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REPORT ON

IMPACT OF STORE LAYOUT AND VISUAL


MERCHANDISINGS IN CUSTOMER MIND
(MANAGING RETAIL BUSINESS)
MARKET RESEARCH, 4TH TRIMESTER

SUBMITTED BY
ACHIN (M17-02)
ANIKET (M17-06)
AVNEEP (M17-10)
DIVYA (M17-14)
UJJWAL (M17-34)

Under the guidance of

DR. SANJAY KAR

ASSOCIATE PROFESSOR

MARKETING

Department of Management Studies (DoMS) 2017-2019


Table of Contents
1. INTRODUCTION ................................................................................................................. 4
1.1 Store Lyout ....................................................................................................................... 4
1.2Visual Merchandise ........................................................................................................... 4
2. FACTORS TO BE CONSIDERED FOR STORE LAYOUT .............................................. 5
2.1 Layout .............................................................................................................................. 5
2.2 Lighting ............................................................................................................................ 5
2.3 Signage & Graphics ........................................................................................................ 5
2.4 Store Atmosphere ............................................................................................................. 5
3. FACTORS TO BE CONSIDERED FOR VISUAL MERCHANDISING ............................ 6
3.1 Store Front ........................................................................................................................ 6
3.2 Store Space ....................................................................................................................... 6
3.3 Store Display .................................................................................................................... 7
3.4 Interior Display ................................................................................................................ 7
3.5 Other Environmental Factors ........................................................................................... 7
4. OBSERVATIONS RECORDED........................................................................................... 8
4.1 Levis ................................................................................................................................. 9
4.2 Biba ................................................................................................................................ 10
4.3 Soch ................................................................................................................................ 11
4.4 Pepe Jeans ...................................................................................................................... 12
4.5 Arrow ............................................................................................................................. 13
4.6 Van Heusen .................................................................................................................... 15
4.7 Aurelia ............................................................................................................................ 16
4.8 Indian Terrain ................................................................................................................. 17

5. REARCH METHODOLOGY ............................................................................................. 18


6.CONCLUSION ..................................................................................................................... 22
REFERENCES ........................................................................................................................ 22

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Table of Figures
Figure 1:Levis Store -------------------------------------------------------------------------------------- 9
Figure 2: Biba Store -------------------------------------------------------------------------------------10
Figure 3: Soch Store-------------------------------------------------------------------------------------11
Figure 4: Pepe Jeans -------------------------------------------------------------------------------------12
Figure 5: Arrow ------------------------------------------------------------------------------------------13
Figure 6: Van Heusen ------------------------------------------------------------------------------------15
Figure 7: Aurelia -----------------------------------------------------------------------------------------16
Figure 8: Indian Terrain ---------------------------------------------------------------------------------17

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INTRODUCTION

1.1 STORE LAYOUT

Store layout is an important factor affecting consumer behaviour and a critical determinant towards
the creation of store image. Well-designed layouts are extremely important because they strongly
influence in-store traffic patterns, shopping atmosphere, shopping behaviour, and operational
efficiency

When an inconsistency occurs, some consumers will abandon that establishment in search of another
one which offers fast, convenient and better services. Taking a more strategic approach to store layout
can reap big rewards by boosting sales, increasing customer loyalty and ultimately increasing turnover.

The overall aim of the study was to ascertain if independent convenience stores in Lucknow, Rae Bareli
are aware of the impact of store layout on purchasing patterns of consumers. In order to accomplish
the objectives of the study, a quantitative study was conducted at the convenience stores at Lucknow,
Sahara Ganj Mall by means of self-administered questionnaires.

The results of this study show that consumers experience problems with store layout. It was found
that appearance of the store, merchandise display, store atmosphere, instore service and accessibility
are the major causes of this discomfort. Therefore, few recommendations were given to store owner
so that they can implement the necessary strategies to help customers where there is a need.

1.2 VISUAL MERCHENDISING

Visual merchandising refers to the use and manipulation of attractive sales displays and retail floor
plans to engage customers and boost sales activity. In visual merchandising, the products being sold
are typically displayed in such a way as to attract consumers from the intended market by drawing
attention to the product’s best features and benefits. Visual merchandising is the activity and
profession of developing floor plans and three-dimensional displays in order to maximize sales. Both
goods and services can be displayed to highlight their features and benefits. The purpose of such visual
merchandising is to attract, engage and motivate the customer towards making a purchase.

