Store Layout And Design - Presentation Transcript

Store Layout and Design Chapter 13 Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved. Learning Objectives o List the elements of a stores environment and define its two primary objectives. o Discuss the steps involved in planning the store. o 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. o Describe why store design is so important to a stores success. o Explain the role of visual communications in a retail store. 3. Introduction to Store Layout Management o Store Image is the overall perception the customer has of the stores environment. o 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. LO 1 4. Store Image 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. 1. 2.

LO 1 5. Store Image By incorporating a caf as an integral part of Barnes & Noble bookstores, a very relaxing and casual ambiance is created.

LO 1 6. Introduction to Store Layout Management Elements of the Store Environment Objectives of the Store Environment LO 1 Elements That Compose the Store Environment LO 1: Exhibit 13.1 Visual Communications Retail Identity Graphics POS Signage Store Planning Space Allocation Layout Circulation Store Design Exterior Design Ambiance Lighting Merchandising Fixture Selection Merchandise Presentation Visual Merchandising Store Image And Productivity 8. Retailing Truism o The more merchandise customers are exposed to, the more they tend to buy. LO 1 9. Objectives of the Store Environment 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. LO 1 10. Objectives of the Store Environment o Shrinkage o Represents merchandise that cannot be accounted for due to theft, loss, or damage. LO 1 7.

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11. Store Planning o Allocating Space o Circulation o Shrinkage Prevention LO 2 12. Store Planning o 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. o Stack-Outs are pallets of merchandise set out on the floor in front of the main shelves. LO 2 13. These Warning Signs May Indicate a Space Problem LO 2: Exhibit 13.2 14. Allocating Space o Types of space needed: o Back room o Office and other functional spaces o Aisles, services areas, and other nonselling areas of the main sales floor o Wall merchandise space o Floor merchandise space LO 2 15. Allocating Space o 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. LO 2 16. HBA Space Allocation by Mass Merchandisers LO 2 Hand/body lotion 44.1 27.2 44.0 54.5 43.4 Creme rinse/conditioner 58.2 45.0 59.0 59.6 86.7 Deodorant 107.6 82.9 103.4 130.0 93.5 Face cream/lotion 21.9 18.2 20.7 24.8 24.9 Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S . Eastern Central Southern Pacific Hair colorings 57.7 52.6 51.4 66.2 61.1 Hair spray-womens 69.2 39.8 55.5 102.5 59.0 Mens toiletries 28.5 11.3 23.3 44.2 28.5 Oral antiseptics/rinses 55.3 36.6 49.4 76.0 39.5 Shampoo 82.3 63.5 80.5 95.8 81.3 Source: Neilsen Marketing Research 17. HBA Space Allocation by Mass Merchandisers LO 2 Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S . Eastern Central Southern Pacific Shaving creams 24.7 24.4 24.3 24.5 27.8 Suntan Lotion 45.7 37.0 38.0 59.9 41.4 Toothpaste 71.5 58.9 60.3 87.0 87.6 Acne remedies 31.3 16.3 29.7 39.7 42.6 Nasal spray/drops 7.1 4.0 6.6 9.6 6.0 Antacids 31.3 16.3 29.7 39.7 42.6 Cold remedies-adult 34.3 25.5 30.3 41.8 42.9 Cough syrup/tablets 13.0 9.9 11.9 15.2 16.7 Source: Neilsen Marketing Research 18. HBA Space Allocation by Mass Merchandisers LO 2 Total U.S. and by geographic region Selected HBA categories Average linear feet per store handling... Total U.S . Eastern Central Southern Pacific Headache/pain remedies 49.6 30.5 47.8 61.1 59.8 Vitamins 64.5 34.0 57.6 90.2 71.0 Contact lens solution 53.4 33.5 47.4 70.3 59.2 Diet aids 23.2 14.3 25.2 26.0 28.4 Pregnancy test kits 5.0 2.4 4.2 6.6 8.6 Laxatives 24.8 10.6 21.3 35.7 32.6 Contraceptives-male 11.8 7.2 9.9 12.8 26.8 Sanitary napkins 91.2 77.8 93.7 100.8 73.6 Tampons 26.3 24.8 26.4 26.0 31.4 Source: Neilsen Marketing Research 19. Space Allocation Planning o Improving Space Productivity in Existing Stores o 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. o Space Allocations for a New Store LO 2 20. Merchandise Productivity Analysis LO 2: Exhibit 13.3 21. Merchandise Productivity Analysis LO 2: Exhibit 13.3 22. Circulation o Free-Flow Layout is a type of store layout in which fixtures and merchandise are grouped into free-flowing patterns on the sales floor. o Advantages o Allowance for browsing

