Chapter No.

8
Atmospherics and Retail Space
Management
Atmospherics Colour Planning
 Importance  Schemes
 Role  Roles
 Effects Physical Materials In
 Components
Store Designing
Store Space  Type of material
Management Atmospherics In the
 Objectives
Context of Internet
 Measures
 Basis
Retailing
 E-commerce
Walls as Retail Selling
Tools
 Objectives
 Aspects
Atmospherics
Atmospherics are referred to as a store’s physical

characteristics that are used to develop store image

and to draw customers.
There are further 2 types:

1. Exterior atmospherics (look of unit)

2. Interior atmospherics (Lighting, colour)
Importance
Its importance is for the;
1. Brand positioning for the outlet
2. Attracting new customers
3. Facilitating better organization of the store and its
merchandise
4. Enriching the shopping experience
Role
Atmospherics play important role in retail strategy:
1. Enhances Image
2. Generates excitement
3. Facilitates movement inside the store
4. Ensures optimum utilization of the retail space
5. Reduces product search time for the customer
6. Influences the service quality experience
Effects
The three immediate effects of retail unit environment
are:
1. Pleasure: Effectual reaction of shoppers in service
environment
2. Arousal: Extent to which the environment
stimulates shoppers in a particular environment
3. Dominance: Feeling that could be related to
environmental aspects of unit (atmospherics)
Components
There are 4 key components of atmospherics:
1. Exterior atmospherics
2. Interior atmospherics
3. Store layout
4. Visual merchandising
 Store Design
Consumer needs and Retailer’s operational
aspirations. needs
 expectations  market position
 entertainment  image
 access  merchandise, stocks
 belonging  flexibility, cost
 ethical sense  safety, security
 The Exterior Atmospherics
Environment : location, surroundings

Architecture : Structure, Storefront,

Display Windows
External features : Parking, Lighting,
Uniqueness
Entrances : Walkways, doors

Signage : Marquee, Entrance

 Internal store
Welcoming; assuring successful shopping

Visibility of the products.

Accessibility of the products.

Suitability of merchandise, price, value.

Security of products, staff and customers.

Models of Store Layout
Grid: It is commonly used system as it facilitates planned

shopping behavior so that customers can easily locate

products on their shopping list. E.g.: Best price store
Free-Form: It offers convenience during shopping. It is

also helpful as it increases the time that consumers are

willing to spend. Used mostly be large department
stores. E.g.: Metro
Models of Store Layout

G rid Freeflow B outique

Loop Spine
 Display
Exposure: visibility, information, image

Accessibility: appropriate, security

Cost-effectiveness: labour, fixtures, space

Methods: walls, island, margins, enclaves
Fixtures: shelves, tables, cabinets, racks
 Visual merchandising
lifestyle images to support sale of products.

divide store into recognisably different area

moods in each area according to customer.

coherent themes: colour and texture

displays: window; aisle; floor

Atmospherics: Signage
Signs, posters, labels :
Organisational: advertise, protect, promote
Locational: locate, identify goods
Category: promote categories; identify products
Promotional: special offers
Point-of-sale: price and other detailed information
Lifestyle images: creating moods
Other Atmospherics
Lighting

Colour

Scent

Music
 Envelope
Internal structure

Environment within which shopping takes place.

Includes floors and ceilings

What feeling do you get when you walk into
Uni Cafe vs. Dhaba

? Which store do you find pleasing?

