1. 0 Store Layout and Design Chapter 13 Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved.

2. 1 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. Describe why store design is so important to a store’s success. Explain the role of visual communications in a retail store.

3. 2 Introduction to Store Layout Management Store Image is the overall perception the customer has of the store’s environment. Space Productivity represents how effectively the retailer utilizes its space and is usually measured by sales per square foot of selling space or gross margin dollars per square foot of selling space. LO 1

4. 3 Store Image L.L. Bean offers relaxed, classic apparel styles to its customers. To help convey this image, L.L. Bean’s catalog and advertising reinforces their image. For catalog customers, the catalog is the store environment. LO 1

5. 4 Store Image By incorporating a café as an integral part of Barnes & Noble bookstores, a very relaxing and casual ambiance is created. LO 1

6. 5 Introduction to Store Layout Management Elements of the Store Environment Objectives of the Store Environment LO 1

7. 6 Elements That Compose the Store Environment LO 1: Exhibit 13.1 Visual Communications Retail Identity Graphics POS Signage Store Planning Space Allocation Layout Circulation Store Design Exterior Design Ambiance Lighting Merchandising Fixture Selection Merchandise Presentation Visual Merchandising Store Image And Productivity

8. 7 Retailing Truism The more merchandise customers are exposed to, the more they tend to buy. LO 1

9. 8 Objectives of the Store Environment Tasks to create desired store image and increase space productivity: Get customers into the store (market image). Convert them into customers buying merchandise once inside the store (space productivity). Do this in the most efficient manner possible. LO 1

10. 9 Objectives of the Store Environment Shrinkage Represents merchandise that cannot be accounted for due to theft, loss, or damage. LO 1

11. 10 Store Planning Allocating Space Circulation Shrinkage Prevention LO 2

12. 11 Store Planning Floor Plan is 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. Stack-Outs are pallets of merchandise set out on the floor in front of the main shelves. LO 2

13. 12 These Warning Signs May Indicate a Space Problem LO 2: Exhibit 13.2

14. 13 Allocating Space Types of space needed: Back room Office and other functional spaces Aisles, services areas, and other nonselling areas of the main sales floor Wall merchandise space Floor merchandise space LO 2

15. 14 Allocating Space Warehouse clubs are able to take advantage not only of the width and depth of the store, but also the height, by using large “warehouse racks” that carry reachable inventory at lower levels with large pallets or cartons of excess inventory at higher levels. LO 2

16. 15 HBA Space Allocation by Mass Merchandisers LO 2 Hand/body lotion 44.1 27.2 44.0 54.5 43.4 Creme rinse/conditioner 58.2 45.0 59.0 59.6 86.7 Deodorant 107.6 82.9 103.4 130.0 93.5 Face cream/lotion 21.9 18.2 20.7 24.8 24.9 Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S. Eastern Central Southern Pacific Hair colorings 57.7 52.6 51.4 66.2 61.1 Hair spray-women’s 69.2 39.8 55.5 102.5 59.0 Men’s toiletries 28.5 11.3 23.3 44.2 28.5 Oral antiseptics/rinses 55.3 36.6 49.4 76.0 39.5 Shampoo 82.3 63.5 80.5 95.8 81.3 Source: Neilsen Marketing Research

17. 16 HBA Space Allocation by Mass Merchandisers LO 2 Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S. Eastern Central Southern Pacific Shaving creams 24.7 24.4 24.3 24.5 27.8 Suntan Lotion 45.7 37.0 38.0 59.9 41.4 Toothpaste 71.5 58.9 60.3 87.0 87.6 Acne remedies 31.3 16.3 29.7 39.7 42.6 Nasal spray/drops 7.1 4.0 6.6 9.6 6.0 Antacids 31.3 16.3 29.7 39.7 42.6 Cold remedies-adult 34.3 25.5 30.3 41.8 42.9 Cough syrup/tablets 13.0 9.9 11.9 15.2 16.7 Source: Neilsen Marketing Research

18. 17 HBA Space Allocation by Mass Merchandisers LO 2 Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S. Eastern Central Southern Pacific Headache/pain remedies 49.6 30.5 47.8 61.1 59.8 Vitamins 64.5 34.0 57.6 90.2 71.0 Contact lens solution 53.4 33.5 47.4 70.3 59.2 Diet aids 23.2 14.3 25.2 26.0 28.4 Pregnancy test kits 5.0 2.4 4.2 6.6 8.6 Laxatives 24.8 10.6 21.3 35.7 32.6 Contraceptives-male 11.8 7.2 9.9 12.8 26.8 Sanitary napkins 91.2 77.8 93.7 100.8 73.6 Tampons 26.3 24.8 26.4 26.0 31.4 Source: Neilsen Marketing Research

19. 18 Space Allocation Planning Improving Space Productivity in Existing Stores Space Productivity Index is 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 LO 2

20. 19 Merchandise Productivity Analysis LO 2: Exhibit 13.3

21. 20 Merchandise Productivity Analysis LO 2: Exhibit 13.3

22. 21 Circulation Free-Flow Layout is a type of store layout in which fixtures and merchandise are grouped into free-flowing patterns on the sales floor. Advantages Allowance for browsing and wandering freely Increased impulse purchases Visual appeal Flexibility LO 2 Disadvantages Loitering encouraged Possible confusion Waste of floor space Cost Difficulty of cleaning

23. 22 Circulation: Free Flow LO 2: Exhibit 13.4

24. 23 The Disney Store’s Effective Use of the Free-Flow Design Approximately 250 million consumers visit Disney’s entertainment retail outlets each year. New store designs showcase merchandise in an engaging and contemporary fashion, keeping pace with evolving retail trends. Technological elements - including a front-of-store media wall that engages guests with Disney programming, and interactive kiosks-setting the stage for the Disney Store in the 21st century. LO 2

