Chapter 13

Store Layout and Design

Retailing, 6th Edition. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved.

Learning Objectives

1. List the elements of a store’s environment and define its two primary objectives.

2. Discuss the steps involved in planning the store.

3. Describe how various types of fixtures, merchandise presentation methods and techniques, and the psychology of merchandise presentation are used to increase the productivity of the sales floor.

4. Describe why store design is so important to a store’s success.

5. Explain the role of visual communications in a retail store.

Introduction to Store Layout Management

Elements of the Store Environment

Objectives of the Store Environment

LO 1

Introduction to Store Layout Management

Store image:

Is the overall perception the consumer has of the store’s environment.

LO 1

Introduction to Store Layout Management

Space productivity:

Represents how effectively the retailer utilizes its space and is usually measured by sales per square foot of selling space or gross margin dollars per square foot of selling space.

LO 1

Elements That Compose the Store Environment

LO 1Exhibit 13.1

Introduction to Store Layout Management

Shrinkage:

Represents merchandise that cannot be accounted for due to theft, loss, or damage.

LO 1

Store Image

L.L. Bean offers relaxed, classic apparel styles to its customers. To help convey this image, L.L. Bean’s catalog and advertising reinforces their image. For catalog customers, the catalog is the store environment.

LO 1

Store Image

By incorporating a café as an integral part of Barnes & Noble bookstores, a very relaxing and casual ambiance is created.

LO 1

Store Planning

Allocating Space

Circulation

Shrinkage Prevention

LO 2

Store Planning

Floor plan:

Is a schematic that shows where merchandise and customer service departments are located, how customers circulate through the store, and how much space is dedicated to each department.

LO 2

These Warning Signs May Indicate a Space Problem

LO 2Exhibit 13.2

Store Planning

Microretailing:

Occurs when a chain store retailer operating over a wide geographic area, usually nationally, tailors its merchandise and services in each store to the needs of the immediate trading area.

LO 2

Store Planning

Stack-outs:

Are pallets of merchandise set out on the floor in front of the main shelves.

LO 2

Store Planning

Allocating Space

Back Room

Offices and Other Functional Spaces

Aisles, Service Areas, and Other Nonselling Areas

Floor Merchandise Space

Wall Merchandise Space

LO 2

Store Planning

Space Allocation Planning

Improving Space Productivity in Existing Stores

Space Allocations for a New Store

LO 2

Store Planning

Space productivity index:

Is a ratio that compares the percentage of the store’s total gross margin that a particular merchandise category generates to its percentage of total store selling space used.

LO 2

Merchandise Productivity Analysis

LO 2Exhibit 13.3 – Softlines Excerpt

Store Planning

Circulation

Free Flow

Grid

Loop

Spine

LO 2

Store Planning

Free-flow layout:

Is a type of store layout in which fixtures and merchandise are grouped into free-flowing patterns on the sales floor.

LO 2

Store Planning

Grid layout:

Is a type of store layout in which counters and fixtures are placed in long rows or “runs,” usually at right angles, throughout the store.

LO 2

Free-Flow Layout

LO 2Exhibit 13.4

Grid Layout

LO 2Exhibit 13.5

Store Planning

Loop layout:

Is a type of store layout in which a major customer aisle begins at the entrance, loops through the store – usually in the shape of a circle, square, or rectangle – and then returns the customer to the front of the store.

LO 2

Loop Layout

LO 2Exhibit 13.6

Store Planning

Spine layout:

Is a type of store layout in which a single main aisle runs from the front to the back of the store, transporting customers in both directions, and where on either side of this spine, merchandise departments using either a free-flow or grid pattern branch off toward the back side walls.

LO 2

Spine Layout

LO 2Exhibit 13.7

Allocating Space

Warehouse clubs are able to take advantage not only of the width and depth of the store, but also the height, by using large “warehouse racks” that carry reachable inventory at lower levels with large pallets or cartons of excess inventory at higher levels.

LO 2

The Disney Store’s Effective Useof the Free-Flow Design

Approximately 250 million consumers visit Disney’s entertainment retail outlets each year. New store designs showcase merchandise in an engaging and contemporary fashion, keeping pace with evolving retail trends. Technological elements - including a front-of-store media wall that engages guests with Disney programming, and interactive kiosks-setting the stage for the Disney Store in the 21st century.

LO 2

Floor Plan: Clarence Sander’s Piggly Wiggly

LO 2

Floor Plan: Kohl’s

LO 2

HBA Space Allocation by Mass Merchandisers

Hand/body lotion 44.1 27.2 44.0 54.5 43.4

Creme rinse/conditioner 58.2 45.0 59.0 59.6 86.7

Deodorant 107.6 82.9 103.4 130.0 93.5

Face cream/lotion 21.9 18.2 20.7 24.8 24.9

Total U.S. and by geographic regionSelected HBA categoriesAverage linear feet per store handling

Total U.S. Eastern Central Southern Pacific

Hair colorings 57.7 52.6 51.4 66.2 61.1

Hair spray-women’s 69.2 39.8 55.5 102.5 59.0

Men’s toiletries 28.5 11.3 23.3 44.2 28.5

Oral antiseptics/rinses 55.3 36.6 49.4 76.0 39.5

Shampoo 82.3 63.5 80.5 95.8 81.3

Source: Neilsen Marketing Research LO 2

HBA Space Allocation by Mass Merchandisers

Total U.S. and by geographic regionSelected HBA categoriesAverage linear feet per store handling...

