Chapter 13

Store Layout and Design

Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.

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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.
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Introduction to Store Layout Management

LO 1

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.

Store Image
LO 1

L.L. Bean offers relaxed,

classic apparel styles to its customers. To help convey this image, L.L. Beans catalog and advertising reinforces their image. For catalog customers, the catalog is the store environment.

Store Image
LO 1

By incorporating a caf
as an integral part of Barnes & Noble bookstores, a very relaxing and casual ambiance is created.

Introduction to Store Layout Management

LO 1

Elements of the Store Environment Objectives of the Store Environment

Elements That Compose the Store Environment LO 1: Exhibit 13.1

Visual Communications Retail Identity Graphics POS Signage Store Image And Productivity Store Design Exterior Design Ambiance Lighting Merchandising Fixture Selection Merchandise Presentation Visual Merchandising
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Store Planning Space Allocation Layout Circulation

Retailing Truism
LO 1

The more merchandise customers are exposed to, the

more they tend to buy.

Objectives of the Store Environment

LO 1

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.

Objectives of the Store Environment

LO 1

Shrinkage
Represents merchandise that cannot be accounted for due to theft, loss, or damage.

Store Planning
LO 2

Allocating Space Circulation Shrinkage Prevention

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Store Planning
LO 2

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.

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

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Allocating Space
LO 2

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

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Allocating Space
LO 2

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.

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HBA Space Allocation by Mass Merchandisers

Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S.

LO 2

Eastern Central Southern

Pacific

Creme rinse/conditioner Deodorant Face cream/lotion Hand/body lotion Hair colorings Hair spray-womens Mens toiletries Oral antiseptics/rinses Shampoo
Source: Neilsen Marketing Research

58.2 107.6 21.9 44.1 57.7 69.2 28.5 55.3 82.3

45.0 82.9 18.2 27.2 52.6 39.8 11.3 36.6 63.5

59.0 103.4 20.7 44.0 51.4 55.5 23.3 49.4 80.5

59.6 130.0 24.8 54.5 66.2 102.5 44.2 76.0 95.8

86.7 93.5 24.9 43.4 61.1 59.0 28.5 39.5 81.3

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HBA Space Allocation by Mass Merchandisers

Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S.

LO 2

Eastern Central Southern

Pacific

Shaving creams Suntan Lotion Toothpaste Acne remedies Antacids Cold remedies-adult Cough syrup/tablets Nasal spray/drops

24.7 45.7 71.5 31.3 31.3 34.3 13.0 7.1

24.4 37.0 58.9 16.3 16.3 25.5 9.9 4.0

24.3 38.0 60.3 29.7 29.7 30.3 11.9 6.6

24.5 59.9 87.0 39.7 39.7 41.8 15.2 9.6

27.8 41.4 87.6 42.6 42.6 42.9 16.7 6.0

Source: Neilsen Marketing Research

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HBA Space Allocation by Mass Merchandisers

Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S.

LO 2

Eastern Central Southern

Pacific

Headache/pain remedies Vitamins Contact lens solution Diet aids Pregnancy test kits Laxatives Contraceptives-male Sanitary napkins Tampons
Source: Neilsen Marketing Research

49.6 64.5 53.4 23.2 5.0 24.8 11.8 91.2 26.3

30.5 34.0 33.5 14.3 2.4 10.6 7.2 77.8 24.8

47.8 57.6 47.4 25.2 4.2 21.3 9.9 93.7 26.4

61.1 90.2 70.3 26.0 6.6 35.7 12.8 100.8 26.0

59.8 71.0 59.2 28.4 8.6 32.6 26.8 73.6 31.4

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Space Allocation Planning

LO 2

Improving Space Productivity in Existing Stores Space Productivity Index is a ratio that compares the
percentage of the stores total gross margin that a particular merchandise category generates to its percentage of total store selling space used.

Space Allocations for a New Store

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Merchandise Productivity Analysis

LO 2: Exhibit 13.3

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Merchandise Productivity Analysis

LO 2: Exhibit 13.3

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Circulation
LO 2 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 Disadvantages Allowance for browsing Loitering encouraged and wandering freely Possible confusion Increased impulse Waste of floor space purchases Cost Visual appeal Difficulty of cleaning Flexibility

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Circulation: Free Flow

LO 2: Exhibit 13.4

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The Disney Stores Effective Use of the Free-Flow Design LO 2

Approximately 250 million consumers visit Disneys 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.

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Circulation
LO 2 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. Disadvantages Advantages Low cost Plain and uninteresting Customer familiarity Limited browsing Merchandise exposure Stimulation of rushed shopping Ease of cleaning behavior Simplified security Limited creativity in decor Possibility of self-service

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Circulation: Grid Layout

LO 2: Exhibit 13.5

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Circulation
LO 2

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

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Circulation: Loop Layout

LO 2: Exhibit 13.6

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Floor Plan: Kohls

LO 2

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Circulation
LO 2

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.

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Circulation: Spine Layout

LO 2: Exhibit 13.7

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Floor Plan: Clarence Sanders Piggly Wiggly LO 2

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Shrinkage Prevention
LO 2

One of the most important considerations when planning the layout is visibility of the merchandise.

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Planning Fixtures and Merchandise Presentation LO 3

On-Shelf Merchandising Is the display of merchandise on counters, racks, shelves, and fixtures throughout the store.

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Planning Fixtures and Merchandise Presentation LO 3

Fixture Types Merchandise Presentation Planning Selecting Fixtures and Merchandise Presentation
Methods

Visual Merchandising

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Fixture Types
LO 3

Hardlines Fixtures Softlines Fixtures Wall Fixtures

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Fixture Types
LO 3

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.

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Four-Way Feature Rack and Round Rack

LO 3: Exhibit 13.8

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Merchandise Presentation Planning

LO 3

Methods of Merchandise Presentation:

Shelving Hanging Pegging Folding Stacking Dumping

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Merchandise Presentation Planning

LO 3

Psychological Factors to Consider When

Merchandising Stores:

Value/fashion image Angles and sightlines Vertical color blocking

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45-Degree Customer Sightline

LO 3: Exhibit 13.9

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Vertical Color Blocking

LO 3: Exhibit 13.10

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Visual Merchandising
LO 3

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

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Visual Merchandising
LO 3

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.

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Visual Merchandising
LO 3

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.

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Visual Merchandising
LO 3

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.

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Visual Merchandising
LO 3

Color is king. Retailers

believe consumers are more apt to buy clothes that appear in full size and color assortments.

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Visual Merchandising
LO 3
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.

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

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Store Design
LO 4

Ambience
Is the overall feeling or mood projected by a store through its aesthetic appeal to human senses.

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Store Design
LO 4

Storefront Design Interior Design Lighting Design Sounds and Smells: Total Sensory Marketing

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Lighting Design
LO 4

Crate & Barrel makes

effective use of lighting to highlight and feature merchandise on display.

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Total Sensory Marketing

LO 4

Crabtree & Evelyn

makes effective use of fragrances and odors to generate smells that reinforce its store ambiance.

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Visual Communications
LO 5

Name, Logo, and Retail Identity Institutional Signage Directional, Departmental, and Category Signage Point-of-Sale (POS) Signage Lifestyle Graphics

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Directional, Departmental, and Category Signage LO 5

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.

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Departmental Signage
LO 5

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.

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Category Signage
LO 5

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.

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Point-of-Sale (POS) Signage

LO 5

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.

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Point-of-Sale (POS) Signage

LO 5

POS signage for

clearance and sale items tend to be in red to draw a consumers attention.

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Lifestyle Graphics
LO 5

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.

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