Retail - Session 10,11,12 - Store Layout & Design

Store Layout and Design
Dr. Archana. B. A [Course: Retail Management]

1 [Topic: Store Layout and Design]
Learning Objectives
Topic: Store Layout and Design
➢ What are the critical issues retailers consider in designing a store?
➢ Store design elements

• How is store floor space assigned to merchandise departments
and categories?
• Store layouts
➢ Visual merchandising
• How can retailers create a more appealing shopping experience?
• How exciting should a store environment be?
2 [Course: Retail Management]
[Topic: Store Layout and Design]
Concepts
➢ Concept of Store Design
➢ Store Design Objectives
➢ Store Design Elements
➢ Space Management
➢ Visual Merchandising
➢ Effects of store design and visual merchandising
Store
Layout
& ➢ in-store shopping behavior
Design o How the store environment affects shopping
behavior
[Course: Retail Management]

What sets one store apart from another?

• Environment in a store
Impact on
• Design of the store shopping
• Presentation and location of behavior
merchandise in the store

Design of Store | Design of Website
• Attract customers to visit the location
• Increase the time they spend in the

Encourage
store or at the site
repeat visits
• Increase the amount of merchandise

they purchase
• Retail store design or ‘retail design’
Concept
• Covers aspects of the design of a
of store
store ranging from:
design o store frontage
o signage
o internal elements of furniture
Aesthetically o Merchandising
Conscious and
o Display subconscious level
Functionally
o Lighting
Commercially o Graphics Affects consumer’s
perceptions of a
Meet regulations
o point of sale and
brand or retailer
o decoration
Store Design Objectives
1. Implement Retailer’s strategy
2. Build Loyalty
3. Increase Sales on Visits
4. Control Cost
5. Meet legal Considerations

The primary objective of store design
is implementing the retailer’s strategy
1.
Implement • Meets needs of target market
Retailer’s • Builds a sustainable competitive advantage
strategy • Displays the store’s image
Store Design and Retail Strategy: Example
McDonald’s
McDonald’s remodeled its stores (upscale brand image) to better appeal to European customers
Flagship Store
1.
Implement A statement that a retailer can make:
Retailer’s • Use Space → To impress
strategy • Furniture and fittings → highest quality
• Stores → located in prime retail sites across the world
• Flagship stores to showcase their brands

Flagship Store
Common
key • Often the largest store for that retailer/brand
elements
in flagship • Located in prestigious/ high footfall area
stores
• Showcases all the products that the retailer/ brand has to offer
• Embodiment of all that the brand stands for
• Is Experiential
• Often the venue for events to be conducted

Flagship Store
Example
Nike
Town
Nike Town in London [Course: Retail Management]

Flagship Store
Example
Nike
5th
Avenue
Nike House of Innovation
on New York's Fifth Avenue
is a six-level space aiming
to provide customers with a
more customized shopping
experience
Flagship Store
Example
Apple
Store
Apple store on fifth Avenue in

Manhattan was redesigned to
reinforce the company’s image
of developing products with
innovative design features. Apple store on fifth Avenue in Manhattan
• How to motivate customers to visit the store or

2. website repeatedly?
• How to build loyalty towards the retailer?
Build
Loyalty
Store design →
Make shopping experiences rewarding

Store design →
2.
Store design provides:
Build
Loyalty Enables customers to locate
➢Utilitarian benefits
and purchase products in an
efficient and timely manner
with minimum hassle.
➢Hedonic benefits Offers customers an

entertaining and enjoyable
shopping experience.
Bass Pro Shops
Store
design:
Hedonic
benefits

[Topic: Omnichannel Retailing]
Retail Snapshot: Bass Pro Shops
Mission:
“Inspiring everyone to enjoy, love,
and conserve the great outdoors.”
• Specialized retailer
• Fishing The retailer has earned
• Boating the reputation as:
• Founded in 1972 • Shooting
“The Walt Disney
• Hunting
• By Johnny Morris of the Outdoors”
• Camping
• On a mission to connect • Other related outdoor
everyone with nature recreation merchandise
19 [Topic: Omnichannel Retailing]
Store design →
Example
2. Store design provides:
Build ➢Utilitarian benefits Supermarkets

