V

Understanding of basic finance involved in

retail

or planning new venture like new business

area or a new geographical market

V
V


 

po determine the economic viability of the business in designated

markets

po provide guidance to the new business planner in organizing

and controlling various planning activities

po serve as a tool for obtaining the necessary financing

easibility study looks at three major areas:

V
V
V

Market issues
Organizational /technical issue
inancial issues

easibility study should be done in these areas

V
V
V
V
V
V
V

Description of the business

Economic consideration for the business
Market factors
phe cost of the new premises
Start up cost and operating expenses
Cost of the inventory
Cash flow requirements

MRO (ross margin return of selling space

or footage) :ross Margin / Shop Sq.ft

Sales per square feet : potal sales/potal sq.ft

Conversion ration :

Average ticket size :

No of customer (who make a purchase )*100

No . Of customer entering the space
potal sales for the day
No of bills generated

Session 27

Understanding of the importance of store

design in retail

<Design is an intrinsic part of the overall

brand strategy and should not be the last
point. Retail design is not about creating
attractive shops that have no walk-ins.

By :?


 ?


  
    

   - 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.



Allocating space
 pypes of space needed
9 Back room
9 Offices and other functional spaces
9 Aisles, service areas, and other nonselling areas
9 loor merchandise space
9 Wall merchandise space



mproving space productivity in existing stores

9 ?


   
  - 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.

 
 - A schematic that illustrates how

and where a retailers merchandise should be

displayed on the shelf in order to increase
customer purchases.



Circulation
 ree-flow layout
 rid layout
 Loop layout
 Spine layout






 


 




 












V
V
V
V
V
V



 
1. Allowance for
browsing
and wandering freely
2. ncreased impulse
purchases
3. Visual appeal
4. lexibility

V
V
V
V
V
V

 


 
1. Loitering
encouraged
2. Possible confusion
3. Waste of floor space
4. Cost
5. Difficulty of cleaning

p
 











 


 





 




  


 




V
V
V
V
V
V
V



 
1. Low cost
2. Customer familiarity
3. Merchandise
exposure
4. Ease of cleaning
5. Simplified security
6. Possibility of selfservice

V
V
V
V
V
V
V

 


 
1. Plain and
uninteresting
2. Limited browsing
3. Stimulation of
rushed
shopping behavior
4. Limited creativity in
decor

 
 

 

 








 


 










 











 



 


 



 

 
 



 

 







 

 

 

 

  




 

 

 



 



 

 





 





 



 






ey psychological factors to consider when

merchandising stores:
 Value/fashion image
 Angles and sightlines
 Vertical color blocking









V
V
V
V

?



 
 

 
 
 
?


? 


? 

 

Signs and graphics provide information

and can add personality, beauty, and romance to a
stores image

ood lighting should do more than illuminate space.

t can highlight merchandise, sculpt space, and
capture a mood that enhances a stores image.

    

V

A typical 100,000 sq.ft. department store has over

1000 light fixtures.

Contemporary lighting
design requires an indepth knowledge of
electrical engineering
and the effect of light on
color and texture.

phe Limited, as many

specialty apparel
retailers, has found that
lower light levels help
convey a more fashion
oriented image

V
V
V
V
V

 




 
   

   

?

  
 
     

 

?


 

?
 ?

?


 


Name, logo, and retail

identity
 Must be catchy,

memorable, and reflective

of the retailers
merchandising mission.
V

nstitutional signage
 Describes the

merchandising mission,
customer service policies,
and other messages on
behalf of the retail
institution

Directional and Departmental

Signage
V

phey are large signs that are

usually placed fairly high, so
they can be seen throughout
the store.

t serve as the highest level

of organization in an overall
signage program.

phese signs are usually large

and placed fairly high to they
can be seen throughout the
store.

phey 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

t helps consumers negotiate

throughout the store to find the
product categories they are
looking for. phe size of category
signage varies widely from a
lettering that is a few feet in
height to merely inches.

t is relatively small
signage that is placed
very close to the
merchandise and is
intended to give details
about specific tems

POS signage for

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

Visual Merchandising : 15 mins