Retail Marketing Chapter 17 Store Layout, Design, and Visual Merchandising

Scent

-has a positive impact on impulse buying behavior and customer satisfaction -scents that are neutral produce better perceptions of the store than no scent -customers in scented stores think they spent less time in the store than subjects in unscented stores

Straight rack

-holds a lot of apparel -hard to feature specific styles and colors -found often in discount and off-price stores

Four-way

-holds large amount of merchandise -allows customers to view entire garment -hard to maintain because of colors and styles -fashion oriented apparel retailer

Store design elements

-layouts -signage and graphics -feature/promotional area

Videotaping consumers

-learn customers' movements, where they pause or move quickly, or where there is congestion

Gondolas

-versatile -grocery and discount stores -some department stores -hard to view apparel as they are folded

Reasonable Access

-32 inch wide pathways on the main aisle and to the bathroom, fitting rooms elevators and around most fixtures -Lower most cash wraps and fixtures so they can be reached by a person in a wheelchair -Make bathroom and fitting room fully accessible

Effectively Use Signage

-Coordinate signage to store's image -Use appropriate type faces on signs -Inform customers -Use them as props -Keep them fresh -Limit the text on signs -Use appropriate typefaces as fonts

Grid layout

-Easy to locate merchandise -Does not encourage customers to explore store. Not exciting. -Limited site lines to merchandise. -Allows more merchandise to be displayed. -Maximizes space - vertical and linear. -Cost efficient - less expensive fixtures, shelves simple to merchandise and standardized -stockouts easily identified -used in grocer, discount, and drug stores

Free-form (Boutique) Layout

-Fixtures and aisles arrange asymmetrically -Provides an intimate, relaxing environment that facilitates shopping and browsing -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

Types of store layouts

-Grid -Racetrack -Freeform

Merchandise presentation techniques

-Idea oriented presentation -Style/Item presentation -Color organization -Price lining -Vertical merchandising -Tonnage merchandising (large quantities of merchandise displayed together) -Frontal presentation (display as much of the product as possible to catch the customer's eye)

Store design objectives

-Implement retailer's strategy -Build loyalty -Increase sales on visits -Control cost -Legal considerations - Americans with Disabilities Act -Design trade offs

Racetrack layout (Loop)

-Loop with a major aisle that has access to departments -Draws customers around the store -Provide different viewing angles and encourage exploration, impulse buying -Used in department stores

Website checkout

-Make the process clear and appear simple -Enclose the checkout process -Make the process navigable without loss of information -Reinforce trust in the checkout process

Idea-Orientation Presentation

-Present merchandise based on a specific idea of the image of the store -Encourage multiple complementary purchases -women's fashion -Furniture combined in room settings -Sony style mini-living rooms

Americans with Disabilities Act (ADA)

-Protects people with disabilities from discrimination in employment, transportation, public accommodations, telecommunications and activities of state and local government. -Affects store design as disabled people need "reasonable access" to merchandise and services built before 1993. After 1993, stores are expected to be fully accessible.

Rounder

-Smaller than straight rack -Holds a maximum amount of merchandise -Easy to move around -Customers can' get frontal view of merchandise

Hedonic benefits

Offering customers an entertaining and enjoyable shopping experience

Space planning

Productivity of allocated space (sales per square foot) Merchandise inventory turnover Impact on store sales Display needs for merchandise

Website Design

Simplicity matters Getting around -easy navigation Let them see it Blend the website and store Prioritize

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.

Store design and retail strategy

The primary objective of store design is implementing the retailer's strategy -Meets needs of a target market -Builds a sustainable competitive advantage -Displays the store's image

Space management

The space within stores and on the stores' shelves are fixtures is a scarce resource The allocation of store space to merchandise categories and brands The location of departments or merchandise categories in the store

Store layouts

To encourage customer exploration and help customers move through the stores -Use a layout that facilitates a specific traffic pattern -Provide interesting design elements -Destination departments - include items a customer need to buy and will go directly within store to get product. Putting these in the back of the store will draw customers through, prompting additional shopping along the way.

Digital Signage

Visual content delivered digitally through a centrally managed and controlled network and displayed on a TV monitor or flat panel screen -superior in attracting attention -enhances store environment -provides appealing atmosphere -overcomes time-to-message hurdle -messages can target demographics -Eliminates costs with printing, distribution and installing traditional signage

Color

Warm colors (red, gold, yellow) produce emotional, vibrant, hot and active responses Cool colors (white, blue, green) have a peaceful, gentle, calming effect Culturally bonded -French-Canadians - respond more to warm colors -Anglo-Canadians - respond more to cool colors

Type of layout - Website design

When shopping on the Web, customers are interested in speed, convenience, ease of navigation, not necessarily fancy graphics

Demand/Destination merchandise

back left-hand corner of the store

Special merchandise

lightly trafficked areas (glass pieces, women's lingerie)

Impulse merchandise

near heavily trafficked areas

impulse merchandise

products that are purchased by customers without prior plans. These products are almost always located near the front of the store, where they're seen by everyone and may actually draw people into the store

Planogram

A diagram that shows how and where specific SKUs should be placed on retail shelves or displays to increase customer purchases

Sales per square foot

A measure of space productivity used by most retailers since rent and land purchases are assessed on a per-square-foot basis.

Sales per linear foot

A measure of space productivity used when most merchandise is displayed on multiple shelves of long gondolas, such as in grocery stores.

Task-completion

A simple atmosphere with slow music, dimmer lighting, and blue/green colors

Lighting

Highlight merchandise Structure space a capture a mood Energy efficient lighting Downplay features

Prime locations for Merchandise

Highly trafficked areas -Store entrances -Near checkout counter Highly visible areas -End aisle -Displays

Utilitarian benefits

It enables customers to locate and purchase products in an efficient and timely manner with minimum hassle

Virtual Store Software

Learn the best place to merchandise and test how customers react to new products

Use of signage and graphics

Location - identifies the location of merchandise and guides customers Category signage - identifies types of products and located near the goods Promotional signage - related to specific offers - sometimes in windows Point of sale - near merchandise with prices and product information Lifestyle images - creates moods that encourage customers to shop

Adjacencies

Cluster complimentary merchandise next to each other

Creating an Appealing Store Atmoshopere

Color Lighting Scent Music

Control cost

Control the cost of implementing the store design and maintain the store's appearance Store design influence -shopping experience and thus sales -labor costs -inventory shrinkage

Music

Control the pace of store traffic, create an image, and attract or direct consumers' attention A mix of classical or soothing music encourages shoppers -to slow down, relax, and take a good look at the merchandise -thus to stay longer and purchase more

demand/destination area

Department or area in a store in which demand for the products or services offered is created before customers get to their destination.

Design trade-offs

Ease of locating merchandise for planning purchases/giving customers adequate space to shop vs. exploration of store, impulse purchases/productivity of using this scarce resource for merchandise

Visual Merchandising: Fixtures

A. straight rack B. rounder (bulk, fixture, capacity fixture) C. four-way fixture (feature fixture) D. gondolas

Fun

An exciting atmosphere with fast music, bright lighting, and red/yellow colors

Shrinkage

An inventory reduction that is caused by shoplifting by employees or customers, by merchandise being misplaced or damaged, or by poor bookkeeping.

Feature/Promotional Areas

Areas within a store designed to get the customers' attention Feature areas -Entrances -Freestanding displays -Cash wraps (POP counters, checkout areas) -End caps -Promotional aisles -Walls -Windows -Fitting rooms