STORE LAYOUT & SPACE

MANAGEMENT

LALIT CHIKKER

Store Layout
Elements of the store environment
Objectives of the store environment

Elements That Compose

the Store Environment

Store Layout Management

Objectives of the store
environment
Developing a store & brand image
Increasing space productivity
Commercial Returns

Store Planning
Floor plan - 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 1

Store Planning
Micro-retailing - 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.
Stack-outs - Pallets of merchandise set out on the
floor in front of the main shelves.

LO 2

Store Planning
Allocating space
Types of space needed
Back room
Offices and other functional spaces
Aisles, service areas, and other non-selling areas
Floor merchandise space
Wall merchandise space

Space allocation planning

Circulation
Shrinkage prevention
LO 2

Store Planning
Space allocation planning
Improving space productivity in existing stores
Space productivity index - A ratio that compares the percentage
of the stores total gross margin that a particular merchandise
category generates to its percentage of total store selling space
used.
Space & Sales Mix The right alignment between Sales and
Space provided is very important.

Space allocations for a new store or floor merchandise

changeover.
Planograms - A schematic that illustrates how and where a
retailers merchandise should be displayed on the shelf in
order to increase customer purchases.
LO 2

Store Planning
Circulation
Free-flow layout
Grid layout
Loop layout
Spine layout

LO 2

Store Planning
Free-flow
layout

Fixtures and merchandise are grouped into free-flowing patterns on

the sales floor e.g. Boutique or small size Accessories stores.
Category classification not clear. Impulsive buying more but space
wastage is higher.

Grid layout The counters and fixtures are placed in long rows or runs, usually
at right angles, throughout the store e.g. Supermarkets. Limited
Browsing & limited creativity.
Loop
layout

A major customer aisle begins at the entrance, loops through the

storeusually in the shape of a circle, square, or rectangleand
then returns the customer to the front of the store. Departmental
stores like Shoppers Stop etc. Increases cross visibility & shopping.

Spine
layout

A single main aisle runs from front to the back of store, transporting
customers in both directions with either side there is merchandise
departments using either a free-flow or grid pattern branch off
toward the back side walls e.g. Reliance Trends, MAX fashions etc.

Free-Flow Layout

LO 2

Grid Layout

LO 2

Loop Layout

LO 2

Spine Layout

LO 2

Fixture Types
Hardline fixtures (for sports equipment,
appliances etc.)
Softline fixtures (for clothing, linen etc.)
Bulk or capacity fixture - Display fixture that is
intended to hold the bulk of merchandise
without looking as heavy as a long, straight
rack of merchandise.
Feature fixture - Display that draws special
attention to selected features (e.g., color,
shape, or style) of merchandise.
Wall fixtures
LO 3

Four-Way Feature Rack

and Round Rack

LO 3

Merchandise Presentation Planning

Shelving
Hanging
Pegging
Folding
Stacking
Dumping
LO 3

45-Degree Customer Sightline

LO 3

Color Blocking

LO 3

Visual Merchandising
The artistic display of merchandise and
theatrical props used as scene-setting
decoration in the store.
Visual displays are located in a focal
point, feature area, or other area
remote from the on-shelf
merchandising and perhaps even out
of reach of the customer.
Visuals should incorporate relevant
merchandise.
LO 3

Store Design
Storefront design
The storefront must clearly identify the name
and general nature of the store and give some
hint as to the merchandise inside.
It includes all exterior signage, Window
Display appeal and the architecture of the
storefront itself.
Interior design
The finishes applied to surfaces
The architectural shapes
LO 4

Store Design
Lighting design
Lighting greatly enhances store sales.
Contemporary lighting design requires an indepth knowledge of electrical engineering and
the effect of light on color and texture.
Sounds and smells: total sensory marketing
Effective store design appeals to the human
senses of sight, hearing, smell, and touch.

LO 4

Visual Communications
Name, logo, and retail identity
Must be catchy, memorable, and
reflective of the retailers merchandising
mission.
Institutional signage
Describes the merchandising mission,
customer service policies, and other
messages on behalf of the retail
institution.
LO 5

Visual Communications
Directional, departmental, and category signage
Directional and departmental signage are
usually large and placed fairly high, so they
can be seen throughout the store.
Category signage is usually smaller and is
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 (POS) - A relatively small
signage placed very close to the merchandise,
and intended to give details about specific items.
The most important function is to clearly state
the price of the merchandise being signed.

LO 5

Visual Communications
Lifestyle graphics
Lifestyle images portray either the
merchandise, often as it is being used, or
simply images of related items or models that
convey an image conducive to buying the
product.
Lifestyle photography must be kept very
general so as to be attractive to the majority
and offensive to none.

LO 5

Space
Management
Overview
Exceeding customer
expectations
through
merchandising
excellence

Space is the medium that

we use to:
Display and promote our products
Racks and
Shelves

Gondolas and
Endcaps

Space is the medium that

we use to:
Communicate the brand
Interactive
Displays

Creative
Signage

The Best Buy Experience

Space Management
Goals
Enhance the Best Buy brand by improving
our customers shopping experience.
Provide Retail with easy-to-execute Maps
and Planograms
Analyze category and item effectiveness
to determine the optimal use of space
Provide customized maps and planograms
to support market specific assortments

Merchandise Layout
Store maps are created using
AutoCAD

Each small
block is an
individual
section

Educated Layout
Each and every store needs to be designed
with the following criteria in mind:

Financial Objectives
Revenues, Turns, Margins, etc.

Operational Objectives
Aisle Width, # of Registers, LP Desks, Stock Capacity, etc.

Aesthetic Objectives
Best Buy Branding, Clear Sight Lines, Fun Interactives, etc.

What is a Planogram?

How to read a Planogram

Signage

Displays
Boxstock

Product Listing
Fixture Placement

New Planogram?
When section performance is down
New products are added to assortment
Major trends indicate changes
Competition demands
Seasonal space needs
Other categories need space
Modification of store plans/fixtures

Space Allocation
Objective:
Best Utilisation of retail space from the point of view of :
Display capacity, relevant Category / Sub-category
representation & stacking story, Visual appeal, Customer
convenience & easy browsing, best commercial returns,

Square Foot Analysis (Store, Dept, Class,

Subclass)
Store Capacity and Cubic Space
Store Overstock and Closeout Analysis
Adjacency Recommendations
Marginal Return on Space Analysis
Ad Hoc Retail Space Related Investigations

Space Allocation
IS DONE BASED ON:

Strategic plan on Merchandise sales enhancement

Store capacity & Planned Stocks density
Number of Categories / Sub-categories
Style Options
Colour Options
Size Options
Price Options
Offer Options
Planned commercial output

Benefits to Stores
Balanced inventory
Reduces costly or non performing stocks
Eliminates wasteful overstocks
Cuts in-store inventory costs
Increases inventory turnover

Influence shopping behavior

Merchandise Mix matches with the demand
Positions product as per retailers goal

Benefits to Stores
Improve customer service
Organises the floor for shopping ease
Gives neat or right look to in-store display

Increase store efficiencies

Ensure optimum case packs
Cuts backroom overstocking
Speeds up planogram implementation and replicates
it correctly on the floor.
Proper placement for new items/performance

Space Planning
All the Right stuff

Space
Allocation

The Right
Space

Positioning

The Right
Place

Adjacency &
Attachment

The Right
Neighbors

Positioning
The Right Place

Adjacency
The Right Neighbors

THANK YOU