Store Layout and Design

UNIT 4 STORE LAYOUT AND DESIGN

Structure
4.0 Objectives
4.1 Introduction
4.2 Store Layout Management
4.3 Store Planning
4.3.1 Space Allocation
4.3.2 Circulation
4.3.3 Prevention of Shrinkage
4.4 Planning Fixtures and Merchandise Presentation
4.4.1 Fixture Types
4.4.2 Visual Merchandising
4.5 Store Design
4.5.1 Storefront Design
4.5.2 Interior Design
4.5.3 Lighting Design
4.5.4 Sounds and Smells
4.6 Visual Communications
4.7 Let Us Sum Up
4.8 Keywords
4.9 Answers to Check Your Progress
4.10 Terminal Questions
4.11 Further Readings

4.0 OBJECTIVES
After going through the unit, you should be able to:
● discuss the Store Layout Management;
● design a Plan for a Store;
● design Planning Fixtures;
● prepare Presentation for Merchandise; and
● prepare Visual Communications.

4.1 INTRODUCTION
Store layout and design serves the most primary level of communication need with the
customer. Store is the place where all retailing activities come together. It is the first
level of physical contact with the customer – before the customer makes an actual
purchase decision – whether to buy from the retail firm or the retailers’ private brand or
other known brands. The store represents a best opportunity to the retail firm for
developing a meaningful dialogue with its customers. 83
Retail Operations and This is the place where sales happen or fail to happen. The store has two primary roles
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– to create proper store image, and – to increase the productivity of the sales space.
These two basic roles provide a clear path to the retail firm on the way it should go
about planning the store layout and design. In this unit, you will learn the most important
elements for creating a successful retail store and take a comprehensive view of the art
and science of store planning, merchandise presentation and design.

4.2 STORE LAYOUT MANAGEMENT

Designing for Retail is an extremely extraordinary regulation that not merely addresses
the “look” of the store or product appearance, but believe the business of sales. Many
Retailers move violently with pretty concepts because they have not addressed account
levels required to turn a profit. They have not planned the inventory levels to respond to
continuing needs. They have also not decided the capability of product to have room for
your business plan and the Rupee per square foot return.
The store is the place where the action is. Hence, retailer is keen to ensure that all the
right factors are in place within the store that will influence the targeted customers to
enter the store. This will facilitate the customers to make the right selection of their
products to be purchased and make payment and leave the store with the utmost
satisfaction.

4.2.1 Store Image and Space Productivity

Though there could be many factors and detailing of which needs to be taken care of in
the store layout design. You must note that all these factors and details need to finally
serve the two major objectives viz. Store image and space productivity.

Source: http://www.icd-ltd.co.uk/retail-storage-design-solutions/retail-design/
Figure 4.1: Space productivity in a retail store
Look at Figure 4.1 which shows that Store space management had a special impact in
a retail store. It is very well visualized by the figure that clothes are systematically
accommodated in a special manner.
Let us understand the important elements that help in influencing customers’ perception
about the store’s image and in determining store’s space productivity. These critical
elements have been shown in the Figure 4.2.

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 Store Layout and Design

Source: Dunne M Patrick et al., ‘Retailing’, 4th edn., ch13 pp 491, South Western – Thomson
Learning Inc. Singapore, 2002.
Figure 4.2: Critical Elements that Compose Store Environment
Let us learn the two major roles played by a store that is the basis of any store layout
and design:
As defined by Dunne Patrick et al. (2002), two major roles played by a store are:
● Store Image: It is the overall perception the consumer has of the store’s environment
● Space Productivity: Represents how effectively the retailer utilizes its space. It is
usually measured by sales per square foot of selling space or gross margin in value
terms per square feet of selling space.
As you can see from the Figure 4.1, all the other elements like visual communications,
store planning, store design and merchandising has to revolve around these two core
objectives. These must be in alignment with each other to optimize the benefits derived
from these two core objectives.
Retailers may learn high profit, either through traditional brick and mortar stores or
virtual stores through e-tailing (operating through website selling). Therefore, they give
high emphasis to design their physical facilities or website, so as to build better image
and increase productivity.

Source: http://www.myntra.com/largest-online-fashion
Figure 4.3: Snapshot of Myntra a real example of E-tailing 85
Retail Operations and Myntra.com is ranked among the top 10 e-commerce companies in India and is scaling
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rapidly. Myntra was started by a group of IIT/IIM graduates in early 2007 and is
headquartered in Bangalore with regional offices in New Delhi, Mumbai and Chennai.
The company is funded by top tier Venture Capital Funds and is now among the best
funded e-commerce companies in the country. In the last 3 years, Myntra has become
the most popular destination for personalized products in the country. Building on the
success of personalization, Myntra is expanding into broader Lifestyle/Fashion retailing.
As per the URL http://www.myntra.com/aboutus.php dated 1st March, 2012, the company
has a vision of being India’s largest online lifestyle products retailer - a vision that revolves
around giving the consumer the power and ease to transform how he/she looks.
E-tailing, which is around 6 per cent of the total e- commerce, is estimated at around
USD 0.6 billion in 2011 and growing at a CAGR of 70 per cent. The total e-commerce
business in India, including other products and services such as travel and financial
services, is estimated to be USD 10 billion at present. It is expected to touch USD 200
billion marks by 2020. It is very well clear in the URL http://www.financialexpress.com/
news/etailing-in-india-to-touch-usd-70-billion-by-2020-technopak/909608 that while
planning a store the retailer has to first of all finalize on allocation of space, the most
important as well as the scarce and costliest resource with the retailer.
Based on the allocation of space the retailer must decide on the layout plan that specifies
the location of different merchandising sections as well as the circulation plan. The
circulation plan basically decides on the aisles for movement of customers through
different merchandising sections and the billing counter and the exit.
The next important element of store environment is merchandising. The merchandise
presentation has to be interesting as well as exciting so as to catch and hold customers’
attention. It must make the customers to browse, evaluate and purchase. The merchandise
presentation plays an important role in inducing customer to buy the merchandise as
well as influence the image about the store in customer’s mind.
Store design is an important element that must influence all the human senses of sight,
sound, smell, and touch. Store layout and design has to necessarily take into account for
planning of the store front. The layout should be most inviting, its ambience – that makes
the customers’ experience within the showroom should be very comfortable and
encourage the customers to spend more time for browsing the merchandise which will
lead the customers to making a purchase. Similarly, in-store lighting needs to be in alignment
with the overall store interiors and ambience. It should draw customers’ attention to the
merchandise display, without jarring the eye-sight – enhancing the store’s image.

Source: http://www.palaydisplay.com
86 Figure 4.4: Store layout and design
Visual communications in the form of graphics – like photographs, posters, art, Store Layout and Design
merchandise signs, directions etc. It provides customers the right cues to different sections
as well as create excitement and interest about the merchandise on display. It plays the
vital communication link between the customers and the store.
You must note that all the above four elements finally lead to the achievement of three
important task of retailing as follows:
a) Getting customers in the store – due to the image created for the store;
b) Conversion of walk-ins into customers who buy merchandise – thereby enhancing
space productivity;
c) And, do all the above in the most efficient manner, so as to make the retailing
operation profitable.

