INSTITUTE - USB

DEPARTMENT - BBA
Bachelor of Business Administration
Retail Management
21BAT-374

Store administration DISCOVER . LEARN .

EMPOWER 1
 Introduction to Retail
Management
CO1 To describe the concepts, functions, types and importance of Retail
Industry in India.

CO2 To interpret and analyze the requirements of Store Design and Visual
Merchandising in Retail Stores.

CO3 To classify the factors influencing the Retail consumer, consumer behavior
and decision making process

CO4 To evaluate Merchandise Management through retail operation and pricing

http://p2plogistics.co.uk/

CO5 To formulate Customer Relationship strategies by Personalization, Special

Treatment Benefits, Communication Benefits, Rewards and Loyalty
Programs

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STORE DESIGN
Beyond just creating a good-looking store with aesthetically
pleasing displays , retail store design is a well-thought-out strategy to
set up a store in a certain way to optimize space and sales .
The way a store is set up can help establish brand identity.
Shopping today is a sensory experience.
The retailer needs to appeal to the senses of sight touch, sound and
smell. When guided by these, they can make a sensory experience
that will entice the shoppers into the store.
 PHYSICAL DESIGN
ENVIRONMENT ELEMENTS OF
OF THE STORE THE STORE

Floor space, lighting , Store display

music and ambient windows, storefront
air quality and entrance

Décor and
furnishing`, comfort , Displays and fixture
scents and fragrances for merchandise
, housekeeping and presentation
cleanliness
IMPORTANCE OF STORE DESIGN
• STORE DESIGN tells a customer what the store is about.
• It is the creation of image that is the starting point of all marketing
efforts.
• A store needs to be simple to navigate, it must appeal the sensory
perceptions and must create a sense of belonging.
• The sales personnel, the location and pricing, all works together
creates an image, it is a physical attribute of a store.
Principles of store design
• Totality
• Vision and Mission statement
• Target Audience
• Type of merchandise and associated price points
• Store entrance
• Types of fixtures used to display the merchandise
• Focus
• Achieving sales is the primary step
• Ease of shopping
• Change and Flexibility
• Change according to the need of the customer.
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Exterior Store Design
• It is the exterior look of the store that draws customers to the store.
• Interesting window display, an impressive building and an inviting
entrance all draws customer to the store.
• Store design includes the location where it is located, e.g. if store is
located in a mall, the overall look of the mall or center has to be taken
into consideration.
Store Marquee
The store marquee and the frontage also plays an important
role in influencing the perception of consumer about the store .
The store marquee is the first mark of identification the retailer or
retail store.
It helps to attract the customer .
Most common example is of McDonald’s golden arch M.

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Marquee

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 Store Front
• Store front is other factor in exteriors.
• The store front is important element of store design.
• It is ideal to have the entrance has good lights and is safe from customers
point of view.
Store Front

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Store Front

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 Interior store design
• Interior design is a function of the aesthetics within the store, the
merchandise sold within and the space used for the same and the overall
layout.
• The first factor that needs to be taken into consideration is the amount of
space allocated within the store, that is often known as space planning.
• The second important element of store interior is termed as atmospherics
and aesthetics.
• Atmospherics is a design environment, with the help of visual
communications, lighting, music and scent.
• Aesthetics on the other hand, takes into the consideration factors like
actual size of the store, the color, textures, etc. within the store to create a
particular look and feel for the store.
BIBA INTERIOR STORE DESIGN

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Space Planning
• Space planning helps a retailer determine the amount of space
available for selling and for storage.
• It also helps determine the following:
• The location of various departments
• The location of various products within the departments-the creation of
planograms
• The advantages and disadvantages of specific locations, impulse products,
destination areas, seasonal products etc.
• The relationship of space with profitability

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 Space management
• It is the process of managing the floor space adequately to facilitate the customers
and to increase the sale.
• Since store space is a limited resource, it needs to be used wisely.
• Space management is very crucial in retail as the sales volume and gross
profitability depends on the amount of space used to generate those sales.

