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Instructor :

Dr. Mayo De Juan Vigaray

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Power points: conceptual framework

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PART 4.a

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MERCHANDISINGPhysical

environmentM.4.

MERCHANDISINGAtmosphericsStore layout

M.1. Communication methods

Retail imageM.2.

Design of a storeM.3.

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M.4. Physical environment AtmosphericsExteriorG l i i

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Vig Customer serviceM.5. General interior

Store layoutInterior displaysSTORE LAYOUT

Ma Interior displays

MERCHANDISINGPhysical

environmentM.4.

CHARACTERISTICSAtmosphericsStore layout

Shows the location of all merchandise departments and the placement of circulation aisles to allow customers to move through aisles to allow customers to move through the store

Allocation of floor space for:SellingM h di

Space merchandise categoryDepartment locations

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MerchandisePersonnelCustomers

Arrangements within departmentsAlternative design types

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Vig CustomersProduct groupingsTraffic flow patterns

g ypEfficient use of wallsSpace productivity

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MERCHANDISINGPhysical

environmentM.4.

GOALAtmosphericsStore layout

f ffTo optimize floor space and encourage traffic flowsTwo basic theories of store layoutTwo basic theories of store layout

“MAZE” TheoryTh b t t t i t t The best way to expose customers is to get them lost so they will find new merchandise and departments they would not otherwise ?

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see.

“MAKE IT EASY” Theory

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The easier it is for customers to move around, the more they buy (e.g., wide ?M

a around, the more they buy (e.g., wide aisles, lots of directional signals)

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MERCHANDISINGPhysical

environmentM.4.

GOAL AtmosphericsStore layout

The provision of a clear route noticeably affected some respondents’ propensity to browse(*).

A clear route provided “a natural way to go around and look at things(*).

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Kerfoot, S. Davies, B. and Ward, P. (2003) “Visual Merchandising and the creation of Discernible Retail Brands” International Journal of Retail & Distribution Management, Vol. 31, N. 3, pp. 143-152.

MERCHANDISINGPhysical

environmentM.4.

PRINCIPLESAtmosphericsStore layout

To expose the customer to a layout that facilitates a specific traffic pattern

To provide variety

Provide the greatest possible merchandise exposure

Locate high-margin and impulse items in key spots

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Discourage shoplifting in all possible ways

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Discourage shoplifting in all possible ways

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Be sure that the most important lines have the best locations

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MERCHANDISINGPhysical

environmentM.4.

PRINCIPLESAtmosphericsStore layout

Shoppers learn the “spatial map” of their local supermarket and….

h d d f h d

impacts on their shopping behaviour

…. hence get disoriented if changes are made, which in turn ….

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.... impacts on their shopping behaviour

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Refers to the way store floor space is used to facilitate and promote sales and to best serve the customer.

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MERCHANDISINGPhysical

environmentM.4.

KINDS OF SPACEAtmosphericsStore layout

A typical layout divides a store into four different kinds of space:

– Selling space – assigned for interior displays, product demonstrations, and sales transactions

– Merchandising space – allocated to items that are kept in inventory for selling

– Personnel space – assigned to store

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– Personnel space – assigned to store employees for lockers, lunch breaks, and restrooms

– Customer space – assigned for the comfort

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Vig – Customer space – assigned for the comfort

and convenience of the customer, including a café or food court, dressing rooms, lounges, and recreation areas for children

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MERCHANDISINGPhysical

environmentM.4.

TYPES OF DESIGNAtmosphericsStore layout

Grid store layoutGrid store layoutRacetrack layout

Grid store layout

Free form layoutSpine layout

A

Racetrack layout Free form layout

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CB

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Grid store layoutRacetrack layoutFree form layoutSpine layout

Grid store layout MERCHANDISINGPhysical

environmentM.4.

age

p yAtmosphericsStore layout

ng &

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Fruit

Vegetables

Books, magazines, seasonal display

Cart area

Checkouts

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Office & customer

Entrance

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Exit

Grid store layoutRacetrack layoutFree form layoutSpine layout

Grid store layout

Island type of self-service counter with tiers of p y

CHARACTERISTICS

counter with tiers of shelves, bins, or pegs

Impersonal but efficient atmosphere

Not aesthetically pleasing arrangement but good if customers plans are to move throughout the entire store

____________: less wasted spaceaisles all the same widthaccommodate shoppers and carts

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accommodate shoppers and cartsFixturing cost is reduced

Long gondola of merchandise and aisles in a

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Vig Long gondola of merchandise and aisles in a repetitive patternSpace productivity is enhanced

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Most grocery & drugstore

MERCHANDISINGPhysical

environmentM.4.

Grid store layoutRacetrack layoutFree form layoutRacetrack layout

AtmosphericsStore layout

Spine layout

How can a store design pull customers through large shopping goods stores such as

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shopping goods stores such as

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Grid store layoutRacetrack layoutFree form layoutRacetrack layout Department designed to

resemble small self-Spine layout

CHARACTERISTICS

resemble small self-contained stores

CHARACTERISTICS

A _______________ is presented

Shoppers do not feel rushed and will browse around

People are encouraged to walk through the store in any direction or pattern they desire

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Impulse or unplanned purchases are enhanced

Aisle “loops” provide access to boutiques

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Vig Aisle loops provide access to boutiques

Customers eyes are forced to take different viewing anglesAi l fl i bl lik til h t ` M

a Aisle flooring: marble like tile change customer`s way Department store: vary in texture, color, material

Grid store layoutRacetrack layoutFree form layoutFree form layout

MERCHANDISINGPhysical

environmentM.4.

