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Store Layout and Design

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Learning Objectives

• List the elements of a store’s environment and define its two


primary objectives.
• Discuss the steps involved in planning the store.
• 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.
• Describe why store design is so important to a store’s success.
• Explain the role of visual communications in a retail store.

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Introduction to Store Layout Management
LO 1
• Store Image is the overall perception the customer has
of the store’s environment.
• 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.

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Store Image
LO 1
• L.L. Bean offers relaxed,
classic apparel styles to
its customers. To help
convey this image, L.L.
Bean’s catalog and
advertising reinforces
their image. For catalog
customers, the catalog
is the store environment.

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

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Introduction to Store Layout Management
LO 1
• Elements of the Store Environment
• Objectives of the Store Environment

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Elements That Compose the Store Environment
LO 1: Exhibit 13.1
Visual Communications Store Planning
Retail Identity Space Allocation
Graphics Layout
POS Signage Circulation
Store Image
And
Productivity

Store Design Merchandising


Exterior Design Fixture Selection
Ambiance Merchandise Presentation
Lighting Visual Merchandising

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Retailing Truism
LO 1
• The more merchandise customers are exposed to, the
more they tend to buy.

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Objectives of the Store Environment
LO 1
• 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.

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Objectives of the Store Environment
LO 1
• Shrinkage
Represents merchandise that cannot be accounted for
due to theft, loss, or damage.

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Store Planning
LO 2
• Allocating Space
• Circulation
• Shrinkage Prevention

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Store Planning
LO 2
• 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.
• Stack-Outs are pallets of merchandise set out on the
floor in front of the main shelves.

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These Warning Signs May Indicate a Space
Problem
LO 2: Exhibit 13.2

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Allocating Space
LO 2
• Types of space needed:
• Back room
• Office and other functional spaces
• Aisles, services areas, and other nonselling areas of the
main sales floor
• Wall merchandise space
• Floor merchandise space

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Allocating Space
LO 2
 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.

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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
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
Hand/body lotion 44.1 27.2 44.0 54.5 43.4
Hair colorings 57.7 52.6 51.4 66.2 61.1
Hair spray-women’s 69.2 39.8 55.5 102.5 59.0
Men’s 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
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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
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
Nasal spray/drops 7.1 4.0 6.6 9.6 6.0

Source: Neilsen Marketing Research


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HBA Space Allocation by Mass Merchandisers

Total U.S. and by geographic region LO 2


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 18
Space Allocation Planning
LO 2
• Improving Space Productivity in Existing Stores
• Space Productivity Index is a ratio that compares the
percentage of the store’s total gross margin that a
particular merchandise category generates to its
percentage of total store selling space used.
• Space Allocations for a New Store

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Merchandise Productivity Analysis
LO 2: Exhibit 13.3

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Merchandise Productivity Analysis
LO 2: Exhibit 13.3

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Circulation
LO 2
Free-Flow Layout is a type of store layout in which
fixtures and merchandise are grouped into free-flowing
patterns on the sales floor.
Advantages
•Disadvantages
Allowance for browsing
•Loitering encouraged
and wandering freely •Possible confusion
Increased impulse

purchases
• Waste of floor space
Visual appeal •Cost
Flexibility •Difficulty of cleaning

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Circulation: Free Flow
LO 2: Exhibit 13.4

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The Disney Store’s Effective Use
of the Free-Flow Design
LO 2
 Approximately 250 million
consumers visit Disney’s
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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Circulation
LO 2
Grid Layout is a type of store layout in which counters and
fixtures are placed in long rows or “runs,” usually at right
angles, throughout the store.
Advantages Disadvantages
Low cost
•Plain and uninteresting
Customer familiarity

Merchandise exposure
•Limited browsing
Ease of cleaning
•Stimulation of rushed shopping
Simplified security behavior
Possibility of self-service •Limited creativity in decor

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Circulation: Grid Layout
LO 2: Exhibit 13.5

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Circulation
LO 2
 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.
Advantages
Exposes customers to the greatest amount of merchandise

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Circulation: Loop Layout
LO 2: Exhibit 13.6

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Floor Plan: Kohl’s
LO 2

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Circulation
LO 2
 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.

