1. Advanced Merchandising
Lesson 12

2. Objectives
Describe the characteristics of good store layout and its impact on sales
Give real-world examples of the four main types of store layout – grid, loop, free flow, and spine
Explain the importance of a well designed store entrance
Computer sales per square foot of space and linear foot of shelving
Calculate short- and long- term payments on leased vs. purchased store fixtures
Evaluate the pros and cons of new equipment, and impact on sales, by analyzing financial statements
Plan an effective store layout to meet sales goals

3. Why is Store Layout Important?
Arrangement of store fixtures, equipment, and merchandise
Major influence on sales and important to image and appearance of the store
Cash registers

4. Measuring Productivity
Most retailers use sales per square foot
Some use sales per linear foot
20 ft
25 ft

5. Creating a Store Layout
Encourage customers to move around the store.
Tend to view more merchandise
Provide a space that is sufficient for customers to shop in and that is useful for maximum productivity
Not to cluttered

6. Types of Store Layouts Grid:
Characterized by long rows of shelving with aisles between the rows
Hold large amount of merchandise
Grocery or drug stores

7. Loop:
Designed to lead customers from the front of the store, through the store, and back to the front
See the most merchandise
Department Stores

8. Free Flow:
Merchandise on fixtures that are arranged in asymmetrical or free flowing patterns on the sales floor
Casual layout that encourages customers to browse as they travel through the store
Specialty stores

9. Spine:
Features a center aisle that extends from the front of the store to the back
Some drug stores

10. Fixtures – Purchase or Lease?
Purchasing:
Become the property of the store
Can get a tax deduction, but they loose there value
Leasing:
Rent for a period of time

11. The Importance of a Good Entrance
Provides the first view customers have of a store
Sets the tone and provides a good first impression

12. MATH CONCEPTS Sales Per Square Foot Of Selling Space:
Total Net Sales / Total Square Feet of Selling Space
Sales Per Linear Foot of Shelving:
Total Net Sales / Total Linear Feet of Shelving