Storage Receiving Marketing

Spine layouty

AtmosphericsStore layout

Storage, Receiving, Marketing

U d Dressing Rooms s

Underwear Dressing Rooms

Stoc

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Tops

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andb

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Checkout counter

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Acc

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ats

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Clearance Items

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Pan

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Tops

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Feature Feature

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Open Display Window Open Display Window

MERCHANDISINGPhysical

environmentM.4.

Grid store layoutRacetrack layoutFree form layoutFree form layout

AtmosphericsStore layout

Spine layouty

CHARACTERISTICSCHARACTERISTICS

Arranges fixtures and aisles asymmetrically

Relaxed environment

Facilitates shopping and browsingFacilitates shopping and browsing

_________

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Personal selling more important

Theft is higher

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Store sacrifices some storage and display space to create the more spacious environment

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Ma the more spacious environment

MERCHANDISINGPhysical

environmentM.4.

Grid store layoutRacetrack layoutFree form layout

AtmosphericsStore layout

Spine layoutSpine layout

CHARACTERISTICSCHARACTERISTICS

A variation of the free-flow & grid & loop

________________________ in certain circumstances

Based on a single main aisle running from the front to Based on a single main aisle running from the front to the back of the store transporting customers in both directions

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On either side of this spine, merchandise departments branch off toward the back or side walls

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Within the department a free-flow or grid layout can be used

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MERCHANDISING

Physical environment

M.4.

SHRINKAGE PREVENTIONAtmosphericsStore layout

When planning a store’s layout and design must When planning a store s layout and design, must be considered the prevention of shrinkage due to:

theft & damage loss

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To enhance space productivity retailers must:

1. Planning

2. Merchandising presentation2. Merchandising presentation

3. Design strategies that minimize shrinkage

a. Avoiding hidden areas that shoplifters can take advantage of

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b. Reducing number of times merchandise must be moved during which damage and loss can occurr

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MERCHANDISING

Physical environment

M.4.

MERCHANDISINGAtmospherics

Interior displays

M.1. Communication methods

Retail imageM.2.

Design of a storeM.3.

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M.4. Physical environment AtmosphericsExterior

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Store layoutI t i di lM

a Interior displaysINTERIOR DISPLAYS

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MERCHANDISING

Physical environment

M.4.

Atmospherics

Interior displaysINTERIOR DISPLAYS

U fi t d t h h di Use fixtures and props to showcase merchandise. These displays generate one out of every four sales. There are different types of interior displays– Closed displays – allow customers to see but not

handle merchandise– Open displays – allow customers to handle and Open displays allow customers to handle and

examine merchandise without the help of a salesperson

– Architectural displays – consist of model rooms

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Architectural displays consist of model rooms that allow customers to see how merchandise might look in their homes

– Point-of-purchase displays – displays designed

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mainly to promote impulse purchases and are usually located at or near the cash registerStore decorations displays that coincide with M

a – Store decorations – displays that coincide with specific seasons or holidays

MERCHANDISING

Physical environment

M.4.

PLANNING FOR FIXTURING Atmospherics

Interior displays

PLANNING FOR FIXTURING A STORE (I)

1. What items, vendors, categories and dept. should be carried?

h f h h ld b d2. How much of each item should be carried?3. Where should the merchandising be located?

Optimize floor space and encourage traffic-flow

4. How much space should the merchandise take?

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Optimize floor space and encourage traffic flow

Seasonal display & impulse merchandiseS i l fi t t i it t i t th Very front:

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space

R d f t bl b & fi t

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General floor area Reserved for tables, cubes & fixtures lower than eye level

PLANNING FOR FIXTURING APLANNING FOR FIXTURING ASTORE (II)

Perfect for displaying and storing taller

Merchandise that customers purchase

Back and side Perfect for displaying and storing taller fixturing

Impulse products without preplanningLocated near the front to draw people into the store

Demand/Destinations areas

Corners and on upper floors demand for products/services is created before customers get to their destination

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Not prime locations

Adjacent Dept./merchandise

Cluster of complementary products together to facilitate multiple purchases

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Vig merchandise together to facilitate multiple purchases

Seasonal needsLarge amounts of floor space

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Physical charact. Of merchandise

Large amounts of floor space

MERCHANDISING

Physical environment

M.4.

PLANNING FOR FIXTURING A Atmospherics

Interior displays

PLANNING FOR FIXTURING ASTORE (III)

Select families of fixturesFixtures shouldn’t compet with merchandise

Si il t i l d t l

Keep the fixtures out of cutomers’ pathCustomers shouldn’t injure themselves by falling over a

Similar materials and styles

FlexibilityAbility to physically move store components

j y gmisplaced fixture (liable for negligence)

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Ability to physically move store components

Ease with which components can be modified

N d f di bl d

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Vig Needs of disabled

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MERCHANDISING

Physical environment

M.4.

PLANNING FOR FIXTURING A Atmospherics

Interior displays

PLANNING FOR FIXTURING ASTORE (III)

The use of planogramsA diagram created from photographs, computer output or artist’s rendering that illustrates exactly where every SK

Report:

a s s e de g a us a es e ac y e e e e y Sshould be placed.

pA productivity report by SKU based on sales history

An ABC analysis by SKU

A tili ti t th t d ib th

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A space utilization report that describes the percentage of available space used in the planogram

A section comparison report that can describe d i i b 2 i

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Carrefour: Spaceman

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Gap Banana Republic: photographs diagrams

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