4.2.2 Developing a Store Image

For any retail store to develop a store image starts with the following:

Figure 4.5: Bifurcation of store image 87

Retail Operations and The overall look and the ambience of the store reinforces as well as help in developing
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the image about the store.
The physical attributes like:
a) The name of the store should generate the thoughts and emotions;
b) The way the front signage is designed i.e. the colour, the letter styling, the background
design/colour that should evoke right image about the store;
c) The front of the store with appropriate design and colours should convey the right
message about the store;
d) The store layout which reflects the placement of the products and sections should
lay right emphasis on the product range to be projected to the customers;
e) The merchandise display should provide the right cues to the customers;
f) Uniform of the sales force should create the right impression about the store.
All the above attributes in conjunction with the out of store factors like store location,
and quality of publicity facilitates in developing right image about the store in consumers’
mind.
The consumers may change their image with certain experiences. Therefore, it becomes
all the more important for the retailer to be constantly on the watch out about its store
image for ensuring its survival and growth.

4.2.3 Improving Space Productivity

While the store image would help in getting the consumer within the store, it becomes
important for the retailer to convert these customers in to purchaser of merchandise.
Thus, the store environment should aid in increasing space productivity. This is well
stated by Patrick M Dunne et al. (2002, 4th edn.), “the more merchandise customers are
exposed to, that is presented in an orderly manner, the more they tend to buy”.
Specialty retailer Brookstone has opened the virtual doors to a three-dimensional store
that combines a Second Life-like visual experience with real merchandise customers
can buy. Brookstone says it is trying to appeal to a 25- to 40-year-old demographic with
the online venue.

Source: http://cdn.asia.cnet.com/i/r/2007/pg/62034960/sc001.jpg
Figure 4.6: 3D online shopping at Brookstone
Inside the virtual store, customers can walk the aisles and zoom in to browse the goods,
which are set up in much the same way they appear in real-life Brookstone shops.
Through better planning of the store layout the retailer can make the customer to move
in a certain manner so as to expose the customers to maximum number of sections or
88 make the customers move through the entire store.
The proper in-store displays and advertising should inform the customers about the Store Layout and Design
happening in other sections and encourage customers to move to those sections.
Nowadays, many retailers focus on in-store marketing like - store design, merchandise
presentation, visual merchandising, in-store promotions etc. They help the retailer in
improving sales and profitability, as compared to other forms of publicity. Retailers should
understand that it is much better and easier to convince the customers who are inside
the store to make more purchases.
The retailer needs to be careful about shrinkage. It refers to the loss of merchandise
through theft, loss and damage and greatly reduces space productivity. For
retailers the shrinkage is a big headache and many retailers deploy in-store cameras,
security tags and other security methods to ensure that this menace is brought to the
minimum level. Presently shrinkage constitutes about 1 to 4 per cent of the retail sales.
Though the percentage looks small in number but when it is compared to the net
profitability (after tax) of the retailer which is around 4 to 10 per cent then this number’s
impact is well understood.

4.3 STORE PLANNING

Store planning is as important as planning one’s own home. The owner must detail out
every minute details of how space is to be allocated in different rooms of the house to
different items and materials. The space should be used in such a way that should
provide an overall appearance of organisation, clarity and harmony of different materials
and utilities with the available space and the people living within it.

Source: http://www.retaildesignexperts.com/retaildesignexperts.com
Figure 4.7: Store Planning
The store, if it is a multi-branded product store, will have to clearly specify different
sections or departments as per categories and products sold within the store. This makes
the consumers’ shopping experience very smooth and effective.
89
Retail Operations and Signs and graphics play very important role in guiding the customers through different
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sections and departments. This facilitates the customer’s movement from one section/
department to other. The signs act as direction and leads for effective shopping.

Visualise Certain Symbols By Taking SALE and Discount Symbol

Entry Into a Mall

No Food Or Drink at Mall Premises FIRE Extinguisher Opening Process

Figure 4.8: Visual Display at Retail Store

Retailer also needs to plan for visual displays that can break the monotony of movement
amongst racks and fixtures. Visual displays gives ideas to customers on how combination
of certain merchandise gives effective look or use? What are the merchandise
opportunities available in the store? It highlights certain features of a product, etc.

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 Store Layout and Design

Source: http://www.dallassouthnews.org/2009/10/05/southwest-center-mall-sold-jimmy-jazz-headed-in-community-is-skeptical
Figure 4.9: Ideas to customers through visual displays
You must keep in mind that some time a consumer may become a bit confused about
his/her location within the store, where a particular section is located? Where a particular
type of item is available or stacked? What is the price of the product? Where is the
billing counter? Thus, the customer may become frustrated. Probably for the first or
second instance of such bumps the customer may not mind. If such confusions/bumps
continue the customer will think the store is difficult for shopping and may decide to
leave. When a store is easy to shop, there is fun and excitement in shopping; the
merchandise is easy to explore and understand; the sales associates are friendly and
helpful; you may conclude that the store is ‘good to shop’. But there are several small
details that have gone to make your shopping experience such a smooth and effective.
Floor plan is an important part of the store planning exercise. It specifies location of
different departments or sections in the store and how customers are expected to move
through these sections and departments, location of customer service sections and the
space allocated to different sections and departments. While developing floor plan the
retailer does take into account the needs of the targeted customer group. The retailers
plan the allocation of space to different product categories and groups accordingly. The
locations of different sections within a category are also thought over while working out
adjacencies in the layout plan.
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Source: www.zameen-zaidad.com
Figure 4.10: Layout plan of locations in a retail store
For example the chocolate syrups will be close to the ice cream and cake sections.
Similarly tea and coffee sections will be located close to breakfast cereals, light and
heavy snacks sections, and so on.
So Retail Store Design and Display introduces a new concept in Store Planning for the
small independent retailer. A new budget driven design process enables the retail business
to get better the bottom line. Thus the store’s design and layout must be carefully planned
so as to meet retailer’s merchandising goals. These should make the store easy to
understand and shop, and allow for effective presentation of merchandise.

4.3.1 Space Allocation

For developing a floor plan the retailer must decide on the spaces to be allocated among
different departments and sections. The space is allocated in terms of square footage.
The actual space allocation has to be based on certain working so as to give the retailer
desired benefit and returns from every square foot allocated to different sections and
departments. Let us understand different types of spaces to be allocated in a store.

Types of spaces required

In a store sales floor is not the only area and there are other spaces which the retailer
needs to plan about. There are five basic types of space needs in a store, as shown in
Figure 4.11.

