottom shelf with houseware on the upper shelves. 8. Coffee on the bottom shelf with spices on the upper shelves.

. Purpose of Layout. According to J.R. Gomez the purpose of a good layout are the following: 1. Reduces costs 2. Increases employee safety 3. Ensures better quality of product 4. Provides better service to the customers 5. Reduces capital investment

. 6. Increases flexibility 7. Improves employee morale by providing for improved comfort and convenience in work area. 8. Reduces work in process to a minimum 9. Insures effective utilization of floor space 10. Reduces work delays and stoppages

. 11. Insures better work methods and utilizations/labor 12. Improves control and supervision 13. Eliminates congested joint 14. Facilitates movement

. Displays The purpose of display is to expose to customers merchandise items to facilitate observation, examination, selection and to promote sales. Again J.R. Gomez outlines the objective of displays as:

. 1. To increase and to direct customers’ evaluation in the store 2. To boost sales, not only of the displayed items but of others as well, and 3. To create a good image

. The following shoppers’ appeal to the merchandise in percentage by their different senses according to a primer on retail management: 8% of the shoppers buy by sight 7% of the shoppers buy through sound- hearing about the goods 31% of the shoppers buy and smell 11% of the shoppers buy the touch 1% of the shoppers buy through taste

Purpose of the Retail Display Retail display has many purposes, but foremost of these are: a) To stimulate buying, b) To allow manufacturers to introduce their new products, c) To increase sales of less-known brands,

. d) To allow customers to have a wide “variety” of merchandise to choose from e) To sumulate future buying, f) To attract more customers, g) To reduce counter service, and h) To generate more sales.

Disadvantage of Retail Display Retail display has many purposive advantages, however this has also some disadvantages, and some very common disadvantages are: 1. It encourages shoplifting and pilfering 2. It makes the merchandise easily soiled 3. It cheapens the brand.

Demonstration One of effective schemes salesmen used to introduce a new product and to promote sales is through demonstration. In short, demonstration may be carried through (a) giving free samples to prospective customers,

. (b) actual live demonstration of how a new product is used as in a fashion show and in the case of a new brand of gadget, and (c) by other educational means, like conducting a workshop on cooking introducing a new brand of products.