Store Design and Layout

MKE601 Special Topics on Marketing Management

Shopper found dead in local store; cause of death boredom

Stanley Marcus, Chairman-Emeritus, Neiman Marcus

y No other variable in the retailing mix influences the

consumers initial perceptions of a bricks & mortar retailer as much as the store itself.
y The store is where the action is and includes such minor

details as the placement of the merchandise.

Objectives of the Store Environment

y Get customers into the store (store image)

y Serves a critical role in the store selection process y Important criteria include cleanliness, labeled prices,

accurate and pleasant checkout clerks, and well-stocked shelves y The store itself makes the most significant and last impression
y Once they are inside the store, convert them into customers

buying merchandise (space productivity) The more merchandise customers are exposed to that is presented in an orderly manner, the more they tend to buy y Retailers focusing more attention on in-store marketing marketing money spent in the store, in the form of store design, merchandise presentation, visual displays, and in-store promotions, should lead to greater sales and profits (bottom line: it is easier to get a consumer in your store to buy more merchandise than to get a new consumer to come into your store)

Objectives of Good Store Design

Design should:
y be consistent with image and strategy y positively influence consumer behavior y consider costs versus value y be flexible y recognize the needs of the disabled / differently

abled.

Types of Floor Space in Store

y Back Room receiving area, stockroom y Department stores (50%) y Small specialty and convenience stores (10%) y General merchandise stores (15-20%) y Offices and Other Functional Space employee break

room, store offices, cash office, restrooms

y Aisles, Service Areas and Other Non-Selling Areas y Moving shoppers through the store, dressing rooms,

layaway areas, service desks, customer service facilities

y Merchandise Space y Floor y Wall

Store Layout (and Traffic Flow)

y Conflicting objectives: y Ease of finding merchandise versus

varied and interesting layout

y Giving customers adequate space to

shop versus use expensive space productively

Components of retail atmospherics

Exterior atmospherics Interior atmospherics Store layout Visual merchandising External atmospherics All aspects of the physical environment found outside the store are external atmospherics. Significantly affects store traffic and sales generated. Store exterior includes store entrances, main board, marquee, windows display and lighting, height and size of the building, parking facilities, surroundings etc...

Interior atmospherics
All aspects of physical environment found inside the store, affects sales, time spent in the store and approach/avoidance behavior of the target segment. . The retail unit environment presents various stimuli that are perceived by the customer's senses. Each stimulus offers many options with regard to shopping behavior.

Store layout
Is the

interior retail store arrangement of

departments or groupings of merchandise. Store arrangement: - pays adequate attention to the expected movement of the customers visiting the store. - space allotted to customers to shop. - adequate facilities for merchandise display.

Grid (Straight) Design

Best used in retail environments in which majority of customers shop the entire store Can be confusing and frustrating because it is difficult to see over the fixtures to other merchandise

requires more merchandisers to assist customers; may frustrate and cause them to look elsewhere

Most familiar examples for supermarkets and drugstores

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

Curving/Loop (Racetrack) Design

Major customer aisle(s) begins at entrance, loops through the store (usually in shape of circle, square or rectangle) and returns customer to front of store Exposes shoppers to the greatest possible amount of merchandise by encouraging browsing and crossshopping

Loop Layout/ Racetrack 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 or rectangle, and then returns the customer to the front of the store. Advantages Exposes customers to the greatest amount of merchandise

Free-Flow Layout
Storage, Receiving, Marketing

Fixtures and merchandise grouped into freeflowing patterns on the sales floor no defined traffic pattern
Dressing Rooms
Tops

Underwear Accessories

Checkout counter

Hats and Handbags

Works best in small stores (under 5,000 square feet) in which customers wish to browse Works best when merchandise is of the same type, such as fashion apparel If there is a great variety of merchandise, fails to provide cues as to where one department stops

Casual Wear

Stockings

Pants

Tops

Clearance Items

Feature

Feature

Open Display Window

Open Display Window

Skirts and Dresses

Jeans

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

Spine Layout

Variation of grid, loop and free-form layouts Based on single main aisle running from the front to the back of the store (transporting customers in both directions) On either side of spine, merchandise departments branch off toward the back or side walls Heavily used by mediumsized specialty stores ranging from 2,000 10,000 square feet In fashion stores the spine is often subtly offset by a change in floor coloring or surface and is not perceived as an aisle

Exterior Atmospherics Storefront Accessibility Marquee Entrances Visibility Parking Size of building Display windows Adjoining Stores Store Layout
Floor space allocation for selling, merchandise display, and customer traffic flow Department location Space/merchandise category Signage

Interior Atmospherics Flooring Dead area Lighting Personnel Temperature Fixtures Wall Trial room Aisles Odour Cleanliness

Visual Merchandising Assortment\Theme Racks and shelves Payment Counters

Layout Selection-Chief Considerations

A good layout y encourages customers to move around the complete store y strikes the right balance between space used for displays and service areas y considers the needs of women, the elderly, children and disabled persons who may visit the store y keeps in mind the kind of merchandise a retailer intends to sell

