V Understanding of basic finance involved in

retail
V „or planning new venture like new business
area or a new geographical market
V
V 
 
V po determine the economic viability of the business in designated
markets

V po provide guidance to the new business planner in organizing

and controlling various planning activities

V po serve as a tool for obtaining the necessary financing

„easibility study looks at three major areas:

V Market issues
V Organizational /technical issue
V „inancial issues
„easibility study should be done in these areas

V Description of the business

V Economic consideration for the business
V Market factors
V phe cost of the new premises
V Start up cost and operating expenses
V Cost of the inventory
V Cash flow requirements
V MRO„ (ross margin return of selling space
or footage) :ross Margin / Shop Sq.ft

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

V Conversion ration : No of customer (who make a purchase )*100

No . Of customer entering the space

V Average ticket size : potal sales for the day

No of bills generated
Session 27
V Understanding of the importance of store
design in retail
V <Design is an intrinsic part of the overall
brand strategy and should not be the last
point. Retail design is not about creating
attractive shops that have no walk-ins.dz

By :?

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V „

   - 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.

ô

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

ô

Æmproving space productivity in existing stores
9 ?


   
  - A ratio that compares the
percentage of the storeǯs total gross margin that a
particular merchandise category generates to its
percentage of total store selling space used.

 Ý 
 - A schematic that illustrates how

and where a retailerǯs merchandise should be
displayed on the shelf in order to increase
customer purchases.
ô

V Circulation
 „ree-flow layout
 rid layout
 Loop layout
 Spine layout

ô

V „



 


 




 










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V ÷

  V  


 
V 1. Allowance for V 1. Loitering
browsing encouraged
V and wandering freely V 2. Possible confusion
V 2. Æncreased impulse V 3. Waste of floor space
purchases V 4. Cost
V 3. Visual appeal V 5. Difficulty of cleaning
V 4. „lexibility
V p
 












 


 





 




  


 

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V ÷

  V 



 
V 1. Low cost
V 2. Customer familiarity
V 3. Merchandise
exposure
V 4. Ease of cleaning
V 5. Simplified security
V 6. Possibility of self-
service
V 1. Plain and
uninteresting
V 2. Limited browsing
V 3. Stimulation of
rushed
V shopping behavior
V 4. Limited creativity in
V decor
V ÷


 

 

 









 


 










 











 



 


 
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V ÷
 

 
 



 

 







 

 

 

 

  




 

 

 



 



 

 





 





 



 



ô

ñey psychological factors to consider when
merchandising stores:

 Value/fashion image
 Angles and sightlines
 Vertical color blocking

ô

ô

ô

V ?



 
V  

 
V  
 
V ?


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V Signs and graphics provide information
and can add personality, beauty, and romance to a
storeǯs image

V ood lighting should do more than illuminate space.

Æt can highlight merchandise, sculpt space, and
capture a mood that enhances a storeǯs image.

Ȉ     


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

1000 light fixtures.
V Contemporary lighting
design requires an in-
depth knowledge of
electrical engineering
and the effect of light on
color and texture.
V phe Limited, as many
specialty apparel
retailers, has found that
lower light levels help
convey a more fashion
oriented image
V É
 




 
   
V 
   

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V 
  
 
     

 

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V 
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Ý ?

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V 

 

V Name, logo, and retail
identity
 Must be catchy,
memorable, and reflective
of the retailerǯs
merchandising mission.
V Ænstitutional signage
 Describes the
merchandising mission,
customer service policies,
and other messages on
behalf of the retail
institution
Directional and Departmental
Signage
V phey are large signs that are
usually placed fairly high, so
they can be seen throughout
the store.
V Æt serve as the highest level
of organization in an overall
signage program.
V phese signs are usually large
and placed fairly high to they
can be seen throughout the
store.
V phey are smaller than
directional and departmental
signage and are intended to be
seen from a shorter distance;
they are located on or close to
the fixture itself where the
merchandise is displayed
V Æt helps consumers negotiate
throughout the store to find the
product categories they are
looking for. phe size of category
signage varies widely from a
lettering that is a few feet in
height to merely inches.
V Æt is relatively small
signage that is placed
very close to the
merchandise and is
intended to give details
about specific Ætems

V POS signage for

clearance and sale items
tend to be in red to draw
a consumerǯs attention
Visual Merchandising : 15 mins