? Which store/layout lead you to spend more money?
Browse more?
? What store turn you off – that you can’t wait to get out
of?
Store Space Management
Space and inventory are the two important resources
of the retail firm.
It has a two-way benefit for retail business
1. It attracts business by ensuring convenience to
customers
2. Additionally, it also places the merchandise in
accordance with the salesperson’s work allocation.
Objectives
The key objectives of retail space management are:

 Obtain a high return on investment by increasing the

productivity of retail space (i.e utilization of space of
merchandise display and customer movement)
 Ensure a compatible, exciting and rational interface
between the customer, merchandise and the sales
people.
Retail Performance Measures
Sales and profitability are considered established measures

of success of a retail unit. So they can be used to measure

performance or retail space management.
Following are 3 commonly used retail space performance

measures:
1. Sales per square meter:

2. Sales per liner meter:

3. Sales per cubic meter:

Basis of space allocation
Retail space allocation decisions are implemented

at department level and category level in big

department stores. Whereas, a small retailer’s
concern is allocate all products in limited space.
Continued…
 Two major basis of space allocation:

1. Sales: Retailers assign more space for

merchandise that registers a higher volume of
sale. Retailers are supposed to evolve a balance
between fast moving (bread, eggs) and profitable
merchandise (laptop).
Continued…
Profitability: Profit is primary objective of any
organization. They are taken into account for determining
optimum allocation of retail space among various product
categories. It helps allocate quality and quantity of retail
space to the profitable product at a priority.
Walls as Retail Selling
Tools
Walls are the most important and largest selling fixtures in
the retailer’s overall selling strategy.

OBJECTIVES:

Captures shoppers’ attention as they enter the retail space

Communicates fashion information

Encourages multiple purchases

Acts as way-finding tool, guiding shoppers to products they

have come to see and perhaps buy

Merchandise display and wall planning
Retailers can start merchandise display plan with bare walls.
To ensure an impressive merchandise display, the retailer
should know about the hooks and shelving needs.
Aspects:
1. There should not be much free space
2. Similar products need to be grouped
3. Avoid putting products that get any harm from sun or get
damaged easily close to the front window
4. While displaying similar products ; keep similar designs and
similar colour together
5. As clean store is such a priority, shelves should be cleaned.
Colour-planning
Research has indicated many useful aspects related to
colour and consumer perception of various colour
themes.
 Red is colour of passion.
 Blue, Green, purple, etc are cool colours.
 Yellow and orange reminding of fire and sun
Colour schemes
Various types of colour schemes can be organized to

communicate the desired image. Some are as follows:

1. Complementary Schemes: Two colours involved directly
opposite to each other on the colour wheel. E.g.: yellow
and violet
2. Split-complementary Schemes: Three colours involved
(one central colour plus two colours on either side of its
compliment). E.g.: yellow with red-violet
Continued…
Double-complementary Schemes: This uses four colours—
two colours plus their compliments. E.g.: yellow-violet and
green-red.
Triadic Schemes: Involves three colour s equi-distant from
one another in the colour wheel. E.g.: orange, green, violet.
Analogous schemes: Two colours included adjacent to
each other on the colour wheel. E.g.: yellow with yellow-
green
Monochromatic Schemes: Involves single colour in
different intensities. E.g.: navy blue in medium blue and
light blue.
Role of Colour
An effective colour plan performs the following
functions:
1. Communicates desired aspects
2. Sets mood
3. Emphasizes features
4. Highlights a product
5. Emphasizes seasonal aspects of the merchandise
Physical Materials In
Store Designing
 Interiors in any retail store are the result of materials used
and their respective colours.
Material for flooring : Material for walls:
1. Carpet (one colour, one  Plaster (Painter, raw paint
design, Multi-colour) effect)
 Glass (Opaque, Tainted,
2. Wood work (Polished/
unpolished) Coloured)
 Panellign (wood, steel,
3. Tiles (Marble, White
dark, light)
mosaic, Sun mica)  Ceramic Tiles
4. Rubber/ plastic  Rubber/ plastic
Atmospherics in Internet
Retailing
In the context of E-retailing, factors like website

organization, server performance, product data, a

search option and shopping carts contribute to a +ve web
shopping experience.
It is the fastest and the easiest way to grab customers,

make a deal and deliver the product.

However, some websites may have lots of burden and

could not deliver in time which makes customers wait for

merchandise that automatically brings dis-satisfaction.
Atmospherics and space management are effective

tools for managing retail business. However, to be able

to employ them effectively, the specific objectives of
retail business and understanding of consumer
behavior are a pre-requisite.