Feature Areas
y The areas within a store designed to get the

customers attention which include:

y End caps displays located at the end of the

aisles y Promotional aisle/area y Freestanding fixtures y Windows y Walls y Point-of-sale (POS) displays/areas

Fixture Types
y Straight Rack long pipe

suspended with supports to the floor or attached to a wall vertical spine or wall fitted with sockets or notches into which a variety of shelves, peghooks, bins, baskets and other hardware can be inserted. crossbars that sit perpendicular to each other on a pedestal

y Gondola large base with a

y Four-way Fixture two

y Round Rack round fixture that

sits on pedestal

y Other common fixtures: tables,

large bins, flat-based decks

Fixture Types
y Wall Fixtures y To make stores wall merchandisable, wall usually covered with a skin that is fitted with vertical columns of notches similar to those on a gondola, into which a variety of hardware can be inserted y Can be merchandised much higher than floor fixtures (max of 42 on floor for round racks on wall can be as high as 72

Visual Merchandising
y Art of persuasion through presentation, which puts

the merchandise in focus.

Role Of Visual Merchandising

y Enables sales of the products/services sold by the

retailer y Educates the consumer about the product/services in the store y Informs customers about colours, sizes, prices and the basic location of the product y Creates and enhances the stores image

Merchandise Display Planning

y Shelving flexible, easy to maintain y Hanging y Pegging small rods inserted into gondolas or wall systems

can be labor intensive to display/maintain but gives neat/orderly appearance

y Folding for softlines can be folded and stacked on shelves or

tables - creates high fashion image

y Stacking for large hardlines can be stacked on shelves, base

decks of gondolas or flats easy to maintain and gives image of high volume and low price

y Dumping large quantities of small merchandise can be dumped

into baskets or bins highly effective for softlines (socks, wash cloths) or hardlines (batteries, candy, grocery products) creates high volume, low cost image

Three Psychological Factors to Consider in Merchandising Stores

y Value/fashion image y Trendy, exclusive, pricy vs value-oriented y Angles and Sightlines y Customers view store at 45 degree angles from the

path they travel as they move through the store y Most stores set up at right angles because its easier and consumes less space

y Vertical color blocking y Merchandise should be displayed in vertical bands

of color wherever possible will be viewed as rainbow of colors if each item displayed vertically by color y Creates strong visual effect that shoppers are exposed to more merchandise (which increases sales)

Tools Used For Visual Merchandising

y Colours & Textures y Fixtures and merchandise presentation y Signages y Windows y Props y Lighting y Mannequins

Visual Merchandising
y Several key characteristics y Not associated with shop-able fixture but located as

a focal point or other area remote from the on-shelf merchandising (and perhaps out of the reach of customers) y Use of props and elements in addition to merchandise visuals dont always include merchandise; may just be interesting display of items related to merchandise or to mood retailer wishes to create y Visuals should incorporate relevant merchandise to be most effective y Retailers should make sure displays dont create walls that make it difficult for shoppers to reach other areas of the store

Store Front Design

Storefronts must: y Clearly identify the name and general nature of the store y Give some hint as to the merchandise inside y Includes all exterior signage y In many cases includes store windows an advertising medium for the store window displays should be changed often, be fun/exciting, and reflect merchandise offered inside

Atmospherics
The design of an environment via:
y y y y y

visual communications lighting color sound scent

to stimulate customers perceptual and emotional responses and ultimately influence their purchase behavior

Visual Communications
y Name, logo and retail identity y Institutional signage y Directional, departmental and category signage y Point-of-Sale (POS) Signage y Lifestyle Graphics

Visual Communications
y Coordinate signs and graphics with stores image y Inform the customer y Use signs and graphics as props y Keep signs and graphics fresh y Limit sign copy y Use appropriate typefaces on signs y Create theatrical effects

Lighting
y Important but often overlooked element in

successful store design

y Highlight merchandise y Capture a mood y Level of light can make a difference y Blockbuster y Fashion Departments

Color
Can influence behavior
y Warm colors increase blood pressure, respiratory

rate and other physiological responses attract customers and gain attention but can also be distracting
y Cool colors are relaxing, peaceful, calm and

pleasant effective for retailers selling anxietycausing products

Sound & Scent

y Sound y Music viewed as valuable marketing tool y Often customized to customer demographics y Can use volume and tempo for crowd control y Scent y Smell has a large impact on our emotions y Victoria Secret, The Magic Kingdom, The Knot Shop y Can be administered through time release atomizers or via fragrance-soaked pellets placed on light fixtures

Common Errors In Creating A Display

y Clutter y Lack of an underlying theme y Too many props y Dirty floors y Poor Lighting

Planogram
Is a tool used by the retailer, which helps to determine the location of merchandise within a department. It is a diagram that visually communicate how merchandise physically fit on to a store fixture or window, to allow for proper visibility and price point options. List the exact number of square feet used for the various products and the exact no. of products to be displayed in a particular area.

Floor Plan: Is a schematic illustration 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.