STORES FORMAT, STORES

LAYOUT, SPACE ALLOCATION

AND STORES SIZE
GROUR MEMBERS
 Group 6

NIZAM JALEEL
NABEELA

AZHAR KP

SAJID
 STORE FORMAT

Positioning and differentiation

create a distinct image of the
store among its customers
Store Format by
• Location
• Ownership
• Merchandise
categories
• Size
• Price

Store Format by
Location:-

• Chain Store Format

• High Street Format
• Destination Format
• Convenience Store
Format

Store Format by
Ownership :-
• Franchise Format
• Independent
format
•
Store Format by
Merchandise Categories :-

• Family Store
• Specialty Store
• Department Store
• Supermarket
• Emporium
Store Format by Size :-
• Shopping Mall
• Shopping Centre
• Hyper Market
Store Format by Price :-

• Discount Format
• EDLP Format
• Factory Outlet
Format
• Warehouse Format
 Stores Layout
The layout of a store is the
arrangement and location of
fixtures, fittings, equipment,
merchandise aisles and non-
selling areas such as checkouts
and dressing rooms.
 Laying out a store
• Three main factors are
a)Fixtures &fittings
b)Merchandise
c)Customer circulation
 Kinds of layouts


 Grid layout
 It is often used in supermarkets, aids and
directs customer flow and is designed to
enhance efficiency
 Boutique layout
 It arranges the sales floor into partially
separated areas to create an unusual and
interesting shopping experience.
 Free flow layout
 It encourages browsing and is used
most by clothing stores.
 SPACE ALLOCATION
• Retailers often place considerable
emphasis on space allocation
• Selling area space is at a most retail
outlets, particularly those that
depend on high sales volume.
• It is an attempt to optimize the
selling area space used with its
cost, space for individual lines is
allocated as far possible in line with
their contribution to sales and
profitability
Approaches to Space
Allocation
• Top-down space management
approach


 Total available store space



 Divides the space



 Stores product layout

• Bottom-up Space management
approach


 Individual Product Level



 Category


 Total Store


 Company Level

Importance of correct Shelf
Allocation
• Improves profitability
• Optimization
• Maximum exposure
• Adequate use of space
• Reduce out of stock
• More concentrated and less frequent
• Automatic elimination of slow moving
products
 Space Planning
• Retailer must consider how much
space to devote to each product
and at the same time, also keep in
mind the physical characteristics of
the display area
 Factors to be considered for
effective Space Planning
• Profitability of the merchandise
• Analysis of Stock to Sales Ratio
• Product Shelf Life
• Considering the best Presentation
Method
• Examining the Pack Size
• Emphasizing the Focus Category of
the retailer
• Complementary Neighbours
• Future Sales Potential
 STORE SIZE
 There had been an increase in the
average store size for general
merchandise stores. Stores had to
make better use of space because
rents are rapidly increasing. The
largest increase in store size in recent
years has been in drugstores. In
addition to drugs, these stores sell
many different unrelated items such
as food products, convenience goods,
greeting cards and seasonal items.
 Scrambled Merchandising
 It exists when a retailer handles
many different and unrelated items.
It also applies to services , such as
ATM’s, Phone cards, and car wash
services at convenience stores.
 Category Killer
 It is a retailer that carries such a
large amount of merchandise in a
single category at such good prices
that it makes it impossible for the
customers to walkout without
purchasing what they need, thus
killing the competition.
 Adapting the Retail
Offering
It is a bundle of benefits that the
customer purchases when entering the
store. The offering consists of products
and services., the image and reputation
of the store and other intangible
benefits.
 Size of Business
The size of the business can be
measured by the number of outlets or
stores that a business operates, which
indicates its breadth of its market
presence across the country, or by the
business’s annual sales, which indicates
its total market penetration.
 Advantages
• Deliver greater value to the
customer.
• Cost advantage over smaller firms.
 a) Purchasing and distribution
 b) Management and personnel
 c) Marketing
 d) Finance
 e) Risk
• Restrict the ability of Competitors.