pleasure / displeasure Key factors Flooring Music

1
Store Planning, Design, Layout
2
Store Planning, Design, Layout

• Depend on needs of customer
• Atmospherics- Stores physical characteristics
  that are used to develop the retail unit image
  and therefore to draw customers

3
Roles played by Atmospherics

• To enhance image of store
• Attract new customers
• Facilitate movement in store
• Facilitate access to merchandise
• Facilitate optimum use of space
• Effective display of merchandise
• Reduce product search time

4
Elements of Atmospherics

• Employee type
• Depends on kind of product
• Language, appearance, dress
• Density of staff
• Specialty store- one per 100 sq ft
• Department store- one per 400 sq ft

5
Elements of Atmospherics

• Merchandise type
• High margin merchandise- low density, exclusivity
  feel
• Supermarkets- high density of merchandise, uoto
  8000 pcs per 100 sq ft
• Mid sized stores 750 pcs per 100 sq ft

6
Elements of Atmospherics

• Fixture types
• Depends on product
• Jewellery shops, sports showrooms, dept stores
• Density of fixtures will depend on density of
  merchandise

7
Elements of Atmospherics

• Sound
• Pleasant / unpleasant sounds
• Sounds determined by type of merchandise
• Store location can influence creation of unwanted
  sounds

8
Elements of Atmospherics

• Odour / Aroma
• Quality, strength of odour / smell
• Positive odours- bakery, coffee, perfume
• Negative odours- cigarette smoke, garbage smell,
  damp, musty carpets, rodent smells

9
Elements of Atmospherics

• Visuals
• Critical to store presentation
• Lighting, smell can be used effectively
• Garments- natural light
• Gold Warm, yellow light
• FMCG- Bright reds, yellows
• Luxury goods pastel colours
• Bright colours- trigger higher pulse rate,
  impulse buying
• Soft colours- Keep pulse rate comfortable

10
Immediate Effects of Atmospherics

• Pleasure / displeasure
• Reaction of shoppers to store / experience
• Arousal
• Extent to which environment stimulates the
  shopper
• Dominance
• Customer can feel either dominant (in control) or
  submissive ( under control)
• Colours, size of store, ceiling height affect
  dominance

11
Components of Retail Atmospherics

• Exterior atmospherics
• Interior atmospherics
• Store layout
• Visual merchandising

12
Exterior Atmospherics

• Storefront
• Marquee / signboards
• Entrance
• Display windows
• Height of building
• Size of building
• Visibility
• Uniqueness
• Surrounding area / stores
• Parking facilities

13
External Atmospherics Entrance

• Needs to be functional, aesthetic
• Traditional set ups have open entrances
• New shopping centres have closed doors
• Within malls, open entrances
• Wheelchair, shopping trolley friendly
• Security people
• No. of entrances

14
External AtmosphericsDisplay Windows

• Common for garments, jewellery, toys, gift items,
  sportswear, watches
• Window display communicates schemes, discounts,
  promotions
• No., size, shape, material, theme of display,
  frequency of change

15
External AtmosphericsMarquee / Signboards

• Painted / lit up
• Display store name, trademark, brands
• Can be sponsored by manufacturer / supplier

16
External AtmosphericsParking Facilities

• Space available
• Cost
• Security
• Time for which available
• Nature of parking basement, upstairs etc

17
Interior Atmospherics

• Affects time spent in store, sales, pleasure /
  displeasure
• Key factors
• Flooring
• Music
• Interior design
• Cleanliness
• POP interaction
• Odour
• Fixtures
• Temperature
• Aisles
• Trial room
• Dead areas
• Display of prices, directions, instructions
• Cash register placement

18
Store Layout

• Refers to arrangement of departments or grouping
  of merchandise
• Traditional grocery shops no provision for
  customer movement within shop, helps keep costs
  low, avoid space wastage, theft
• Organised retail wide aisles, display along
  racks, wall mounted units
• High turnover merchandise needs no display, put
  in bins
• Low turnover merchandise along walls
• Store layout decisions- allocation of floor
  space, product grouping, nature of traffic flow

19
Traffic Flow

• Grid
• Aisles of same width, length
• Easy movement of shoppers
• Easy to organize merchandise
• Saves cost of fixtures, they are standard
• Allows for floor stacking
• Common in FMCG, packaged food, grocery

20
Traffic Flow

• Free Form
• Fixtures, aisles placed asymmetrically
• Increases time spent
• Also called boutique layout
• Doesnt allow floor stacking, needs more staff,
  allows for more theft
• More conducive to browsing, shopping at leisure
• Common in specialty stores and within certain
  departments in large retail stores

21
Traffic Flow

• Race track layout
• Predetermined track after entering
• Ensures shopper passes through all sections
• Within the layout, allows for free flow
• Also called loop layout
• Aisle connects various departments, also used to
  display new merchandise
• Encourages impulse buying
• Common in large retail formats

22
Traffic Flow

• Storeyed layout
• Multiple floors
• Vertical layout
• Helps cut real estate cost
• Better for displaying varied merchandise

23
Visual Merchandising

• Refers to the presentation of products in order
  to sell them
• Initial merchandising is through window display
• Includes
• Floor plan
• Windows
• Signs
• Merchandise display
• Space design

24
Organizing Display

• Planning a theme / concept
• Identifying a location to run theme
• Organizing the display components

25
Organizing Display

• Themes
• Seasons
• Festivals
• Activities
• Trends
• Colours
• Special events

26
Organizing Display

• Locations to run themes
• Front windows
• At entrance
• Display cases
• Counters / ledges
• Display areas depending on traffic flow

27
Organizing Display

• Components of display
• Wall displays
• Floor fixtures
• Display products- mannequins, countertop,
  jewellery displays
• Supplies equipment- hangers, tagging supplies,
  labelers, packing, shopping bags
• Promotional items- banners, sign holders, sales
  tags
• Lighting fixtures
• Signage including shelf tags

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Factors for Effective Display

• Optical balance- Symmetrical / Asymmetrical
• Rhythm- Lines can be used
• Vertical - Height, strength, dignity
• Horizontal - Restful, take focus away from high
  ceilings
• Diagonal Action
• Curved Feminity, grace
• Proportion
• Texture
• Harmony
• Emphasis on merchandise

29
Store Space Management

• Depends on
• Profitability of merchandise
• Merchandise display
• Placement of merchandise within store
• Seasonal factors
• Planned traffic flow

30
Space Allocation

• Is the process of distributing the right amount
  of space to the right merchandise, at the right
  time, according to a detailed analysis of
  customer demand
• Can be done either on basis of sales or
  profitability
• In big stores- Department, Product category, SKUs
• In small retail stores- High demand items near
  cash counter, lower shelves