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.