Retail Chap 18

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    McGraw-Hill/IrwinRetailing Management,6/e

    Copyright 2007 by The McGraw-Hill Companies, Inc. Allri hts reserved.

    Store Layout, Design and

    Visual Merchandising

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    18-2

    REIs Store Environment

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    18-3

    Store Design Objectives

    Implement retailers strategy

    Influence customer buying behavior

    Control design and maintenance costs

    Provide flexibility

    Meet legal requirements

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    Store Design

    The primary objective of store design is implementing the retailers strategy

    (c)BrandXPict u

    res/PunchSto

    ck

    C. Borland/PhotoLink/Getty Images

    Meets needs of target market

    Builds a sustainable competitive advantage

    Displays the stores image

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    Impact on Customer Behavior

    Attract customers to store Enable them to easily locate merchandise

    Keep them in the store for a long time

    Motivate them to make unplanned purchases Provide them with a satisfying shopping

    experience

    H. Wiesenhofer/PhotoLink/Getty Images

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    18-6

    Todays Demographics

    Time limited families are spending less time planning

    shopping trips and making more decisions in the

    stores.

    Retailers can:Advertise

    Package products differently

    Research the first moment of truth

    Royalty-Free/CORBIS

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    18-7

    Tradeoff in Store Design

    Ease of locating

    merchandise for

    planned purchases

    Exploration ofstore, impulse

    purchasesRoyalty-Free/CO

    RBIS

    (c)image100/Pu

    nch

    Stock

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    Types of Store Layouts

    Grid

    RacetrackFree Form

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    Grid Layout

    Long 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.

    The McGraw-Hill Companies, Inc./Andrew Resek, photographer

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    18-10

    Grid Store Layout

    Fruit

    Vegetables

    Office &

    customer

    service

    Books, magazines, seasonaldisplay

    Re

    ceiving&

    stor

    age

    Exit

    Entrance

    Cart

    areaCheckouts

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    18-11

    Racetrack Layout

    Loop 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

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    JCPenney Racetrack Layout

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    Example of Race Track Layout

    PhotoLink/Getty Images

    18 14

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    18-14

    Free-Form (Boutique) Layout

    Fixtures 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 stores

    Jack Star/PhotoLink/Getty Images

    18 15

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    18-15

    Free-Form Layout

    Storage, Receiving, Marketing

    Underwear Dressing Rooms

    Checkout counter

    Clearance

    Items

    Feature FeatureJeans

    CasualW

    ear

    Stoc

    kings

    Accessor ie

    s

    Pants

    Tops

    Tops

    SkirtsandDresses

    Hat s

    andH

    andbags

    Open Display Window Open Display Window

    18 16

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    MichaelEvans/ L

    ifeFile/GettyImages

    Example of Boutique Area

    18 17

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    Usage of Signage and Graphics

    Locational identifies location of merchandise and guides

    customers

    Category Signage identifies types of products and located

    near the goods

    Promotional Signage relates to specific offers sometimes in

    windows

    Point of sale near merchandise with prices and product

    information

    Lifestyle images creates moods that encourage customers to

    shop

    18 18

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    Effectively Using Signage

    Coordinate signage to stores image

    Use appropriate type faces on signs

    Inform customers

    Use them as props Keep them fresh

    Limit text

    Rim Light/PhotoLink/Getty Images

    18 19

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    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 bedisplayed

    18 20

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    Prime Locations for Merchandise

    Highly trafficked areas

    Store entrances

    Near checkoutcounter

    Highly visible areas

    End aisle Displays

    TheMcGraw-Hi l

    lC

    ompanies,Inc./Andrew

    Res

    ek,photograph

    er

    18-21

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    Location of Merchandise Categories

    Impulse merchandise near heavily trafficked

    areas

    Demand merchandise back left-hand corner of

    the store Special merchandise lightly trafficked areas

    (glass pieces)

    Adjacencies complimentary merchandise nextto each other

    18-22

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    18-22

    Straight Rack

    Holds a lot of apparel

    Hard to feature specific styles and colors

    Found often in discount and off-price stores

    R

    oyalty-Free/CORBIS

    18-23

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    Rounder

    Smaller than straight rack

    Holds a maximum amount of merchandise

    Easy to move around

    Customers cant get frontal view ofmerchandise

    18-24

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    Four-Way

    Holds large amount of merchandiseAllows customers to view entire garment

    Hard to maintain because of styles and colors

    Fashion oriented apparel retailer

    18-25

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    Gondola

    18-26

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    Gondolas

    Versatile

    Grocery and discount stores

    Some department storesHard to view apparel as they

    are folded

    Royalty-Free/CORBIS

    18-27

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    Creating a Store Environment

    Color

    Scent Music

    Lighting

    StoreAtmosphere

    18-28

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    Lighting

    Highlight merchandise

    Structure space and

    capture a mood

    Downplay featuresThe McGraw-Hill Companies, Inc./Lars A. Niki, photographer