Chapter 5 - Design and Layout PDF

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Chapter 5 – Layout and Design 

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Store design and layout consists of: o The architectural character. o The decorative style. o The functional environment. The store design and layout should complement and strengthen all the retailer’s other advertising and promotional activities. If the store does not get this aspect right, it can often confuse, and in some cases possibly even force the company to lose customers.

Key principles of Store Design and Layout    

Totality: The store should be the basis of the company’s strategy and be able to meet the needs of the target market. Focus: The store should encourage customers to spend. Ease of shopping: The store should be designed with convenience in mind, thus maximizing the customer experience. Change and flexibility: The store should never stay completely unchanged for too long – major renovations should take place every 5-7 years.

Elements of Store Design and Layout     

Exterior store design. Interior store design. Internal store layout. Merchandise presentation. Design and operation of non-selling areas.

Prototype Stores  

This is the standard version of the store layout and design, which can be changed slightly depending on the location. Benefits of the prototype stores: o A reduction in the cost of construction and assembly due to economies of scale. o Bulk purchasing of fixtures, fittings and other display devices is possible. o The management of the construction process is greatly simplified. o The standardization of operational methods is possible. o Staff members can be transferred between stores and they are able to adjust. o A consistent image of the chain or the franchise becomes entrenched.

Exterior Store Design  

The storefront includes all of the visible elements of the exterior appearance of the store. The elements in exterior store design include: o General architecture. o Storefront configuration. o Exterior signage. o Entrance.

o

Window displays.

Storefront Configuration There are essentially three basic storefront configurations:    

The straight-front configuration: This is whereby the storefront runs parallel to the street or the pavement. The angled-front configuration: This is similar to the straight-front but the sides between the door and the pavement are positioned at an angle. The arcade-front configuration: This storefront design contains many recessed windows and/or entrances to use. The circular-front configuration This is also similar to the straight-front configuration, but it appears on a circular line.

Types of Window Displays Elevated windows 

These are display windows that are elevated 90cms or less above the level of the pavement or the floor of the store front.

Island windows:  

Display windows with four sides and that are completely isolated from the rest of the shop. Merchandise displayed can be viewed from all angles.

Ramped windows:   

Display windows where the back of the display is higher than the front. The back height can be created by stepped tiers or wedges. The back may be open, closed or partially open.

Shadow box windows:  

Fully enclosed display boxes at eye level. Generally used by jewelry shops to focus a customer’s attention.

Interior Store Design   

The interior store design has the potential to convince consumers to part with more money than they had originally intended. Encourages consumers to stay and browse for longer, which increases the possibility of a sale occurring. The elements of the interior store design include: o Display fixtures. o Flooring. o Ceilings. o Walls. o Space. o Atmospherics.

o

Cash registers.

Atmospherics    

Atmospherics is the combination of colors, lighting, sound and scents used to send signals to the human brain to create a mental backdrop for the store. For example, colors may influence consumer behavior. Warm colors, such as red and yellow, signify activity and exert a drawing force on consumers. Lighting is used to improve displays. Sound is useful in creating a particular atmosphere in a store.

Internal Store Layout  

The objective of internal store layout is to maximize efficiency in the movement of consumers and merchandise. To achieve this, it is necessary to attend to the following issues: o Floor layout for consumer movement. o Providing floor space for people and merchandise. o Grouping products. o Allocating floor space to departments or merchandise classifications. o Locating merchandise groups or departments in the store. o Assigning shelf space to products in departments.

Floor Layout There are four basic floor layout patterns: 

Grid layout.

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Free-flow layout.

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Boutique layout.

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Loop layout.

Floor Space Typical areas for which floor space must be provided are:    

Selling area. Customer service area. Stock-keeping of merchandise area. Offices, staff and other functional areas.

Grouping of Products There are seven criteria that are used to group merchandise in stores:       

Functional grouping. Purchase motive grouping. Target market grouping. Supplier grouping. Storage and display requirements grouping. Price point grouping. Product item grouping.

Assigning Shelf Space  

The first step to determine where merchandise should be located in a department or merchandise group. The position and amount of space that any product or any brand should occupy are subject to the following three principles: o Shelf space and equal market share. o Gross margin returns on investment (GMROI). o Display positions.

Shelf Space and GMROI 

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Shelf space: o Should be equal to the market share. o Does not take into account the costs incurred and the profits made from the particular brand. Gross margin returns on investment (GMROI): o A productivity measure that is used to assess the performance of different merchandise categories. o Guiding principle: stock with a high productivity indicator should be given the best space and vice-versa.

Display Positions   

Display positions at the end of aisles and eye-level positions near checkouts represent the prime spots for location. Major brands are often found at eye level on the basis of the suppliers’ insistence. End caps are frequently used for display promotions and even clearance sales as this is highly visible space, with many customers walking past as they move around the store.

Planograms   

Computer software is used to determine the best allocations of shelf space dependent on a multitude of factors. The software uses both past and projected sales figures that assign the quantity and location of shelf space to specific products. A planogram is a shelf management plan which enables retailer to allocate and control the shelf space.

Visual Merchandise Presentation   

Functions of display. Principles of display. Display formats.

Functions of Display     

Present the merchandise on offer in such a way that it maximizes both space and visibility to customers. Increase the visual appeal of the merchandise = increased customer interest and possible purchase behavior. Used to house stock if the usual shelf space is not sufficient for stock during promotions or peak season events. Displays can be used as barriers to increase circulation, or as attractions in areas of the shop that are normally quiet. Improve the image of the shop in the marketplace.

Trade-Offs in Assigning Retail Space

Principles of Display    

Elements of color, texture, line, shape and space must always be used together with the merchandise, fixtures, signs and lighting inside the store. Variety. Seasonal or hot products must always be the focus of the store displays. A display must have a focus area which is always the center of attention in the store.

Design of Non-Selling Areas   

Dressing-rooms must be designed in such a way that their atmosphere is in line with the price and image positioning of the shop The toilets that are in the store must be designed according to high standards of hygiene and layout too. Restaurants and other food or drink venues and vendors must also always reflect the atmosphere of the store as a whole....