Chapter 16 Store layout, Design, and Visual Merchandising

Store Design Objectives:Identify critical issues retailers need to consider when designing a store?

1. implementing the retailers strategy 2. build loyalty with a rewarding shopping experience 3. increase sales on a visit 4. control costs 5. meet legal requirements

Store Design Elements

1. layout 2. signage 3. feature areas 4. spine layout

Music

Music can either add to or detract from a retailer's total atmospheric package. For example: some retailers use a system that allows different types of music to be played at certain times of the day. Retailers also can use music to affect customers' behavior. Music can control the pace of store traffic, create an image, and attract or direct consumers' attention. Ex: Abercrombie & Finch loud club music to keep its image "fresh".

Mood Creation

Retailers use lighting to set the mood for their customers. Ex: Ralph Lauren stores and boutiques in department stores use low levels of light to coordinate with their overall ambiance of resembling a townhouse

Digital Signage

Signs whose visual content is delivered digitally through a centrally managed and controlled network and displayed on a television monitor or flat panel screen. *digital signage captures customers attention. *customers will pay an extra $1.52 on items

Scent

Smell has a large impact on a customer's mood and emotions.In conjunction with music, it can increase customers' excitement and satisfaction with the shopping experience. Scents thus can improve customers' subjective shopping experience by making them feel that they are spending less time examining merchandise, waiting for sales help, or checking out.

Increase sales on visits

Store design has a substantial effect on which products customers buy, how long they stay in the store, and how much they spend during a visit. Because customers spend little time and thought on shopping and selecting items in supermarkets these purchase decisions are greatly influenced by what customers see during their visit.

Color

The creative use of color can enhance a retailer's image and help create a mood. Warm colors (red, gold, and yellow) produce emotional, vibrant, hot, and active responses Fast-food restaurants like Wendy's and McDonald's use warm colors since they tend to influence customers to eat fast and leave. Cool colors (white, blue, and green) have a peaceful, gentle, calming effect and appear to induce abstract thinking, leading customers to view products more favorably

Feature area 2- End Caps (Target): feature located at the end of the Aisle

They will be located on grid layouts for Utilitarian shoppers who want to get in and out. *Use a cap at the end on every aisles for expensive merchandise such as (Allegra) for lazy customers to buy the name brand.

Build Loyalty

When customers consistently have rewarding experiences when patronizing a retailer's store or website, they are motivated to visit repeatedly and develop brand loyalty toward the retailer. (Utilitarian benefit)

Feature area 1- Mannequins: Facial features, shoes, hair, used for promotional preferences

a mannequin that features the product; represent human and display product items. Mannequins can personify the brand now, does the merchandise fit me? Ex:Forever 21 has female mannequins

Layout-Freeform layout

also known as a boutique layout arranges fixtures and aisles in asymmetric pattern. It provides intimate, relaxing environment that facilitates shopping and browsing.

Layout-Racetrack Layout

also known as a loop layout a store layout that provides a major aisle that loops around the store to guide customer traffic around different departments within the store. (PoS)- point of sale terminals are typically located in each department bordering the racetrack.

Virtual dressing rooms

are becoming more important and interesting to online shoppers. because the spread of webcams embedded in laptops, tablets, and desktop computers is making it possible for programmers to create "Virtual Dressing rooms" you can virtually paint your house.

Unplanned Purchase

based on logic and rational appeal. (Impulse spending); gum, chips, water

control costs to increase profits

control the cost of implementing store design and maintaining the stores appearance. Ex: Neiman Marcus has expensive jewelry and crystals, the crystals use more electricity and less Eco-friendly than rows of florescent light bulbs, the retailer considers such costs necessary to highlight these high-ticket items.

Signage & Graphics

help customers locate specific products and departments, provide product information, and suggest items or special purchases. Graphics such as photo panels, can reinforce a stores image. (Hung from a ceiling 8-9 ft high)

Gondola

is an island type of self-service counter with tiers of shelves, bins, or pegs. Extremely versatile and they are you used extensively but not exclusively in grocery and discount stores(canned food->baseball gloves).

Highlighting Merchandise

lighting must provide an accurate color rendition of the merchandise. It also allows the retailer to focus spotlights on special featured areas and items. The key determinant appears to be achieving an appropriate level of contrast, which helps attract visual attention

Layout-Grid layout

parallel aisles with merchandise on shelves on both sides of the aisles, Cash registers are located in the entrances/exits of their stores.

cash wraps/point-of-purchase counters/checkout areas

places in the store where customers can purchase merchandise. because many customers go to these areas and wait in line to make a purchase, retailers often use them to display impulse purchase items. Ex: Supermarkets have batteries, candy, gum, and magazines these traditionally valuable spaces have become less effective Retailing.

Feature area 3- Promotional Aisle or Area

seasonal merchandise promotional area-(Target) Back 2 School, Christmas shopping located towards the back of the store to make you walk around the store.

Implement Retail Strategy

the design must be consistent with and reinforce the retailer's strategy by meeting the needs of the target market and building a sustainable competitive advantage.

Fixtures

the equipment used to display merchandise (Flooring coverings and lighting as well as the overall image of the store).

Visual Merchandising

the presentation of a store and its merchandise in ways that will attract the attention of potential customers.

Understand how retailers can create appealing store atmosphere:

to provide rewarding shopping experience retailers go beyond presenting appealing merchandise. Atmospheric refers to design of an environment by stimulation of the five senses; lighting, colors, music, scent, and flavors

Taste

It is a little more difficult to appeal subtly to consumers' taste buds. many department stores are reintroducing old fashion offering to appeal to shoppers the store restaurant. the option of grabbing a bite to eat in the store without having to leave will allow the customer to stay longer in the store and enjoy their shopping experience.

Store Exteriors

Last design element area first view of the store the customer sees its appealing store exterior is the entrance a customer walks in and enters your store, its open and inviting Ex: Apple, Target, Walmart *In the 1st 10 feet of the store is called a decompression zone retailers need to have nothing by the entrance because customers are not ready to shop yet.

Lighting

Lighting can highlight merchandise and capture a mood or feeling that enhances the store's image. Retailers also are exploring ways to save energy with technologically advanced lighting. Having the appropriate lighting positively influences customer shopping behavior

Feature area 4- Dressing Rooms

Dressing rooms that go with the store Ex: Ross-terrible dressing rooms *Nicer store items hang from dressing room, *SEATING AREA(Luxury stores)

Meet legal considerations-ADA

All store design and redesign must comply with the 1990 American with Disability Act (ADA) and its 2008 amendments. This law protects ppl. with disabilities from discrimination in employment, transportation, public accommodations, telecommunications, and activities of state and local governments.