Visual merchandising encompasses all of the physical elements that merchandisers use to project an
image to customers. Visual merchandising:

i. Promotes interest in merchandise or services


ii. Encourages purchasing
iii. Reinforces customer satisfaction

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2. FACTORS TO BE CONSIDERED FOR STORE LAYOUT

2.1 LAYOUT:

There are three common conventional layout types:

i. Grid: this layout contains long pathways which are placed parallel to each other. Retailers
are in favour of this layout style because the rectangular arrangement of the shelves fits well
in the shopping behaviour of consumers, and it facilitates an efficient and fast shopping
experience
ii. Freeform: in contradiction to the grid form, the freeform layout is, as the name already
reveals, a layout form containing a unstructured arrangement of aisles, shelves and displays.
The freeform layout is mostly used by clothing stores. In this design, the emphasis is on
increase the ease with which shoppers can find products throughout the store, which is
illustrated by the fact that most freeform stores have low shelves. Another characteristic of
this store layout is that consumers tend to spend more shopping time in stores using this
form.
iii. Racetrack: this store layout contains one central main aisle, leading the consumer along the
complete store. The function of that main aisle is to guide the consumer through as much as
possible store areas. The store is divided in several departments, each with an own product
category

2.2 LIGHTING:

Today lighting has become a display medium. It is an integral part of store design in store exterior and
store interiors. Lighting should match with the retailer’s attempt to create a bright store image. A dim
light can make the store look soothing pleasant and give a sense of calmness in store. Few Store have
very bright and shiny light to make the store look more vibrant and flashier so that customers can
locate and spot the store from far end.

2.3 SIGNAGE AND GRAPHICS:

Help customers locate specific products and departments, provide product information, and
suggest items or special purchases. In addition, graphics, such as photo panels, can enhance the
store environment and the store’s image. Digital signage has several advantages over traditional
printed signage, but the initial fixed costs have made the adoption of this technology slow. Feature
areas are areas within a store designed to get the customer’s attention. They include freestanding
displays, end caps, promotional aisles or areas, windows, cash wraps or point-of-sale areas, and
walls.

2.4 STORE ATMOSPHERE:

Store Atmosphere refers to all of the physical and nonphysical elements of a store that can be
controlled in order to enhance (or restrain) the behaviours. These elements present a multitude of
possibilities including ambient cues such as colour, smell, music, lighting, and textures, as well as
architectural elements. The role of Atmospherics in Retail Strategy is mainly to enhances the image of
the retail outlet and attract new customers, creates a definite Unique Selling Proposition (USP),

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facilitates easy store movement and access to merchandise, ensures optimum utilization of retail
space, reduces product search time for the customer, reinforces the marketing communication of the
outlet and influence the service quality experience.

Four components of retail atmospherics are:

i. Internal atmospherics:
Refers to all aspects of physical environment found inside the store.
ii. External atmospherics:
Refers to all aspects of physical environment found outside the store which includes store
entrances, main board, marquee, windows and lighting
iii. Store layout:
Refers to the interior retail store arrangement of departments or groupings of merchandise.
It involves decision about allocation of floor space, product groupings and nature of traffic
flow.
iv. Visual Merchandising:
Visual merchandising includes various aspects like: store floor plan, store windows, signs,
merchandise display, space design, fixtures and hardware.

3. FACTORS TO BE CONSIDERED FOR VISUAL MERCHANDISING

Elements of Visual Merchandising Merchandisers consider four key elements to achieve the goal of
creating a positive shopping experience for consumers:

3.1 STOREFRONT:

The design of a sign should be original and easily recognizable. The name, letters, logo, and colours
help create the store’s desired image.

i. Sign or logo
ii. Marquee
iii. Banners, Windows
iv. Exterior design
v. landscaping

3.2 STORE SPACE:

Refers to ways that stores use floor space to facilitate and promote sales and serve customers. There
are four distinct spaces:

i. Selling space: General interior of the store


ii. Storage space: Stockrooms and inventory
iii. Personnel space: Employee lockers and offices
iv. Customer space: Areas of comfort and convenience for customers

