Dunne, Lusch, & Carver
Chapter 13
Store Layout and Design
Del Frisco’s - Dallas
Del Frisco’s - Dallas
Del Frisco’s - Denver
Del Frisco’s - Denver
Del Frisco’s - Houston
Del Frisco’s - Houston
Del Frisco’s - Houston
Del Frisco’s – New York
Del Frisco’s - New York
Del Frisco’s – Philadelphia
Del Frisco’s - Philadelphia
Del Frisco’s - Philadelphia
Del Frisco’s - Philadelphia
Two Quick Videos on
the Science of Layouts
• Layout Video #1
• http://www.youtube.com/watch?v=g3IwOgA3Ng
w&feature=related
• Layout Video #2
• http://www.youtube.com/watch?v=RjgkQ6bq7aE
&feature=related
Why Focus on Store Layout
Management?
• Dallas Morning News Headline:
“Shopper Found Dead in Local Store;
Cause of Death – Boredom.”
Stanley Marcus (Neiman Marcus) – ACRA 1993
Boredom & the Store Environment
• Time Poverty
• As consumers’ lives become increasingly time starved,
customers are often entering retail stores with a negative
feeling/emotion because they would rather be doing
something else than shopping
• Dissatisfaction with Shopping
• Whether due to larger amounts of category
management, cookie-cutter retailers, more time spent
working, or changes in demographics…
• So what?
A “Clash for Cash”
• Two Primary Objectives of the Store Environment
1. Store Image
•
How much do you spend to get customers into the store?
•
Affected by such things as:
Location
Promotional Activities
Merchandise
Cleanliness
Employees
Layout
Lighting
Service Offerings
2. Space Productivity
•
How much is necessary to keep customers inside the store
for longer periods so that we can expose them to more
products, thus increasing the probability that they purchase?
Elements of the Store Environment
Store Planning
• “The better it is, the less you notice it as a
customer”
• Fundamentally concerned with the allocation of space and
how it is used.
• Floor Plan
• A schematic that shows where merchandise and customer
service departments are located, how customers circulate
through the store, and how much space is dedicated to each
department.
Types of Space
• Back room
• Receiving areas for shipments & stockroom
• Office & other functional areas
• Break & training rooms, offices, and bathrooms
• Aisles, service areas, and other non-selling space
• Dressing rooms, service desks, etc.
• Walls
• Sales floor
Space Allocation Planning
• Requires the retailer to first analyze the
profitability and productivity of various
merchandise lines.
• On average 20% of a retailer’s merchandise is either
obsolete or unwanted by the retailer’s customer base.
• Any productivity metric chosen must relate some
performance variable (e.g., sales, GM, etc.) to the
amount of space used in the store.
Improving an
Existing Store’s Space Productivity
• Space Productivity Index
• Compares the percentage of the store’s total GM for a
category to the percentage of space allocated to that
category (fig. 13.3)
• Comparing Index Figures
• 1.0 is ideal
• If greater,
• May want to increase allocation to make more money by having more
product available
• If less,
• It’s underperforming, and may want to remove some space
• Why only “maybe remove”?
Space Allocations for a New Store
• 2 Methods for Calculating Sales per Sq. Foot:
• Traditional:
• Total sales / total sq. ft. in the store
• Bob Kahn’s approach:
• Number of customers X the length of time in the store
Warning Signs
Indicating a Possible Space Problem
Layout and Circulation Patterns:
Free-Flow Layout
Layout and Circulation Patterns:
The Grid Layout
Layout and Circulation Patterns:
The Loop Layout
Layout and Circulation Patterns:
The Spine Layout
Kohl’s “Modified” Loop Layout
Layout and Circulation Patterns:
The Spine Layout - Disney
The Only Patented Layout –
Clarence Sander’s Piggly Wiggly
Planning Fixtures and
Merchandise Presentation
• Shrinkage Prevention
• $40 billion lost annually by retailers from theft alone
• Dramatically affected by one’s store layout and design
• Key: Visibility of merchandise
• Example: placement of offices & other security windows
• Most theft occurs:
• In changing rooms, blind spots, aisles crowded by “stack-outs”, or
behind high displays
• Traditionally, has led to display fixtures no higher than eye-level,
but increased productivity of higher fixtures pushes some to
overlook possibility for theft.