• Minimize shopping time
Loyalty • Ease of locating merchandise
➢Hedonic benefits Specialty goods – Computer,

Home entertainment, Furniture

1. Implement Retailer’s strategy
2. Build Loyalty
3. Increase Sales on Visits
4. Control Cost
5. Meet legal Considerations

Store design has a substantial effect on:

3.
Increase • Which products customers buy
Sales on • How long they stay in the store

Visits
• How much they spend during a visit

Example: Supermarkets
• Purchase decisions are greatly influenced by products

3. customers see during their visit
Increase • Affected by store layout -- how merchandise is
Sales on presented
Visits
• Retailers design their stores that motivates unplanned
purchases
• Example: Proctor and Gamble shifted their marketing
attention
Example: Supermarkets
Placement of milk in the supermarket to:
3.
Increase Stimulate Impulse
purchase
Sales on v/s
Visits Making it easy to
buy products
???

Store design influences:
• Shopping experience and thus sales
• Labor costs
4.
• Inventory shrinkage
Control
Cost • Design consideration related to
controlling cost is flexibility
Store flexibility: Ability to physically modify, move and store components and the costs of doing so.
Example: College bookstore - need to expand and contract their spaces to accommodate the
large seasonal fluctuations inherent in the college bookstore business [Course: Retail Management]
Store Design Objectives: Control Cost
Sustainability in retail:
Retail
Snapshot Example: Walmart
• Designing new stores and retrofitting old stores to

→ More energy efficient
• Reducing stores energy costs

Store Design Objectives: Meet Legal Considerations
• Store design → to be in compliance
• Comply with regulations of the government
• Retail stores compliant to the needs of persons with disabilities –

both customers and employees
Example: Americans with Disabilities Act (ADA)
• Protects people with disabilities from discrimination in employment, transportation,

public accommodations, telecommunications and activities of state and local government
• Affects store design as disabled people need “access” to merchandise and services built
Store Design Objectives & Retail Strategy
What could be the measures employed by retail stores to comply
to the needs of persons with disabilities?
• Allocating special car/vehicle parking areas

• Ramps for wheelchair access
• Wheelchairs
• Washrooms and Trail rooms which are friendly for
the persons with special needs

Reasonable Access
What does that mean?
• 32 inch wide pathways on the main aisle and to the
bathroom, fitting rooms elevators and around most
fixtures
• Lower most cash wraps and fixtures so they can be

reached by a person in a wheelchair
• Make bathroom and fitting room fully accessible

Store Design Objectives & Retail Strategy
Example of companies –
Addresses the needs of persons with disabilities?
Indian context???

Retail Strategy: ThinkSkin - Example
Design Trade-Offs
Ease of locating
merchandise for
planned purchases
Utilitarian benefits Exploration of store,

Shopping experience
Giving customers
adequate space to Impulse Purchase
shop
Hedonic benefits
Productively using this

scarce resource for
merchandise
Western store designs

Retail v/s
Snapshot Indian Shoppers
• Customers walked down the wide aisles,

• neatly stocked shelves,
• and out the door without buying

Western store designs v/s Indian Shoppers
Retail
Snapshot:
Pantaloons
• Koshore Biyani’s supermarkets in Mumbai, India, were

initially designed like most western-style supermarkets.
• Customers – target market segment: - did not like the
sterile environment.
• Biyani redesigned the stores to make them more messier,
noisier, and more cramped (like Indian markets).
• Biyani’s approach to redesign has worked.
Concepts
ELEMENTS OF STORE ENVIRONMENT
• Exterior look of the store