Total U.S. Eastern Central Southern Pacific

Shaving creams 24.7 24.4 24.3 24.5 27.8

Suntan Lotion 45.7 37.0 38.0 59.9 41.4

Toothpaste 71.5 58.9 60.3 87.0 87.6

Acne remedies 31.3 16.3 29.7 39.7 42.6

Nasal spray/drops 7.1 4.0 6.6 9.6 6.0

Antacids 31.3 16.3 29.7 39.7 42.6

Cold remedies-adult 34.3 25.5 30.3 41.8 42.9

Cough syrup/tablets 13.0 9.9 11.9 15.2 16.7

Source: Neilsen Marketing Research LO 2

HBA Space Allocation by Mass Merchandisers

Total U.S. and by geographic regionSelected HBA categoriesAverage linear feet per store handling...

Total U.S. Eastern Central Southern Pacific

Headache/pain remedies 49.6 30.5 47.8 61.1 59.8

Vitamins 64.5 34.0 57.6 90.2 71.0

Contact lens solution 53.4 33.5 47.4 70.3 59.2

Diet aids 23.2 14.3 25.2 26.0 28.4

Pregnancy test kits 5.0 2.4 4.2 6.6 8.6

Laxatives 24.8 10.6 21.3 35.7 32.6

Contraceptives-male 11.8 7.2 9.9 12.8 26.8

Sanitary napkins 91.2 77.8 93.7 100.8 73.6

Tampons 26.3 24.8 26.4 26.0 31.4

Source: Neilsen Marketing Research LO 2

Planning Fixtures and Merchandise Presentation

Fixture Types

Merchandise Presentation Planning

Selecting Fixtures and Merchandise Presentation Methods

Visual Merchandising

LO 3

Planning Fixtures and Merchandise Presentation

On-shelf merchandising:

Is the display of merchandise on counters, racks, shelves, and fixtures throughout the store.

LO 3

Planning Fixtures and Merchandise Presentation

Fixture Types

Hardlines Fixtures

Softlines Fixtures

Wall Fixtures

LO 3

Planning Fixtures and Merchandise Presentation

Bulk or capacity fixture:

Is a display fixture that is intended to hold the bulk of merchandise without looking as heavy as a long, straight rack of merchandise.

LO 3

Planning Fixtures and Merchandise Presentation

Feature fixture:

Is a display that draws special attention to selected features (e.g., color, shape, or style) of merchandise.

LO 3

Four-Way Feature Rack and Round Rack

LO 3Exhibit 13.8

Planning Fixtures and Merchandise Presentation

Merchandise Presentation Planning; Six Methods

1. Shelving

2. Hanging

3. Pegging

4. Folding

5. Stacking

6. Dumping

LO 3

Planning Fixtures and Merchandise Presentation

Merchandise Presentation Planning; Key Psychological Factors to Consider

1. Value/fashion image

2. Angles and sightlines

3. Vertical color blocking

LO 3

45-Degree Customer Sightline

LO 3Exhibit 13.9

Vertical Color Blocking

LO 3Exhibit 13.10

Planning Fixtures and Merchandise Presentation

Visual merchandising:

Is the artistic display of merchandise and theatrical props used as scene-setting decoration in the store.

LO 3

Visual Merchandising

Lead them to temptation. Department-store design incorporates a gauntlet of goodies to stimulate impulse buys. Cosmetics, a store’s most profitable department, should always be at the main entrance to the store.

LO 3

Visual Merchandising

Here’s sampling of the techniques stores use to generate those sales: Get’m coming and going. Escalators are a focal point of many stores. That makes them ideal locations for promotional signs and for impulse items like perfume.

LO 3

Visual Merchandising

Its all in the display. When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury.

LO 3

Visual Merchandising

Color is king. Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments.

LO 3

Visual Merchandising

Suggestion positioning. Once the customer has already purchased one item, it’s easier to sell an additional item. Thus apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines.

LO 3

Store Design

Storefront Design

Interior Design

Lighting Design

Sounds and Smells: Total Sensory Marketing

LO 4

Lighting Design

Crate & Barrel makes effective use of lighting to highlight and feature merchandise on display.

LO 4

Total Sensory Marketing

Crabtree & Evelyn makes effective use of fragrances and odors to generate smells that reinforce its store ambiance.

LO 4

Visual Communications

Name, Logo, and Retail Identity

Institutional Signage

Directional Departmental, and Category Signage

Point-of-Sale (POS) Signage

Lifestyle Graphics

LO 5

Visual Communications

Directional and departmental signage:

Are large signs that are usually placed fairly high, so they can be seen throughout the store.

LO 5

Visual Communications

Category signage:

Are smaller than directional and departmental signage and are intended to be seen from a shorter distance; they are located on or close to the fixture itself where the merchandise is displayed.

LO 5

Visual Communications

Point-of-sale signage:

Is relatively small signage that is placed very close to the merchandise and is intended to give details about specific items.

LO 5

Departmental Signage

Departmental signage serve as the highest level of organization in an overall signage program. These signs are usually large and placed fairly high to they can be seen throughout the store.

LO 5

Category Signage

Category signage helps consumers negotiate throughout the store to find the product categories they are looking for. The size of category signage varies widely from a lettering that is a few feet in height to merely inches.

LO 5

Point-of-Sale (POS) Signage

POS signage for clearance and sale items tend to be in red to draw a consumer’s attention.

LO 5

Lifestyle Graphics

The Limited uses lifestyle graphics to convey the image of the product to the consumer. Here the Limited conveys the casual nature of one apparel line.

LO 5

Additional Slides

Store Planning

ShrinkagePrevention

Circulation

Allocating Space

LO 2

Planning Fixtures and Merchandise Presentation

Fixturetypes

Merchandisepresentationplanning

Selecting fixturesand merchandise

presentationmethods

Visualmerchandising

LO 3

Store Design

StorefrontDesign

InteriorDesign

LightingDesign

Sounds andSmells

LO 3