retail01

Chapter 13

Store Layout and Design

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Learning Objectives

List the elements of a store’s environment and define its two primary objectives.

Discuss the steps involved in planning the store.Describe how various types of fixtures,

merchandise presentation methods and techniques, and the psychology of merchandise presentation are used to increase the productivity of the sales floor.


Learning Objectives

Describe why store design is so important to a store’s success.

Explain the role of visual communications in a retail store.


Introduction to Store Layout Management

Elements of the store environmentObjectives of the store environment

LO 1


Exhibit 13.1 - Elements That Composethe Store Environment

LO 1


Introduction to Store Layout Management

Objectives of the store environmentDeveloping a store imageIncreasing space productivity

LO 1


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


Exhibit 13.2 - These Warning Signs mayIndicate a Space Problem

LO 2


Store Planning

Microretailing - 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 spaceTypes of space needed

Back roomOffices and other functional spacesAisles, service areas, and other nonselling areasFloor merchandise spaceWall merchandise space

Space allocation planningCirculationShrinkage prevention

LO 2


Store Planning

Space allocation planningImproving space productivity in existing stores

Space productivity index - A ratio that compares the percentage of the store’s total gross margin that a particular merchandise category generates to its percentage of total store selling space used.

Space allocations for a new storePlanograms - A schematic that illustrates how and

where a retailer’s merchandise should be displayed on the shelf in order to increase customer purchases.

LO 2


Store Planning

CirculationFree-flow layout Grid layoutLoop layout Spine layout

LO 2


Store Planning

Free-flow layout

Fixtures and merchandise are grouped into free-flowing patterns on the sales floor.

Grid layout The counters and fixtures are placed in long rows or ‘‘runs,’’ usually at right angles, throughout the store.

Loop layout A major customer aisle begins at the entrance, loops through the store—usually in the shape of a circle, square, or rectangle—and then returns the customer to the front of the store.

Spine layout A single main aisle runs from the front to the back of the store, transporting customers in both directions, and where on either side of this spine, merchandise departments using either a free-flow or grid pattern branch off toward the back side walls.

LO 2


Exhibit 13.4 - Free-Flow Layout

LO 2


Exhibit 13.5 - Grid Layout

LO 2


Exhibit 13.6 - Loop Layout

LO 2


Exhibit 13.7 - Spine Layout

LO 2


Planning Fixtures and Merchandise Presentation

On-shelf merchandising - Display of merchandise on counters, racks, shelves, and fixtures throughout the store.It must present and display the merchandise

attractively so that it is easy to understand and access.It must be reasonably easy to maintain.

LO 3


Planning Fixtures and Merchandise Presentation

Fixture typesMerchandise-presentation planningSelecting fixtures and merchandise-presentation

methodsVisual merchandising

LO 3


Fixture Types

Hardlines fixturesSoftlines fixtures

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


Exhibit 13.8 - Four-Way Feature Rackand Round Rack

LO 3


Merchandise Presentation Planning

ShelvingHangingPeggingFoldingStackingDumping

LO 3


Merchandise Presentation Planning

Key psychological factors to consider when merchandising stores:Value/fashion imageAngles and sightlinesVertical color blocking

LO 3


Exhibit 13.9 - 45-Degree Customer Sightline

LO 3


Exhibit 13.10 - Vertical Color Blocking

LO 3


Selecting Fixtures and Merchandise-Presentation Methods

Proper fixtures emphasize the key selling attributes of merchandise while not being overpowering.

A good guideline for selecting fixtures is to match the fixture to the merchandise, not the merchandise to the fixture.

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 designThe 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 and the architecture of the storefront itself.

Interior designThe finishes applied to surfaces The architectural shapes

LO 4


Store Design

Lighting designLighting greatly enhances store sales.Contemporary lighting design requires an in-depth

knowledge of electrical engineering and the effect of light on color and texture.

Sounds and smells: total sensory marketingEffective store design appeals to the human senses of

sight, hearing, smell, and touch.

LO 4


Visual Communications

Name, logo, and retail identityMust be catchy, memorable, and reflective of the

retailer’s merchandising mission.

Institutional signageDescribes the merchandising mission, customer

service policies, and other messages on behalf of the retail institution.

LO 5



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



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



Lifestyle graphicsLifestyle 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

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