STORE
THEME
• Store interiors
• Atmosphere in the store

STORE
DESIGN • Events, promotions and
the themes, which form a
STORE
ATMOSPHERE part of the retail store

Interior store design is a function of:
Interior ❖Aesthetics within the store

Store ❖Merchandise sold within and Space used for the same
Design
❖Overall layout of the store for selling the merchandise.
Store Design Elements
❑ Space Planning
❑ Atmospherics and Aesthetics
❑ Layouts
❑ Signage and Graphics
❑ Feature Area [Course: Retail Management]
Store Layouts
• Store layout: Integral to the internal look of the store
• A layout is like a plan for the store

• Layout of the store → manner in which merchandise or products have been
arranged in a retail store
• Helps movement of the customer within the store
• Aid movement and flow of customers → they move through the entire store
• To encourage customer exploration and help customers move through the
stores
• Use a layout that facilitates a specific traffic pattern
• Provide interesting design elements [Course: Retail Management]
Store Layouts
• Entrance of the store - Area near the entrance to the store
• When customer enters the store, he/she is making a
transition to a new environment.
This allows customers to adjust to the environment
Decompression
• Rarely does buying occur right there
Zone
OR Then, Why should retailer
stock merchandise in this • Sell deeply discounted merchandise
Transition Zone • Put up a display
part of the store?
• Offer the customer a coupon
OR
• Offer a basket
What is done in the • Sell products like flowers
transition zone???
Store Layouts
➢ Grid
Types of
Store ➢ Racetrack
Layouts
➢ Free Form

Store Layouts
• It contains long gondolas of merchandise
and aisles in a repetitive pattern
• Easy to locate merchandise

Grid
Layout • Allows more merchandise to be displayed
• Suited for customers → utilitarian benefits
offered by the store
• Cost efficient
Customers typically not exposed to all of the
Limitation: merchandise in the store [Course: Retail Management]
Store Layouts
Grid
Layout
Example
Supermarkets, grocery
stores, Discount stores,
and drug stores
Grid Layout

Grid Layout
The grid is not the most aesthetically pleasing arrangement, but it is very good for shopping trips in
which customers need to move throughout the entire store and easily locate products they want to buy.
Store Layouts
A type of store design that provides a major aisle to
facilitate customer traffic, with access to the store's
multiple entrances. This aisle loops through the
store, providing access to all the departments.
Racetrack
Layout • Also known as a loop
• Loop with a major aisle that has access to departments
• Draws customers around the store
• Provide different viewing angles and encourage
exploration, impulse buying
Store Layouts
Example Department stores
Racetrack
Layout

Racetrack Layout: Example

Store Layouts
• Also known as boutique layout
• Fixtures and aisles arranged asymmetrically
• Provides an intimate, relaxing environment that
facilitates shopping and browsing
Free-form • Pleasant relaxing ambiance doesn’t come cheap
Layout • Inefficient use of space
• More susceptible to shoplifting – salespeople can
not view adjacent spaces.
• Used in specialty stores and upscale department
stores

Free-form
Layout
Example
Specialty stores
Upscale department stores

Free-form Layout

CIRCULATION PLAN
❖Every retailer would want a customer entering the store to circulate
through the entire store.
❖Most retailers adopt the policy of strategically placing:
o Demand/destination products
o Impulse products at various points in the store
❖This encourages people to move and browse around the store, taking in
products or items, which have been stocked.
❖Many a times, a retail store may also have a separate entrance and exit.
❖Such an arrangement necessarily requires the customers to cover a
certain length of the store, before exiting the store.

Interior ❑ Space Planning
Store ❑ Atmospherics and Aesthetics
Design ❑ Layouts
❑ Feature Area
• Layouts Grid
Racetrack
Free Form [Course: Retail Management]

Usage of Signage and Graphics
• Help customers locate specific products and departments
• Identifies the location of merchandise and guides customers
• Provide product information
• Suggest items or special purchases
• Icons rather than words are used to facilitate communication
with customers
• Additionally, graphics, such as photo panels, can enhance the

store’s image.