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3.3 STORE INTERIOR:

Bright colours and light pastels appeal to different types of customers, while interior graphics and
signs can be used to promote items or give directions. Walls can be covered to reinforce the store
image or display merchandise. The basic types include:

i. Display cases
ii. Tables
iii. Counters
iv. Floor and wall shelving units
v. Racks
vi. Bins
vii. Stands

3.4 INTERIOR DISPLAYS:

If interior displays are done exceptionally well, they enable customers to make selection without the
assistance of a sales clerk. Five types of interior displays are:

i. Closed displays
ii. Open displays
iii. Architectural displays
iv. Point-of-purchase displays
v. Store decorations

3.5 OTHER ENVIRONMENT FACTORS TO BE CONSIDERED FOR VISUAL MERCHANDISING:

The various other factors are considered while doing store visual merchandise. These factors can be
divided on the basis of interior and exterior. These factors are as follows, namely

INTERIOR FACTORS:

i. Props flowers decorative material


ii. Fixtures (apparel fixture or display props)
iii. Lighting (type and colour), (spot fitting and flood fitting)
iv. Interior sign (position where is sign placed)
v. Sales personnel (friendliness and appearance)
vi. Sensory inputs (smell, touch and sound)
vii. Technologies such as digital displays

EXTERIOR FACTORS:

i. Window (stocky window, open window, over stocky, single layered and double layered
ii. Entrance
iii. Store location
iv. Store signage
v. Furniture display
vi. Store logo (what colour are used and what is their style of writing logo)

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4. OBSERVATIONS:

To understand which factors are most important, we conducted a study of eight store outlets of
apparel segment at Saharaganj Mall Lucknow

The following store were selected:

1) Levis
2) BIBA
3) Soach
4) Pape Jeans
5) Arrow
6) Van Heusen
7) Aurelia
8) Indian Terrain

The store-wise observations were noted. How the stores are using visualization pattern to display
the various products is discussed as follows,

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4.1 Brand Name: LEVI’S

Fig:1

OBSERVATIONS:

1. Colour used for Display Logo:


Red for excellent visibility because red never fails to attract customers (eye catching to
customers)
2. Window display:
Single layered where all displays are horizontally displayed
3. Fixtures:
Display props
4. Lighting:
Flood lights i.e. maximum flashing of light (which enhance the lighting in store so that
merchandise is easily visualized)
5. Entrance:
Free form layout so single entrance system
6. Store signage:
Board of offer is displayed in front to attract customers.

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4.2 Brand Name: BIBA

Fig: 2
OBSERVATIONS:

1. Colour used for Logo:


Red (eye catching bright which attract women, hot and vivid colour)
2. Window display:
Double layered window as it displays props as well as sign boards on front end display.
3. Fixtures:
4 way racks and straight racks used for merchandise which show the design in more
reliable manner.
4. Lighting:
Spot light used which flashes the light directly on merchandise.
5. Entrance:
Free form layout (entry exit same)
6. Store signage:
Apparel props used to draw women attention to make them realize in the way the women
will look.
7. Sign type used: signage is used inside the store and not outside or at front.
8. Props used as display:
All types from full sleeve kurti to sleeveless to make customers feel the variety.

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4.3 Brand Name: SOCh

Fig:3
OBSERVATIONS:

1. Colour used for Logo:


White in Hindi word (soch)
2. Window display:
Double layered window as it displays women props in standing position as well as in sitting
position. Standing position depicts the elegance of women in saree, sitting women posture
depicts the bride posture and her beauty in lehnga.
3. Fixtures:
Straight racks used for merchandise and apparel display props
4. Lighting:
Spot light used with off white colour
5. Entrance:
Free form layout (entry exit same)
6. Props used as display:
Red in colour which again attracts women of age 20s to 30s

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4.4 Brand Name: PEPE JEANS

Fig: 4

OBSERVATIONS:

1. Colour used for outdoor:


Blue
2. Window display:
Mannequin is displayed for couple as well as children in standing position. If we see from
outdoor this colour combination with Blue colour reflects the freshness and attracts the
customer. Spot lights are used for both couple and children mannequin.
3. Entrance:
Store follows free form layout (entry exit same). Since entry and exit points are same; store is
secured by CCTV Camera inside in store as well as outside the entry and exit point are covered.
Store has more walking area from entry gate, which allows flexibility to move around the store
at single eye-sight. Glass doors are used to reflect the items while passing around the store.
Security is maintained through RFID gate, which detect unauthorized material exit from the
store.
4. Store signage:
It is inside the store near to entry point. The new collection display board is hanged on
wooden having same colour as floor as well as store racks. Also the design of signage board is
done with new colour combination which reflects the freshness and gives good feeling.

