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Advanced MerchandisingLesson 12
Objectives• Describe the characteristics of good store layout and its impact on sales
• Give real-world examples of the four main types of store layout – grid, loop, free flow, and spine
• Explain the importance of a well designed store entrance
• Computer sales per square foot of space and linear foot of shelving
• Calculate short- and long- term payments on leased vs. purchased store fixtures
• Evaluate the pros and cons of new equipment, and impact on sales, by analyzing financial statements
• Plan an effective store layout to meet sales goals
Why is Store Layout Important?
•Store Layout:▫Arrangement of store fixtures, equipment,
and merchandise Major influence on sales and important to
image and appearance of the store Cash registers
Measuring Productivity
•Most retailers use sales per square foot•Some use sales per linear foot
25 ft
20 ft
Creating a Store Layout
1. Encourage customers to move around the store.
▫ Tend to view more merchandise2. Provide a space that is sufficient for
customers to shop in and that is useful for maximum productivity
▫ Not to cluttered
Types of Store Layouts
•Grid:▫Characterized by long rows of shelving
with aisles between the rows Hold large amount of merchandise
Grocery or drug stores
•Loop:▫Designed to lead customers from the front
of the store, through the store, and back to the front See the most merchandise
Department Stores
•Free Flow:▫Merchandise on fixtures that are arranged
in asymmetrical or free flowing patterns on the sales floor Casual layout that encourages customers to
browse as they travel through the store Specialty stores
•Spine:▫Features a center aisle that extends from
the front of the store to the back Some drug stores
Fixtures – Purchase or Lease?
•Purchasing:▫Become the property of the store
Can get a tax deduction, but they loose there value
•Leasing:▫Rent for a period of time
The Importance of a Good Entrance
•Provides the first view customers have of a store▫Sets the tone and provides a good first
impression
MATH CONCEPTS
•Sales Per Square Foot Of Selling Space:▫Total Net Sales / Total Square Feet of
Selling Space
•Sales Per Linear Foot of Shelving:▫Total Net Sales / Total Linear Feet of
Shelving