ppt 18-1 5 th edition. ppt 18-2 mcgraw-hill/irwin levy/weitz: retailing management, 5/e copyright ©...
TRANSCRIPT
PPT 18-1
5th Edition5th Edition
PPT 18-2McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Store Layout, Design Store Layout, Design and Visual and Visual
MerchandisingMerchandising
Chapter 18Chapter 18
PPT 18-3
Managing the Store
Store Management
Layout, Design andVisual Merchandising
Customer Service
PPT 18-4
REI’s Store Environment
PPT 18-5
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 18-6
Tradeoff in Store Design
Easy of locating merchandise for planned purchases
Exploration of store, impulse purchases
PPT 18-7
Types of Store Layouts
• Grid
• Racetrack
• Free Form
PPT 18-8
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 18-9
Grid Store Layout
Fruit
Vegetables
Office & customer service
Books, magazines, seasonal display
Rec
eivi
ng
& s
tora
ge
Exit
Entrance
Cart area
Checkouts
PPT 18-10
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 18-11
JCPenney Racetrack Layout
PPT 18-12
Example of Race Track Layout
PPT 18-13
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 18-14
Free-Form Layout
Storage, Receiving, Marketing
Underwear Dressing Rooms
Checkout counter
Clearance Items
Feature Feature
Jean
s
Cas
ual
Wea
r
Sto
ckin
gs
Acc
esso
ries
Pan
ts
Top
sT
ops
Ski
rts
and
Dre
sses
Hat
s a
nd H
andb
ags
Open Display Window Open Display Window
PPT 18-15
Example of Boutique Area
PPT 18-16
Display Areas
Feature areas
– End caps
– Promotional aisle
– Freestanding fixtures
– Point-of-sale areas
– Walls
PPT 18-17
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 18-18
Space Planning
Allocating floor/shelf space locating merchandisein 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 18-19
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 18-20
Prime Locations for Merchandise
• Highly trafficked areas
– Store entrances
– Near checkout counter
• Highly visible areas
– End aisle
– Displays
PPT 18-21
Special Considerations
• Avoid the “butt-brush” effect.
• Make merchandise accessible.
• Allow a transition zone.
PPT 18-22
Visual Merchandising
PPT 18-23
Visual Merchandising
PPT 18-24
Visual Merchandising
PPT 18-25
Visual Merchandising
PPT 18-26
Visual Merchandising
• Visual Merchandising.
• Seven Colors Group
PPT 18-27
Financial Comparison Report for Existing & Proposed Salad Dressing Planogram
Brand
Gross Margin
Per Week
Sales
Per Week
Unit Sales Per Week
Inventory Turnover
Section: Salad Dressing current
1. 7SEAS $50.33 $273.68 222.00 35.52 2. HV RANCH 26.01 165.13 90.80 22.59 3. KENS STK 46.76 330.14 266.00 27.61 4. KRAFT 59.83 336.42 238.00 23.48 5. NWMN OW 32.63 186.06 114.00 34.87 6. PRS CHOI 27.88 122.18 82.00 59.22 7. WLD FRMS 20.80 109.85 65.00 45.07 8. WSHBN _102.76 __590.03 __431.00 25.73 TOTALS $367.00 $2,113.49 1,508.80 28.53
PPT 18-28
Brand
GrossMargin
Per WeekSales
Per WeekUnit SalesPer Week
InventoryTurnover
Section: Salad Dressing revised
1. 7SEAS $50.33 $273.68 222.00 35.522. DUNNE 6.97 46.20 44.00 26.002. HV RANCH 26.01 165.13 90.80 22.593. KENS STK 46.76 330.14 266.00 27.614. KRAFT 58.40 336.42 229.00 27.135. NWMN OW 32.63 186.06 114.00 34.876. PRS CHOI 27.88 122.18 82.00 59.227. WLD FRMS 20.80 109.85 65.00 45.078. WSHBN _102.76 __590.03 __431.00 25.73TOTALS $367.54 $2,150.24 1,543.80 29.19
Financial Comparison Report for Existing & Proposed Salad Dressing Planogram
PPT 18-29
Brand
GrossMargin
Per WeekSales
Per WeekUnit SalesPer Week
InventoryTurnover
Net Change
1. 7SEAS $0.00 $0.00 0.00 0.002. DUNNE 6.97 46.20 44.00 26.002. HV RANCH $0.00 $0.00 0.00 0.003. KENS STK $0.00 $0.00 0.00 0.004. KRAFT ($1.43) ($9.45) -9.00 3.645. NWMN OW $0.00 $0.00 0.00 0.006. PRS CHOI $0.00 $0.00 0.00 0.007. WLD FRMS $0.00 $0.00 0.00 0.008. WSHBN $0.00 _$0.00 0.00 0.00TOTALS $5.54 $36.75 35.00 0.66
Financial Comparison Report for Existing & Proposed Salad Dressing Planogram
PPT 18-30
Evaluating Space Productivity
Productivity ratios are output/input
– Sales per square foot
– Sales per linear foot
– Gross or contribution margin per square foot
PPT 18-31
Merchandise Presentation Techniques
• Idea-Oriented Presentation
• Style/Item Presentation
• Color Organization
• Price Lining
• Vertical Merchandising
• Tonnage Merchandising
• Frontal Presentation
PPT 18-32
Types of Apparel Display Fixtures
Straight Rack
Rounder Four-Way
Gondola
PPT 18-33
Straight Rack
PPT 18-34
Rounder
PPT 18-35
Four-Way
PPT 18-36
Gondola
PPT 18-37
Creating a Store Environment
Color
Scent Music
Lighting
Store Atmosphere
PPT 18-38
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 18-39
Lighting
• Highlight merchandise.
• Structure space and
capture a mood.
• Downplay features.