1. Store Layout

2. Where do retailers use visual merchandising?
Four areas of display in a retail store
Storefront
Store Layout
Store Interior
Interior Displays
We have been talking about areas that retailers use for merchandising.
We talked about the different elements of a storefront and the role these areas play in helping retailers portray a certain image. Now we want to discuss what the customers sees when they walk into the store.
(Click button to highlight Store Layout)
Today's retailers are finding themselves in an increasingly competitive environment. No longer do they compete on just price and quality, but on a wide range of other aspects such as location, technological innovation and store design. Small retailers are finding it difficult to keep up with the ongoing innovation necessary in competing effectively with the larger chains. To be competitive the smaller retailer has to do more with a smaller space.
How a retailer sets up their store can be just as important as to what's in the store.
Retailers want a layout that fits their décor.
It must invite the customer in, and encourage them to walk around AND SHOP
Today we are going to be discussing different store layouts and the purpose of each.

3. Store Layout
The store layout is the arrangement of floor space to promote the sale of fashion products.
A retailer can be arranged as a series of departments or groupings of merchandise.
First lets define store layout. Read first + 2nd bullets
Retailers choose the type of layout that fits the mood of their establishment and allows them to effectively display their goods.
Some retailers such Kohl’s, Target or Walmart are so large they display merchandise in departments. They even have sales people who are trained to work specific departments.
Is stores such as Bed bath a beyond merchandise is placed according to a traffic pattern the retailer wants customers to make through the store.
Merchandising techniques are used to focus customers’ minds on what is available and enable them to move freely from one area to another, easing purchasing decisions.
Merchandising should therefore stimulate customers to buy and should be attractive and appropriate, use space cost-effectively and meet changing market needs.

4. Store Layout Purpose: Generate Sales
Provide for ease of customer movement through the store (Circulation)
Provide for maximum product exposure and attractive display of merchandise
Prevent Shrinkage
Retailers today are not only trying to attract customers to their store but they are trying to keep them there for as long a possible, for them to spend as much as possible and to return and hopefully repeat the experience soon.
Consumers tend to be inquisitive and will enter a new store just to see what it is like, it is persuading them to stay, make purchases and return again that is more difficult. In fashion retailing in particular, shoppers enjoy change, merchandise needs to be moved around frequently, combined with the introduction of new lines, so that consumers, especially innovators do not become bored.
Retailer are also trying to reduce shrinkage or theft. Good clean isles not only make it easier for shoppers to shop, it also allows retailers to keep an eye out for shoplifters.

5. STORE LAYOUT Selling space Personnel space Customer space
Interior displays
Sales demonstrations
Sales transactions
Merchandise space
Inventory storage
Backrooms
Drawers, shelves
Personnel space
For employees
Break room
Restrooms
Lockers
Customer space
For their comfort
Dressing rooms
Restaurants
lounges
When designing a store layout you must consider many different things. Not only where your merchandise is going to go or how your customers are going to get through your store but you also may have to consider break rooms, dressing rooms, and bathrooms

6. Store Layout Cont Traffic: The number of customers that enter a store.
Traffic Pattern: The path customers take through a store while shopping.
Before we get into the different type of store layouts let me first define two terms the first one is Traffic. (Read 1st bullet)
In retail terms traffic is simple a word used to define the number of customers who walk through a retailers door. Many times customer traffic is thought of as the number of potential customers who have entered your store.
Bullet #2
Traffic Pattern is simply the path customers take through your store while shopping. Smart retailers set defined pathways through their stores guiding customers to displays.
When a retailer chooses an effective floor plan and merchandises well they can manipulate the flow of traffic and pull and push customers into different areas of the store by their choice of layout.
This helps to ensure that minimum congestion occurs in problem areas. "Customers who shop in an entire store buy far more than those who shop in only selected areas in hopes that they will see something of interest. Shopper who shop the entire store buy way more than those shoppers who just

7. Retail Floor plans
Three Basic Plans
Loop
Free-Form
Grid

8. Loop/Racetrack Layout
Provides a major customer aisle that 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.
It is also referred to as a racetrack layout
The racetrack layout draws customer around the store
It provides different site lines and encourages exploration, impulse buying.

9. Floorplan: Kohl’s
This is a typical Kohl’s layout This would be a double racetrack or double loop.
Notice the walkways. Different departments will usually be spread along the outside and inside of the customer flow pattern.
This traffic pattern also provides for merchandising up the center isle.

10. JC Penny Floor plan
This is a loop or racetrack floor plan of a JC Penny. Notice the series of loops through out the store and how the different departments branch off each

11. Free Form
Used primarily in specialty stores or within the boutiques of larger stores that arranges fixtures and aisles in an asymmetrical pattern.
A free flow layout allows merchandise to be placed in groupings and patterns that allow customer traffic to flow in an unstructured
manner. It allows for maximum product exposure and customer convenience. A free flow layout encourages impulse buying and browsing.
It is, however, a more costly layout to set up and is not as efficient as the grid layout in utilizing space. Please note that even though a free flow
layout may appear on the surface to be very random, it is in fact organized with very specific logic and objectives

12. Free Form
A free form layout is very flexible. The retailer can easily move displays and change traffic patterns to keep the store looking fresh.

13. Free Form

14. Grid Layout
A store layout of fixtures and aisles in a repetitive or rectangular pattern
Best illustrated by a variety store or the grocery department in a typical supermarket.
Secondary aisles run at right angles to aisles, and each aisle is usually of the same width for its length.
Due to the well defined aisles and merchandise space, customers normally move around the store in a predetermined order. It is cost effective as many products may be displayed on relatively cheap fixtures, however there is little flexibility concerning the movement of fixtures, which can lead to an uninteresting layout but it has the advantage of easy maintenance.
This layout is particularly suited to supermarkets because shoppers need to move around as quickly and easily as possible. Due to the height of the fixtures, overhead signs are necessary in helping the customer to locate the products. If combined with the use of special displays, retailers can pull the customers in certain directions, which gives them some flexibility. Simple tactical organization of goods where standard items may be sited at areas distant from the access points will draw customers right through the shop past the impulse goods.

15. Grocery Store Layout
Checkouts
Meat
Bread
Milk
Bakery

16. Layout Rules of Thumb
Locate high-draw items around the periphery of the store
Use prominent locations such as the first and last aisle or end caps for high-impulse and high margin items

17. Layout Rules of Thumb
Place related Merchandise, even though it may be in separate departments, near each other if they are coordinating or complementary items. This will make them visible to the customer and make shopping easier.
Designate an area of the floor for merchandise that is on hand on only a short term basis. This makes for efficient changeover of that area when a new season arrives.