Session 13 Store Layout Design

Store Layout Design and Visual Merchandising

Session: 13Prof: Yasmin

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Introduction

Have you ever wondered why a customer goes all the way to rhythm house, planet M to buy a music CD?Retailers should consider the impact of various physical and psychological factors on customer behavior and store functions including employee performance

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Creating a store image

Is one of the most powerful tool for drawing customers towards the store, and satisfying themIt’s a difficult task The various stimuli that create a store image are physical facility, its location, merchandise offered and services provided, the pricing policies and the promotional activities

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The following factors contribute to the overall store image

Quality of merchandise, assortmentAdvertising, external attractiveness, salesmanship and fashionabilityConvenience of location, shopping experience, ease of transaction, clarity of messageCleanliness of premises, credit facilities, free space inside and outside the store

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Operational efficiency, physical and technological factorsDesign, ambience and social factors

The exterior and interior design of a store are some of the key determinants of the retailers image

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Store Location

Location decisions cannot be changed once the store has been established Has an effect on the business life cycleStrategic advantage which competitors cannot copy or imitate easily

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Store Location

Criteria to consider include Population size and traits Competition Transportation access Parking availability Nature of nearby stores Property costs Length of agreement Legal restrictions

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Choosing a Store Location

Step 1: Evaluate alternate geographic (trading)areas in terms of residents and existing retailers

Step 3: Select the location type

Step 2: Determine whether to locate as anisolated store or in a planned shopping center

Step 4: Analyze alternate sites contained in the specific retail location type

Trading-Area Analysis

A trading area is a geographic area containing the

customers of a particular firm or group of firms for specific goods or services

Trade Area Analysis

Size and shape of trade areasPrimary, secondary and fringeStore type (parasite store)Store sizeMerchandise typeLocation of competition(inter & intra store competition)Housing patternsTravel time

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The Trading Areas of Current and Proposed Outlets

The Segments of a Trading Area

The Size and Shape of Trading Areas

Primary trading area - 50-80% of a store’s customers

Secondary trading area - 15-25% of a store’s customers

Fringe trading area - all remaining customers

Trading Areas and Store Type

Largest

TRADINGAREAS

Smallest

Department stores

Supermarkets

Apparel stores

Gift stores

Convenience stores

Factors affecting store location

DemographicsProximity to supply sourcesEconomic baseCompetitionStore locations and its availabilityRegulations

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Chief Factors to Consider in Evaluating Retail Trading Areas

Total size and densityAge distributionAverage educational levelPercentage of residents owning homes

Total disposable incomePer capita disposable incomeOccupation distributionTrends

Population Size and Characteristics


ManagementManagement trainee

Clerical

Availability of Labor


Delivery costsTimelinessNumber of manufacturers

Number of wholesalersAvailability of product linesReliability of product lines

Closeness to Sources of Supply


Number and size of existing competitionEvaluation of competitor strengths and weaknesses

Short-run and long-run outlookLevel of saturation

Competitive Situation


Number and type of store locationsAccess to transportationOwning versus leasing opportunities

Zoning restrictionsCosts

Availability of Store Locations


TaxesLicensingOperations

Minimum wagesZoning

Regulations

Site SelectionTypes of Locations

The isolated StoreThe isolated Store : A freestanding retail outlet located on either a highway or a street. There are no adjacent retailers with which this type of store shared traffic.

The advantage of this type of retail location

• There is no competition

• Rental costs are relatively low

• There is flexibility

The features of this type of retail location

• Isolation is good for stores involved in one-step or convenience shopping

• Better road and traffic visibility is possible

• Facilities can be adapted to individual specifications

• Easy parking can be arranged

• Cost reduction are possible, leading to lower prices

• Initial customers may be difficult to attract

• Many people like variety of shopping

• Advertising costs may be high.

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The Unplanned Business The Unplanned Business District District 1. Central Business District Central Business District

: The hub of retailing in a city. It is the largest shopping area in that city and is synonymous with the term downtown

Some strengths of the CBD The inherent weakness of the CBD

Excellent goods/service assortment Inadequate parking

Access to public transportation Traffic and delivery congestion

Variety of store types and positioning Travel time for those living in the suburbs

strategies within one area

Wide range of customer services Many aging retail facilities

High level of pedestrian traffic Declining condition of some central

cities relative to their suburbs

Nearness to commercial and social facilities Relatively poor image of central cities

to some potential consumers

The Unplanned Business The Unplanned Business District District

2.Secondary Business District : an unplanned shopping area in a city or town that is usually bounded by the intersection of two major streets.

3.Neighborhood Business District: an unplanned shopping area that appeals to the convenience shopping and service needs of a single residential area.