25. 24 Circulation Grid Layout is a type of store layout in which counters and fixtures are placed in long rows or “runs,” usually at right angles, throughout the store. Advantages Low cost Customer familiarity Merchandise exposure Ease of cleaning Simplified security Possibility of self-service LO 2 Disadvantages Plain and uninteresting Limited browsing Stimulation of rushed shopping behavior Limited creativity in decor

26. 25 Circulation: Grid Layout LO 2: Exhibit 13.5

27. 26 Circulation Loop Layout is a type of store layout in which a major customer aisle begins at the entrance, loops through the store, usually in the shape of a circle, square, ar rectangle, and then returns the customer the front of the store. Advantages Exposes customers to the greatest amount of merchandise LO 2

28. 27 Circulation: Loop Layout LO 2: Exhibit 13.6

29. 28 Floor Plan: Kohl’s LO 2

30. 29 Circulation Spine Layout is a type of store layout in which 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 aisle walls. LO 2

31. 30 Circulation: Spine Layout LO 2: Exhibit 13.7

32. 31 Floor Plan: Clarence Sander’s Piggly Wiggly LO 2

33. 32 Shrinkage Prevention One of the most important considerations when planning the layout is visibility of the merchandise. LO 2

34. 33 Planning Fixtures and Merchandise Presentation On-Shelf Merchandising Is the display of merchandise on counters, racks, shelves, and fixtures throughout the store. LO 3

35. 34 Planning Fixtures and Merchandise Presentation Fixture Types Merchandise Presentation Planning Selecting Fixtures and Merchandise Presentation Methods Visual Merchandising LO 3

36. 35 Fixture Types Hardlines Fixtures Softlines Fixtures Wall Fixtures LO 3

37. 36 Fixture Types Softlines Fixtures Bulk or Capacity Fixture is a display fixture that is intended to hold the bulk of merchandise without looking as heavy as a long straight rack of merchandise. Feature Fixture is a display that draws special attention to selected features (e.g., color, shape, or style) of merchandise. LO 3

38. 37 Four-Way Feature Rack and Round Rack LO 3: Exhibit 13.8

39. 38 Merchandise Presentation Planning Methods of Merchandise Presentation: Shelving Hanging Pegging Folding Stacking Dumping LO 3

40. 39 Merchandise Presentation Planning Psychological Factors to Consider When Merchandising Stores: Value/fashion image Angles and sightlines Vertical color blocking LO 3

41. 40 45-Degree Customer Sightline LO 3: Exhibit 13.9

42. 41 Vertical Color Blocking LO 3: Exhibit 13.10

43. 42 Visual Merchandising Is the artistic display of merchandise and theatrical props used as scene-setting decoration in the store. LO 3

44. 43 Visual Merchandising Here’s sampling of the techniques stores use to generate those sales: Get’m coming and going. Escalators are a focal point of many stores. That makes them ideal locations for promotional signs and for impulse items like perfume. LO 3

45. 44 Visual Merchandising Lead them to temptation. Department-store design incorporates a gauntlet of goodies to stimulate impulse buys. Cosmetics, a store’s most profitable department, should always be at the main entrance to the store. LO 3

46. 45 Visual Merchandising Its all in the display. When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury. LO 3

47. 46 Visual Merchandising Color is king. Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments. LO 3

48. 47 Visual Merchandising Suggestion positioning. Once the customer has already purchased one item, it’s easier to sell an additional item. Thus apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines. LO 3

49. 48 Question to Ponder How do fixtures and merchandise presentation interact to influence consumers in different types of retailers?

50. 49 Store Design Ambience Is the overall feeling or mood projected by a store through its aesthetic appeal to human senses. LO 4

51. 50 Store Design Storefront Design Interior Design Lighting Design Sounds and Smells: Total Sensory Marketing LO 4

52. 51 Lighting Design Crate & Barrel makes effective use of lighting to highlight and feature merchandise on display. LO 4

53. 52 Total Sensory Marketing Crabtree & Evelyn makes effective use of fragrances and odors to generate smells that reinforce its store ambiance. LO 4

54. 53 Visual Communications Name, Logo, and Retail Identity Institutional Signage Directional, Departmental, and Category Signage Point-of-Sale (POS) Signage Lifestyle Graphics LO 5

55. 54 Directional, Departmental, and Category Signage Directional and Departmental Signage are large signs that are usually placed fairly high, so they can be seen throughout the store. Category Signage are smaller than directional and departmental signage and are 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

56. 55 Departmental Signage Departmental signage serve as the highest level of organization in an overall signage program. These signs are usually large and placed fairly high to they can be seen throughout the store. LO 5

57. 56 Category Signage Category signage helps consumers negotiate throughout the store to find the product categories they are looking for. The size of category signage varies widely from a lettering that is a few feet in height to merely inches. LO 5

58. 57 Point-of-Sale (POS) Signage Point-of-Sale Signage Is relatively small signage that is placed very close to the merchandise and is intended to give details about specific items. LO 5

59. 58 Point-of-Sale (POS) Signage POS signage for clearance and sale items tend to be in red to draw a consumer’s attention. LO 5

60. 59 Lifestyle Graphics The Limited uses lifestyle graphics to convey the image of the product to the consumer. Here the Limited conveys the casual nature of one apparel line. LO 5

61. 60 Additional Slides

62. 61 Store Planning LO 2 Shrinkage Prevention Circulation Allocating Space

63. 62 Planning Fixtures and Merchandise Presentation LO 3 Fixture types Merchandise presentation panning Selecting fixtures and merchandise presentation methods Visual merchandising

64. 63 Store Design LO 4 Storefront Design Interior Design Lighting Design Sounds and Smells

65. 64