STORE LAYOUT

A store layout is the design in which a store's interior is set up. Store layout is well thought out to

provide the best exposure possible. It is designed to create an attractive image for consumers. It

describes the overall look and feel of the interior of a retail store, including the placement of

fixtures and products within the store. It is an important part of implementing retail store

strategy. Effective layouts are designed to expose customers to the most products possible

giveamount of floor space available.

A well-planned retail store layout allows a retailer to maximize the sales for each square foot of

the allocated selling space within the store. Store layouts generally show the size and location of

each department, any permanent structures, fixture locations and customer traffic patterns. Each

floor plan and store layout will depend on the type of products sold, the building location and

how much the business can afford to put into the overall store design.

Types of store layout

Free flow layout: These stores do not really have a fixed arrangements, the irregular

pattern leads to greater flexibility for both fixtures and shoppers. However if too many fixtures

are used it can create an overcrowded effect. Some fashion store chains use a free flow layout,

inorder to create an image of the lifestyle that corresponds to the garments being sold.

ADVANTAGES

Allowance for browsing and wandering freely Increased impulse purchases Visual appeal Flexibility

DISADVANTAGES Loitering encouraged Possible confusion Waste of floor space Cost Difficulty of cleaning

LOOP LAYOUT

Loop Layout is also known as Racetrack layout. It is a type of store layout in which a major

customer aisle begins at the entrance, loops through the store, usually in the shape of a circle,

square, or rectangle, and then returns the customer the front of the store.

Advantages It guides customer round a large area It exposes large amounts of merchandise

Disadvantages

Customers cannot focus on intendedpurchase Need for internal walls/island screens

GRID LAYOUT

These tend to have defined aisles and space for products. A customer tends to move around in an

ordered way e.g like a supermarket or convenience

store. Signs are often overhead to help customers know where the products are. They will also

use end of aisles and special displays to encourage impulse purchasing

Advantages Low cost Customer familiarity Merchandise exposure Ease of cleaning Simplified security Possibility of self-service

Disadvantages Plain and uninteresting Limited browsing Stimulation of rushed shopping behavior Limited creativity in decor

Spine Layout:

Spine Layout is a type of store layout in which a single main aisle

runs from the front to the back of the store, transporting customers in both

directions, and where on either side of this spine, merchandise departments

using either a free-flow or grid pattern branch off toward the back aisle walls.

Advantage

Retailer can utilize the benefits of free flow,grid and loop systems.

Disadvantage

Retailer may need to vary the shape of central walk way & increase expenditure on fixtures & fittings

RETAIL LOCATION

A retailer has to choose amongalternate types of retail locations available. It may locate in an

isolated placandpull the customer to the store on its own strength, such as a small grocery store

orpaan shop in a colony which attracts the customers staying close by. Typically a storelocation

may be:

1. Freestanding /Isolated store2. Part of Business District/Centres (Unplanned Business Districts)3. Part of a Shopping Centre (Planned Shopping Centres)

1. Freestanding /Isolated store

Advantages:

Convenience High traffic and visibility Modest occupancy cost Separation from competition Few restrictions

DISADVANTAGES

No foot traffic No drawing power

CENTRAL BUSINESS DISTRICTS

A central business district (CBD) is the commercial and business centre of a city.

central business district located away from its commercial or cultural city centre or downtown.

The CBD usually has an urban density higher than the surrounding districts of the city, and is

often the location of the tallest buildings in the city.

ADVANTAGES

Hub for public transportation

Draws people into areas during business hours

Pedestrian traffic

Residents

DISADVANTAGES

High security required

Shoplifting

Parking is poor

Evenings and weekends are slow

SHOPPING CENTERS

A shopping center is a group of retail and other commercial establishments that is

planned, developed, owned and managed as a single property, typically with on-site

parking provided. The center's size and orientation are generally determined by the

market characteristics of the trade area served by the center.

Shopping Center Management Controls:

Parking

Security

Parking lot lighting

Outdoor signage

Advertising

Special events for customers

ADVANTAGES

Convenient locations Easy parking

Low occupancy costs

DISADVANTAGES

Limited trade area Lack of entertainment No protection from weather

TRADE AREA

A store’s trade area, also called its catchment, can be likened to its sphere of influence. It

measures how far its customer base extends.. In fact, if all infinitesimal probabilities be included

in defining the trade area, it would include the entire globe, and even the universe if the one in a

trillion trillion probability of a spaceship landing in front of that Pune store be also considered.

Hence, a trade area definition is restricted to a bulk fraction of the (literally) universe of

customers that a store attracts. Typically, this varies from 60-80%.

Why a retailer needs to know its trade area is asking why a politician needs to know the

constituents of the district he contests elections from. Just like a politician cannot change the

demographics of his constituents, a store cannot change the demographic facts of its site. It

might choose to ignore it only in a totalitarian state where supplies and competition are both

artificially kept scarce. It might shape the habits of its customer base, slowly and incrementally,

but that’s another story, and merely nuanced adjustments to a set reality shaped by

metanarratives of geography, history and sociology.

To be successful, a retailer has to become the store that its community needs and a successful

trade area analysis defines exactly what this community is and what it needs, explicitly and

implicitly.

Trade area analysis provides the foundation for:

Understanding the geographic extent and characteristics of store patronage. Spatially assessing performance. Performing competitive analysis. Evaluating market penetration and market gap analysis. Target marketing.

Merchandising. Identifying/quantifying effects of cannibalization.

Developing and exploiting demographic profiles. Site suitability and site selection studies.