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 Store Layout and Design

Figure 4.11: Types of space

The retailer needs to balance the requirement of merchandise density with the shopability
and functionality of the store. Rarely the retailer will be able to give due weightage to all
the different types of space requirements, due to the scarcity and cost of the space.
The retailer while keeping in mind the main goal of providing largest possible space to
the merchandise display and movement of customers, has to make some compromise
on the other non-selling spaces. The above types of space are discussed below:
1) Floor merchandise space: This is the main selling area where merchandise is on
display for customers to browse, check and enquire about. In this space different
types of fixtures are used for displaying wide variety of merchandise. The retailer
93
Retail Operations and has to keep in mind the goal is not to cram the largest possible merchandise in the
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large bulk fixtures, but the merchandise need to be displayed attractively and
effectively. This makes the shopping experience of the customers very much
worthwhile.
2) Wall merchandise space: The walls are being effectively used nowadays to display
the merchandise. Wall fixtures are used for display of merchandise – like waterfalls
hanger system which are very much in use for display of apparels, also glass racks
for keeping products. Wall is also used effectively for visual displays and posters to
add excitement to the product category and the overall ambience of the store.
3) Aisles, service areas and other non-selling areas: The retailer needs to allocate
appropriate area for the main aisle. This aisle may move through the store selling
area along with sub-aisles that move to different sections and departments. The
main aisle has to be wide enough for smooth flow of the customers during peak
hours. In large stores the main aisle needs to be as wide as 15 feets. It is observed
that the aisles take as much as 15 per cent of the total retail area.
Besides the aisles the other non-selling spaces are: trial rooms, customer help
desk, customer service desk for gift wrapping & packing of merchandise, alteration
desk, etc. Though retailers would like to keep the minimum possible space for
these sections. You must note that customer help and service desks are important
component of the store and thereby its image and therefore must not be compromised
about.
4) Office and other functional areas: Particularly for large format stores there is a
need to provide for office and other functional space. Such space include store
manager’s cabin, office for assistants and account staff, training room, cash room,
a break room for sales associates, lunch/dinner room for staff with self-service
tea/coffee/cold drinks dispenser, bathroom facilities for both customers and
employees, and other facilities as may be thought appropriate for the store. These
facilities being internal requirements are given as much less space as possible.
Normally these space are located either on the mezzanine floor or at the back-end
or corner space which otherwise would go waste.
5) Back room: This is the most essential part for any store. In case of large format
stores it is the area used for receiving merchandise. After that to make necessary
entries in the records as well as any tagging of labels, security tags, etc. is done
over here; besides used for stocking of surplus merchandise. With the advent of
newer ways of packaging and deliveries and the space being very expensive retailers
have squeezed the space used for back rooms as compared to their earlier utilisation.
Now due to smaller delivery packs and more frequent deliveries based on quick
response methods being used by suppliers the need for back room space has gone
down substantially. Previously the department stores used have as much as 50 per
cent of the retail space allocated to back room which has now shrunk to about 20
per cent. The other store formats have reduced the back room space from their
earlier requirement of 10 per cent of retail space to 5 per cent or less. Some cash
and carry stores or ware-house clubs try to use their selling space for keeping
surplus stocks.
This is achieved by using the vertical spaces say above 84 inches for keeping the excess
stocks, thereby saving on the expensive retail space. Thus, the retailer makes use of the
cubic footage for achieving better utilisation of space. But, such kind of stocking gives
an impression of being a low-cost retailer. This may be advantageous for a value-oriented
retailer. This may be detrimental to fashion and other premium goods retailers.

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Space allocation planning Store Layout and Design

To determine the space to be allocated to different sections and the departments, retailer
needs to make use of proper tools. This may ensure that the space is used most
productively. Whatever the method used it is essential that the method should be related
to the profitability generated by the selling space. There are two situations where the
retailer is called for making use of the task of calculating productivity of the selling
space. These are a) existing store, where a revision of space allocation may be necessary;
and b) allocation of space to different sections and departments in a new store.

Revising space allocation plan for existing stores

For existing stores since the performance data is available, it is possible to develop a
space productivity index. The space productivity index is defined as shown here below:

Space Productivity Index for a particular category/product = Percentage of gross margin

earned for a particular category/product ÷ Percentage of space provided to a particular
category/product

Contribut
ion  p e rce nta pe rce nta
Pe rCe nt a ge  Grtoss  ge  2000 sq  f t 
Product  ge  S ale s   c ontribut m argi n  contribut A re a to   Pe rce nt a Space  
subsub  in  i on of  e arning  i on of  be   ge  sq  f t  produc ti v
group Sal e s Q ty Cate gory Sal e s val u s ale s (GME) GME al loca te d al l ocate d ity inde x
TEE SHIR T 3550 20.63 1775000 0.172366 5325 00 0.1 55346 412.6 0.2063 0.753008
V EST 2641 15.35 924350 0.089761 2773 05 0.0 80898 307 0.1535 0.527022
SKIRT S 2175 12.64 1522500 0.147846 5328 75 0.1 55455 252.8 0.1264 1.229865
DRESS 1945 11.3 1750500 0.169987 6476 85 0.1 88948 226 0.113 1.672109
CA PRIS 1425 8.28 855000 0.083027 2907 00 0.0 84806 165.6 0.0828 1.024221
SHIRT 1271 7.39 635500 0.061712 1906 50 0.0 55618 147.8 0.0739 0.752613
LEGGINGS 1076 6.25 322800 0.031346 968 40 0.0 28251 125 0.0625 0.452016
BLO USE 614 3.57 214900 0.020868 687 68 0.0 20062 71.4 0.0357 0.561949
JA CKET 511 2.97 511000 0.049622 1737 40 0.0 50685 59.4 0.0297 1.706563
JEA N S 470 2.73 564000 0.054769 1917 60 0.0 55942 54.6 0.0273 2.049153
SHRUG 374 2.17 261800 0.025423 942 48 0.0 27495 43.4 0.0217 1.267043
CA RGOS 248 1.44 223200 0.021674 781 20 0.02279 28.8 0.0144 1.582628
TUN IC 222 1.29 133200 0.012935 426 24 0.0 12435 25.8 0.0129 0.963926
SHO RTS 201 1.17 140700 0.013663 478 38 0.0 13956 23.4 0.0117 1.192796
HOO DIE 129 0.75 141900 0.01378 496 65 0.0 14489 15 0.0075 1.931827
DUNGA RE 123 0.71 98400 0.009555 344 40 0.0 10047 14.2 0.0071 1.415089
SKIRT  SE T 85 0.49 85000 0.008254 297 50 0.0 08679 9.8 0.0049 1.77121
PA NT S 62 0.36 55800 0.005419 195 30 0.0 05697 7.2 0.0036 1.582628
TRO USERS 55 0.32 55000 0.005341 192 50 0.0 05616 6.4 0.0032 1.75493
TRA CK SET 16 0.09 17600 0.001709 61 60 0.0 01797 1.8 0.0009 1.996721
PIN N Y 8 0.05 5600 0.000544 19 60 0.0 00572 1 0.0005 1.143576
PO NCHO 1 0.01 700 6.8 E‐05 2 45 7.15E ‐05 0.2 0.0001 0.714735
PULLO V ER 1 0.01 1200 0.000117 4 20 0.0 00123 0.2 0.0001 1.22526
SWEA T ER 2 0.01 2200 0.000214 7 70 0.0 00225 0.2 0.0001 2.246311
SHIRT ‐V ES 0 0 0 0 0 0 0 0 #DIV /0!
17205 99.98 10297850 34278 43 1 0.9998 1 .0002