Planning Fixtures and
Merchandise Presentation
• Increased emphasis on presentation as retailer
seek to maximize sales out of existing square
footage.
• Two basic types of merchandise presentation:
1. On-shelf merchandising
•
The display of merchandise on counters, racks, shelves, and other
fixtures throughout the store
2. Visual merchandising
•
•
The artistic display of merchandise and theatrical props used as
scene-setting decoration in the store.
Typically not shoppable, but impacts affect and accessorization
•
Another example of how retailers can offer service without people – helps customers know
what to buy
Example of Visual Merchandising
On-shelf Merchandising
• “Shopping is a ‘contact’ sport”
• Fixtures must not only present merchandise attractively,
but also display in such a way that it’s easy to
understand and is accessible.
• It must also:
1. Be easy to maintain by the staff, as well as the
customer
2. Eliminate any fear in the customer to actually touch
because of fear of damaging the product or themselves
Planning Fixtures and
Merchandise Presentation
• General Rule of Thumb:
• “Match the fixture to the merchandise, not the
merchandise to the fixture.”
• Three categories of store fixtures:
1. Hardline fixtures
•
Examples: Gondola, tables, bins, flat-base deck
2. Softline fixtures
•
Bulk or capacity fixture
•
•
Examples: Straight rack and Round rack (both sleeve-out)
Feature fixture
•
Example: Four-way rack (face-out presentation)
3. Wall fixtures
Four-Way Rack
and Round Rack
Merchandise Presentation and
Likely Customer Affect & Price Image
• Methods of merchandise presentation:
1. Shelving
2. Hanging
3. Pegging
4. Folding
5. Stacking
6. Dumping
Merchandise Presentation and
Likely Customer Angles or Sightlines
Merchandise Presentation and
Vertical Color Blocking
Store Design
• Overall goal is to create a desirable ambience
• A function of at least four different factors:
1. Storefront design
2. Interior design
3. Lighting design
4. Sounds and smells
Storefront Design
• All successful retailers will have storefronts that
are:
1. Noticeable
2. Memorable
3. Easily identifiable
•
Includes not only the store front décor, architecture,
and building materials, but also window displays and
any advertising
•
Poor performance here will dramatically lessen one’s
overall traffic
Storefront Design –
Example: Victor Churchill Butcher Shop
Storefront Design
Interior Design
• Focuses on two general elements:
1. Finishes applied to surfaces
•
•
Flooring – Marble, wood, paint/stain, bare
Wall coverings – color, sheen, texture, and
fabrics/materials
2. Architectural shapes
•
•
•
•
Archways
Ceilings – vaulted versus fully-exposed
Staircases
Sunken floors
Interior Design –
Kubrick Bookshop (Beijing)
Interior Design –
Target
Lighting Design
• Lighting can greatly impact store sales; yet not
always in a positive way.
• Bright lighting
• Pushes for customers to handle merchandise which may
increase conversion
• May suggest a discount-store image, particularly for fashion
• Lighting to dissuade “undesirables”
• Contemporary lighting design requires an in-depth
knowledge of electrical engineering and the effect of
light on color and texture.
Lighting Design –
Brother & Sister (Hong Kong)
Sound & Smell Design
• Total Sensory Marketing
• Effective design appeals to four of the five human
senses
• Sight, Hearing, Smell, and Touch
• The “Decompression Chamber”
• While “sight” may the focal point, “smell” is believed
to be most highly linked to memory and emotion.
• Examples: Nike & old shoes; Disney & baked cookies
• Sound can affect shopping speed
Visual Communications
• 5 General Areas of Visual Communication:
1. Name, Logo, and Retailer Identity
2. Institutional signage
3. Directional, Departmental, and/or Category
signage
4. Point-of-Purchase (POP) signage
5. Lifestyle Graphics
What You Should Have Learned…
Chapter’s Learning Objectives
1. The elements of a store’s environment & its two primary
objectives.
2. The steps involved in planning the store.
3. How various types of fixtures, merchandise presentation
methods & techniques, and the psychology of
merchandise presentation are used to increase the
productivity of the sales floor.
4. Why store design is so important to a store’s success.
5. The role of visual communications in a retail store.