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Retailing Management 8e The McGraw-Hill Companies, All rights reserved. 17 - 1

CHAPTER 2

CHAPTER 1

CHAPTER 17

McGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc !ll rights reser"e#

Store Layout, Design,

and VisualMercandising

CHAPTER 17

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CHAPTER 2

CHAPTER 1

CHAPTER 17

17-2

Store Manage!ent

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CHAPTER 2

CHAPTER 1

CHAPTER 17

17-3

"uestions

#at are te critical issues retailers consider in designing a

store$

#at are te ad%antages and disad%antages o& alternati%e

store layouts$ Ho' is store (oor s)ace assigned to !ercandise

de)art!ents and categories$

#at are te consideration in 'ere to dis)lay )roducts in acategory$

#at are te *est tecni+ues &or !ercandise )resentation$

Ho' can retailers create a !ore a))ealing so))inge)erience$

Ho' eciting sould a store en%iron!ent *e$

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CHAPTER 2

CHAPTER 1

CHAPTER 17

17-4

Store Design -*.ecti%es

/!)le!ent Retailer0s strategy

uild Loyalty

/ncrease Sales on Visits Control Cost

Legal ConsiderationsA!ericans 'itDisa*ilities Act

Design Trade3-4s

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Retailing Management 8e The McGraw-Hill Companies, All rights reserved. 17 - 6

CHAPTER 2

CHAPTER 1

CHAPTER 17

Retailing Management, 8/e The McGraw-Hill Companies, All rights reserved. 1 - 6

Retailing Management, 8/e The McGraw-Hill Companies, All rights reserved.1 3 5

McDonalds remodeled its stores to better appeal to European customers

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CHAPTER 2CHAPTER 1CHAPTER 17

17-7

/n /ndia, a retailer 6nds ey to success is clutter

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17-8

uild Loyalty

Store design )ro%ides utilitarian benefts'en it ena*les custo!ers to locate and)urcase )roducts in an e8cient and ti!ely!anner 'it !ini!u! assle

Store design )ro%ides hedonic benefts *yo4ering custo!ers an entertaining and

en.oya*le so))ing e)erience9

H. iesenho!er/PhotoLink/Getty Images

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17-9

/ncrease Sales on Visits

Store design as a su*stantial e4ect on 'ic)roducts custo!ers *uy, o' long tey stayin te store, and o' !uc tey s)end duringa %isit9

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17-10

Control Cost

Control te cost o& i!)le!enting te storedesign and !aintain te store0s a))earance

Store design in(uences So))ing e)erience and tus sales

La*or costs

/n%entory srinage

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17-11

Legal Considerations

A!ericans 'it Disa*ilities Act :ADA;

Protects )eo)le 'it disa*ilities &ro!

discri!ination in e!)loy!ent,trans)ortation, )u*lic acco!!odations,teleco!!unications and acti%ities o& stateand local go%ern!ent

A4ects store design as disa*led )eo)leneed >?9 A&ter 1>>?,stores are e)ected to *e &ully accessi*le9

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17-12

?2 inc 'ide )at'ays onte !ain aisle and to te*atroo!, 6tting roo!s

ele%ators and around !ost6tures

Lo'er !ost cas 'ra)s and6tures so tey can *e

reaced *y a )erson in a'eelcair

Mae *atroo! and 6ttingroo! &ully accessi*le

Reasona*le Access#at does tat !ean$

"eith Bro!sky/Getty Images

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17-14

Layouts

Signage and

@ra)ics eature Area

Store Design Ele!ents

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17-15

Store Layouts

To encourage custo!er e)loration and el)custo!ers !o%e troug te stores Bse a layout tat &acilitates a s)eci6c tra8c

)attern Pro%ide interesting design ele!ents

Ty)es o& Store Layouts

@rid Racetrac ree or!

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17-16

Easy to locate !ercandise

Does not encouragecusto!ers to e)lore store

Li!ited site lines to!ercandise

Allo's !ore !ercandise

to *e dis)layed Cost e8cient

Bsed in grocery, discount,and drug stores #y$

@rid Layout

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17-17

Racetrac Layout :Loo);

Loo) 'it a !a.or aisle tat as access tode)art!ents

Dra's custo!ers around te store Pro%ide di4erent %ie'ing angles andencourage e)loration, i!)ulse *uying

