store design, store layout & visual merchandising

1. McGraw-Hill/Irwin
Retailing Management, 6/e Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
Store Design, Store
Layout and Visual
Merchandising
Sonali Jain – 31
Priyanka Joshi-32
Sahil Kulkarni-43
Lekshmi Pillai-57
Anshumant Singh-72
Nikhil Srivastava-76
Vivek Srivastava-77
Store Design, Store
Layout and Visual
Merchandising

2. Store DesignStore Design
The primary objective of store design is implementing the retailer’s strategy
Meets needs of target market
Builds a sustainable competitive advantage
Displays the store’s image

3. Store Design ObjectivesStore Design Objectives
Implement retailer’s strategy
Influence customer buying behavior
Control design and maintenance costs
Provide flexibility
Meet legal requirements

4. Impact on Customer BehaviorImpact on Customer Behavior
Attract customers to store
Enable them to easily locate merchandise
Keep them in the store for a long time
Motivate them to make unplanned purchases
Provide them with a satisfying shopping experience

5. TodayToday’s Demographics’s Demographics
Time limited families are spending less time planning shopping
trips and making more decisions in the stores.
Retailers can:
 Advertise
 Package products differently
 Research the “first moment of truth”

6. Tradeoff in Store DesignTradeoff in Store Design
Ease of locating
merchandise for
planned purchases
Exploration of
store, impulse
purchases
Royalty-Free/CORBIS
(c)image100/PunchStock

7. Types of Store LayoutsTypes of Store Layouts
 Grid
 Racetrack
 Free Form

8. Grid Layout-Grid Layout- Has parallel aisles with merchandise on shelvesHas parallel aisles with merchandise on shelves
on both the aisles. Its well suited for shopping trips as the customers geton both the aisles. Its well suited for shopping trips as the customers get
exposed to all the merchandises and products.exposed to all the merchandises and products. Eg- D-Mart, RelianceEg- D-Mart, Reliance
FreshFresh
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Grid Layout

9. Advantages Disadvantages
1) Uses space efficiently
2) Easy sitting of merchandise
and linking of the products
3) More customers shop at
once
4) Staff and customers work
alongside
5) Allows self service
1) Makes displays rigid
2) Deters browsing
3) Increases security risks
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10. Grid Store Layout
Fruit
Vegetables
Office &
customer
service
Books, magazines, seasonal
display
Receiving&storage
Exit
Entrance
Cart
area
Checkouts

11. Racetrack Layout-Racetrack Layout- It is useful in large stores to guide the customersIt is useful in large stores to guide the customers
round the store and increase exposure of more distant parts from theround the store and increase exposure of more distant parts from the
entrance. Aisles lead off various points on the loop to allowentrance. Aisles lead off various points on the loop to allow
customers to explore particular ranges of merchandise.customers to explore particular ranges of merchandise. Eg- ShoppersEg- Shoppers
Stop, Lifestyle etc.Stop, Lifestyle etc.
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Racetrack layout

12. Advantages Disadvantages
1) Guides customers to the
large area
2) Customers are exposed
to large amount of
merchandise
1) May see too much at
once
2) Lack of focus
3) No island screens used
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13. Racetrack LayoutRacetrack Layout
RaceTrack layout
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14. Free-Form (Boutique) LayoutFree-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

15. Examples-Examples- Bata, Nike etcBata, Nike etc
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16. Advantages Disadvantages
1) Greater flexibility
2) Maximum visual impact
3) Shopping easier
4) Encourages browsing
5) Encourages impulse
buying
1) Expensive on space
requirements
2) High fixture cost
3) Stock control more
difficult
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17. Free-Form Layout
Storage, Receiving, Marketing
Underwear Dressing Rooms
Checkout counter
Clearance
Items
Feature Feature
JeansCasualWearStockings
AccessoriesPants
TopsTops
SkirtsandDressesHatsandHandbags
Open Display Window Open Display Window

18. Usage of Signage and GraphicsUsage of Signage and Graphics
Category Signage – identifies types of products and located near
the goods
Promotional Signage – relates 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

19. Effectively Using SignageEffectively Using Signage
Coordinate signage to store’s image
Use appropriate type faces on signs
Inform customers
Use them as props
Keep them fresh
Limit text

20. Digital SignageDigital 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

21. Feature AreasFeature Areas
Feature areas
◦ End caps
◦ Promotional aisle
◦ Freestanding displays
◦ Cash wraps
◦ Walls
◦ Windows

22. Space Planning
• Productivity of allocated space
• Merchandise inventory turnover
• Impact on store sales
• Display needs for the merchandise

23. Space Planning ConsiderationsSpace 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

24. Prime Locations for MerchandisePrime Locations for Merchandise
◦ Decompression zone
◦ Strike zone
◦ Right hand side of the store

25. Location of Merchandise CategoriesLocation of Merchandise Categories
Impulse merchandise – near heavily trafficked areas
Demand merchandise – back left-hand corner of the store
Special merchandise – lightly trafficked areas (glass pieces)
Adjacencies – complimentary merchandise next to each other

26. Use of planogramUse of planogram
Retailers generate maps known as planograms
Planogram is a diagram that shows how and where specific
SKUs should be placed
Location can be illustrated in the form of photos/ computer
output.
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27. Straight RackStraight Rack
Holds a lot of apparel
Hard to feature specific styles and colors
Found often in discount and off-price stores

28. Smaller than straight rack
Holds a maximum amount of merchandise
Easy to move around
Customers can’t get frontal view of merchandise
Rounder
Smaller than straight rack
Holds a maximum amount of merchandise
Easy to move around
Customers can’t get frontal view of merchandise

29. Four-WayFour-Way
Holds large amount of merchandise
Allows customers to view entire garment
Hard to maintain because of styles and colors
Fashion oriented apparel retailer
Four-Way
Holds large amount of merchandise
Allows customers to view entire garment
Hard to maintain because of styles and
colors
Fashion oriented apparel retailer

30. Merchandise
Presentation Techniques
Idea-Oriented Presentation
Style/Item Presentation
Color Organization
Price Lining
Vertical Merchandising
Tonnage Merchandising
Frontal Presentation

31. Creating a Store EnvironmentCreating a Store Environment
Scent
Store Atmosphere

32. LightingLighting
Highlight merchandise
Structure space and capture a
mood
Downplay features