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5. Fixtures:
straight racks are used for merchandised items and they are kept in only 5-6 in number in each
rack which allows the comfort for customer while taking out from the rack and if it is on top
sales person will help to withdraw it. Store has two sales persons.
6. Lighting:
Lighting is provided to highlight each item through celling based interior design. Also spot light
are used near to entry gate towards mannequin. Store maintains cleaning throughout the day
which reflected in lighting while looking at store from outside.

4.5 Brand Name: ARROW

Fig: 5
OBSERVATIONS:

1. Colour used for outdoor:

Dark Blue with black coloured border.

2. Window display:
Mannequin is displayed in only one side. Other side is covered with the history of brand
because they completed 25 years in India. The spotlight is used on timeline-based display
board to announce their celebration of Silver jubilee in India.

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They have arranged their mannequin inside the store, since the mannequin space is occupied with
silver jubilee display board. The mannequin is used entire formal dress as well as for formal shirts
only.

3. Entrance:
Store follows free form layout (entry exit same). Since entry and exit points are same; store is
secured by CCTV Camera inside in store as well as outside the entry and exit point are covered.
Store has more walking area from entry gate, which allows flexibility to move around the store
at single eye-sight. Store has displayed the entire formal dress items like formal shirt with two
colour combination of white and blue coloured shirt display on desk, which is placed in such
way that customer’s attention will go to this desk after entered into the store. Also desk is
designed in company’s logo which starts from letter A, in which arrow is drawn to indicate the
brand. This design of logo is also placed on the wall, where billing counter is located in the
store. The position of billing counter is placed in such way that, the staff person who is at
billing counter can observe the entry and exit of store along with CCTV Cameras.
4. Store signage:
No signage board regarding new arrivals and any offers is found.
5. Fixtures:
They follow mix format w.r.t. arrangement of merchandised items. Most of merchandised
items like shirts are hanged at top while at bottom straight racks are used to display formal
pants. By hanging formal shirts, causal shirts, the customer can realize the look appearance of
shirt. Also trial room with mirror is provided to the customer to give experience of actual look
of shirt. Store has two sales persons and one staff at billing counter.
6. Lighting:
Lighting is provided to highlight each item through celling based interior design. Also spot
light are used near to entry gate to highlight the silver jubilee celebration in India.
7. Display Board:
Store name is displayed on outside in white coloured lighting over dark blue background with
black colour border. The origin of brand U.S.A. is also mentioned with white lighting. In
between logo (Arrow) is drawn with Red colour. From outside of store red colour attracts the
attention of customer.

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4.6 Brand Name: VAN HEUSEN

Fig: 6
OBSERVATIONS:

1. Colour used for outdoor:


Dark Black colour.
2. Window display:
Mannequin is displayed in steady and motion position. The motion mannequin is displayed
under the private label named MOVE LABS. Only few selected colour under this category were
displayed.
3. Entrance:
Store follows free form layout (entry exit same).Since entry and exit points are same; store is
secured by CCTV Camera inside in store as well as outside the entry and exit point are covered.
Store has more walking area from entry gate. Near to Entry Gate they displayed their private
labelled new stock in the store. From outside, they painted company logo on pillar with white
coloured lighting effects on entry gate. The entry gate is maintained with two glass doors.
4. Store signage:
No signage board regarding new arrivals and any offers is found.
5. Fixtures:

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They follow mix format w.r.t. arrangement of merchandised items. Left side of entry gate is
occupied with only pants (formal & causals). Also suit related accessories is displayed near to
formal shirts collection.