Figure 4.12: Use of Space Productivity Index to Assess and revise the Existing Space Allocation
Figure 4.12 shows the space allocation for a Kids-wear store with a retail selling space
of 2000 square feet. In the above Figure 4.12 the kids-wear store had allocated space
based on the quantity sales in the previous year. Thus, you can see that of the 2000 sq.
ft. 20.63% area has been given to product Tee-shirt, 15.35% to vest, 12.64% to skirt,
11.3% to dresses, and so on. The space productivity index (SPI) for T-shirt is 0.75 for
vest it is 0.53, for skirt it is 1.23 and for dress it is 1.67. Thus, from the said SPI for four
items you can see that the SPI for Tee-shirt and Vest is lower than that for skirt and
dresses.
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Retail Operations and This indicates that the current allocation of space as per quantity sale is not giving the
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optimum productivity for the space allocated to tee-shirt and vest. Hence, revising the
space allocation plan is called for. As per the revised space allocation plan you may
consider the percentage allocation of space on the basis of percentage contribution of
gross margin by each of the products. Thus, you should allocate to product t-shirt 15.53%
of the total space. This works out to 2000 sq ft. × 15.53% = 310.6 ~ 311sq ft., as
compared to the earlier allocation of 412.6 sq ft. Similarly, for vest we shall allocate
(2000 sq ft x 8% = 160 sq ft.) 160 sq ft. as against the earlier allocation of 307 sq ft. for
skirt and dresses the new space allocation will be 310 and 378 sq ft. respectively as
against the earlier allocation of 253 and 226 sq ft.
With the new allocation method the space productivity index is expected to be 1 for the
main products. Sometime even if the SPI for a particular product or category is low still
the store management would like to provide the same space. As the said category could
be the customer puller or a destination category for which the customers will make an
effort to visit the said store, thereby helping sale of other products too. The retailer may
also expect a better sale during the current year in the concerned category. Hence, may
not like to disturb the overall product presentation.
Space allocation for a new store: Generally for a new store the space allocated to
different product categories is as per the industry norms or based on the experience
with similar kind of store in another location but with similar demographics. Sometime
the retailer may decide to go by the product range needs to be displayed for a given
category in terms of its desired width and depth.
Hence, in such cases the space will be allocated based on the best collection needs to be
displayed for each of the categories and their attraction to the targeted population or to
put up a product display in alignment with the demography of the nearby population.
4.3.2 Circulation
An effective method of circulation as per the product type and store format helps in
ensuring that the customers are moved /led from one section to another in the most
efficient way. Customers should be exposed while exposing the customers to maximum
number of product categories and department. There are four basic types of layout –
the free flow, grid, loop, and spine. Let us learn them in detail.

96 Figure 4.13: Types of Circulation

1. Free flow: This is a very common type of layout used by small stores which sell a Store Layout and Design
single product category like ladies wear or men’s wear or kids wear or furniture or
purses etc. In this kind of layout the fixtures and merchandise are grouped into
free-flowing patterns. Figure 4.14 shows the free flow circulation. Since, it being
a single product category store, the customers are encouraged to move freely
from one part of the store to another browsing through different merchandise and
trying to spend time in understanding the product details. This type of layout works
well for a store up to 5000 square feet. If there are more than one product category
of merchandise is on display then this type of layout is not the right one. It will
confuse the customer not knowing where the one category begins and stops and
the next one begins.

Figure 4.14: Free Flow Layout

2. Grid: This type of layout is common in supermarkets, drug stores and convenience
stores. In this layout the fixtures and counters are laid in long rows. Look at Figure
4.15 which shows the grid layout. Customers move through one row of fixtures
and counters and enter into another row of counters/fixtures from the adjacent
point. The customer is expected to move in one direction, when moving between
the rows of counters/fixtures and understandably not to turn back. There are other
customers either moving downward from the opposite point or queuing behind for
moving upward in the front direction. Thus, customers enter from one point and
move out from the opposite point and enter into the next row of merchandise from
the adjacent entry point.
The customers also find this way of movement useful as he/she is able to go
through all the items in a certain sequence. They should not miss any items that
may be required in the immediate future, with least possible movement through the
aisles. If the customer wants to buy only some specific items then moving up and
down the fixtures or rows may become irritating. The customer is forced to go
through the whole run looking for specific items. Super market generally keep
regular items like dairy and bakery products at the back of the store forcing the
customer to move through the entire layout to reach to these sections. Retailers
need to be careful that this layout is not overdone, so as to force the customers to
move to a different store. 97
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Figure 4.15 Grid Layout

3. Loop: This type of layout is very popular among the departmental stores. It is also
called race track as it circles or cover the whole store’s perimeter. The loop layout
is considered a very effective layout for increasing the productivity of the space. It
starts from the front door or entrance of the store – which is the main aisle then
loops through the entire internal perimeter of the store – which is either in the form
of a circle or rectangle or square – and then ends at the front of the store (that is
the exit door next to the entrance door). In case of large format stores there can
be parallel loop tracks – one moving from the outward side while the other moving
through the internal track with intermittent connectivity tracks for movement from
one track to another.
The important benefit of this layout system is that it exposes the customers to the
largest possible amount of merchandise. The fatigue level for customers while
moving through the main aisle is low as the customers are exposed to different
types of products and categories with innovative visual displays. The main aisle
should allow free flow of customers – and allowing customers to browse, understand
the merchandise both on the left and right side of the aisle thereby encouraging
cross shopping. Ideally the main aisle should not be more than 60 feet away from
any merchandise location on the left or right side of the main aisle.
4. Spine: The spine layout tries to combine the advantages of the free flow layout,
the grid layout and the loop layout in a certain way. In this layout there is a single
aisle which takes the customers from the main entrance to the back of the store
and the same aisle is used to bring back customers to the front. Look at figure 4.16
which shows spine layout.
On the left and right side of the main aisle there are other departments and sections that
branch off toward the back side or side walls. And, within each of these departments
the merchandise is laid out in the free flow or grid or loop layout depending upon the
type of merchandise and the fixtures used. The spine type of layout is more commonly
98 used by medium sized stores – both soft-line and hard-line merchandise stores – of size
ranging from 2000 to 10000 square feet.
 Store Layout and Design

Figure 4.16: Spine Layout

4.3.3 Prevention of Shrinkage

In the store’s layout the retail management team needs to give thought to the prevention
of shrinkage. The most important consideration to be kept in mind while doing layout
plan is to keep the merchandise visible. The most vulnerable points for shoplifting are
trial rooms, nooks and corners not visible to general shoppers, aisles crammed with
merchandise or behind high displays.
Hence, while planning the layout trial rooms to be placed in visible areas that can be
monitored by security. Similarly the visual displays should not hinder the visibility from
one side to the other. Also the nooks and corners should be duly blocked for movement
of customers or making proper use of such corners as well as visible to sales associates.
The manager’s office and security windows should be strategically located to act as
deterrent to shoplifters. New technologies like in-cameras, sensor tags, checking/
stamping of bills near the exit door, etc. do act as deterrent, once the customers become
aware of their presence.