Types of Signs
• Location signage
• Category Signage
• Promotional Signage
• Point of sale signage
• Digital signage

Types of Signs
Location Signage
• Identifies the location of

merchandise and guides
customers
• Example: Bookstore
Types of Signs
Category Signage
• Identifies types of products and located

near the goods to which they refer.
• Used within a particular department or

sector of the store
• The purpose is to basically identify the types

of products offered.
Types of Signs
Promotional Signage
• Relates to specific offers – sometimes in windows

• This is done to entice the customer into the store.
• Example: Value apparel stores for young women often display

large posters in their windows of models wearing the items on
special offer.

Types of Signs

Types of Signs
Point of sale
• Near merchandise with prices and

product information
• Some of this information may already

be on product labels or packaging.
But it will quickly identify for the
customer if product is on special offer
Digital Signage
Visual Content delivered digitally through a centrally
managed and controlled network and displayed on a TV
monitor or flat panel screen.
Digital signage provides a number of benefits over traditional signage:

• Superior in attracting attention
• Enhances store environment
• Provides appealing atmosphere
• Overcomes time-to-message hurdle
• Messages can target demographics
• Eliminates costs with printing, distribution and installing traditional
signage [Course: Retail Management]
Usage of Signage and Graphics
H & M effectively uses graphic

photo panels to add personality,
beauty, and romance to its
store’s image
Suggestions for Effectively Using Signage
• Coordinate signage to store’s image
• Inform customers
• Use them as props

• Keep them fresh
• Limit the text on signs
• Use appropriate typefaces on signs

Interior ❑ Space Planning
Store ❑ Atmospherics and Aesthetics
Design ❑ Layouts
❑ Feature Area
• Signage and Graphics

• Layouts Grid Location signage
Racetrack Category Signage
Free Form Promotional Signage
Point of sale signage
Digital signage [Course: Retail Management]
Feature Areas
Feature areas
Areas within a store designed to get the customers’ attention
• Feature areas
• Entrances
• Freestanding displays
• Cash wraps (POP counters, checkout areas)
• End caps
• Promotional aisles
• Walls
• Windows
• Fitting rooms
Feature Areas
Entrances Freestanding displays
• Entry area • Freestanding fixtures or Mannequins

• Decompression zone • Located on aisles
• Customers are making an • Designed primarily to get customers’
adjustment to a new attention and bring them into a
environment. department
• Provides the retailer its • Often display and store the newest,
first opportunity to create a most exiting merchandise in the
visual impression department.

Feature Areas
Cash wraps (POP counters, checkout areas)
End caps
• also known as point-of-purchase (POP)
counters or checkout areas
• End caps are displays
located at the end of • Places in the store where customers can
the aisle – Grid layout purchase merchandise
• High visibility → used • These areas can be the most valuable piece of
to feature special real estate in the store → customers often wait
promotional items there for the transactions to be completed
• Display impulse items. Example: Supermarkets

– batteries, razor, candies, magazines
Feature Areas
Promotional aisles Windows
Used to display merchandise that is • Window displays are external to the store
being promoted. • Provides a visual message about the type of
merchandise for sale in the store and the type of
image the store wishes to portray.
• Can also be used to set the shopping mood for a
season or holiday
Walls
• Retail space is scarce and expensive
• Retailers have successfully increased Fitting rooms
their ability to store extra stock • Crucial space in which customers decide whether
to make a purchase.
• Display merchandise
• Many fitting rooms today are equipped with
• Creatively present a message by technology that enhances the buying experience
utilizing wall space. • Viewing the outfit on a “virtual” model.

