Upload
sraj1989
View
27
Download
1
Tags:
Embed Size (px)
DESCRIPTION
store layout description
Citation preview
More Super Market
Survey No.583/5,584/1f1,583/4a, Opposite Cardinal Higher Secondary School
Edappally - Pukkattupady Rd
Soubhagya Nagar, Judgemuk, Thrikkakara
Ernakulam, Kerala 682021
Introduction
More is a pan-India retail chain operated by the Aditya Birla Group company, Aditya Birla
Retail Ltd. Currently it has 509 supermarkets and 15 hypermarkets across the country. It plans to
increase it to 1,300 supermarkets and 65 hypermarkets respectively by 2016.
FACTORS AFFECTING CHOICE OF LOCATION OF MORE EDAPALLY
Location decision is strategic and long term and hence involves a large investment that is
irreversible in nature. If a retailer after setting up his store realizes that the location is not proper,
he has either to go on suffering losses or close down. Poor location results in increase
distribution cost, poor marketing response and dissatisfaction among employees, suppliers and
customers. The following are some factors which should be considered before choosing the
location
Population and Customer
MORE is located at one of the busiest place in Cochin. This type of retail location is basically
any standalone building. It is well connected by road and provides amble space for vehicle
parking. Location is a thickly populated area and thereby store provides a facility for large
segment of consumer group. Nearby location consists of residential flats, villas and office
buildings and store can give good service to all the consumers.
Accessibility, Visibility and Traffic
Store is accessible by roads. People can park their all kinds of vehicles in front of the store.
Availability of frequent public transport is an added advantage to the store.
Signage, Zoning and Planning
There are many billboards and sign boards that can be visible to any customers. Good lighting
and advertisement boards and posters helps the customer to identify the products easily. Signage
and graphics help customers locate specific products and departments, provide product
information, and suggest items or special purchases. In addition, graphics, such as photo panels,
can enhance the store environment and the store's image.
Location of merchandise categories
It plays a major role in how customers navigate through the store. By strategically placing
impulse and demand/destination merchandise throughout the store, retailers can increase the
chances that customers will shop the entire store and that their attention will be focused on the
merchandise that the retailer is most interested in selling.
LIST OF MERCHANDISE
1. Fruits & Vegetables
Leafy Vegetables
Fruit Vegetables
Root Vegetables
Bulb Vegetables
Fresh Fruits
2. Home Care
Detergents
Utensil Cleaners
Toilet Cleaner
Floor Cleaner
3. Food & Beverages
Bakeries
Dairy Products
Instant Foods
Culinary Products
Chocolates, Biscuits & Snacks
Breakfast Needs
Hot Beverages
Aerated Drinks and Juices
Frozen Foods
4. Staples
Pulses
Flours
Rice
Edible Oils
Salt & Sugar
Spices
5. Personal Care
Women’s Care
Baby Care
Men’s Care
Personal Health
Soaps and Hand-wash
6. Stationery items
STORE LAYOUT
A store layout is the design in which a store's interior is set up. Store layout is well thought out to
provide the best exposure possible. It is designed to create an attractive image for consumers. It
describes the overall look and feel of the interior of a retail store, including the placement of
fixtures and products within the store. It is an important part of implementing retail store
strategy. Effective layouts are designed to expose customers to the most products possible given
the amount of floor space available. A well-planned retail store layout allows a retailer to
maximize the sales for each square foot of the allocated selling space within the store. Store
layouts generally show the size and location of each department, any permanent structures,
fixture locations and customer traffic patterns. Each floor plan and store layout will depend on
the type of products sold, the building location and how much the business can afford to put into
the overall store design.
Layout for retail stores depends on the retailer’s understanding of the customers’ buying habits.
Retailers have three basic layout options from which to choose: grid, free form, and boutique.
Some areas of a retail store generate more sales per square foot and therefore are more valuable.