Check Your Progress-A

1. Briefly comment on the following statements.
a) Store is the place where all retailing activities come together.
............................................................................................................
............................................................................................................
............................................................................................................
b) Retailers making high profit, either through traditional brick and mortar stores
or virtual stores through e-tailing.
............................................................................................................
............................................................................................................
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Retail Operations and
Store Management-II
2. Fill in the blanks with the appropriate word given in the brackets
3. State whether the following statements are True or False
c) The merchandise presentation has to be interesting as well as exciting.
............................................................................................................
............................................................................................................
............................................................................................................
d) Consumers may normally be changed.
............................................................................................................
............................................................................................................
............................................................................................................
a) Visual communications in the form of____________.
(Text / Graphics)
b) Some cash and carry stores try to use their ____________ space for keeping
surplus stocks. (Selling / Buying)
c) _____________ market generally keep regular items like dairy and bakery
products. (Super / Main)
a) Retailers needs not to be careful about shrinkage.
b) Store layout and design serves the most primary level of communication
need with the customer.
c) Store is not an important element that must influence all the human senses
of sight and sound.
d) Signs and graphics play very important role in guiding the customers movement.

4.4 PLANNING FIXTURES AND MERCHANDISE

PRESENTATION
In recent times with the increase in competition retailers have started using merchandise
presentation as an important tool to differentiate themselves from other competing brands
and stores. The merchandise presentation offers great opportunity to retail merchandising
team to make an effective presentation. This will give great marketing opportunity by
facilitating development of right image in the minds of targeted customers. There are
two important aspects of merchandise presentation – visual merchandising and on shelf
merchandising.
Visual merchandising is like the stage props in a theatrical setting. The stage props act
as backdrops and provide cues to the scene to be enacted on the stage.
On shelf merchandising is the merchandise that is displayed on the racks, shelves,
counters, and other fixtures throughout the store and are like the main stars and actors
on the stage. Hence, the merchandise on display on the shelf have not only to be
attractively displayed, but need to be displayed in a manner that makes them easy to
understand and accessible to customers.
Feature areas: The important areas within a store that are designed to get the customer’s
attention are as follows:
100
1 End caps – displays located at the end of the aisles Store Layout and Design

2 Promotional aisle/area – that are used for display of the new arrivals and other
seasonal merchandise for customers’ immediate attention. These areas are also
used for making special promotional offers to customers
3 Freestanding fixtures – which are used for displaying merchandise in various
departments and sections
4 Windows – used for innovative display of new arrivals and promotional offers if
any
5 Walls – these are part of the main display areas
6 Point-of-sale (POS) displays/areas – these are areas near the billing counter.

4.4.1 Fixture Types

As per Dunne M Patrick et al., ‘Retailing’, 4th edn., ch13 pp 511-12, South Western –
Thomson Learning Inc. Singapore, 2002, store fixtures can be divided into three categories
– hard-line, soft-line and wall fixtures. Let us learn them in detail.
i. Hard-line fixtures: The major fixture observed in many hard-line stores is the
gondola. It is a long structure with a large solid base with a vertical spine or wall
sticking up as high as eight feet. It is fitted with sockets or notches into which
variety of shelves, peg-hooks, bins, baskets and other hardware can be inserted. In
super markets these gondolas are seen in supermarket with long base and shelves.
The other fixtures in use in hard-line stores are tables, flat base decks, and large
bins.

Figure 4.17: Gondola

ii. Soft-line fixtures: In stores selling soft-lines like fashion-wear and lifestyle items
use different kind of fixtures as shown in Figure 4.18. Soft-line stores have developed
many different types of fixtures to suit their display needs, which are very much
different than the ones they used to have in earlier times. The fixtures in an apparel
stores have changed from a simple rack with along steel rod holding hangers of
apparels. Though this kind of fixture used to hold a large quantity of garments but
the garment’s full view is not seen.
Hence, retailers now a days have started using four way racks that help in displaying
front face of the four garments. Besides, racks or table tops are used to display
shirt on a table top stand as well as in folded form kept on the table top. You may
witness water fall like fixtures for displaying face-outs of apparels. It is believed
that more the effective display better the sale of expensive products, and in apparel
it is all the more true. 101
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Figure 4.18: Different types of fixtures used in soft-line stores

iii. Wall Fixtures: Wall is used in many innovative ways by both the small size stores
as well as large format stores. To make store’s wall merchandisable, wall is 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. It can be fitted with
shelves, hanger bars, peg-hooks etc. Look at Figure 4.19 which shows wall fixtures.
Now a day’s retailers have started using a different type of hanger bars in which
hanger bars protrude from the wall skin either straight out or angled down (which
is also called water fall system).
Drifting in a “sea” of store fixtures is what occurs when you forget about the
design principle of rhythm. Utilizing the various components of rhythm – namely,
heights, lines, forms, shapes and color, you can create a flow or rhythm to your
store moving a customer from item to item, grouping to grouping or from a single
display to a department.
The advantage of such fixtures is to face out garment styles to the customers, as
well as to keep different sizes and colours of the same style behind the front
garment. The wall fixtures can be used to merchandise garments at a much higher
level than the floor fixtures which are normally kept up to a height of 42”. This
allows customers to see other merchandise on the floor. While on the wall these
merchandise can be hung up to a height of 72”. In fact on the wall the water-fall
system can hold up to two rows of bars.

102
 Store Layout and Design

Figure 4.19: Wall Fixtures

iv. Versatile Fixturing: Instead of the permanent floor fixtures many stores would
like to adopt new breed of fixtures that can be adjusted, adapted, and transformed
to fit many merchandising needs. The store also use mobile counters so that the
selling floors can be used for other purposes with minimum of effort.

Source: http://carlsonjpmstorefixtures.wordpress.com
Figure 4.19: Versatile Fixtures
v. Merchandise display planning: As you have seen that there could be varieties
of fixtures for merchandise display but there are some basic methods for
merchandise display, which are as follows:
● Shelving – flexible, easy to maintain
● Hanging – mainly used in apparels for hanging apparels on round racks,
four-ways, bars installed on gondolas or on wall systems.
● Pegging – small rods inserted into gondolas or wall systems – can be labor
intensive to display/maintain but gives neat/orderly appearance.
● Folding – for soft-line items, can be folded and stacked on shelves or tables
- creates high fashion image. 103
Retail Operations and ● Stacking – for large hard-line merchandise, can be stacked on shelves, base
Store Management-II
decks of gondolas or flats – easy to maintain and gives image of high volume
and low price store.
● Dumping – large quantities of small merchandise can be dumped into baskets
or bins – highly effective for soft-lines (socks, wash cloths) or hard-lines
(batteries, candy, grocery products) – creates high volume, low cost image.