Retail
Snapshot:
Alibaba ❑Blending online and offline customer experience
❑High-tech supermarket chain Hema
Hema Supermarkets of Alibaba ❑ Price: Store = App
❑ Supermarket chain operates in Tier 1 and Tier 2 cities across china
❑ Payment: Can even pay by
❑ Key element of grocery shopping: Freshness → Excess of scanning faces at kiosks
merchandise → Wastage
❑ Hema Stores in Shanghai –
❑ Data from customer purchase + Big data analytics
Alibaba has introduced
❑ Serve customers within 3Km radius –Warehouse+fulfillment centre Robot – to enhance dining
❑ Store design → Beautiful + Aid product discovery experience
❑ In-store centrepiece: Fresh seafood section → Scan QR code to see
origin of seafood
Retail
Snapshot:
Milk Mantra
❑ How Blockchain is used by Milk

Mantra for food traceability
https://www.bloomberg.com/news/articles/2021-07-22/u-s-dfc-backed-indian-firm-to-help-users-trace-origin-of-milk
Concepts
Visual
Merchandising
Visual merchandising is the presentation of a store

and its merchandise in ways that will attract the
attention of potential customers.

Visual Merchandising
• Fixtures
• Colours and Textures

Tools used for
visual • Windows
merchandising
• Lighting
• Mannequins
Visual Merchandising: Fixtures
• Fixtures
Purpose: A. Straight rack

• Efficiently hold and
display merchandise B. Rounder (bulk fixture, capacity fixture)
• Help define areas of a C. Four-way fixture (feature fixture)

store
D. Gondolas
• Encourage traffic flow
• Fixtures: Straight Rack
The straight rack consists of a long pipe
suspended with supports going to the floor
or attached to a wall.
• Advantages: Hold lot of apparel

• Disadvantages: Cannot efficiently
feature specific features or colors
• Fixtures: Rounder A round fixture that sits on a pedestal
• Also known as a bulk or capacity fixture

• Smaller than straight rack - Holds a
maximum amount of merchandise
Advantages: Easy to move around and

efficiently store apparel
Disadvantages: Customers can’t get a
front view of the merchandise [Course: Retail Management]
• Fixtures: Four-Way Has two cross bars that sit
perpendicular to each other
on a pedestal
• also known as a
feature fixture
• Fashion
oriented apparel
retailer
Advantages:
• Superior display properties
Disadvantages: Hard to maintain
• Holds large amount of merchandise because of styles and colors
• Allows customers to view entire garment [Course: Retail Management]
• Fixtures: Gondolas Advantages:
• Extremely Versatile
• Folded apparel efficiently displayed on
gondolas - department stores
• Used extensively in grocery and
discount stores to display everything
Disadvantages:
Hard to view apparel as
they are folded

Visual Merchandising
• Fixtures
• Colours and Textures

Tools used for
visual • Windows
merchandising
• Lighting
• Mannequins
Creating an Appealing Store Atmosphere
Retail
Snapshot:
Shop Disney • Disney Store: Highly entertaining and
rewarding experience for its customers -
Interactive technology
• Traditional approach of displaying toys
• Specialty store • High-tech makeover Disney store:
• Selling only Disney “Magic Mirror”
related items • Focus is on interactivity
Rewarding shopping experience → beyond presenting appealing

merchandise
In addition to these interactive technologies, retailers use:

• Lighting
• Colors
• Music
• Scent

Atmospherics
The design of an environment through visual communications, lighting,

colors, music, and scent to stimulate customers’ perceptual and emotional
responses and ultimately to affect their purchase behavior
Atmospherics: Color
Lighting in a store is used to:
• Highlight merchandise - Popping the merchandise
• Sculpt space
• Structure space and capture a mood - Mood Creation
• Enhances the store's image
• Energy efficient lighting
Highlighting Merchandise?
Popping the merchandise - focusing spotlights on
special feature area or items.
Using lighting to focus on strategic pockets of
Which retailer commonly uses??? Jewellery merchandise → Trains shoppers' eyes on the
merchandise and draws customers
Atmospherics: Color
• Colors increase brand recognition by 80%
• Color ads are read up to 42% more than similar ads in black and white
• Creative use of color can enhance a retailer’s image and help create a mood
❑ Warm colors (red, gold, yellow) ❑ Cool colors (white, blue, green)
o Produce emotional, vibrant, o Peaceful, gentle, calming
hot, and active responses effect
o Attract customers and gain
attention o Application??? - Retailers sell
o Can also be distracting and anxiety-causing products, such as
even unpleasant expensive shopping goods
• Culturally bounded [Course: Retail Management]