Bsed in de)art!ent stores

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17-18

CPenney Racetrac Layout

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17-19

itures and aisles arrangedasy!!etrically

Pro%ides an inti!ate, relaingen%iron!ent tat &acilitates so))ingand *ro'sing

Pleasant relaing a!*iance doesn0tco!e cea) s!all store e)erience

/ne8cient use o& s)ace

More susce)ti*le to so)li&ting sales)eo)le can not %ie' ad.acents)aces9

Bsed in s)ecialty stores and u)scalede)art!ent stores

ree3or! :outi+ue; Layout

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17-20

Bsage o& Signage and @ra)ics

Location identi6es te location o& !ercandise and guidescusto!ers

Category Signage identi6es ty)es o& )roducts and locatednear te goods

Pro!otional Signage relates to s)eci6c o4ers so!eti!es in'indo's

Point o& sale near !ercandise 'it )rices and )roductin&or!ation

Li&estyle i!ages creates !oods tat encourage custo!ers toso)" # M effectively uses graphic

photo panels to add

personality, beauty, and

romance to its stores image

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17-22

Digital Signage

Visual Content deli%ered digitally troug a centrally!anaged and controlled net'or and dis)layed on a

TV !onitor or (at )anel screen

Su)erior in attracting attentionEnances store en%iron!ent

Pro%ides a))ealing at!os)ere

-%erco!es ti!e3to3!essage urdle

Messages can target de!ogra)ics

Eli!inates costs 'it )rinting, distri*ution andinstalling traditional signage

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17-23

Areas 'itin a store designedto get te custo!ers0 attention

eature areas

Entrances reestanding dis)lays

Cas 'ra)s :P-P counters,cecout areas;

End ca)s

Pro!otional aisles #alls

#indo's

itting roo!s

eature Areas

PhotoLink/Getty Images

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17-24

S)ace Manage!ent

Te s)ace 'itin storesand on te stores0sel%es are 6tures is a

scare resourceTe allocation o& store

s)ace to !ercandisecategories and *rands

Te location o&de)art!ents or!ercandise categoriesin te store

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17-25

S)ace Planning

Producti%ity o&allocated s)ace :sales)er s+uare &oot, sales

)er linear &oot;

Mercandise in%entoryturno%er

/!)act on store sales Dis)lay needs &or te

!ercandise

P i L ti &

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17-26

Higly tra8cedareas

Store entrances

Gear cecoutcounter

Higly %isi*leareas

End aisle

Dis)lays

Pri!e Locations &orMercandise

L ti & M di

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17-27

Location o& MercandiseCategories

/!)ulse !ercandise near ea%ily tra8cedareas

De!andDestination !ercandise *ac le&t3and corner o& te store

S)ecial !ercandise ligtly tra8ced areas:glass )ieces, 'o!en0s lingerie;

Ad.acencies cluster co!)li!entary!ercandise net to eac oter

L ti & M di iti

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17-28

Location o& Mercandise 'itina Category Te Bse o&

Planogra!s Su)er!arets and drug stores )lace )ri%ate3la*el *rands to te rigto& national *rands so))ers read &ro! le&t to rigt :iger )riced

national *rands 6rst and see te lo'er3)riced )ri%ate3la*el ite!;

Planogra! a diagra! tat so's o' and 'ere s)eci6c SFBs

sould *e )laced on retail sel%es or dis)lays to increase custo!er)urcases

L i t 0

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17-29

Learning custo!ers0!o%e!ents and decision3

!aing Videota)ing Consu!ers

Learn custo!ers0 !o%e!ents, 'ere tey )ause or!o%e +uicly, or 'ere tere is congestion

E%aluate te layout, !ercandise )lace!ent,)ro!otion

Virtual Store So&t'are

Learn te *est )laceto !ercandise andtest o' custo!ersreact to ne' )roducts

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17-30

A9 Straigt rac

9 Rounder :*ul6ture, ca)acity6ture;

C9 our3'ay 6ture:&eature 6ture;

