Contemporary Retail Management Chapter 16: Store Layout, Design, and Visual Merchandising
grid layout
-for customers who want utilitarian benefits store offers -easy to find products that can be purchased quickly -cost-efficient -retailers want to increase center store sales -does not encourage customers to explore store (limited site lines to merchandise) -allows more merchandise to be displayed -used in grocery, discount, and drug stores
store design elements: *feature areas*
-freestanding displays -mannequins -end caps -promotional aisle or area -walls -dressing rooms -cash wraps -point-of-purchase (POP) counters -checkout areas
straight racks
-holds a lot of apparel -hard to feature specific styles and colors -"selling sleeves"
four-way
-holds large amount of merchandise -allows customers to view entire garment -hard to maintain because of styles and colors -fashion oriented apparel retail
visual merchandising presentation techniques
-idea-oriented presentation -item and size presentation -color presentation -price lining -vertical merchandising -tonnage merchandising: "stack it high and let it fly"
store design objectives
-implement the retail strategy/showcase your brand -build loyalty (utilitarian benefits and hedonic benefits) -increase sales on visits -control costs to increase profits -meet legal considerations -design trade-offs
key store design elements
-interior layout -signage and graphics -feature areas
store design and retail strategy
-meet needs of target market -builds a sustainable competitive advantage -displays/conveys your brand image
rounder
-smaller than straight rack -holds a maximum amount of merchandise -easy to move around -customers can't get frontal view of merchandise
space management: *space allocated to merchandise categories*
-space productivity: sales per square foo and sales per linear foot -inventory turnover -display considerations
the retail sales equation: *customer conversion*
-store entrance: first 10 feet -sales talent -store environment -checkout process
the retail sales equation: *customer traffic*
-store location -lease line -marketing/branding -draw first time and repeat customers
visual merchandising: fixtures
-straight rack -rounder -bulk fixture or capacity fixture -four-way fixture -feature fixture -gondola
the retail sales equation: *average unit retail (AUR)*
-value proposition presentation -comparative displays -price promotions
gondolas
-versatile -grocery and discount stores -some department stores -hard to view apparel as they are folded
store design elements: *store exteriors*
-windows -entrances -exterior signage and store design -parking -landscaping
americans with disabilities act (ADA)
-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 -bathroom and fitting room fully accessible
free-form (speciality store) layout
-also called boutique layout -fixtures and aisles arranged asymmetrically -intimate, relaxed environment that facilitates shopping and browsing -flexible merchandise presentations -pleasant relaxing ambiance: small store experience -used in specialty stores and upscale department stores
racetrack (loop) layout
-also called loop layout -major aisle guides traffic through different departments -encourages unplanned purchasing -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
space management: *determining store size*
-bigger not always better -improvements in supply chain management help stores decrease size but still provide inventory -stores benefit from less rent, fewer employees, lower payroll costs, gain access to new markets -customers face reduced selection, decreased comfort, little entertainment
store design elements: *signage and graphics*
-call-to-action signage -category signage -promotional signage -point-of-sale (POS) signage digital signage
the retail sales equation: *units per transaction - U.PT.*
-collection displays -suggestive selling -merchandise adjacencies -personal shopping
design impact on cost: *store design impacts*
-customer experience -store labor expense -store maintenance expense: floors, walls and window, and lighting -inventory shrinkage
space management: *location of merchandise categories*
-demand/destination merchandise -strike zone -first impression of store's offering -impulse merchandise -impulse products -demand and promotional merchandise -special merchandise -category adjacencies: encourage unplanned purchases -location of merchandise within a category -planograms -virtual store simulation -videotapes of consumers and spatial recognition systems
americans with disabilities act (ADA)
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
grocery stores
are experimenting in their produce departments with unconventional product placements
whimsical mannequins (store design elements: feature areas)
attract the attention of children in Disney stores
lifestyle images (signage and graphics)
creates moods that encourage customers to shop
atmospherics
design environment by stimulation of the five senses
utilitarian benefits (store design types: customer experience)
easy to locate and purchase products in an efficient and timely manner with minimum hassle
store layout
encourage customer exploration and help customers move through the stores
idea-orientation presentation (visual merchandising presentation techniques)
encourages multiple complementary purchases
Vertical displays
generate more sales than similar merchandise with a diagonal display
ideal-oriented presentation (visual merchandising presentation techniques)
group individual items to show how they can be used and combined (lifestyle, coordinate items, product features)
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
fifty
idea-oriented presentation: ______ percent of shoppers get their ideas for clothes from store displays or window shopping
location (signage and graphics)
identifies the location of merchandise and guides customers
category signage (signage and graphics)
identifies types of products and located near the goods
point of sale (signage and graphics)
near merchandise with prices and product information
grocery stores
often place produce after customers pass through the decompression and strike zones because of its visual/color appeal; it gets a shopper's mouth watering, and the best grocery store customer is a hungry one
visual merchandising
one of the critical elements in the store environment
idea-orientation presentation (visual merchandising presentation techniques)
presentation based on a specific idea or the image of the store
-store entrances -near checkout counter
prime locations for merchandise: where are highly trafficked areas? (2)
-end aisle -displays
prime locations for merchandise: where are highly visible areas?