4. String: an unplanned shopping area comprising a group of retail stores, often with similar or compatible product lines, located along a street or highway.

The Planned Shopping The Planned Shopping CenterCenter

The planned shopping center consists of a group of architecturally unified commercial establishments built on a site that is centrally owned or managed, designed and operated as a unit, based on balanced tenancy, and surrounded by parking facilities.

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The planned shopping center has several positive attributes:• Well – rounded good s and services assortment based on long-range planning

• Strong suburban population

• Interest in one-stop, family shopping

• Cooperative planning and sharing of common images

• Creation of distinctive , but unified, shopping center images

• Maximization of pedestrian traffic for individual stores

• Access to highways and availability of parking for consumers

•More appealing than city shopping for some people

• Generally lower rent and taxes than CBD stores

• Generally lower theft rates than CBD stores

• Popularity of malls


-Regional Shopping Center Regional Shopping Center

A large, planned shopping facility appealing to geographically dispersed market. Becoming the social, cultural, and vocational focal point of an entire suburban area. Frequently, Being used as a town plaza, a meeting place. One newer derivative form of regional center, the megamall


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Community Shopping CenterCommunity Shopping Center: : A moderate-sized, planned shopping facility with a branch department store, a variety store, or category killer store, in addition to several smaller stores. It offers a moderate assortment of both shopping – and convenience- oriented goods and services to consumers from one or more nearby, well populated, residential areas. Power center

Neighborhood Shopping CenterNeighborhood Shopping Center: : A facility, with the largest store being a supermarket or a drugstore

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Pedestrian Traffic Number of people / Type of people

Vehicular Traffic Number of vehicles / Type of vehicles / Traffic congestion

Parking FacilitiesNumber and quality of parking spotsDistance to store / Availability of employee parking

TransportationAvailability of mass transitAccess from major highways / Ease of Deliveries

Store Composition Number and size of stores / Affinity / Retail balance

Rate each the following criteria on a scale of 1 to 10, with I being excellent and 10 being poor

Location and Site Location and Site EvaluationEvaluationLocation and Site Evaluation

Checklist

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Specific SiteVisibility / Placement in the location / Size and shape of the lotSize and shape of the building / Condition and age of the lot and building

Terms of OccupancyOwnership or leasing terms / Operations and maintenance costsTaxes/ Zoning restrictions / Voluntary regulations

Overall Retailing General location / Specific site

Rate each the following criteria on a scale of 1 to 10, with I being excellent and 10 being poor

Location and Site Evaluation Checklist

Location and Site Location and Site EvaluationEvaluation

Creating a buying environment

An atmosphere that would boost the customers buying spiritsCustomers attracted to a safe, attractive and comfortable shopping environmentA buying atmosphere can be effective only if it appeals to the five senses of the customer- sight, audibility, smell, touch and taste

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Store Exteriors

First impression of a customer about a store is formed by its exteriorsThey play a vital role in attracting new customers and retaining the existing onesThe exterior of a store includes its sign board, its entrance, windows, lighting and the color of the building

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Store Exteriors

Can convey various types of images to its target customers- conservative, trendy, rich, discount etcModular Structure: a single piece of rectangular or a square structure that is attached to many other storesPrefabricated Structure: an external frame that is built in a factory and assembled at a store

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Store Exteriors

Prototype Structure: the exterior of all the stores of a retailer are the same, to maintain consistency, adopted by most of the chain retailersRecessed Structure: a store where the customers have to walk in a small distance to see the exteriors

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Store Exteriors

Distinct Structure: a unique structure of the building for instance circular, oval or semi circularSeveral other ways in which a retailer can enhance the store image: by creating fountains, lawns, benches and plants

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Store Exteriors

1. Marquee: A roof like structure, often bearing a signboard, projecting over an entrance, as to a theater or hotel. Also called marquise. It’s the most significant because it bears the stores name. a painted sign board or a neon light or a glow signboard. It can be a strong image determinant as it can be subdued and subtle, or flashy and gaudy

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Store Exteriors

2. Entrance: first determine the number of entrances. Ideally a store should have two entrances so as to draw pedestrian (by the front entrance) and vehicular traffic (by rare or side entrance). Both the entrances must be designed differently as they serve different purpose

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Store Exteriors

3. Door types: types of doors that a retailer can select from are regular, revolving, electric, self-opening, push-pull or climate controlled. Once the door is selected the retailer has to select the appropriate flooring for the entrance

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Store Exteriors

4. Walkways: a wide and rich walkway makes a very unique feature of the store image when compared to narrow and congested walkway

