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Chapter Chapter 44

Store Planning, Store Planning, Design & LayoutDesign & Layout

Faiza NasirFaiza Nasir

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Location PlanningLocation Planning

Location Mapping:Location Mapping:Location is mapped so that the extent of each store’s Location is mapped so that the extent of each store’s reach to the customers is well defined.reach to the customers is well defined.

Location Parameters:Location Parameters:Defining the store location’s identification parameters to Defining the store location’s identification parameters to evaluate if the desired attributes are available evaluate if the desired attributes are available (look at (look at

examples in the chapter)examples in the chapter)..

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Site SelectionSite Selection Target Market Area Population

characteristics (consumer base / flow)

Economic base characteristics

Competition and level of saturation (nature of nearby stores)

Demand & supply situation

Type of Building / Store requirement

Affordability Ownership / Lease Façade

requirements Size requirements Facilities (parking,

electricity, transportation access)

Other costs Length of agreement Legal restrictions Traffic scenario Footfall as a

determinant

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Store Design & The Retailing Store Design & The Retailing Image MixImage Mix

1.1. Employee type and densityEmployee type and density

2.2. Merchandise type and densityMerchandise type and density

3.3. Fixture type and densityFixture type and density

4.4. Sound type and densitySound type and density

5.5. Odor type and densityOdor type and density

6.6. Visual type and densityVisual type and density

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Managing Space MixManaging Space Mix

60%25%

15%

Selling Circulation Back Area

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Managing Space MixManaging Space Mix• If store has an extra area, it is given to If store has an extra area, it is given to

concessionaires (ATM, Kiosks)concessionaires (ATM, Kiosks)• Consumer perception analysis is done before Consumer perception analysis is done before

allocation.allocation.• Product category length, width and depth are Product category length, width and depth are

consideredconsidered• Quantity of Staple (core merchandise, constitute Quantity of Staple (core merchandise, constitute

55%, like shirts and trousers in dept. stores), 55%, like shirts and trousers in dept. stores), Convenience (constitute 30%, basic white T-shirts, Convenience (constitute 30%, basic white T-shirts, socks) and Impulse merchandise (constitute 15%, socks) and Impulse merchandise (constitute 15%, hair accessories in a fashion store) determines the hair accessories in a fashion store) determines the space allocation.space allocation.

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Effective Retail Space Effective Retail Space ManagementManagement

Store ImageStore Image is the overall perception the is the overall perception the customer has of the store’s environment.customer has of the store’s environment.

Space ProductivitySpace Productivity represents how represents how effectively the retailer utilizes its space effectively the retailer utilizes its space and is usually measured by sales per and is usually measured by sales per square foot of selling space or gross square foot of selling space or gross margin dollars per square foot of selling margin dollars per square foot of selling space.space.

Store Environment Store Environment (Pinball Effect, display (Pinball Effect, display and color themes)and color themes)

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Elements That Compose the Store Elements That Compose the Store EnvironmentEnvironment

Visual Communications

Retail Identity

Graphics

POS Signage

Store Planning

Space Allocation

Layout

Circulation

Store Design

Exterior Design

Ambiance

Lighting

Merchandising

Fixture Selection

Merchandise Presentation

Visual Merchandising

Store Image

And

Productivity

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Effective Retail Space Effective Retail Space ManagementManagement

Managing store façadeManaging store façade

Advantages:Advantages:– Enables smooth and efficient customer flowEnables smooth and efficient customer flow– Facilitates customer reach and access to the Facilitates customer reach and access to the

merchandisemerchandise– Makes shopping comfortable and pleasantMakes shopping comfortable and pleasant– Aesthetics of a well-planed floor are a visual Aesthetics of a well-planed floor are a visual

feastfeast– Facilitates selling effectively and retaining the Facilitates selling effectively and retaining the

customers.customers.