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and wandering freely Increased impulse purchases Visual appeal Flexibility

LO 2 Disadvantages Loitering encouraged Possible confusion Waste of floor space Cost Difficulty of cleaning 23. Circulation: Free Flow LO 2: Exhibit 13.4 24. The Disney Stores Effective Use of the Free-Flow Design o 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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LO 2 25. Circulation o 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. o Advantages o Low cost o Customer familiarity o Merchandise exposure o Ease of cleaning o Simplified security o Possibility of self-service LO 2 Disadvantages Plain and uninteresting Limited browsing Stimulation of rushed shopping behavior Limited creativity in decor 26. Circulation: Grid Layout LO 2: Exhibit 13.5 27. Circulation o 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. o Advantages o Exposes customers to the greatest amount of merchandise

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LO 2 28. Circulation: Loop Layout LO 2: Exhibit 13.6 29. Floor Plan: Kohls LO 2 30. Circulation o 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. LO 2

31. Circulation: Spine Layout LO 2: Exhibit 13.7 32. Floor Plan: Clarence Sanders Piggly Wiggly LO 2 33. Shrinkage Prevention o One of the most important considerations when planning the layout is visibility of the merchandise. LO 2 34. Planning Fixtures and Merchandise Presentation o On-Shelf Merchandising o Is the display of merchandise on counters, racks, shelves, and fixtures throughout the store. LO 3 35. Planning Fixtures and Merchandise Presentation o Fixture Types o Merchandise Presentation Planning o Selecting Fixtures and Merchandise Presentation Methods o Visual Merchandising LO 3 36. Fixture Types o Hardlines Fixtures o Softlines Fixtures o Wall Fixtures LO 3 37. Fixture Types o Softlines Fixtures o 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. o Feature Fixture is a display that draws special attention to selected features (e.g., color, shape, or style) of merchandise. LO 3 38. Four-Way Feature Rack and Round Rack LO 3: Exhibit 13.8 39. Merchandise Presentation Planning o Methods of Merchandise Presentation: o Shelving o Hanging o Pegging o Folding o Stacking o Dumping LO 3 40. Merchandise Presentation Planning o Psychological Factors to Consider When Merchandising Stores: o Value/fashion image o Angles and sightlines o Vertical color blocking LO 3 41. 45-Degree Customer Sightline LO 3: Exhibit 13.9

42. Vertical Color Blocking LO 3: Exhibit 13.10 43. Visual Merchandising o Visual Merchandising o Is the artistic display of merchandise and theatrical props used as scene-setting decoration in the store. LO 3 44. Visual Merchandising o 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. LO 3 45. Visual Merchandising o 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. LO 3 46. Visual Merchandising o 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. LO 3 47. Visual Merchandising o Color is king . Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments. LO 3 48. Visual Merchandising o 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. LO 3 49. Question to Ponder o How do fixtures and merchandise presentation interact to influence consumers in different types of retailers? 50. Store Design o Ambience o Is the overall feeling or mood projected by a store through its aesthetic appeal to human senses. LO 4 51. Store Design o Storefront Design o Interior Design o Lighting Design o Sounds and Smells: Total Sensory Marketing LO 4 52. Lighting Design o Crate & Barrel makes effective use of lighting to highlight and feature merchandise on display.

