Chapter 4

Store Planning, Design

& Layout

Faiza Nasir

1
 Location Planning
Location Mapping:
Location is mapped so that the extent of each store’s
reach to the customers is well defined.

Location Parameters:
Defining the store location’s identification parameters to
evaluate if the desired attributes are available (look at
examples in the chapter).

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 Site Selection
 Target Market
 Area
 Population
characteristics
(consumer base / flow)
 Economic base
characteristics
 Competition and level
of saturation (nature of
nearby stores)
 Demand & supply
situation
 Type of Building /
Store requirement
 Affordability
 Ownership / Lease
 Façade requirements
 Size requirements
 Facilities (parking,
electricity,
transportation access)
 Other costs
 Length of agreement
 Legal restrictions
 Traffic scenario
 Footfall as a
determinant
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 Store Design & The Retailing
Image Mix
1. Employee type and density
2. Merchandise type and density
3. Fixture type and density
4. Sound type and density
5. Odor type and density
6. Visual type and density

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Managing Space Mix
15%

25%
60%

Selling Circulation Back Area

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 Managing Space Mix
• If store has an extra area, it is given to
concessionaires (ATM, Kiosks)
• Consumer perception analysis is done before
allocation.
• Product category length, width and depth are
considered
• Quantity of Staple (core merchandise, constitute
55%, like shirts and trousers in dept. stores),
Convenience (constitute 30%, basic white T-shirts,
socks) and Impulse merchandise (constitute 15%,
hair accessories in a fashion store) determines the
space allocation. 6
 Effective Retail Space
Management
 Store Image is the overall perception the
customer has of the store’s environment.
 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.
 Store Environment (Pinball Effect, display
and color themes)

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 Elements That Compose the Store
Environment
Visual Communications Store Planning
Retail Identity Space Allocation
Graphics Layout
POS Signage Circulation
Store Image
And
Productivity

Store Design Merchandising

Exterior Design Fixture Selection
Ambiance Merchandise Presentation
Lighting Visual Merchandising

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 Effective Retail Space
Management
 Managing store façade

 Advantages:
– Enables smooth and efficient customer flow
– Facilitates customer reach and access to the
merchandise
– Makes shopping comfortable and pleasant
– Aesthetics of a well-planed floor are a visual
feast
– Facilitates selling effectively and retaining the
customers.

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 Store Layout: The Circulation Plan
1. Free flow circulation: where the merchandise and fixtures
are grouped in clusters as in boutiques

Advantages
• Allowance for browsing and wandering freely

• Increased impulse

• purchases

• Visual appeal

• Flexibility

Disadvantages
• Loitering encouraged

• Possible confusion

• Waste of floor space

• Cost

• Difficulty of cleaning
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 The Disney Store’s Effective Use
of 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.
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 Store Layout: The Circulation Plan
2. Grid circulation: where aisles and fixtures are at right angles to each
other like in supermarkets

Advantages
• Low cost
• Customer familiarity
• Merchandise exposure
• Ease of cleaning
• Simplified security
• Possibility of self-service
Disadvantages
• Plain and uninteresting
• Limited browsing
• Stimulation of rushed shopping behavior
• Limited creativity in decor
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Store Layout: The Circulation Plan
3. Race track circulation: used in larger & wider store, where
customer is made to circle around the floor and get back to the
beginning, usually the lift or the staircase lobby, to move to the
next level of the store

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Store Layout: The Circulation Plan
4. Herringbone circulation: used for a narrow store
where the highway is a single two-way one having
“side roads” leading to the walls from it
5. The Spine: is a Herringbone structure excluding side
roads

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 Floor Space Management
Parameters to judge space performance
 Sales per square foot / top line plan (sales)
 Margins per square foot / bottom line plan (gross
margin returns on footage)
 Stock-holding per square foot / bottom line tool (gross
margin returns on inventory)

It can be for any SKU, Department, Division, Category,

Sub-category, A Brand, Any specific style / size option

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 Floor Space Management
Space Audit: Non-treaded space and Black holes
 Hot spot analysis:
Hot spots have highest off-take of merchandise
Warm & Cold spots face lower merchandise sales
Non-treaded space is where there is no customer traffic
Less treaded space is where there is less customer traffic

 Efficiency of Selling to Non-selling space

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 Floor Space Management
Ground rules for successful Space & Layout
Management
 Floor space planning and management for customers’
convenience
 Browsing should be facilitated as it leads to buying
 Optimize trading area without compromising on non-
trading area. Ensure customer spend longer time there
 Right floor space management
 Appeal to all the five senses
 Manage Dead Ends
 Creative and space saving product displays
 Merchandise Management & Replenishment Scheme

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