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Store Layout: The Circulation PlanStore Layout: The Circulation Plan1. Free flow circulation: where the merchandise and fixtures 1. Free flow circulation: where the merchandise and fixtures

are grouped in clusters as in boutiquesare grouped in clusters as in boutiques

Advantages• Allowance for browsing and wandering freely• Increased impulse • purchases• Visual appeal• FlexibilityDisadvantages• Loitering encouraged• Possible confusion • Waste of floor space• Cost• Difficulty of cleaning

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The Disney Store’s Effective UseThe Disney Store’s Effective Useof the Free-Flow Designof the Free-Flow Design

Approximately 250 million Approximately 250 million consumers visit Disney’s consumers visit Disney’s entertainment retail outlets entertainment retail outlets each year. New store each year. New store designs showcase designs showcase merchandise in an engaging merchandise in an engaging and contemporary fashion, and contemporary fashion, keeping pace with evolving keeping pace with evolving retail trends. Technological retail trends. Technological elements - including a front-elements - including a front-of-store media wall that of-store media wall that engages guests with Disney engages guests with Disney programming, and programming, and interactive kiosks-setting interactive kiosks-setting the stage for the Disney the stage for the Disney Store in the 21st century. Store in the 21st century.

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Store Layout: The Circulation PlanStore Layout: The Circulation Plan2. Grid circulation: where aisles and fixtures are at right angles to each 2. Grid circulation: where aisles and fixtures are at right angles to each

other like in supermarketsother like in supermarkets

AdvantagesAdvantages• Low costLow cost• Customer familiarity Customer familiarity • Merchandise exposureMerchandise exposure• Ease of cleaningEase of cleaning• Simplified securitySimplified security• Possibility of self-servicePossibility of self-serviceDisadvantages• Plain and uninteresting• Limited browsing • Stimulation of rushed shopping behavior• Limited creativity in decor

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Store Layout: The Circulation PlanStore Layout: The Circulation Plan

3. Race track circulation: used in larger & wider store, where 3. Race track circulation: used in larger & wider store, where customer is made to circle around the floor and get back to the customer is made to circle around the floor and get back to the beginning, usually the lift or the staircase lobby, to move to the beginning, usually the lift or the staircase lobby, to move to the next level of the storenext level of the store

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Store Layout: The Circulation PlanStore Layout: The Circulation Plan

4. Herringbone circulation: used for a narrow store 4. Herringbone circulation: used for a narrow store where the highway is a single two-way one having where the highway is a single two-way one having “side roads” leading to the walls from it“side roads” leading to the walls from it

5. The Spine: is a Herringbone structure excluding side 5. The Spine: is a Herringbone structure excluding side roadsroads

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Floor Space ManagementFloor Space Management

Parameters to judge space performanceParameters to judge space performance Sales per square foot / top line plan (sales)Sales per square foot / top line plan (sales) Margins per square foot / bottom line plan (gross Margins per square foot / bottom line plan (gross

margin returns on footage)margin returns on footage) Stock-holding per square foot / bottom line tool (gross Stock-holding per square foot / bottom line tool (gross

margin returns on inventory)margin returns on inventory)

It can be for any SKU, Department, Division, Category, It can be for any SKU, Department, Division, Category, Sub-category, A Brand, Any specific style / size optionSub-category, A Brand, Any specific style / size option

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Floor Space ManagementFloor Space Management

Space Audit: Non-treaded space and Black holesSpace Audit: Non-treaded space and Black holes Hot spot analysis: Hot spot analysis:

Hot spots have highest off-take of merchandiseHot spots have highest off-take of merchandise

Warm & Cold spots face lower merchandise salesWarm & Cold spots face lower merchandise sales

Non-treaded space is where there is no customer trafficNon-treaded space is where there is no customer traffic

Less treaded space is where there is less customer trafficLess treaded space is where there is less customer traffic

Efficiency of Selling to Non-selling spaceEfficiency of Selling to Non-selling space

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Floor Space ManagementFloor Space Management

Ground rules for successful Space & Layout Ground rules for successful Space & Layout ManagementManagement

Floor space planning and management for customers’ Floor space planning and management for customers’ convenienceconvenience

Browsing should be facilitated as it leads to buyingBrowsing should be facilitated as it leads to buying Optimize trading area without compromising on non-Optimize trading area without compromising on non-

trading area. Ensure customer spend longer time theretrading area. Ensure customer spend longer time there Right floor space managementRight floor space management Appeal to all the five sensesAppeal to all the five senses Manage Dead EndsManage Dead Ends Creative and space saving product displaysCreative and space saving product displays Merchandise Management & Replenishment SchemeMerchandise Management & Replenishment Scheme