LO 4 53. Total Sensory Marketing o Crabtree & Evelyn makes effective use of fragrances and odors to generate smells that reinforce its store ambiance. LO 4 54. Visual Communications o Name, Logo, and Retail Identity o Institutional Signage o Directional, Departmental, and Category Signage o Point-of-Sale (POS) Signage o Lifestyle Graphics LO 5 55. Directional, Departmental, and Category Signage o Directional and Departmental Signage are large signs that are usually placed fairly high, so they can be seen throughout the store. o 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. LO 5

Store layout The layout of the store directly impacts how many people will come into your store, how long they will stay there, and how well they will move around the store and interact with the stock you have for sale. Entry Ensure the entry to the store is inviting. If you are successful at 'inviting' customers into the store, your store traffic will double or better. Poorly laid out entries which discourage customers from entering are likely on a road to major financial pain! This means using clear site lines, and offering a temptation/point of interest around 10 steps inside the store. This will drag the customer into the store, and offers them something to walk directly to when they enter the store so they don't feel like they are entering the store and then looking around for where to shop. Customers want to enter a store with an end point in mind so that they are not immediately targeted by sales staff. Providing them an immediate point of focus allows the customer;
1. a reason to enter the store and 2. time to get comfortable within the store and visually see what else the store offers before they move from the first point of focus into browsing mode within the shop. A colourful stock display, a display of brand new season items, or a specials rack can be a great way of getting the customer to cross the threshold and make the initial entry into your store. Counter placement Checkout counter placement is an important consideration in the layout. The counter should be easily visible, somewhat near the exit door so that customers naturally pass by it on the way out, and should offer staff a wide view of the store for security purposes as well as allowing staff to see when customers may need assistance within the store. Security Theft is a major issue for any retailer. All stock loss is pure margin loss and a small amount

of theft can significantly erode a retailers net profit margin. There are numerous security options which a retailer can employ. These can be active or passive, but visibility is a major deterrent. Flow Ensure customers have a good flow around the store. For example can a pram or shopping trolley be easily maneuvered around the store between shelving units and floor displays? If there are blockages or even perceived barriers this can mean that customers are not even walking through some areas of your store. Clearly if this occurs, stock turnover in those areas will be poor and you are wasting money renting unproductive floorspace. Ideally you want to ensure that the store layout naturally leads your customer throughout as much of your store as possible so that all of your stock is displayed to them and as such the chances of increased sales are raised exponentially. You may choose to do this subtly or aggressively. Ikea is the best example of aggressive customer corralling where customers are forced to walk almost every square inch of the store before they can exit. Over this time the customer is exposed to thousands of items they otherwise would not have looked at, and no doubt some of these are purchased by the shopper. Spend a day watch your customers and how they walk around the floor. Do they always go to one thing first when they enter the store? Do they walk all the way around the store including the back? Does the flow tend to mean customer track to the right or the left when they loop through your store? What areas do they stop in and what areas do they pass through quickly and why is this likely occurring? Watch and you will learn quickly where your deficiencies and strengths are and you will work out some of the reasons why this is occurring.

Back of house/front of house Before you open a new store it can be very difficult to work out how much back of house storage space you require vs front of house retail selling floorspace. Insufficient back of house space can be a major impediment to a business requiring storage. Businesses which will require a larger back of house include those with; y larger stock items which are difficult to store in number on the retail floor or which are only displayed on the shopfront and sold from the back of house stock businesses which rely on layaway or laybys and hence need to store these items retailers which will be distributing part of their stock through a loading dock from the store and delivering to customers.

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On the other hand, front of house retail space is your selling space and you tend not to pay any lesser rent per square metre/foot for the storage space you use in the back of house. As such you want to maximise the space you use as front of house floor area to maximise your total revenue and gross margin potential. Building in some flexibility for being able to vary the front and back of house areas depending on requirements (which may change on a seasonal basis for instance) can be worth considering.