4.4.2 Visual Merchandising

As discussed earlier visual merchandising acts as props on the theatrical stage. They
help in providing proper backdrops and are used as scene setting decoration in the store
that create fun and excitement for a shopper. While discussing on shelf merchandising
we discussed about displaying merchandise tastefully and with proper understanding of
the relevant features that will boost sales. You should note that only merchandise display
will not be able to generate the right shopping environment. There should be proper dose
of fun and excitement. Thus, visual merchandising ensures all these important elements.
For making visual merchandising effective some key characteristics need to be kept in
mind as given here below:
● Visual displays should be located in focal areas like – wall spaces or other areas -
which are far from the on-shelf merchandise – the idea is to create conducive
feelings in the customers’ mind.
● The props and other visual effects used should be in alignment with the merchandise
on display. Visuals could be just interesting display of items somehow related to
merchandise on offer or it could be just a mood elevating visual. For example in a
sportswear department the visual could be a log of wood, ropes on a rock, a boat,
a sports gun. The idea is to create illustration and design elements – like in a book.
It should tell whether this is an upscale serious shopping experience, a fun shopping
experience or a down and dirty low price shopping experience.
● To be most effective visuals should preferably incorporate the relevant merchandise.
For example in apparel store use of mannequins is made to show how the apparel
will look on a person rather than just hanging on a hanger. Good visuals will include
the combination of merchandise and relevant accessories to create an impelling
effect. For example the apparel store will show combination of top and bottom
garments along with accessories like matching belt, scarves, shoes etc. to create
the most fashionable ensemble.
● The visuals should not create hurdles in the movement of the shoppers; as well as
preferably not block the view of other departments in the store.
● The displays should be placed appropriately near a location to which it is related
and create a comfortable and relaxed viewing.

4.5 STORE DESIGN

Store design is an important element as it helps in creating a distinctive and memorable
store image. It includes both the exterior and interior of the store. The exterior includes
the store signage, store front, and entrance to the store. These are the first visible
images that will help in enticing the passing shoppers and inducing them to enter the
store. Thus, these factors are critically important in a store design. The interior of the
store design will include store wall, ceiling and flooring along with the surface finishing
on these structural elements.
104
As per Dunne M Patrick et al., ‘Retailing’, 4th edn., ch13 pp 518- 524, South Western – Store Layout and Design
Thomson Learning Inc. Singapore, 2002, there are many other details that constitute
store design and thereby helping to create the right ambience of the store – ‘which is the
feeling or mood projected by a store through its aesthetic appeal to human senses’. The
architect-cum- interior designer plays an important role in the store design. Let us learn
each of the elements that constitute store design.

Source: http://artswise.blogspot.in/2011_11_01_archive.html
Figure 4.20: Exteriors of Stores

4.5.1 Storefront Design

The store front is the important element in enticing passer-by’s attention. It must be so
impressive as to be noticeable by every passing shoppers whether in the mall or on the
shopping street, and even by passing motorists. A look at the store front should provide
to the passing shoppers the idea about the name of the store, the kind of merchandise
being sold inside the store, and the target consumers for the said store. Generally the
store front will include the overall structure or architecture of the storefront, the exterior
front signage or board, display windows, if any, and the entrance.
The window display plays an important role in making the customers understand the
nature of merchandise being sold, provides direct or indirect hint on the price range of
the products that are on offer, thereby the cues to the target customers. Hence, the
retailer has to make effort in ensuring that the window display is done with attractive
visuals that will pull the customers inside the store. The window display needs to be
changed regularly to reflect fun and excitement for shoppers.
For some life style product showrooms window structure takes on the window-less
look. In such cases large panes of glass separate the exterior from the interior and the
selling floor becomes the display space. 105
Retail Operations and 4.5.2. Interior Design
Store Management-II
Interiors of a store is the most important element from the point of influencing customers
in spending more time within the store. Hence, every aspect of interior needs to be
designed in a manner that will make the customer feel not only comfortable once within
the store but also appeal to his sensory tastes. This will make him/her to spend time in
understanding more about the product range on display.
The interior designing constitute many elements that help in creating the desired ambience
within the store. The interior designing can be broken into two types of elements (Dunne
Patrick et al., 4th end., 2002), viz.:

Figure 4.21: Breakage of Interior Design

The floor covering or surface is an important part of the designing element. The floor
coverings are usually placed over concrete or wooden base floorings.
Different types of flooring surfaces or coverings prevalent are carpet, vinyl floor covering,
ceramic tiles, or marble. The type of floor surfaces gives specific impression about the
store. For example non surfaced simple concrete flooring will be used by hardware and
grocery stores to convey no-frills, low cost image. Similarly vinyl floorings will convey
an upscale or down scale image based on its quality, sheen, colour and design. Good
quality ceramic tiles and marble floorings will project an upscale or exclusive image. In
the Indian scenario carpets are not so much prevalent, but are in use in very exclusive
premium stores.
Wall surfaces could be paints, wall-papers, and different types of paneling – wooden or
ceramic tiles. Presently, paint companies have come out with many options in paint to
give damp to glossy to design effects to paint surfaces.
Ceilings can be simple plain and painted one; or with false ceiling structures to match
with the interiors of the store; or with special finishes and shapes on the ceilings to
106 match with architectural design of the interior space and walls.
Mouldings with different designs are also applied to the transitions from wall to ceiling Store Layout and Design
and floor to walls, besides other architectural designs that promote the desirable feelings
in the minds of shoppers entering the store.

4.5.3. Lighting Design

Lighting is one of the most exciting features in store designing. In earlier times fluorescent
lightings were preferred for overall lighting effects and incandescent lighting for highlighting
the products. In fact it was a rule in many of the apparel stores which is seen even today
in normal middle class targeting apparel stores to use fluorescent tube-lights fixtures for
creating a bright environment in the store. This gives the impression of day-light clarity
to shoppers. The lighting designer presently has many different options to choose from.

Source: http://www.focuslighting.com/portfolios/mall-at-millenia
Figure 4.22: Lighting Design of a retail store
Lighting designer must keep in mind the store image, merchandise, and finances while
making the decision. Fluorescent lighting is still the most economical light source, but is
not considered the best choice for fashion apparels and for many life-style products.
The present day technology offers energy-efficient lighting at affordable cost. This
makes it possible to create an attractively lit environment at a substantially lower cost
than in the past.
Many creative designers use natural light to illuminate the retail space. This is done by
creating skylights in the roof. So, as the shoppers enter the store the light from the
skylight draws them to the main selling area.
As per the VM + SD magazine, January 2003, some different types of lightings in use
are: Low voltage lighting; full spectrum digital lighting; decorative lighting; stylishly designed
halogens and fluorescent lighting; track and recessed lighting; core and stranded fibre
optic lighting; accent lighting; etc.

4.5.4. Sounds and Smells

Effective store design is the one that appeals to sight, sound, smell and touch. Research
has shown that besides sight, sound and smell too have greater effect on the shopper’s 107
Retail Operations and senses. Smell is believed to be most closely linked to memory and emotions. Hence,
Store Management-II
retailers use it to draw the customers into the right ‘mood’. For example in a Walt-
Disney company in US uses the smell of fresh baked cookies to relax customers and
provide a feeling of warmth to them.