There are many factors retailers should consider before choosing a store location. From traffic
analysis to zoning requirements, there is a lot of data to examine before deciding on the perfect
spot. Considering following factors while deciding a Store
Layout can be useful:
1. Effective Use of Space: Space needs to be used effectively, with all the areas planned properly
to break up the store into logical and functional areas such as POS, Back Office, Changing
Rooms, Pantry, Toilets, etc.
2. Inviting Customers: Layout is designed to attract the targeted audience. It should speak on its
own and guide customers to all the areas of merchandise.
3. Interiors: Interior arrangements - appearance, walls, sections, and areas should be planned and
positioned well. Lighting and Music arrangement needs to be taken into consideration while
planning a layout. It should be placed to suit the kind of shopper. These arrangements can be
changed during different hours in a store. In this unit you should be learn types of retail location,
store layout, design decision in the stores and functions of store retail associate.
Customer Behaviour and store layout
Customer buying behaviour patterns can be grouped in relation to:
1. Place of Purchase
2. Items Purchased
3. Time and Frequency of Purchase
Place of Purchase
In general, customers divide their purchases among a number of stores. They shop in more than
one department store and in many specialty stores. Even in buying food there is a division of
purchases. Many customers do not buy their meats or fresh fruits and vegetables where they buy
their dry groceries, although all these goods may be available in the same store. The specialty
food store, the milkman, the produce huckster, and the "hole-in-the-wall" are all getting a share
of the total food business. Where customers have the choice of purchasing the same goods in a
number of stores, their patronage loyalty to any one store is by no means permanent. Witness the
grand opening of a new super market! Many of the customers who flock to the opening are
abandoning old patronage loyalties. Hence, length of patronage also deserves study. Studies of
customer buying behaviour patterns with respect to place of purchase are useful in selecting store
locations, in choosing distributors for a product, and in merchandising
Items Purchased
Every customer purchase and every store sale consists of a transfer of one or more specific
commodities. No one customer purchases all the different items for sale in a store. Over a period
of time a customer will purchase a substantial selection of the total items available in the store,
but that selection will vary somewhat with each customer. Therefore, in studying customer
buying behaviour patterns it is necessary to ascertain (a) what items and (b) how much of each
item customers purchase. The purchase of many necessity items soap or bread, for example is
common and ubiquitous. Luxury items, such as caviar or avocado pears, are purchased by a
relatively small group of customers. The purchase of some items has a strong regional
demarcation grits or live lobster, for example. Rarely does a customer purchase a single potato
or a single carrot. On the other hand, very seldom does a customer purchase more than one
watermelon at a time. The amount of each item purchased depends on many factors, of which the
following are probably the most important: number of consumers for whom the item is intended;
perishability of the item; storage requirements and facilities available; purchasing power and
ready cash; unit of sale; and price. The introduction of new products and changes in dietary
habits also affect the customer's choice of items and the amount purchased. As previously
pointed out, in so far as the customer is the purchasing agent for a family or a number of
consumers, the purchases reflect the characteristics of all the consumers involved. From the
distributor's, manufacturers and producer's point o? view it is essential to study what items and
how much of each the customer buys by brand or quality, by size or weight, by price, by type of
container, and by season.
Time and Frequency of Purchase
Store operations must be geared to mesh with the customers' time of purchase pattern. Store
buyers and merchandisers must keep on schedule with it. Merchandise must be available in the
store in adequate supply if maximum sales are to be achieved. Woe to him whose Christmas
trees arrive to market on December twenty-sixth! In studying time of purchase patterns it is
necessary to relate these to the seasons, weather, and regional differences. Every retailer knows
from experience that his volume of sales is not uniform by days of the week, nor by hours of the
day. The variations are very pronounced, especially in the food business. Attempts by retailers to
modify customer time of purchase behaviour patterns, with the view of improving service to
customers or raising efficiency of operation, have by no means been entirely successful. The
long lines of customers waiting impatiently to be checked out in super markets during peak
periods in contrast to the buying inactivity at other times illustrate a continuing troublesome store
operations problem created by the customers' time of purchase pattern.