5. Display Windows: motivate the customer to enter the store. Provide information. They carry the following benefits

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Store Exteriors

Creating a particular mood by the displayed merchandiseConveying the store’s contemporarinessAttracting the price sensitive customers by displaying what’s on saleCatching the attention of pedestrian by displaying eye-catching goodsShow its concern towards society by displaying messagesNumber of factors to be considered: like number, size, shape, color, theme and the frequency of change in the year

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Store Exteriors

6. Size of the Building: disguised and non disguised, surrounding area including the stores located near by and the parking area

7. Colors and materials: building materials like brick, matte-finished acrylics etc are used at the entrance to create a soothing effect,

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Store Exteriors

• steel exteriors project an image of strength while extensive use of glass creates a unique impression of contemporariness, concrete structures project an image of low cost and value based store whereas brick store creates a rather upscale image

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Store Exteriors

8. Theft prevention: involves controlling employee and customer pilferage. Observation of the customers in and out of the store, find ways to monitor them through electronic theft prevention systems installed at the entrances, exits, inventory receiving doors and at the trash disposal corridors 48

Store Interiors

The store interiors should be attractive, comfortable and convenient for customersThe image projected by the stores interiors should complement the image conveyed by its exteriors, promotional activities, prices and the quality of the merchandise offered

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Store Interiors

Managing space: two major factors that make a store look unique- store layout and the visual merchandiseThe factors to be considered while taking decisions about store layout are

The value of spaceSpace utilization and allocation

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Store Interiors

Value of space: in terms ofSales per square foot of floor spaceSales per linear foot of shelf spaceSales per square foot of exposure spaceSales per cubic foot of shelf space The space at the entrance is the most valuable

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Store Interiors

Utilizing and allocating space: needs five types of space in the store

Back roomOffice and other functional spacesThe aislesService areasNon selling areas of the sales floorWall space and the floor space

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Merchandise Presentation: Store Layout

Prepare a store prototypeStore prototype is a model prepared by integrating various elements of a storeElements include: décor, lighting, music, scent, color, fixtures etcLayout should induce impulsive buyingCreate small secluded places instead of huge straight spaces

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Modern retailers adopt any of three design types

Grid layoutRace track layoutFree form layout

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Grid layout: generally found in a grocery store, consists of numerous long gondolas and aisles. Cost effective and efficient utilization of retail space is possible. Layout suitable for supermarket.

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Race track layout: has a major aisle running inside the store, various departments can be accessed by the customers through the aisles. The color of the aisles is different from that of the department

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Free- form layout- also known as the boutique layout has the aisle and the fixtures arranged in an asymmetrical fashion. No attempt is made to create a break within a department. Used by specialty stores. Westside, Pyramid, SOBO Central

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Some key factors to be considered while developing a store proto type

Increasing sales- circulation planMaximizing returns per square footCoordinating the merchandise with the store formatAllowing flexibility in store designRecognizing the needs of the disabled/women/kids and the safety of the customers

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Visual Merchandising

Helps the retailer create a visually appealing or pleasing shopping environment, which will in turn, increase the salesAlso referred to as POPThree major roles

Informing customersAdding value to atmospherePromotional tool

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Visual MerchandisingVarious techniques adopted by

retailers for visual merchandisingIdea oriented presentationStyle or item oriented presentationColor presentationPrice liningVertical merchandisingTonnage merchandisingFrontal presentation

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Three types of display areas:Feature Areas: freestanding fixtures, mannequins, promotional areasBulk of stock: entire range of stock displayed on gondolasWalls: Bata, Reebook, Adidas

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Fixtures: they carry and display the merchandise

A straight trackA rounder A four way fixtureA gondolaClosed sell or open sell fixtureManufacturer provided fixtures

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Atmospherics: can be described as an environment that stimulates the perceptual and emotional responses of the customers through

Visual communicationLightingColorsMusic and Fragrance

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Visual communicationCoordination between signs and graphics and the image of the storeProviding information to the customerUsing signs and graphics as supporting materialUpdating signs and graphicsAvoiding excessive use of text in the signsUsing appropriate fonts on the signsCreating theatrical effects

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LightingHighlighting the displayed productsCapturing customers moodAbility to mask the unattractive feature

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Store Security

Customer theft: the theft of the merchandise on display in the store committed by entrants into the store, direct theft of the products on display, tampering with the retailers price tag to show a lower price or replacing the original price tag with a lower priced tag.

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Store Security

Customer theft: those who commit this theft either derive a physical or psychological satisfaction

Amateur shopliftersProfessional shop lifters

Employee theftSupplier pilferageCredit management

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Different types of shopliftersBoosterDiverterBlockerSweeperWalkerWearerCarrierSelf-wrapperPrice changer 77

Types of employee pilfers

EaterSmugglerDiscounterDipperEmbezzlerPartnerStasher

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Documents

Session 13 Store Layout Design