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Circulation: Spine Layout
LO 2: Exhibit 13.7

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Floor Plan: Clarence Sander’s Piggly Wiggly
LO 2

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Shrinkage Prevention
LO 2
 One of the most important considerations when
planning the layout is visibility of the merchandise.

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Planning Fixtures and Merchandise Presentation
LO 3
 On-Shelf Merchandising
Is the display of merchandise on counters, racks,
shelves, and fixtures throughout the store.

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Planning Fixtures and Merchandise Presentation
LO 3
• Fixture Types
• Merchandise Presentation Planning
• Selecting Fixtures and Merchandise Presentation
Methods
• Visual Merchandising

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Fixture Types
LO 3
• Hardlines Fixtures
• Softlines Fixtures
• Wall Fixtures

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Fixture Types
LO 3
• Softlines Fixtures
• 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.
• Feature Fixture is a display that draws special
attention to selected features (e.g., color, shape, or
style) of merchandise.

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Four-Way Feature Rack and Round Rack
LO 3: Exhibit 13.8

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Merchandise Presentation Planning
LO 3
• Methods of Merchandise Presentation:

• Shelving
• Hanging
• Pegging
• Folding
• Stacking
• Dumping

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Merchandise Presentation Planning
LO 3
• Psychological Factors to Consider When
Merchandising Stores:

• Value/fashion image
• Angles and sightlines
• Vertical color blocking

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45-Degree Customer Sightline
LO 3: Exhibit 13.9

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Vertical Color Blocking
LO 3: Exhibit 13.10

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Visual Merchandising
LO 3
• Visual Merchandising
Is the artistic display of merchandise and theatrical
props used as scene-setting decoration in the store.

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Visual Merchandising
LO 3
• Here’s sampling of the
techniques stores use to
generate those sales:
Get’m 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.

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Visual Merchandising
LO 3
• Lead them to temptation.
Department-store design
incorporates a gauntlet
of goodies to stimulate
impulse buys.
Cosmetics, a store’s
most profitable
department, should
always be at the main
entrance to the store.

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Visual Merchandising
LO 3
• 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.

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Visual Merchandising
LO 3
• Color is king. Retailers
believe consumers are
more apt to buy clothes
that appear in full size
and color assortments.

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Visual Merchandising
LO 3
• Suggestion positioning.
Once the customer has
already purchased one item,
it’s 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.

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Question to Ponder

• How do fixtures and merchandise presentation interact


to influence consumers in different types of retailers?

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Store Design
LO 4
• Ambience
Is the overall feeling or mood projected by a store
through its aesthetic appeal to human senses.

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Store Design
LO 4
• Storefront Design
• Interior Design
• Lighting Design
• Sounds and Smells: Total Sensory Marketing

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Lighting Design
LO 4
• Crate & Barrel makes
effective use of lighting
to highlight and feature
merchandise on display.

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Total Sensory Marketing
LO 4
• Crabtree & Evelyn
makes effective use of
fragrances and odors to
generate smells that
reinforce its store
ambiance.

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Visual Communications
LO 5
• Name, Logo, and Retail Identity
• Institutional Signage
• Directional, Departmental, and Category Signage
• Point-of-Sale (POS) Signage
• Lifestyle Graphics

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Directional, Departmental, and Category Signage
LO 5
• Directional and Departmental Signage are large signs
that are usually placed fairly high, so they can be seen
throughout the store.
• 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.

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Departmental Signage
LO 5
 Departmental signage
serve as the highest
level of organization in
an overall signage
program. These signs
are usually large and
placed fairly high to they
can be seen throughout
the store.

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Category Signage
LO 5
 Category signage helps
consumers negotiate
throughout the store to
find the product
categories they are
looking for. The size of
category signage varies
widely from a lettering
that is a few feet in
height to merely inches.

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Point-of-Sale (POS) Signage
LO 5
• Point-of-Sale Signage
Is relatively small signage that is placed very close to
the merchandise and is intended to give details about
specific items.

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Point-of-Sale (POS) Signage
LO 5
• POS signage for
clearance and sale items
tend to be in red to draw
a consumer’s attention.

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Lifestyle Graphics
LO 5
 The Limited uses
lifestyle graphics to
convey the image of the
product to the
consumer. Here the
Limited conveys the
casual nature of one
apparel line.

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