5 th Edition PPT 18 1 Chapter 18

5 th Edition PPT 18 -1

Chapter 18 Store Layout, Design and Visual Merchandising Mc. Graw-Hill/Irwin PPT 18 -2 Retailing Management, 5/e Levy/Weitz: Copyright © 2004 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Store Management Customer Service Managing the Store Layout, Design and Visual Merchandising PPT 18 -3

REI’s Store Environment PPT 18 -4

Store Design Objectives • Consistent with retailers image and strategy • Positive influence on customer satisfaction and purchase behavior • Cost effective • Flexible • Meet needs of disabled PPT 18 -5

Tradeoff in Store Design Easy of locating merchandise for planned purchases Exploration of store, impulse purchases PPT 18 -6

Types of Store Layouts • Grid • Racetrack • Free Form PPT 18 -7

Grid Layout Long gondolas in repetitive pattern. • Easy to locate merchandise • Does not encourage customers to explore store – Limited site lines to merchandise • Allows more merchandise to be displayed • Cost efficient Used in grocery, discount, and drug stores. Why? PPT 18 -8

Receiving & storage Grid Store Layout Fruit Vegetables Books, magazines, seasonal display Checkouts Cart area Entrance Office & customer service Exit PPT 18 -9

Racetrack Layout Loop with a major aisle that has access to departments and store’s multiple entrances. • Draws customers around the store. • Provide different site lines and encourage exploration, impulse buying • Used in department stores PPT 18 -10

JCPenney Racetrack Layout PPT 18 -11

Example of Race Track Layout PPT 18 -12

Free-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 PPT 18 -13

Free-Form Layout Pants Clearance Items Feature Open Display Window PPT 18 -14 Tops Accessories Checkout counter Feature Open Display Window Hats and Handbags Dressing Rooms Underwear Skirts and Dresses Jeans Casual Wear Stockings Storage, Receiving, Marketing

Example of Boutique Area PPT 18 -15

Display Areas Feature areas – End caps – Promotional aisle – Freestanding fixtures – Point-of-sale areas – Walls PPT 18 -16

Designing a Webpage: Lessons from Store Design • Simplicity matters • Getting around • Prioritize • Design layout based on what you want to accomplish • Follow the standards of the industry leaders PPT 18 -17

Space Planning Allocating floor/shelf space locating merchandise in store (or on website) Where should merchandise be displayed? How much space should be allocated to each category/item? How many items of each SKUs should be displayed? PPT 18 -18

Space 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 PPT 18 -19

Prime Locations for Merchandise • Highly trafficked areas – Store entrances – Near checkout counter • Highly visible areas – End aisle – Displays PPT 18 -20

Special Considerations • Avoid the “butt-brush” effect. • Make merchandise accessible. • Allow a transition zone. PPT 18 -21

Visual Merchandising PPT 18 -22

Visual Merchandising PPT 18 -23

Visual Merchandising PPT 18 -24

Visual Merchandising PPT 18 -25

Visual Merchandising • Visual Merchandising. • Seven Colors Group PPT 18 -26

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram PPT 18 -27

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram PPT 18 -28

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram PPT 18 -29

Evaluating Space Productivity ratios are output/input – Sales per square foot – Sales per linear foot – Gross or contribution margin per square foot PPT 18 -30

Merchandise Presentation Techniques • Idea-Oriented Presentation • Style/Item Presentation • Color Organization • Price Lining • Vertical Merchandising • Tonnage Merchandising • Frontal Presentation PPT 18 -31

Types of Apparel Display Fixtures Gondola Rounder PPT 18 -32 Straight Rack Four-Way

Straight Rack PPT 18 -33

Rounder PPT 18 -34

Four-Way PPT 18 -35

Gondola PPT 18 -36

Creating a Store Environment Color Lighting Store Atmosphere Scent PPT 18 -37 Music

Visual Communications • Coordinate signs and graphics with the store’s image. • Inform the customer. • Use signs and graphics as props. • Keep signs and graphics fresh. • Limit the copy of signs. • Use appropriate typefaces on signs • Create theatrical effects. PPT 18 -38

Lighting • Highlight merchandise. • Structure space and capture a mood. • Downplay features. PPT 18 -39