Frequency of purchase depends primarily upon the type of commodity involved. In the course of
a lifetime, a man rarely purchases more than two wedding rings most men try to manage with the
original acquisition, even if it does not turn out to be quite the bargain expected. On the other
hand, the addicted pleasures of cigarettes go up in smoke so rapidly that the frequency of
purchase is generally a daily performance and, allegedly, men will walk a mile for their favourite
brand. Frequency of purchase also varies among customers. Some shop in food stores daily,
others only once a week. The size of the total purchase, the number of items and the quantity of
each item bought all vary with frequency of purchase. The more frequently a customer visits a
store, the more is that customer exposed to the impact of sales promotional devices used in the
store.
CHARACTERISTICS OF STORE LAYOUT DESIGN
A successful store should keep a consumer interested and finally convert the consumer to a
customer. From the customers’ point of view, they would like the shopping process to be easy
and satisfying. They prefer a pleasant shopping environment where the aisles are wide, the view
of the merchandise is clear, the merchandise is easy to find and that there are sufficient items
such that customers won’t experience stock-outs. The retailer should have effective
merchandising and displays in order to increase the satisfaction of customers.
To achieve this, several principles and characteristics of store layout design should be
considered. Utilization of floor space has an effect on potential customers. The size of the store is
constrained by budget, store type, merchandise assortment and the volume of sales. The aisle
structure should be well designed to facilitate shoppers browsing and checking out the
merchandise. The traffic flow density of the aisles should be balanced to provide a comfortable
and safe shopping environment. Providing customers with a logical layout of merchandise, such
as grouping similar and complementary products in distinct sections, insures customers can
easily find what they want. Overcrowded displays can confuse and depress customers, however
half full shelves can give the impression that the store is going out of business or the items are
out of stock, which can lower customer goodwill. To effectively display the product, fixtures
including stands, shelves, tables, bins and racks should be carefully chosen and organized,
depending on the type of product sold and the customer demand. Overall there are both
qualitative and quantitative criteria for store layout design.
CHARACTERISTICS OF RETAIL STORE
Store appearance and image
Developing a strong positive appearance has become essential to the maintenance of sustained
competitive advantage. Research into store appearance has allowed retailers to create positioning
strategies and enabled them to differentiate their stores in terms of the products and prices or
services on offer. Consumer loyalty will be more likely when the consumer perceives the
appearance of a store to be desirable. A wide belief exists that consumers perceive store
appearance to be desirable when the store image is congruent with their self-image or the image
to which they aspire .
Store traffic flow and crowd density
The objective of conducting a traffic flow analysis is to determine ways to make shopping and
running the store easier, using layout and merchandising techniques to improve sales, enhance
the store's appearance and make shopping more fun.
Merchandise display
Merchandise display is a term frequently used in the context of in-store marketing. It refers to the
way products are presented in a retail outlet. While this expression has been used with a focus on
merchandise display (e.g. the choice of fixtures to be used and the method of product
presentation), it relates to overall store design, store layout and other facets of the store
environment. Therefore, it is often used synonymously with the design component of in-store
marketing.
Two basic objectives of in-store marketing are:
To facilitate the search process for customers, i.e. to design the store for easy internal
orientation; and
To create a positive store atmosphere, i.e. to evoke a positive emotional state of mind in
consumers while visiting the store.
Both aspects are important to different degrees in different stores and for different consumer
segments. The retailer's focus is mainly on easy orientation and supporting the consumer search
process. When approaching shoppers, the efforts are shifted towards merchandise display as it
facilitates shopping and easy orientation, because consumers should not be confused but feel
secure and self-confident in the shopping situation
Product assortment
Effective merchandising strategies can reap big rewards in today's marketplace. Effective
category management is essential for retailing. It is critical that stores improve their service by
providing customers with the products they want, in a position that is sensible and simple to find.
