5th Edition PPT 18-1

Chapter 18Store Layout, Design and Visual Merchandising

McGraw-Hill/Irwin PPT 18-2 Levy/Weitz: Retailing Management, 5/e

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Store Management

Customer Service

Managing the Store

Layout, Design and Visual Merchandising

PPT 18-3

REIs Store Environment

PPT 18-4

Store Design Objectives Consistent with retailers image and strategy Positive influence on customer satisfaction and purchase behavior Cost effective Flexible Meet needs of disabledPPT 18-5

Tradeoff in Store Design

Easy of locating merchandise for planned purchases

Exploration of store, impulse purchases

PPT 18-6

Types of Store Layouts

Grid Racetrack Free Form

PPT 18-7

Grid LayoutLong 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 18-8

Grid Store LayoutReceiving & storageFruit Books, magazines, seasonal display Checkouts Office & customer service Exit PPT 18-9 Cart area Entrance Vegetables

Racetrack LayoutLoop 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 18-10

JCPenney Racetrack Layout

PPT 18-11

Example of Race Track Layout

PPT 18-12

Free-Form (Boutique) LayoutFixtures 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 storesPPT 18-13

Free-Form LayoutStorage, Receiving, Marketing

Stockings

Underwear Accessories

Dressing RoomsTops

Casual Wear

Checkout counter Tops

Pants

Feature Open Display Window

Feature Open Display Window

PPT 18-14

Skirts and Dresses

Clearance Items

Jeans

Hats and Handbags

Example of Boutique Area

PPT 18-15

Display AreasFeature areas End caps Promotional aisle Freestanding fixtures Point-of-sale areas WallsPPT 18-16

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 18-17

Space PlanningAllocating 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 18-18

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 displayedPPT 18-19

Prime Locations for Merchandise Highly trafficked areas Store entrances Near checkout counter

Highly visible areas End aisle Displays

PPT 18-20

Special Considerations

Avoid the butt-brush effect. Make merchandise accessible. Allow a transition zone.

PPT 18-21

Visual Merchandising

PPT 18-22

Visual Merchandising

PPT 18-23

Visual Merchandising

PPT 18-24

Visual Merchandising

PPT 18-25

Visual Merchandising Visual Merchandising. Seven Colors Group

PPT 18-26

Financial Comparison Report for Existing & Proposed Salad Dressing PlanogramGross 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 18-27

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

Brand

Sales Per Week

Unit Sales Per Week

Inventory Turnover

Section: Salad Dressing revised 1. 7SEAS 2. DUNNE 2. HV RANCH 3. KENS STK 4. KRAFT 5. NWMN OW 6. PRS CHOI 7. WLD FRMS 8. WSHBN 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 18-28

Financial Comparison Report for Existing & Proposed Salad Dressing PlanogramGross Margin Per Week Sales Per Week Unit Sales Per Week Inventory Turnover

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

$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 18-29

Evaluating Space ProductivityProductivity ratios are output/input Sales per square foot Sales per linear foot Gross or contribution margin per square foot

PPT 18-30

Merchandise Presentation Techniques Idea-Oriented Presentation Style/Item Presentation Color Organization Price Lining Vertical Merchandising Tonnage Merchandising Frontal PresentationPPT 18-31

Types of Apparel Display Fixtures

Gondola

Straight Rack

RounderPPT 18-32

Four-Way

Straight Rack

PPT 18-33

Rounder

PPT 18-34

Four-Way

PPT 18-35

Gondola

PPT 18-36

Creating a Store Environment

Color Store Atmosphere Scent

Lightin g

Musi c

PPT 18-37

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 18-38

Lighting

Highlight merchandise. Structure space and capture a mood. Downplay features.

PPT 18-39