Atmospherics: Music
Retailers can also use music to impact customers' behavior.
• Control the pace of store traffic
• Create an image
• Attract or direct consumers’ attention

• A mix of classical or soothing music encourage shoppers
-to slow down, relax, and take a good look at the merchandise,
thus to stay longer and purchase more
Advantage: Unlike other atmospheric elements, however, music

can be easily changed.
Atmospherics: Music
Example: Toy Store
Children songs “Baa Baa Black Sheep”
V/s
Classical music
Children = Consumers
Parents = Customers
Atmospherics: Scent
• Many buying decisions → emotions
Smell has a large impact on our
emotions.
• Research: Scent + music → impulse buying

behavior
• Neutral Scents → better perceptions of the

store than no scent
• Customers in scented stores think they spent

less time in the store than subjects in
unscented stores
Retailers carefully plan the scents they use:
• Target market
• Gender of the target [Course: Retail Management]
Merchandise Presentation Techniques
• Idea-Oriented Presentation
• Style/Item Presentation
• Color Organization
• Price Lining
• Vertical Merchandising
• Tonnage Merchandising
• Frontal Presentation [Course: Retail Management]

• Present merchandise based on a

specific idea or the image of the store
Idea-
Orientation • Individual items are grouped -- show
Presentation customers how the items could be used
and combined
→ multiple complementary purchases

Idea-Orientation Presentation
Encourage multiple complementary purchases: Furniture combined in room settings

Idea-Orientation Presentation
Encourage multiple complementary purchases:

Women’s fashion
Fifty percent of women get their

ideas for clothes from store displays
• Most common presentation technique.

• Organizing by style or item
Style/Item Organize by item??? Grocery stores – breakfast cereals

Presentation
Arranging items by size??? - Nuts and bolts to
apparel
How to place sizes : Small v/s large size?

Merchandising technique where products,

Color especially seasonal fashion goods, are
Organization displayed and organized by color.
• Organizing merchandise in price categories

• Helps customers easily find merchandise at
Price Lining the price they wish to pay.
• Example: Organizing men’s shorts into three

groups for Rs. 1000, Rs 2000, Rs.3000
Vertical • Merchandise is presented vertically using

walls and high gondolas.
Merchandising
• Presentation follows the eye’s natural
movement
• Customers shop much as they read a

newspaper How???
From left to right, going down
each column, top to bottom.
Application of this at grocery stores?
Placement of national brands v/s Private labels
Example: Many grocery stores put national brands at eye
level and store brands on lower shelves because customers
scan from eye level down [Topic: Store Layout and Design]
• Display technique - large quantities of
merchandise are displayed together
Tonnage • Enhance and reinforce a store's price image
Merchandising •
Example: displaying six-packs of Pepsi before
Holidays
• Method of displaying merchandise in which the

Frontal retailer exposes as much of the product as possible
Presentation to catch the customer's eye.
• Example: Book retailers

Retail
Snapshot:
Starbucks
• International Coffee chain
How Starbucks is enhancing instore

experience for its customers?
• Flexible design mode – Time of the day

Future of Store Design
• Example
• Green Design
• Interactive 3D Stores
Future of Store Design
How Exciting Should a Store Be?
Depends on the Customer’s Shopping Goals
• Task-completion:
▪ a simple atmosphere – soothing and calming environment
▪ Utilitarian benefits
• Fun:
▪ an exciting atmosphere - music, lighting, colors
▪ Hedonic orientation
What does this mean for retailers?