Taking a more strategic approach to merchandising can reap big rewards by boosting sales,
increasing footfall and ultimately increasing turnover. A good merchandise assortment should
entice customers to move around the store to purchase more merchandise than they may have
planned originally. A good layout should provide a balance between giving customers adequate
space in which to shop. The breadth and depth of the assortment in a merchandise category can
affect the retailer’s brand image.
Store floor space
Floor space shows how store design and in-store communications can make shopping trips easier
and more fun for both parents and children. The core requirements are enough space to move
around the store, ease of access from outside the store and clear navigation and displays. Stores
can also improve the communication of their values by memorable window displays, strong
departments using better point of sale (POS), personal touches to encourage customer loyalty,
graphics, highlighting prices and age ranges in busy areas.
Store ventilation system
Ventilation of buildings depends significantly on the used criteria for the indoor environment,
which also affects health, productivity and comfort of the retail consumers. First of all, store
ventilation measures should not sacrifice peoples' comfort and health while shopping. Therefore,
a need for ventilation for the indoor environment for retail design, and to improve shopping
conditions.
Store entrances
Retail sector companies often overlook the positive contribution that store entrances and exit
points could make to their success. At a time when more decisions than ever are made in-store,
any media must provide a pathway to the purchase that is subconsciously triggered. Therefore, it
would be a wise move to spend more on below the-line and through-the-line strategies. A key
challenge is to create an environment where the shopper perceives a one-to-one relationship with
the store; to optimize the shopper’s time; to make it appear as if the ranging and categorisation of
products have been personalised just for them; and by giving attention to this, retailers will
deliver an experience the shopper will want to repeat.
Impulse purchasing pressure
Impulse buying pressure can be defined as an immediate purchase with no pre-shopping
intentions. There has been a link of unplanned purchases to consumer moods and pleasant
environments and that shows that employee behaviours predict customer evaluations. Moreover,
prior work indicates that helpfulness of salespeople in assisting customers influences consumers'
willingness to buy. A high level of excitement in a store enhances the loss of self-control, and
high arousal reduces people's ability to think through the implications of their actions. It's also
likely that many people's ability to resist temptation is at its lowest level at the end of the day,
resulting into increased impulse purchases. Below is a diagram showing environmental
stimulation on impulse purchasing.
TYPE OF LAYOUT
Grid store layout The grid layout is a rectangular arrangement of displays and long aisles that
generally run parallel to one another. It has been shown that the grid layout facilitates routing
and planned shopping behavior, providing consumers with flexibility and speed in identifying
pre-selected products which appear on their shopping list . It is widely favored in the grocery
sector because the majority of the customers visiting grocery stores have planned their purchases.
Types of Floor Space in Store
• Back Room – receiving area, stockroom
Department stores (50%)
Small specialty and convenience stores (10%)
General merchandise stores (15-20%)
• Offices and Other Functional Space – employee break room, store offices, cash office,
restrooms
• Aisles, Service Areas and Other Non-Selling Areas
– Moving shoppers through the store, dressing rooms, Lay away areas, service desks,
customer service facilities
• Merchandise Space
– Floor
– Wall
Allocating Space
Warehouse clubs are able to take advantage not only of the width and depth of the store, but also
the height, by using large “warehouse racks” that carry reachable inventory at lower levels with
large pallets or cartons of excess inventory at higher levels.
Space Allocation Planning and Improving Space Productivity in Existing Stores. Space
Productivity Index is 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.
PRODUCT PLACEMENT IN RETAIL STORE
In each retail store, a responsible staff member was appointed and he/she kept a record of weekly
sales of the given product for twelve weeks. The weekly sales figures from the stores were
collected and recorded during store visits. In order to search the impact of shelf levels on sales,
the product was placed in different shelf levels, and their sales figures were observed for a
certain period of time. The product was, firstly, displayed on knee-level shelves, then on the
waist to shoulder level shelves, and lastly, on the eye-level shelves of ten chosen retailers for a
period of three months.