Source: http://www.soundviewelectronics.com
Figure 4.23: Automated retail store sound systems
Automated retail store sound systems on escalators can deliver safety, directional,
instructional & department store ad messages. Sound View Electronics automated
messaging system offers malls and department store operators the most advanced systems
for communicating with their escalator riders.
Use of piped music in the retail stores have been in use for generations. It is believed
that a musical backdrop will create a more relaxing environment and will encourage
customers to stay longer in the store. For example a men’s wear store selling clothing to
adult will play classical music, which is soothing and encourage customers to shop longer
and select more expensive merchandise. But, the same music will be inconsistent with
a trendy store selling sportswear to younger crowds.

4.6 VISUAL COMMUNICATIONS

In the present scenario due to labour costs as well as availability of labour of the right
type many retailers tend to do with less number of store sales representatives. This
trend is visible even in departmental store where the personal attention to customers is
given prime importance. Thus, to overcome the reduction in personal service, retailers
have started using other alternative servicing methods that will provide good selling
communications as well as high customer servicing. The most effective alternative is
visual communications in the form of in-store signage and graphics.
Retailers ensure in the planning of the interiors and exteriors that right signage, posters,
photo panels, and other visual effects are provided for, so as to act as ‘silent sales
persons’. These provide the much needed information and directions to customers on
the type of merchandise available, their locations and directions to reach them. The cost
of such silent sales person is only one time and the maintenance cost is lower than the
usual human sales person. The reliability of such communication method is very high as
they are always there to serve the customers irrespective of their caste and creed.
They are not influenced by human behaviours of indiscipline, rudeness, and other
malfunctions.
Visual communications include different types of messages, which can be bold ones to
108 provide the cues to customers on the division of the space for various store features.
There are the smaller ones to provide specific messages about the merchandise and Store Layout and Design
their sub-groups, descriptions, and other relevant details. Let us learn various visual
communications.
i. Store signage: The first communication the store has with any customer is through
its signage. This represents its identity – that is comprised of store name, logo, and
supporting visual elements. It is said that the store name and logo should be catchy,
memorable, and must reflect retailer’s merchandising mission. The name and logo
must be seen not only on the store front but throughout the store, in advertising
communications and in all communications with the customers. These may be
either in the form of leaflets or newspaper inserts or hoardings etc.
The logo along with the store name is used to create memorable association for the
store. Thus, the logo must visually portray the name in a creative manner. It must
be simple, and easy for the customer not only to understand but also create an
association with the store name or its merchandise, helping to build its memorability.
Many a times the logo is accompanied with a tag-line, that provide the brief
description of the store concept. For example, Big Bazaar has a tagline “Isse sasta
aur kahin nahin”.

The store name and logo necessarily have to be succinct, short, recognisable,
understandable, and meaningful with brief tagline, and prominently placed, so as to
make the passing motorists to notice the same in the first glance to it.
ii. Institutional signage: Once the customer is inside the store, particularly in large
format stores, the customers notice an institutional signage. This states the
merchandising mission, or customer service policy or other messages that define
the retailer’s philosophy. Such a signage is usually located at the entrance to greet
the customers and convey its philosophy, besides it could be located at service
desks, billing counters, etc. The signage could include such messages as “Quality
guaranteed” or “Credit cards accepted” or “Lowest price guaranteed”, and so on.

Figure 4.24: Signage of big Bazaar 109

Retail Operations and iii. Directional, Departmental, and Category signage: These signs serve as the
Store Management-II
highest level of organization in the overall signage plan. As these signs indicate the
overall arrangement of the store in terms of various departments, product categories
and the directions to reach them. Hence, these are normally large and placed at a
good height, so as to make them visible from all parts of the store. Such signs are
necessary in a large departmental or supermarket store, particularly of a size more
than 10000 square feet. The signs are placed in a manner so that once the customer
reaches a particular department; he/she can locate the category signage, so that
the customer can move to the required counter. Category signage could be smaller
than department signage as these are usually located close or on the fixture itself.
iv. Point – of - Sale signage: This signage is located very close to the merchandise,
which indicates the name of the merchandise or brand and the price of the same.
These signs are called point of sales signage because of its very specific role – to
provide merchandise details – and contain more words and is affixed directly on
the racks of the fixture, where the merchandise is located. POS signage also includes
sign holders that can be moved from one fixture or racks to another and are
supposed to be kept closer to the merchandise. There could be printed signs that
can be kept with hardware items by just inserting them. Some POS signs are
created as per the occasions like sales, special clearances, or new arrivals and
launches. Such signs are usually made in different colours and lettering styles to
differentiate them from the usual merchandise and price signage.

Figure 4.25: Point-of -Sale signage

v. Lifestyle Graphics: These are large graphics depicting the scenes or images that
help in projecting the merchandise in the right environment or reflecting the
background image that suits the product on display. The lifestyle graphics need to
be designed keeping in mind the lifestyle of the majority of customers visiting the
store for purchase of the product and should gel with their taste and self-image –
not hurting any specific group of customers. The graphics help in communicating
not only the lifestyle imagery but in also creating interest and excitement about the
merchandise on the selling floor. For example, a sporting shoes department will
show a mountain backdrop with focus on rope and sport’s axe used for hiking or
trekking.
110
 Store Layout and Design

Figure 4.26: Lifestyle Graphics

Check Your Progress-B

1. Briefly comment on the following statements.
a) Visual merchandising is like the stage props in a theatrical setting.
............................................................................................................
............................................................................................................
............................................................................................................
b) Wall is used in many innovative ways by both the small size stores as well as
large format stores.
............................................................................................................
............................................................................................................
............................................................................................................
c) Interiors of a store is the most important element from the point of influencing
customers.
............................................................................................................
............................................................................................................
............................................................................................................

111
Retail Operations and
Store Management-II
2. Fill in the blanks with the appropriate word given in the brackets
3. State whether the following statements are True or False
d) Many creative designers use natural light to illuminate the retail space.
............................................................................................................
............................................................................................................
............................................................................................................
e) Visual communications include different types of messages.
............................................................................................................
............................................................................................................
............................................................................................................
a) ____________ store design is the one that appeals to sight.
(Effective / Ineffective)
b) Through _________ planning of the store layout the retailer can make the
customer to move. (Better / Worse)
c) Category signage could be __________ than department signage.
(Smaller / Larger)
a) Soft-line stores have developed many different types of fixtures to suit their
display needs.
b) The logo along with the store name is used to create memorable association
for the store.
c) Store front will not include the overall structure or architecture.