Concepts
Space Management
• Scare resource - The space within stores and on the stores’ shelves
Space management involves:
1) The allocation of store space to merchandise categories and brands
2) The location of departments or merchandise categories in the store

Space Planning
Retailers consider four factors when deciding how much floor or

shelf space to allocate to merchandise categories and brands:
1. Space Productivity
2. Merchandise inventory turnover
3. Impact on store sales
4. Display needs for the merchandise

Space Management: Space Productivity
• Allocate space → basis of merchandise sales
• Allocate on the effect on the profitability of the entire store
Two commonly used measures of space productivity are:

For retailers that display most of their merchandise on
▪Sales per square foot freestanding fixtures
▪Sales per linear foot For retailers displaying most merchandise on shelves
Allocate space to maximize the profitability of the store
Example: Space for milk; Platinum customers [Course: Retail Management]

Space Management
Merchandise inventory turnover
• More space for higher inventory turnover
• More space to fast selling merchandise
Impact on store sales

• Objective of space management → maximize the productivity of the store,
not just a particular merchandise category or department.
Display needs for the merchandise

• Physical limitations of the store and its fixtures → Affect space allocation
Location of Merchandise Categories and Design Elements
location of merchandise categories → how customers navigate
through the store
• Strategically placing impulse and demand/destination

merchandise throughout the store
• Decompression zone : Retailer’s entry area

Customers often turn right into the area referred to as the
strike zone, a critical area because it creates the
• Strike zone → critical area customers’ first impressions of the retailer.
The most heavily trafficked and viewed area is the right-
hand side of the store.
Prime Locations for Merchandise
Highly trafficked
areas
Store entrances
Near checkout Highly visible areas

counter
End aisle
Displays
Location of Merchandise Categories
• Impulse merchandise
• Demand/Destination merchandise
• Special merchandise
• Category Adjacencies
Impulse merchandise – near heavily trafficked areas
• Products that customers purchase without prior plans
• Always located near the front of the store where they are seen
by everyone and may actually draw people into the store.
Demand/Destination merchandise – back left-hand corner of These departments are
the store known as
demand/destination
• Demand merchandise or promotional merchandise are areas because demand
often places in the back left- hand corner of the store. for their products or
services is created
before customers get to
• Why place high-demand merchandise in this location??? their destination. Thus,
Placing high-demand merchandise in this location pulls they don't need prime
customers through the store, increasing the visibility of locations
other products along the way.
• Example: Su permarkets??? - items almost everyone buys –

milk, eggs, bread
Special merchandise – lightly trafficked areas
• Categories like furniture and appliances that require large

portions of floor space are often located in less desirable
areas.
• Merchandise categories???
Fragile items or highly personal items like lingerie, involve a buying
process that is best accomplished in a lightly trafficked area.
Category Adjacencies – cluster complimentary merchandise next to

each other
• Categories often put complementary categories next to each
other to encourage unplanned purchases
• Example???
Location of Merchandise within a Category
Retailers use a variety of rules to locate specific SKUs within a category.
• Supermarkets typically place private-label brands to the right of

national brands. Why?
• Produce in grocery stores are arranged so that apples are the first:
Why?
Location of Merchandise within a Category
Retailers use a variety of rules to locate specific SKUs within a category.
• Supermarkets: Most profitable merchandise on the third shelf from

the floor. Why?
• Positioning merchandise on the lower shelves when purchase

decisions are influenced by shorter consumers. Why?
• Impulse merchandise – near heavily trafficked areas