The product remained one month in each different shelf level position e.g., it was displayed for
one month on the knee-level shelf, one month on the waist to shoulder level shelf and one month
on the eye-level shelf, and at the end of each 30 days it was moved from the lower shelf to the
upper one. During this time, the weekly sales figures of the product were recorded and monthly
average sales figures were also calculated. It should be noted that each item’s retail price is fixed
for all levels of shelves in the retail stores.
EYE LEVEL (150-160)
WAIST TO SHOULDER LEVEL (90-100)
KNEE LEVEL (40-50)
EYE LEVEL (150-160)
WAIST TO SHOULDER LEVEL (90 - 100)
KNEE LEVEL (40 -50)
Strategy in the strike zone
The strike zone is the section of the store a customer first enters, about 10-20 feet inside the door,
and it is a prime location for featuring merchandise. In general, customers in the strike zone scan
the area, looking left to right, just as we were taught to read. The inside perimeter of a store,
sometimes called the race track, experiences the highest traffic especially in the supermarket
setting. Majority of shoppers typically don’t wind their way down one aisle to the next, but
instead use the race track as a launching point, then dart in and out of aisles as needed. In well
planned stores, promotional items are usually on the ends of the aisles, where customers see
them as they walk toward a specific aisle for an item they are seeking. If the store has done its
homework, the promotional item will likely be related to or similar to the item the customer is
seeking.
When customers have moved through the strike zone, they usually walk along the right wall.
New customers will pick up items in this area and compare the store’s price to their own
willingness to pay. Whether or not customers purchase those promotional items or the goods in
the strike zone, depends upon a number of factors.
Paying significant premiums for prime space is something manufacturers are willing to do both
when running promotions on items and even on a daily basis. Retailers have become wise to the
value of this space, and routinely charge what are called “slotting allowances” for prime product
placement, particularly when introducing new products to consumers.
Meantime, retailers know they can also increase per-customer sales transactions by focusing on
attracting the customer’s attention to additional purchase opportunities. They can do this through
a wide variety of temporary and permanent display characteristics. It’s no surprise that temporary
displays have the greatest potential for attracting attention because their large size and novelty
make them much more intrusive. But permanent displays can also be used to increase attention
by manipulating: the location of the product within a display; the area (facings) devoted to the
product; product adjacencies; and aesthetic elements such as size and color coordination and
special signage.
VISUAL PRODUCT PLACEMENT
Horizontal product placement – products are placed on shelves, side by side to showcase a
wide range of options for consumers.
Vertical product placement – merchandise is displayed on more than one shelf level.
Block placement – related or similar items are stocked together in one place, under a common
umbrella.
Commercial product placement – the brand value of the items is taken into consideration. The
public’s perception of the merchandise determines where it will be placed in a store. Items with
the highest perceived value or image would score the best shelf real estate in the store. Items
which do not contribute greatly to the store’s bottom line get less favorable positioning.
Market share product placement – products which generate the most revenue for the store will
be placed in a prime location, so customers can easily find and purchase the item.
Margin product placement – the greater the profit on the item for the retailer, the better its
location in the store
POINTS TO REMEMBER FOR A STORE LAYOUT
Be relevant:
Offer suggestions which are related to the original sale—either what customers have come in for
originally, what they are buying online, or what they are picking up at the grocery store. If a
customer buys some peanut butter, show them the jelly rather than the green beans. Your
customer does not want to be inundated with too many choices when they have selected an item.
Maximize positioning.
Place your cross-sell items near the related items your customers are purchasing—either
physically or virtually. Retailer suggests you let your customers see the accessories or related
items that you have on hand, but don’t overwhelm them with choices.
Bundle products.
Offer discounts for buying groups of items. Group items visually, placing them on the same end
cap and offering a deal on purchasing the entire group. Consumers, as a rule, love finding a good
deal.
Separate low and high involvement items.
Strive to separate your low-margin, easy-selling items for which consumers need little
information, from the items which require a great deal of info to make the sale.