D9 @ondolas

Visual Mercandising itures

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17-31

Straigt Rac

Holds a lot o& a))arel

Hard to &eature s)eci6c stylesand colors

ound o&ten in discount ando43)rice stores

#oyalty$%ree/C

BIS

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17-32

S!aller tanstraigt rac

Holds a !ai!u!a!ount o&!ercandise

Easy to !o%e

around Custo!ers can0t

get &rontal %ie' o&!ercandise

Rounder

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17-33

Holds large a!ounto& !ercandise

Allo's custo!ers

to %ie' entiregar!ent

Hard to !aintain

*ecause o& stylesand colors

asion orienteda))arel retailer

our3#ay

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17-34

@ondolas

Versatile

@rocery and discountstores

So!e de)art!ent stores

Hard to %ie' a))arel astey are &olded

#oyalty$%ree/CBIS

Mercandise Presentation

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17-35

/dea3-riented Presentation

Style/te! Presentation

Color -rganiIation

Price Lining Vertical Mercandising

Tonnage Mercandising large +uantities o& !ercandise

dis)layed togeter rontal Presentation

dis)lay as !uc o& te )roductas )ossi*le to catc tecusto!er0s eye

Mercandise PresentationTecni+ues

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17-36

Present !ercandise*ased on a s)eci6cidea or te i!age o&

te store Encourage !ulti)le

co!)le!entary)urcases

#o!en0s &asion urniture co!*ined in

roo! settings

Sony Style !ini3li%ingroo!s

/dea3-rientation Presentation

$ifty percent of %omen get their ideas for clothes from store displays or

%indo% shopping

Creating an A))ealing Store

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17-37

Creating an A))ealing StoreAt!os)ere

&he design of an environment through visual

communications, lighting, colors, music, and scent to

stimulate customers perceptual and emotional responses

and ultimately to affect their purchase behavior

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17-38

Ligting

Higligt !ercandise

Structure s)ace and ca)ture a !ood

Energy e8cient ligting Do'n)lay &eatures

)he *cGra+$Hill Com,anies- Inc./Lars . iki- ,hotogra,her

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17-39

#ar! colors :red, gold,yello'; )roducee!otional, %i*rant, ot,and acti%e res)onses

Cool colors :'ite, *lue,green; a%e a )eace&ul,gentle, cal!ing e4ect

Culturally *ounded renc3Canadians res)ond

!ore to 'ar! colors

Anglo3Canadians res)ond!ore to cool colors

Color

)he *cGra+$Hill Com,anies- Inc./Lars iki- ,hotogra,her

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17-40

Music

Control te )ace o& store tra8c, create ani!age, and attract or direct consu!ers0attention

A !i o& classical or sooting !usicencourage so))ers

to slo' do'n, rela, and tae a good loo at

te !ercandise tus to stay longer and )urcase !ore

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17-41

Music

9C9 Penney di4erent !usic at di4erentti!es o& te day

aIIy !usic in te !orning &or olderso))ers

Adult conte!)orary !usic in te a&ternoon&or ?J3K year old so))ers

B9S9 6r! MuIa su))lies K, so)s,restaurants, and otels 'it songs tailed tore(ect teir identity

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17-42

Has a )ositi%e i!)acton i!)ulse *uying*ea%ior and custo!ersatis&action

Scents tat are neutral)roduce *etter)erce)tions o& te storetan no scent

Custo!ers in scentedstores tin tey s)entless ti!e in te storetan su*.ects inunscented stores

Scent

)he *cGra+$Hill Com,anies- Inc./Gary He- ,hotogra,her

Ho' Eciting Sould a Store

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17-43

Ho' Eciting Sould a Storee$

De)ends on te Custo!er0s So))ing @oals

Tas3co!)letion

a si!)le at!os)ere 'it slo' !usic, di!!erligting, and *luegreen colors

un

an eciting at!os)ere 'it &ast !usic, *rigt

ligting, and redyello' colors

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17-44

#e* Site Design

Si!)licity Matters

@etting Around Easy Ga%igation

Let Te! See /t Ea!)le Lands0 End My Virtual Model

lend te #e* Site 'it te Store

PrioritiIe

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#e* Site Design

Ty)e o& Layout

#en so))ing on te #e*, custo!er areinterested

in s)eed, con%enience, ease o& na%igation, notnecessarily &ancy gra)ics

Cecout

Mae te )rocess clear and a))ear si!)le

Enclose te cecout )rocess

Mae te )rocess na%iga*le 'itout loss o&

in&or!ation

Rein&orce trust in te cecout )rocess

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CHAPTER 2CHAPTER 1CHAPTER 17Fey'ords

shrinkage An in%entory reduction tat is caused *y so)li&ting *ye!)loyees or custo!ers, *y !ercandise *eing !is)laced or da!aged,or *y )oor *ooee)ing9

sales per linear oot A !easure o& s)ace )roducti%ity used 'en !ost!ercandise is dis)layed on !ulti)le sel%es o& long gondolas, suc as

in grocery stores9

sales per square oot A !easure o& s)ace )roducti%ity used *y !ostretailers since rent and land )urcases are assessed on a )er3s+uare3&oot *asis9

impulse merchandise Products tat are )urcased *y custo!ers

'itout )rior )lans9 Tese )roducts are al!ost al'ays located near te&ront o& te store, 'ere tey0re seen *y e%eryone and !ay actuallydra' )eo)le into te store9

demand/destination area De)art!ent or area in a store in 'icde!and &or te )roducts or ser%ices o4ered is created *e&ore custo!ersget to teir destination9

Chap017 Rev

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