• Demand/Destination merchandise – back left-hand
corner of the store
• Special merchandise – lightly trafficked areas
• Adjacencies – cluster complimentary merchandise next to
each other
Retail
View • How to merchandise a Pet
food category?
Location of Merchandise within a Category:
The Use of Planograms
• Planogram: A diagram that shows how and where specific
SKUs should be placed on retail selves or displays to increase
customer purchases
Learning customers’ movements and decision-making
• Videotaping Consumers
• Learn customers’ movements, where they pause or move
quickly, or where there is congestion
• Evaluate the layout, merchandise placement, promotion
• These videos can be used to improve layouts and

planograms by identifying the causes of slow-selling
merchandise, such as poor shelf placement.
Virtual Store Software
• Tool used to determine the best

place to put merchandise
• Test consumers’ responses to

merchandise placement
• Test how customers react to new

products
Retail
Snapshot:
eyeq Tech
Retail
Snapshot:
eyeq Tech
Summary
Summary of : Store Layout and Design
1.Concept of store design
2. Store design objectives
• Implement Retailer’s strategy| Build Loyalty| Increase Sales on Visits| Control Cost| Legal Considerations| Design
Trade-Offs
3. Store Design Elements
• Store Layouts: Grid| Racetrack| Free Form
• Signage and Graphics: Category Signage| Promotional Signage | Point of sale| Digital Signage
• Feature Areas: Entrances| Freestanding displays| Cash wraps (POP counters, checkout areas)| End caps|
Promotional aisles| Walls| Windows| Fitting rooms
4. Space Management
• Prime Locations for Merchandise: Highly trafficked areas| Highly visible areas
• Location of Merchandise Categories: Impulse merchandise| Demand/Destination merchandise| Special
merchandise| Category Adjacencies
• Location of Merchandise within a Category: Planogram
5. Visual Merchandising
• Fixtures: Straight rack| Rounder| Four-way fixture| Gondolas
• Merchandise Presentation Techniques: Idea-Oriented| Style/Item Presentation| Color Organization| Price Lining|
Vertical Merchandising| Tonnage Merchandising| Frontal Presentation
• Creating an Appealing Store Atmosphere: Atmospherics – Lighting| Color| Music| Scent

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Store Layout and Design

Dr. Archana. B. A [Course: Retail Management]

➢ What are the critical issues retailers consider in designing a store?

➢ Store design elements

➢ Concept of Store Design

➢ Store Design Objectives

➢ Store Design Elements

[Course: Retail Management]

What sets one store apart from another?

[Course: Retail Management]

Design of Store | Design of Website

• Attract customers to visit the location

• Increase the time they spend in the

• Increase the amount of merchandise

1. Implement Retailer’s strategy

3. Increase Sales on Visits

5. Meet legal Considerations

8 [Course: Retail Management]

[Course: Retail Management]

• Embodiment of all that the brand stands for

• Often the venue for events to be conducted

Nike Town in London [Course: Retail Management]

Apple store on fifth Avenue in

• How to motivate customers to visit the store or

[Course: Retail Management]

➢Hedonic benefits Offers customers an

[Course: Retail Management]

Build ➢Utilitarian benefits Supermarkets

➢Hedonic benefits Specialty goods – Computer,

[Course: Retail Management]

1. Implement Retailer’s strategy

3. Increase Sales on Visits

5. Meet legal Considerations

21 [Course: Retail Management]

Store design has a substantial effect on:

Sales on • How long they stay in the store

[Course: Retail Management]

• Purchase decisions are greatly influenced by products

[Course: Retail Management]

• Designing new stores and retrofitting old stores to

[Course: Retail Management]

• Comply with regulations of the government

• Retail stores compliant to the needs of persons with disabilities –

• Protects people with disabilities from discrimination in employment, transportation,

• Allocating special car/vehicle parking areas

[Course: Retail Management]

• Lower most cash wraps and fixtures so they can be

• Make bathroom and fitting room fully accessible

[Course: Retail Management]

[Course: Retail Management]

Utilitarian benefits Exploration of store,

Productively using this

Western store designs

• Customers walked down the wide aisles,

[Course: Retail Management]

• Koshore Biyani’s supermarkets in Mumbai, India, were

➢ Concept of Store Design

➢ Store Design Objectives