6. Lighting:
Lighting is provided with the help of spot light on mannequin as well as other merchandised
items. At entry point the most of light is used to display logo and name of company.
7. Display Board:
Store name is displayed on outside in white coloured lighting over dark black coloured
background. Most of the outdoor display board is focused with logo with white coloured light
which catches the first eye-sight.

4.7 Brand Name: Aurelia

Fig:7

1. Color used for outdoor:


Black-Golden

2. Window display:
Mannequin is displayed for women only. Since store is exclusive for women fashion all
traditional dress display like Punjabi Salwar and long tops are displayed. The displayed items
are party-wear dress for women. Also store is occupied with daily use tops.

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3. Entrance:
Store follows free form layout (Same entry & exit point).The entry and exit points can be
observed from cash counter. Backside of cashier, the TV monitor display is placed for
advertising as well as entertainment of customer.
4. Store signage:
No store signage found.
5. Fixtures:
straight racks made up of wooden finishing are used for merchandised items and they are
kept in shade-wise and color combination pattern.
6. Lighting:
Lighting is used to realize the shade of top and Punjabi Kurta and Dupatta. So it is easy to
understand the exact color match as women’s habit of matching pattern of cloth while
selection.
7. Display Board:
Store name is displayed on outside in black colored and lighting over shaded golden
background.

4.8 Brand Name: INDIAN TERRAIN

Fig: 8

1. Color used for outdoor:


Blue
2. Window display:
Four Men Mannequin are displyed since this store is exclusively for men.The disply was fro
causal format only observed.
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3. Entrance:
Store follows free form layout (Same entry & exit point).The entry and exit points are
decorated with multiple color for causual shirt.
4. Store signage:
store signage is found outside of the store on wooden board.Based the color of wall light red
is corporated with dark red color of sinage display font with red background.
5. Fixtures:
straight racks made up of wooden finishing are used for merchandised items and they are
kept in shade-wise and color combination pattern.
6. Lighting:
More Lighting is used for Mannequin only since they are decorated with fresh arrival and new
variety availability in the store.
7. Display Board:
Store name is displayed in capital letters with blue background and logo decorated with white
light.

5. RESEACH METHODOLOGY

It is often said that there can exist certain gaps between the theory and actual perception of
customers. It is obviously very hard to predict what consumer likes because it is very subjective to
changing scenarios but a general preference can be gathers for few people (also called as samples) in
order to identify the type of visual merchandise and layout which they prefer the most. The next part
of the project covers the market research view in which a questionnaire was designed and it was
circulated among people in order record their preferences. The attributes of the store and their
respective levels which were taken as displayed in the table below:

LIGHTING • DIM
• BRIGHT
• SHINY

SIGNAGE • PRINTED
• HAND WRITTEN
BRAND LOGO • BLUE
• BLACK
• RED
• GREEN

LAYOUT • SAME ENTRY & EXIT


• DIFFERENT ENTRY & EXIT
PRODUCT LOCATION • PLACED RIGHT FROM ENTRANCE
• PLACED LEFT FROM ENTRANCE
EYE CATCHING PRODUCTS • WALL HANGING
• RACKS PLACED
• ROUNDERS PLACED

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ATMOSPHERE • WARM, PLEASANT & SLOW MUSIC
• WARM, PLEASANT & FAST/ENERGETIC
MUSIC

The software used for this work is IBM SPSS. The full profile approach was followed for all the above
attributes and levels and a total of 576 combinations were made among which a store could choose
one particular combination in order to lure customer. But the main objective of this research work is
to identify which is the best or which are the best combinations which customer prefers so the same
could be adapted by the retail owners in order to gain maximum footfall. An increase in foot fall may
also result in increased number of sales for a particular retail outlet. After the full profile approach the
orthogonal view of SPSS and a major of 16 combinations were obtained. SPSS neglects the
combination which are not of so importance and displays the major ones among which the customers
are to choose. The questionnaire consisting of those 16 major combinations were floated and is
depicted below as well.

