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 18-1

Tradeoff in Store Design

Easy of locating merchandise for planned purchases

Exploration of store, impulse purchases

PPT 18-2

Types of Store Layouts

Grid Racetrack Free Form

PPT 18-3

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 18-4

Grid Store Layout

Receiving & storage
Fruit
Books, magazines, seasonal display Checkouts Office & customer service Exit PPT 18-5 Cart area Entrance Vegetables

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

PPT 18-6

Free-Form (Boutique) Layout

Fixtures and aisles arranged asymmetrically Pleasant relaxing ambiance doesnt 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 18-7

Free-Form Layout
Storage, Receiving, Marketing

Stockings

Underwear Accessories

Dressing Rooms
Tops

Casual Wear

Checkout counter Tops

Pants

Feature

Feature

Open Display Window PPT 18-8

Open Display Window

Skirts and Dresses

Clearance Items

Jeans

Hats and Handbags

Display Areas
Feature areas

End caps
Promotional aisle

Freestanding fixtures
Point-of-sale areas Walls
PPT 18-9

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 18-10

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 18-11

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 18-12

Prime Locations for Merchandise

Highly trafficked areas
Store entrances Near checkout counter

Highly visible areas

End aisle Displays

PPT 18-13

Special Considerations

Avoid the butt-brush effect.

Make merchandise accessible.

Allow a transition zone.

PPT 18-14

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram
Gross Margin Per Week

Brand

Sales Unit Sales Per Week Per Week

Inventory Turnover

Section: Salad Dressing current 1. 7SEAS 2. HV RANCH 3. KENS STK 4. KRAFT 5. NWMN OW 6. PRS CHOI 7. WLD FRMS 8. WSHBN TOTALS $50.33 26.01 46.76 59.83 32.63 27.88 20.80 _102.76 $367.00 $273.68 165.13 330.14 336.42 186.06 122.18 109.85 __590.03 $2,113.49 222.00 90.80 266.00 238.00 114.00 82.00 65.00 __431.00 1,508.80 35.52 22.59 27.61 23.48 34.87 59.22 45.07 25.73 28.53

PPT 18-15

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram

Brand

G ross M argin Per W eek

Sales Per W eek

Unit Sales Per W eek

Inventory Turnover

Section: Salad Dressing revised 1. 7SEAS 2. DUNNE 2. HV RANCH 3. KENS STK 4. KRAFT 5. NW M N OW 6. PRS CHOI 7. W LD FRM S 8. W SHBN TOTALS $50.33 6.97 26.01 46.76 58.40 32.63 27.88 20.80 _102.76 $367.54 $273.68 46.20 165.13 330.14 336.42 186.06 122.18 109.85 __590.03 $2,150.24 222.00 44.00 90.80 266.00 229.00 114.00 82.00 65.00 __431.00 1,543.80 35.52 26.00 22.59 27.61 27.13 34.87 59.22 45.07 25.73 29.19

PPT 18-16

Financial Comparison Report for Existing & Proposed Salad Dressing Planogram
Gross Margin Per W eek

Brand Net Change 1. 7SEAS 2. DUNNE 2. HV RANCH 3. KENS STK 4. KRAFT 5. NWMN OW 6. PRS CHOI 7. WLD FRMS 8. WSHBN TOTALS

Sales Per W eek

Unit Sales Per W eek

Inventory Turnover

$0.00 6.97 $0.00 $0.00 ($1.43) $0.00 $0.00 $0.00 $0.00 $5.54

$0.00 46.20 $0.00 $0.00 ($9.45) $0.00 $0.00 $0.00 _$0.00 $36.75

0.00 44.00 0.00 0.00 -9.00 0.00 0.00 0.00 0.00 35.00

0.00 26.00 0.00 0.00 3.64 0.00 0.00 0.00 0.00 0.66

PPT 18-17

Evaluating Space Productivity

Productivity ratios are output/input
Sales per square foot Sales per linear foot

Gross or contribution margin per square foot

PPT 18-18

Merchandise Presentation Techniques

Idea-Oriented Presentation

Style/Item Presentation
Color Organization Price Lining Vertical Merchandising Tonnage Merchandising Frontal Presentation
PPT 18-19

Creating a Store Environment

Color

Lighting

Store Atmosphere

Scent

Music

PPT 18-20

Visual Communications
Coordinate signs and graphics with the stores 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 18-21

Lighting

Highlight merchandise.
Structure space and

capture a mood.
Downplay features.

PPT 18-22