PRICING STRATEGY
Supermarket firms compete along many dimensions, enticing customers with an attractive mix of
products, competitive prices, convenient locations, and a host of other services, features, and
marketing programs. In equilibrium, firms choose the bundle of services and features that
maximize profits, conditional on the types of consumers they expect to serve and their beliefs
regarding the actions of their rivals. Building a formal model of a chain’s overall positioning
strategy is an intractably complex problem, involving an extremely high dimensional multiple
discrete/continuous choice problem that is well beyond the current frontier. The vast majority of
both marketers and practitioners frame the pricing decision as choice between offering “every
day low prices” across a wide category of products or deep but temporary discounts on only a
few, labeling the first strategy EDLP and the second Hi-Lo or PROMO. This is, of course, a
simplification. Actual pricing decisions are made in conjunction with an overall positioning
strategy and tailored to particular operational advantages. In practice, firms can use a mixture of
EDLP and PROMO, varying either the number of categories they put on sale or changing the
frequency of sales across some or all categories of products. Not surprisingly, practitioners have
coined a term for these practices, hybrid pricing.
Everyday Low Price (EDLP): Little reliance on promotional pricing strategies such as
temporary price cuts. Prices are consistently low across the board, throughout all
packaged food departments.
Promotional (Hi-Lo) Pricing: Heavy use of specials, usually through manufacturer price
breaks or special deals.
Hybrid EDLP/Hi-Lo: Combination of EDLP and Hi-Lo pricing strategies.
Value Pricing
Value-based pricing is a pricing strategy which sets prices primarily, but not exclusively, on
the value, perceived or estimated, to the customer rather than on the cost of the product or
historical prices.
Psychological Discounting
Psychological pricing uses the customer's emotional response to encourage sales. By pricing
products strategically, a company may increase sales without significantly reducing prices. In
some cases, a higher price is actually more likely to increase sales. Consider several factors in
crafting a psychological pricing strategy to get the best results.
Eg They may place signage as Market price of the product as 100 and they offer the product at
70 . So customer have a tendency to buy the product .
Time Pricing
Time-based pricing is a pricing strategy where the provider of a service or supplier of a
commodity, may vary the price depending on thetime-of-day when the service is provided or the
commodity is delivered .
Eg seasonal offers
Bundling Pricing
In a bundle pricing, stores sell a package or set of goods or services for a lower price than they
would charge if the customer bought all of them separately.
Eg BUY 2 get 20 % off , Buy 3 get 30 % off . Here same product is available at much lower
price when bought together .
GREEN ISSUES
For retailers, reducing direct environmental impacts like energy and water usage, waste
generation, and land use provide opportunities to streamline business operations and save costs.
Developing strategic and operational plans to address the environmental footprint of retail
involves understanding impacts, prioritizing responses, tracking progress, and identifying
innovative ways to improve retail’s operational footprint. Most important and most immediately
tangible are the facility operations that organizations control directly and can influence the most,
including reducing energy and water consumption, minimizing greenhouse gas emissions, and
increasing recycling rates to reduce waste.
Facility Energy Use
The retail industry accounts for the largest energy bills and the second largest amount of
greenhouse gas emissions in the entire commercial sector . Energy is more than just an
operational issue; it is the lifeblood of retail stores and distribution centers. Actively managing
energy reduces costs in addition to reducing greenhouse gas emissions. These efforts can be
noticed by customers in many ways; energy efficiency can create a more comfortable shopping
experience and a place for active engagement among the company, its customers, and its
employees.
Minimizing Waste
The core of retail’s business is the sale and distribution of physical goods. That does not mean,
however, that waste is a necessary output. Through the hierarchy of waste reduction—material
reduction, reuse, recycling, and then lastly disposal retailers can radically reduce the amount of
landfill waste produced, resulting not only in benefits to the environment but also cost savings
and new revenue sources.
From sales floors to distribution centers, actively engaging employees about waste reduction
creates opportunities to involve and motivate employees, and to share positive effects with
customers.
Land Use & Development
The key to optimizing land use and development is making new and existing sites as efficient as
economically possible while physically integrating them into the community. Doing so not only
saves money through energy and transportation efficiencies but also supports the vibrancy of the
local area.
