Layout and Design of a Store 3/22/2016 1 Objective: 3/22/2016 Define the terms in this discipline of Layout and Design 2 Terms Impulse items Convenience Stores Specialty Stores Racetrack Layout Boutique Layout Profit Perimeter Fixture Eye Level Slotting Fees Point of Purchase (POP) Demand items Shopping Stores Spine Layout Grid Layout Merchandising Cherry Picker Marquee Facing Loss Leader There are three types of retail stores 3/22/2016 Convenience Shopping Specialty 4 Convenience Examples of this store is 7-11, Circle K or a liquor store Pricing is usually more expensive and items are a smaller size. 3/22/2016 5 Specialty Store Specialty Stores sell one kind of item, plus accessories. Examples are: Men’s clothing stores Tobacco related products stores Payless shoes 3/22/2016 6 Shopping Stores The goal of shopping stores are to keep the customers in the store. Example of Shopping Stores are: Supermarkets Department stores Mass Merchandisers 3/22/2016 7 Layouts of stores There are four types of Layouts of stores 1. Grid or Supermarket layout 2. Boutique 3. Racetrack 4. Spine 3/22/2016 8 Grid Layout Long isles in repetitive pattern. Easy to locate merchandise Does not encourage customers to explore the store 3/22/2016 Limited site lines to merchandise Allows more merchandise to be displayed Cost efficient Used in grocery, discount, and drug stores. 9 The McGraw-Hill Companies, Inc./Andrew Resek, photographer Receiving & storage Grid Store Layout Fruit Vegetables Books, magazines, seasonal display Checkouts Cart area Entrance Office & customer service 3/22/2016 Exit 10 Grid Layouts 3/22/2016 Advantages 1. Low cost 2. Customer familiarity 3. Merchandise exposure 4. Ease of cleaning 5. Simplified security 6. Possibility of self-service 11 Grid Layouts 3/22/2016 Disadvantages 1. Plain and uninteresting 2. Limited browsing 3. Stimulation of rushed shopping behavior 4. Limited creativity in decor 12 Boutique Layout Fixtures and aisles arranged asymmetrically Pleasant relaxing ambiance doesn’t come cheap – small store experience Used in specialty stores and upscale department stores Jack Star/PhotoLink/Getty Images 3/22/2016 13 Boutique Layout Pants Clearance Items Feature Open Display Window 3/22/2016 Tops Tops Accessories Checkout counter Feature Hats and Handbags Dressing Rooms Underwear Skirts and Dresses Jeans Casual Wear Stockings Storage, Receiving, Marketing Open Display Window 14 Boutiques 3/22/2016 Advantages 1. Allowance for browsing and wandering freely 2. Increased impulse purchases 3. Visual appeal 4. Flexibility 15 Boutiques 3/22/2016 Disadvantages 1. Loitering encouraged 2. Possible confusion 3. Waste of floor space 4. Cost 5. Difficulty of cleaning 6. Difficult to see all area, easier to shoplift 16 JC Penney Racetrack Layout 3/22/2016 17 Racetrack Layout 3/22/2016 AKA “Loop” has one major circular 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 18 Store Planning - Circulation Pattern Spine Layout - The major customer aisle runs from the front to the back of the store, with merchandise departments branching off to the back side walls 3/22/2016 19 ll Key Psychological Factors, Spine Layouts Value / Fashion Image 45 degree angle sightlines presentation of product influences image customer has regarding that product Angles and Sightlines Customers view product at 45 degree angle and at eye level. Where a product is placed on shelves influences sales 3/22/2016 Vertical Color Blocking Display product in vertical bands of color 20 Merchandising is The art of attracting customers to products 3/22/2016 21 Two types of items (products) customers buy they are: Demand and Impulse items. Anything can be an impulse item and anything can be a demand item. However, if you are shopping in an clothing store, you don’t expect to buy food, right? 3/22/2016 22 Profit Perimeter Profit Perimeters are the inside walls of a store where demand items are sold. 3/22/2016 23 Demand Items Items that the customer came to the store to buy. Examples of demand items in a supermarket is Milk, Bread, Liquor, Meat or Produce. 3/22/2016 24 Point of Purchase P.O.P., Point of Purchase is: Where the cash registers are located. This is the last chance to sell things to customers. Many impulse items are found at POP. 3/22/2016 25 Impulse Items 3/22/2016 Items that the customer bought but didn’t plan on buying when they walked into the store. Examples of this could be magazines, horoscopes, razors, gum and candy. 26 Fixtures are: Anything permanent that helps sell products. Examples of fixtures are: Displays, shelving, electrical outlets, tile, lighting, carpeting as well as paint on the wall. 3/22/2016 27 Marquee Large sign with interchangeable numbers and letters 3/22/2016 28 Display Types 3/22/2016 On-shelf vs. On Floor Gondola - Common for Hard lines, canned goods Racks - Common for Soft lines, clothing Wall Fixtures End Caps Checkout Fixtures 29 Eye Level Is the best selling area on the shelf. Producers fight for this position. 3/22/2016 30 Slotting Fees Slotting fees is the money paid to retailers from producers (manufactures) to have a shelf position in a retail store. 3/22/2016 31 Facing Width, length and depth of a product, but is also showing the label for product identification. (logo) 3/22/2016 32 Loss Leader Loss Leaders are products that retailers sell below cost to bring customers into the store. This is an advertising ploy. For every item a customer comes into a store to buy, they purchase 5-7 items 3/22/2016 33 A good Loss Leader in the supermarket business is steak. If you buy steak, you could complete the meal and also buy: Potatoes, lettuce, salad dressing, briquettes, lighter fluid, steak sauce, a vegetable, wine, garlic bread and dessert. Cherry Pickers Cherry Pickers are customers that buy only Loss Leaders. 3/22/2016 35