Store Layout, Design

and Visual
Merchandising

PPT 18-1
 Store Management

Customer Service Managing the Store

Layout, Design and

Visual Merchandising

PPT 18-2
 Store Design Objectives

• Consistent with retailers image and

strategy
• Positive influence on customer
satisfaction and purchase behavior
• Cost effective
• Flexible

PPT 18-3
 Tradeoff in Store Design

Easy of locating
merchandise for
planned purchases

Exploration of
store, impulse
purchases

PPT 18-4
 Types of Store Layouts

• Grid
• Racetrack
• Free Form

PPT 18-5
 Grid Layout
Long gondolas in repetitive pattern.

• Easy to locate merchandise

• Does not encourage customers to explore store

– Limited site lines to merchandise

• Allows more merchandise to be displayed

• Cost efficient

Used in grocery, discount, and drug stores. Why?

PPT 18-6
 Grid Store Layout

Receiving & storage

Fruit
Books, magazines, seasonal Cart
display area
Vegetables Checkouts

Entrance
Office &
customer
service
Exit
PPT 18-7
 Racetrack Layout
Loop with a major aisle that has access to
departments and store’s multiple entrances.
• Draws customers around the store.
• Provide different site lines and encourage
exploration, impulse buying
• Used in department stores

PPT 18-8
 JCPenney Racetrack Layout

PPT 18-9
 Example of Race Track Layout

PPT 18-10
 Free-Form (Boutique) Layout

Fixtures and aisles arranged asymmetrically

• Pleasant relaxing ambiance doesn’t come
cheap – small store experience
• Inefficient use of space
• More susceptible to shoplifting – salespeople
can not view adjacent spaces.
Used in specialty stores and upscale department
stores

PPT 18-11
 Free-Form Layout

Storage, Receiving, Marketing

Hats and Handbags

Underwear Dressing Rooms
Stockings

Accessories

Tops
Checkout counter
Casual Wear

Tops
Pants

Clearance

Skirts and Dresses

Items
Jeans

Feature Feature

Open Display Window Open Display Window

PPT 18-12
 Example of Boutique Area

PPT 18-13
 Visual Merchandising

PPT 18-14
 Visual Merchandising

PPT 18-15
 Visual Merchandising

PPT 18-16
 Visual Merchandising

PPT 18-17
 Space Planning

Allocating floor/shelf space locating merchandise

in store (or on website)
Where should merchandise be displayed?
How much space should be allocated to each
category/item?
How many items of each SKUs should be
displayed?

PPT 18-18
 Space Planning Considerations

• Profitability of merchandise
• Customer Buying considerations
– Impulse products near front
– Demand/Destination areas off the beaten path
• Physical characteristics of product.
• Complementary products should be adjacent
• Sales rate
– More units of faster selling merchandise need to be
displayed
PPT 18-19
 Prime Locations for Merchandise

• Highly trafficked areas

– Store entrances
– Near checkout counter

• Highly visible areas

– End aisle
– Displays

PPT 18-20
 Visual Merchandising

• Seven Colors Group

PPT 18-21
 Evaluating Space Productivity

Productivity ratios are output/input

– Sales per square foot

– Sales per linear foot

– Gross or contribution margin per square foot

PPT 18-22
 Types of Apparel Display Fixtures

Gondola Straight Rack

Rounder Four-Way
PPT 18-23
 Straight Rack

PPT 18-24
 Rounder

PPT 18-25
 Four-Way

PPT 18-26
 Gondola

PPT 18-27
 Display Areas

Feature areas
– Promotional aisle
– Freestanding
fixtures
– Point-of-sale areas
– Walls

PPT 18-28
 Designing a Webpage:
Lessons from Store Design

• Simplicity matters
• Getting around
• Prioritize
• Design layout based on what you want to
accomplish
• Follow the standards of the industry leaders

PPT 18-29
 Creating a Store Environment

Color Lighting

Store Atmosphere

Scent Music

PPT 18-30
 Visual Communications

• Coordinate signs and graphics with the store’s

image.
• Inform the customer.
• Use signs and graphics as props.
• Keep signs and graphics fresh.
• Limit the copy of signs.
• Use appropriate typefaces on signs
• Create theatrical effects.
PPT 18-31
 Lighting

• Highlight merchandise.

• Structure space and

capture a mood.

• Downplay features.

PPT 18-32