Learning Objectives

List the elements of a stores 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 stores success.

Explain the role of visual communications in a retail store.

Introduction to Store Layout Management

Store Image is the overall perception the customer has of the stores

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.

Retailing Truism

The more merchandise customers are exposed to, the more they tend to

buy.

Objectives of the Store Environment

o Tasks to create desired store image and increase space productivity.

 o Get customers into the store (market image).

o Convert them into customers buying merchandise once inside the store

(space productivity).

o Do this in the most efficient manner possible.

Shrinkage represents merchandise that cannot be accounted for due to

theft, loss, or damage.

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.

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

 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.

Planning Fixtures and Merchandise Presentation

On-Shelf Merchandising

Is the display of merchandise on counters, racks, shelves, and fixtures

throughout the store.

Fixture Types

Hardlines Fixtures- Those functions are commonly used in

promotional aisles to display advertised or other special value

merchandise.

Softlines Fixtures- A large array of fixtures has been developed to

accommodate the special needs of softline, which are often hung

on hungers.

Wall Fixtures- is a display that draws special attention to selected

features.

Merchandise Presentation Planning

Methods of Merchandise Presentation:

Shelving- flexible, easy- to- maintain merchandise presentation method

 Hanging- apparel on hungers can be hung from softlines, such as

round tracks and four- way racks, or from bars installed on wall system

Pegging- used both softlines and hardlines

Folding- can create a high- fashion image

Stacking- gives an image of high volume and low price

Dumping- can be used in softlines, hardlines and creates a high-

volume, low cost image

Psychological Factors to Consider When Merchandising Stores:

Value/fashion image- One of the most important effects of merchandise

presentations is the psychological effect it fosters in the customers mind

of how trendy, exclusive, pricery, or value oriented the merchandise is.

Angles and sightlines- Research has shown that as customers move

through a retail store, they view the store at approximately 45 degree

angles from the path of travel than perpendicular to their path.

Vertical color blocking- To be most effective, merchandise should be

displayed in vertical bands of color whatever possible.

Visual Merchandising

Is the artistic display of merchandise and theatrical props used as scene-

setting decoration in the store.

Heres sampling of the techniques stores use to generate those sales:

 Getm 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.

Lead them to temptation. Department-store design incorporates a

gauntlet of goodies to stimulate impulse buys. Cosmetics, a stores

most profitable department, should always be at the main entrance

to the store.

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.

Color is king. Retailers believe consumers are more apt to buy

clothes that appear in full size and color assortments.

Suggestion positioning. Once the customer has already purchased

one item, its 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.

Store Design

Ambience- is the overall feeling or mood projected by a store

through its aesthetic appeal to human senses.

Storefront Design- is the design located outside the store.

Interior Design- is the design located inside the store.

 Lighting Design- makes effective use of lighting to highlight and

feature merchandise on display.

Sounds and Smells- makes effective use of fragrances and odors

to generate smells that reinforce its store ambiance.

Visual Communications

Name, Logo, and Retail Identity

Institutional Signage- is the largest signage in which usually placed

infront of the store.

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.

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.