4.7 LET US SUM UP

● Store layout and design serves the most primary level of communication needed
with the customer. Store is the place where all retailing activities come together.
● The store has two primary roles – to create proper store image, and – to increase
the productivity of the sales space.
● Store Image: It is the overall perception the consumer has of the store’s environment
● Space Productivity: It represents how effectively the retailer utilizes its space and
is usually measured by sales per square foot of selling space or gross margin in
value terms per square feet of selling space.
● While planning a store the retailer has to first of all finalize on allocation of space,
the most important as well as the scarce and costliest resource with the retailer.
Based on the allocation of space the retailer must decide on the layout plan that
specifies the location of different merchandising sections as well as the circulation
plan.
● The circulation plan basically decides on the aisles for movement of customers
through different merchandising sections and the billing counter and the exit.
● There are four basic types of layout – the free flow, grid, loop, and spine.
● The next important element of store environment is merchandising. The merchandise
presentation has to be interesting as well as exciting so as to catch and hold
112
 customers’ attention. It must make the customers to browse, evaluate and purchase. Store Layout and Design

● Store fixtures can be divided into three categories – hard-line, soft-line and wall
fixtures.
● Store design is an important element that must influence all the human senses of
sight, sound, smell, and touch.
● Visual merchandising acts as props on the theatrical stage. They help in providing
proper back drops and are used as scene setting decoration in the store that create
fun and excitement for a shopper.
● Store layout and design has to be taken into account planning of the store front that
is most inviting, its ambience – that makes the customers’ experience within the
showroom very comfortable and encourage the customers to spend more time for
browsing the merchandise which will lead the customers to making a purchase.
Similarly, in-store lighting needs to be in alignment with the overall store interiors
and ambience – it should rightly draw customers’ attention to the merchandise
display, without jarring the eye-sight – enhancing the store’s image.
● Visual communications in the form of graphics – like photographs, posters, art,
merchandise signs, directions etc. - provides customers the right cues to different
sections as well as create excitement and interest about the merchandise on display.
It plays the vital communication link between the customers and the store.
● Through better planning of the store layout, the retailer can make the customer to
move in a certain manner so as to expose the customers to maximum number of
sections or make the customers move through the entire store.
● Nowadays, many retailers focus on in-store marketing like - store design –
merchandise presentation – visual merchandising – in-store promotions – which
should help the retailer in improving its sales and profitability, as compared to other
forms of publicity.
● The retailer needs to be careful about shrinkage – that is the loss of merchandise
through theft, loss and damage – which greatly reduces space productivity.

4.8 KEYWORDS
Back Room : This the most essential part for any store. In case of
large format stores it is the area used for receiving
merchandise and then to make necessary entries in
the records as well as any tagging of labels, security
tags, etc. is done over here; besides used for stocking
of surplus merchandise.
Floor Merchandise Space : This is the main selling area where merchandise is on
display for customers to browse, check and enquire
about. In this space different types of fixtures are
used for displaying wide variety of merchandise.
Floor Plan : It is an important part of the store planning exercise.
It specifies location of different departments or
sections in the store – how customers are expected
to move through these sections and departments –
location of customer service sections – the space
allocated to different sections and departments.

113
Retail Operations and Free Flow : This is a very common type of layout used by small
Store Management-II
stores which sell a single product category like ladies
wear or men’s wear or kids wear or furniture or purses
etc.
Grid : This type of layout is common in supermarkets, drug
stores and convenience stores. In this layout the
fixtures and counters are laid in long rows.
Loop : This type of layout is very popular among the
departmental stores. It is also called race track as it
circles or cover the whole store’s perimeter.
Signs and Graphics : It guides the customers through different sections and
departments, thus making the customers movement
from one section/department smooth and without any
bumps.
Soft-line : The stores have developed many different types of
fixtures to suit their display needs, which are very
much different than the ones they used to have in
earlier times.
Space Allocation : In order to develop a floor plan the retailer must decide
on the spaces to be allocated among different
departments and sections. The space is allocated in
terms of square footage.
Spine : The spine layout tries to combine the advantages of
the free flow layout, the grid layout and the loop layout
in a certain way.
Store Design : It is an important element that must influence all the
human senses of sight, sound, smell, and touch.
Visual Communications : It is in the form of graphics – like photographs, posters,
art, merchandise signs, directions etc. - provides
customers the right cues to different sections as well
as create excitement and interest about the
merchandise on display. It plays the vital
communication link between the customers and the
store.
Visual Displays : It gives ideas to customers on how combination of
certain merchandise gives effective look or use, what
are the merchandise opportunities available in the store,
highlighting certain features of a product, etc.
Wall Fixtures : Wall is used in many innovative ways by both the small
size stores as well as large format stores.
Wall Merchandise : The walls are being effectively used nowadays to
display the merchandise. Wall fixtures are used for
display of merchandise – like waterfalls hanger
system which are very much in use for display of
apparels – also glass racks for keeping products.

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 Store Layout and Design
4.9 ANSWERS TO CHECK YOUR PROGRESS

Check Your Progress-A

FIB
a) Graphics b) Selling c) Super
T&F
a) False b) True c) False d) True

Check Your Progress-B

FIB
a) Effective b) Better c) Smaller
T&F
a) True b) True c) False

4.10 TERMINAL QUESTIONS

1. Discuss the elements involved in store layout management.
2. Explain the concept if store image.
3. Discuss space productivity index with suitable examples.
4. Explain the concept of store planning and its elements.
5. Discuss the process of retail space allocation planning.
6. Explain briefly different types of circulation plans.
7. How many types of fixtures exist? Explain the specific fixtures in each type.
8. Explain the concept of visual merchandising.
9. What is store design? Explain the important elements of store design.
10. What is visual communication? Explain its important elements.

4.11 FURTHER READINGS

Books
● O’Brien Gruner, J., Mulls, B., and Cohen, M. (2008). The course syllabus: A learning-
centered approach (2nd ed). CA: Jossey-Bass.
● U.C. Mathur “ Retail Management text and cases” ––I.K. International Publishing
House Pvt. Ltd., 2010
● Reuben ray “Stores Management” ¬¬ –– Himalaya Publishing House, 2010
● Sriram B Iyer “Retail Store Operations” –– The McGraw-Hill Companies, New
Delhi, 2010
● Tim Jackson and David Shaw “Mastering, Fashion Buying & Merchandising
Management” –– Palgrave Master Series, 2008
Journals
● Craig A. Martin, Mark L. Gillenson, Robert P. Bush and Daniel L. Sherrell “Retail
store layout characteristics as a mechanism for enhancing customer relationships
in a retail website environment” –– International Journal of Internet Marketing
and Advertising 2004 - Vol. 1, No.4 pp. 413 – 430, 2004 115
Retail Operations and ● Sandra S. Liu, Robert Melara and Raj Arangarasan “The Effects of Store Layout
Store Management-II
on Consumer Buying Behavioral Parameters with Visual Technology” –– Journal
of Shopping Center Research, 14, 2, pp. 63-72, 2007

Websites and Online Resources

● http://retail.about.com/od/storedesign/Store_Design_and_Layout.htm
● http://retail.about.com/od/storedesign/ss/store_layouts.htm
● http://www.slideshare.net/Annie05/store-layout-and-design-presentation
● http://www.scribd.com/anzaranzaranzar/d/15654700-Store-Layout-and-Design-Mgt
● http://www.managementstudyguide.com/store-design-and-layout.htm
● http://www.rfidjournal.com/article/print/4437
● http://jrdelisle.com/JSCR/2006_07_Articles/Liu%20et%20al.pdf
● http://ageconsearch.umn.edu/bitstream/27689/1/04020103.pdf

Activity

Visit a supermarket with an intention to plan and decorate your house. How do you
think visual displays gives ideas to customers on how combination of certain
merchandise gives effective look or use?
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Note : These Terminal Questions/Check Your Progress/Activity will help you to

understand the unit better. Try to write answers for them. But do not submit
your answers to the University for Assessment. These are for your practice
only.

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