Image 1: Image denoting the major combination among which the customers have to choose

The preferences for each of these combinations were obtained and they are tabulated below:

Combination 1 Preference 2
Combination 2 Preference 4
Combination 3 Preference 3
Combination 4 Preference 4
Combination 5 Preference 3

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Combination 6 Preference 2
Combination 7 Preference 3
Combination 8 Preference 3
Combination 9 Preference 2
Combination 10 Preference 3
Combination 11 Preference 3
Combination 12 Preference 3
Combination 13 Preference 3
Combination 14 Preference 4
Combination 15 Preference 3
Combination 16 Preference 4
The SPSS major combinations and average customers preferences are denoted in the above table. The
preference was in a likert scale ranging from 1 to 5, where 1 stands for unfavourable and 5 for strongly
favourable. After the creation of dummy variable and adopting for linear regression in order to find
the utility of all the levels combined, the following utility equation was obtained:

U = 2.750 – 0.25 X1 + 0 X2 + 0.25 X3 + 1.250 X4 + 1.250 X5 + 2 X6 + 0.5 X7 – 0.750 X8 + 0.625 X9 + 0.25 X10
– 0.5 X11

Where,

X1 & X2 = Contribution of Lighting

X3 & X4 = Contribution of Signage

X5, X6 & X7 = Contribution of Brand logo

X8 = Contribution of Layout

X9 = Contribution of Eye catching products

X10 & X11 = Contribution of Atmosphere

After calculating the relation contribution of all the levels of the attributes the following are the
preference of these 42 customers for each of these attributes: (The peak shows the most preferred
substance)

LIGHTING SIGNAGE
0.6 0.3

0.4 0.2
0.1
0.2
0
0 PRINTED HAND WRITTEN
-0.1
DIM BRIGHT SHINY
-0.2 -0.2
-0.4 -0.3

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BRAND LOGO LAYOUT
0.5 0.4

0.2
0
BLUE BLACK RED GREE 0
-0.5 SAME ENTRY & EXIT DIFFERENT ENTRY & EXIT
-0.2

-1 -0.4

PRODUCT LOCATION EYE CATCHING


0.6 PRODUCTS
0.4 0.4
0.2
0.2
0
RIGHT FROM ENTRANCE LEFT FROM ENTRANCE 0
-0.2 WALL HANGING RACKS PLACED ROUNDERS
-0.4 -0.2 PLACED

-0.6 -0.4

ATMOSPHERE
0.3

0.2

0.1

0
WARM,PLEASANT,SLOW MUSIC WARM,ENERGETIC,FAST MUSIC
-0.1

-0.2

-0.3

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6. CONCLUSION:

When calculating the relative importance of each of the levels it was found that the maximum
importance which customers pays to is the lightening effect provided by the retail outlet.

Upon observing the peaks of all the graphs of individual attributes it can be concluded the following
combinations of store and visual layouts are mostly preferred by the customers:

(a) Bright light with Hand written signage with Black & Red brand logo having different entry and
exit where products are placed from left of the entrance and are in wall hanging nature
accompanied with warm, pleasant and fast music.

Therefore, for the above market research work it can be inferred that if any retail outlet who is
planning to launch its store or planning to go for re design can consider the above-mentioned
parameters in order to facilitate better shopping experience for the customers. This data was taken
form students of RGIPT campus and may vary in different places because it should always be kept in
mind that “Retail is localised”.

REFERENCES

1. https://www.peerlessdesigns.com/2017/11/26/visual-merchandising-store-layout-tips
~peerless
2. https://www.signs.com/blog/store-layout-and-customer-flow-does-it-matter-for-smbs/
3. https://www.managementstudyguide.com/store-design-and-layout.htm~MSG Management
4. https://bizfluent.com/facts-6951533-store-layout-definition.html
5. https://www.dotactiv.com/blog/merchandising-store-layout
6. https://bib.irb.hr/datoteka/865746.tulec_et_al._2016.pdf ~Kristina Petljak, Ph. D.
7. http://www.ijstr.org/final-print/aug2014/Retail-Shoppability-The-Impact-Of-Store-
Atmospherics-Store-Layout-On-Consumer-Buying-Patterns.pdf ~Priyanka Singh
8. https://openscholar.dut.ac.za/bitstream/10321/467/1/Tlapana_2009.pdf~TshepoPeter
9. http://movingtactics.co.za/5-secrets-effective-visual-merchandising/
10. https://www.shopify.in/retail/6-visual-merchandising-tricks-to-boost-your-sales-per-square-
foot ~ Jesica biani

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