americans with disabilities act (ADA)
protects people with disabilities from discrimination in employment, transportation, public accommodations, telecommunications and activities of state and local government
hedonic benefits (store design types: customer experience)
provide entertaining and enjoyable shopping experience
promotional signage (signage and graphics)
relates to specific offers - sometimes in windows
americans with disabilities act (ADA)
requires retailers to provide "reasonable access" to merchandise and services
-color -lighting -scent -music
store atmosphere includes four things
four elements of the retail sales equation
store design is a major factor on all?
atmospherics
the design of an environment through visual communications, lighting, colors, music, and scent to stimulate customers' perceptual and emotional responses and ultimately to affect their purchase behavior
visual merchandising
the presentation of a store and its merchandise to attract the attention of potential customers
1. customer traffic 2. conversion 3. units per transaction 4. average unit retail
the retail sales equation (4)
-grid -racetrack -speciality store (boutique or freeform)
three main types of store layouts
-highlighting merchandise -mood creation
two aspects of lighting
supermarkets
typically display merchandise on four shelves, with the most profitable merchandise on the third shelf from the floor.
heat maps
using Microsoft Kinect sensors, firms like Shopperception create heat maps of shopper interactions with the products (touches, pickups, and returns); the red represents the hot zones where shoppers touch the most, yellow less, and blue not at all
colors
warm vs. cool
-classic box -bowling alley -l-shape
what are the main three types of specialty (free-form) store layouts?
-highly trafficked areas -highly visible areas
what are the prime locations for merchandise? (2)
-utilitarian benefits -hedonic benefits
what are the two store design types offering customer experience?
straight racks
what fixture is this (visual merchandising): "selling sleeves"
straight racks
what fixture is this (visual merchandising): hard to feature specific styles and colors
straight racks
what fixture is this (visual merchandising): holds a lot of apparel
four-way
what fixture is this (visual merchandising): allows customers to view entire garment
rounder
what fixture is this (visual merchandising): customers can't get frontal view of merchandise
rounder
what fixture is this (visual merchandising): easy to move around
four-way
what fixture is this (visual merchandising): fashion oriented apparel retail
gondolas
what fixture is this (visual merchandising): grocery and discount stores
four-way
what fixture is this (visual merchandising): hard to maintain because of styles and colors
gondolas
what fixture is this (visual merchandising): hard to view apparel as they are folded
rounder
what fixture is this (visual merchandising): holds a maximum amount of merchandise
four-way
what fixture is this (visual merchandising): holds large amount of merchandise
rounder
what fixture is this (visual merchandising): smaller than straight rack
gondolas
what fixture is this (visual merchandising): some department stores
gondolas
what fixture is this (visual merchandising): versatile
grid layout
what store layout is this: allows more merchandise to be displayed
free-form (speciality store) layout
what store layout is this: also called boutique layout
racetrack (loop) layout
what store layout is this: also called loop layout
grid layout
what store layout is this: cost-efficient
grid layout
what store layout is this: does not encourage customers to explore store (limited site lines to merchandise)
racetrack (loop) layout
what store layout is this: draws customers around the store
grid layout
what store layout is this: easy to find products that can be purchased quickly
grid layout
what store layout is this: easy to locate merchandise
racetrack (loop) layout
what store layout is this: encourages unplanned purchasing
free-form (speciality store) layout
what store layout is this: fixtures and aisles arranged asymmetrically
free-form (speciality store) layout
what store layout is this: flexible merchandise presentations
grid layout
what store layout is this: for customers who want utilitarian benefits store offers
free-form (speciality store) layout
what store layout is this: intimate, relaxed environment that facilitates shopping and browsing
racetrack (loop) layout
what store layout is this: loop with a major aisle that has access to departments
racetrack (loop) layout
what store layout is this: major aisle guides traffic through different departments
free-form (speciality store) layout
what store layout is this: pleasant relaxing ambiance: small store experience
racetrack (loop) layout
what store layout is this: provide different viewing angles and encourage exploration, impulse buying
grid layout
what store layout is this: retailers want to increase center store sales
racetrack (loop) layout
what store layout is this: used in department stores
grid layout
what store layout is this: used in grocery, discount, and drug stores
free-form (speciality store) layout
what store layout is this: used in specialty stores and upscale department stores