One aspect of this trend is the move to smaller, more efficient stores on brownfield sites. These
stores help retailers build their business, minimize their impact, and integrate closely into
communities.
Packaging
Packaging is crucial to the product supply chain. It helps protect and maintain goods during
shipping, on retail shelves, and before consumer use, and plays an important role in
communicating product attributes to the customer .
Reducing the amount of packaging and using smarter packing methods also reduces costs,
emissions, and material use. This optimization process includes an evaluation of current
materials and packaging designs, analysis of alternatives, and education and engagement with
product suppliers, transportation vendors, retail buyers, customers, and other stakeholders.
ETHICS IN RETAIL
It is the behavior that a business adheres to in its daily dealings with the world . Written and
Unwritten policy that specifies what is good or bad behaviour.
Consumer Fraud.
Sometimes customer took items without billing it or they may damage the products .
Supplier Labor Practices.
Employees in retail sector have to work for than 8 hr a day and they didn't get enough time for
breaks .
Slotting Allowance.
Slotting Fees (Slotting Allowances): Are fees paid by a vendor for space or a slot on a retailer’s
shelves .
Use of Customer Information.
Most customer use credit card or debit card for purchase so retailers mainly have information
regarding there credit card or debit card . So from loyalty card programmmes retailers get
information about the customers . So how well these information is used is an important ethical
issues in retail industry .
Observations
Store location is an important factor in retail business and MORE store is placed at a
location in which there is housing colony , schools all are there . Also it is located along
the main road and within in 1 km there is no other super market . Lulu mall which is
close to the store is located more than 1 km from MORE store .
People who consider convince will go for MORE store .
Pricing Strategy of MORE store is hybrid .
High demand products are placed in the end of the store. So that customers goes through
the entire store to pick that product. In case of more store high demand product are
staples and oils which are placed in the end or back of the store.
Impulse items are placed at the entrance of the store. Items like deos shaving creams etc
are placed at the entrance.
Chocolates are placed at the billing area so that children’s have easy access to the
product.
Cross Mix of products are done in the store. Products like shaving sets and shaving
creams are given together as a bundle to the customer.
From the store layout we can see that they divide the store in to any sections according to
product categories like personal care, kitchen affairs etc.
In the store what they done is to promote impulse buying. One example is that they place
a magazine counter opposite to the billing counter so when customer wait in line they
will see it.
Lighting in the store is excellent and expensive products or high demand products are
highlighted.
Orange colour is the theme of the store and it is nicely done in the store
In case shelf arrangement high demand or fast moving SKU are placed in the middle row
or at the eye level. Bulk SKU products or slowing products are placed in the lower or
upper level.
Some of the floor space has been booked by national brands.
Most of the store design and product placement has been decided by the zonal office and
each month they change the product placement.
Seasonal items are kept at the visibility area of the store.
Green issues and ethical issues are well taken care by the management .
CONCLUSION
This study has highlighted the importance of store location , visual merchandise ,store layout on
retail format. It is believed that the importance of store layout is at an all-time high in major
convenience stores. In today’s volatile economy, providing excellent store layout can be the
critical difference in any company’s success. With ever-changing store layouts in the retail
industry, retailers face the ongoing challenge of gaining competitive advantage from creating
added customer value. In order to accomplish this value, retailers have to constantly review their
store layout strategies .
Retailers should seek to sell products that satisfy the buyer’s needs and provide store layouts that
entice customers to move around the store to purchase more merchandise than they may have
planned originally. It should be remembered that the sale is made only when the actual purchase
is complete and retailers should continue to reinforce the buyer’s positive attitudes about their
stores at all times, even after the sale. This practice reduces the perceived risk of making a bad
buy, which allows buyers to listen to and trust sales messages even though some of retailer’s
proposals may be out of line with their purchase plans. It also can increase rates of customer
retention which leads to increased profitability and store loyalty.