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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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REIs Store Environment
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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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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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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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Grid Store Layout
Fruit
Vegetables
Office &
customer
service
Books, magazines, seasonaldisplay
Re
ceiving&
stor
age
Exit
Entrance
Cart
areaCheckouts
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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
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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
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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
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MichaelEvans/ L
ifeFile/GettyImages
Example of Boutique Area
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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
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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
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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
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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
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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
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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
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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
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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
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Gondola
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Gondolas
Versatile
Grocery and discount stores
Some department storesHard to view apparel as they
are folded
Royalty-Free/CORBIS
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Creating a Store Environment
Color
Scent Music
Lighting
StoreAtmosphere
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Lighting
Highlight merchandise
Structure space and
capture a mood
Downplay featuresThe McGraw-Hill Companies, Inc./Lars A. Niki, photographer