Transcript Slide 1

5th Edition
PPT 18-1
Chapter 18
Store Layout, Design
and Visual
Merchandising
McGraw-Hill/Irwin
PPT
18-2 Retailing Management, 5/e
Levy/Weitz:
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Store Management
Customer Service
Managing the Store
Layout, Design and
Visual Merchandising
PPT 18-3
REI’s Store Environment
PPT 18-4
Store Design Objectives
• Consistent with retailers image and
strategy
• Positive influence on customer
satisfaction and purchase behavior
• Cost effective
• Flexible
• Meet needs of disabled
PPT 18-5
Tradeoff in Store Design
Easy of locating
merchandise for
planned purchases
Exploration of
store, impulse
purchases
PPT 18-6
Types of Store Layouts
• Grid
• Racetrack
• Free Form
PPT 18-7
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. Why?
PPT 18-8
Receiving & storage
Grid Store Layout
Fruit
Vegetables
Books, magazines, seasonal
display
Checkouts
Cart
area
Entrance
Office &
customer
service
Exit
PPT 18-9
Racetrack Layout
Loop with a major aisle that has access to
departments and store’s multiple entrances.
• Draws customers around the store.
• Provide different site lines and encourage
exploration, impulse buying
• Used in department stores
PPT 18-10
JCPenney Racetrack Layout
PPT 18-11
Example of Race Track Layout
PPT 18-12
Free-Form (Boutique) Layout
Fixtures and aisles arranged asymmetrically
• Pleasant relaxing ambiance doesn’t 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
PPT 18-13
Free-Form Layout
Pants
Clearance
Items
Feature
Open Display Window
PPT 18-14
Tops
Tops
Accessories
Checkout counter
Feature
Open Display Window
Hats and Handbags
Dressing Rooms
Underwear
Skirts and Dresses
Jeans
Casual Wear
Stockings
Storage, Receiving, Marketing
Example of Boutique Area
PPT 18-15
Display Areas
Feature areas
– End caps
– Promotional aisle
– Freestanding
fixtures
– Point-of-sale areas
– Walls
PPT 18-16
Designing a Webpage:
Lessons from Store Design
• Simplicity matters
• Getting around
• Prioritize
• Design layout based on what you want to
accomplish
• Follow the standards of the industry leaders
PPT 18-17
Space Planning
Allocating floor/shelf space locating merchandise
in store (or on website)
Where should merchandise be displayed?
How much space should be allocated to each
category/item?
How many items of each SKUs should be
displayed?
PPT 18-18
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 be
displayed
PPT 18-19
Prime Locations for Merchandise
• Highly trafficked areas
– Store entrances
– Near checkout counter
• Highly visible areas
– End aisle
– Displays
PPT 18-20
Special Considerations
• Avoid the “butt-brush” effect.
• Make merchandise accessible.
• Allow a transition zone.
PPT 18-21
Visual Merchandising
PPT 18-22
Visual Merchandising
PPT 18-23
Visual Merchandising
PPT 18-24
Visual Merchandising
PPT 18-25
Visual Merchandising
• Visual Merchandising.
• Seven Colors Group
PPT 18-26
Financial Comparison Report for Existing & Proposed
Salad Dressing Planogram
Brand
Gross
Margin
Per Week
Sales
Unit Sales
Per Week Per Week
Inventory
Turnover
Section: Salad Dressing current
1. 7SEAS
2. HV RANCH
3. KENS STK
4. KRAFT
5. NWMN OW
6. PRS CHOI
7. WLD FRMS
8. WSHBN
TOTALS
PPT 18-27
$50.33
26.01
46.76
59.83
32.63
27.88
20.80
_102.76
$367.00
$273.68
165.13
330.14
336.42
186.06
122.18
109.85
__590.03
$2,113.49
222.00
90.80
266.00
238.00
114.00
82.00
65.00
__431.00
1,508.80
35.52
22.59
27.61
23.48
34.87
59.22
45.07
25.73
28.53
Financial Comparison Report for Existing
& Proposed Salad Dressing Planogram
Brand
G ross
M argin
Per W eek
Sales
Per W eek
Unit Sales
Per W eek
$273.68
46.20
165.13
330.14
336.42
186.06
122.18
109.85
__590.03
$2,150.24
222.00
44.00
90.80
266.00
229.00
114.00
82.00
65.00
__431.00
1,543.80
Inventory
Turnover
Section: Salad Dressing revised
1. 7SEAS
2. DUNNE
2. HV RANCH
3. KENS STK
4. KRAFT
5. NW M N OW
6. PRS CHOI
7. W LD FRM S
8. W SHBN
TOTALS
PPT 18-28
$50.33
6.97
26.01
46.76
58.40
32.63
27.88
20.80
_102.76
$367.54
35.52
26.00
22.59
27.61
27.13
34.87
59.22
45.07
25.73
29.19
Financial Comparison Report for Existing & Proposed
Salad Dressing Planogram
Brand
Gross
M argin
Per W eek
Sales
Per W eek
Unit Sales
Per W eek
$0.00
46.20
$0.00
$0.00
($9.45)
$0.00
$0.00
$0.00
_$0.00
$36.75
0.00
44.00
0.00
0.00
-9.00
0.00
0.00
0.00
0.00
35.00
Inventory
Turnover
Net Change
1. 7SEAS
2. DUNNE
2. HV RANCH
3. KENS STK
4. KRAFT
5. NW MN OW
6. PRS CHOI
7. W LD FRMS
8. W SHBN
TOTALS
PPT 18-29
$0.00
6.97
$0.00
$0.00
($1.43)
$0.00
$0.00
$0.00
$0.00
$5.54
0.00
26.00
0.00
0.00
3.64
0.00
0.00
0.00
0.00
0.66
Evaluating Space Productivity
Productivity ratios are output/input
– Sales per square foot
– Sales per linear foot
– Gross or contribution margin per square foot
PPT 18-30
Merchandise
Presentation Techniques
• Idea-Oriented Presentation
• Style/Item Presentation
• Color Organization
• Price Lining
• Vertical Merchandising
• Tonnage Merchandising
• Frontal Presentation
PPT 18-31
Types of Apparel Display Fixtures
Gondola
Rounder
PPT 18-32
Straight Rack
Four-Way
Straight Rack
PPT 18-33
Rounder
PPT 18-34
Four-Way
PPT 18-35
Gondola
PPT 18-36
Creating a Store Environment
Color
Lighting
Store Atmosphere
Scent
PPT 18-37
Music
Visual Communications
• Coordinate signs and graphics with the store’s
image.
• Inform the customer.
• Use signs and graphics as props.
• Keep signs and graphics fresh.
• Limit the copy of signs.
• Use appropriate typefaces on signs
• Create theatrical effects.
PPT 18-38
Lighting
• Highlight merchandise.
• Structure space and
capture a mood.
• Downplay features.
PPT 18-39