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 Optimum Space Use
• While allocating the space to various products, the managers need to consider the
following points −
• Product Category −
• Profit builders − High profit margins-low sales products. Allocate quality space
rather than quantity.
• Star performers − Products exceeding sales and profit margins. Allocate large
amount of quality space.
• Space wasters − Low sales-low profit margins products. Put them at the top or
bottom of shelves.
• Traffic builders − High sales-low profit margins products. These products need to be
displayed close to impulse products.
• Size, shape, and weight of the product.
• Product adjacencies − It means which products can coexist on display?
• Product life on the shelf. 17
 Retail Floor Space

Here are the steps to take into consideration for using floor space effectively −
• Measure the total area of space available.
• Divide this area into selling and non-selling areas such as aisle, storage, promotional displays,
customer support cell, (trial rooms in case of clothing retail) and billing counters.
• Create a Planogram, a pictorial diagram that depicts how and where to place specific retail
products on shelves or displays in order to increase customer purchases.
• Allocate the selling space to each product category. Determine the amount of space for a particular
category by considering historical and forecasted sales data. Determine the space for billing
counter by referring historical customer volume data.
• In case of clothing retail, allocate a separate space for trial rooms that is near the product display
but away from the billing area.

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• Determine the location of the product categories within the space. This helps the
customers to locate the required product easily.
• Decide product adjacencies logically. This facilitates multiple product
purchase. For example, pasta sauces and spices are kept near raw pasta
packets.
• Make use of irregular shaped corner space wisely. Some products such as domestic
cleaning devices or garden furniture can stand in a corner.
• Allocate space for promotional displays and schemes facing towards road to notify
and attract the customers. Use glass walls or doors wisely for promotion.

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SPACE PLANNING

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Space planning and Navigation

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Atmospherics and Aesthetics
• Atmospherics is a design environment, with the help of visual
communications, lighting, color, music and scent.
• Aesthetics on the other hand, takes into the consideration factors like
actual size of the store, the color, textures, etc. within the store to
create a particular look and feel for the store.

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• Store interiors are a function of fixtures, flooring, ceiling, lightings and
signage's used within the store to create a particular look.
• Fixtures: Fixture are used for storing and displaying merchandise. Example of
fixtures includes tables, racks, stands, shelves, etc.
• Flooring and ceiling: Flooring, ceiling and the walls work together in creating an
image. Ceilings are more important because they house air conditioning and the
lighting. For example, a jewellery shop will use carpet and super market uses
flooring which is easy to maintain.
• Lighting: The lighting scheme to be adopted for the store has to be decided upon
keeping in the mind the kind of products being sold in the store and the target
audience.
 Signage's: These informs the customers about the products,
merchandise, price and special offers and they also directs the customers.
Signages on the other hand can be:
• Merchandise related
Signage’s
• Directional signs

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Signage’s
• Instructional signs

• Courtesy signs

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STORE LAYOUT
• The success or failure of a store can be largely be attributed to the design of
the layout.
• The layout of the store is the manner in which the merchandise or products
have been arranged in the store.
• The ambience, flow of the designed layout and merchandise display can be
used to influence customers shopping behaviour.
• Also,it has to provide maximum exposure and easy access to merchandise.
• Customer-friendly store layout is the crux of gaining higher returns on capital
investment.
• It starts with the transition or decompression zone followed by the cash
counter where most of the impulse sales are made.
 Types of layout
• GRID LAYOUT :-
The grid layout is commonly used in super
markets and convenience stores retailing
fast-moving product lines.
It is the most optimum pattern for space
utilization that uses the aisles of the same
width and design to allow easy movement of
shopping carts
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 RACETRACK LAYOUT
The racetrack layout is also called the loop layout.
As the name suggests , the display is in the form of a racetrack or a loop with a major
aisle running through the store
The aisle provides access to various shop-in- shop or departments within the store
This layout is popularly found in department stores.
Secondary aisles within each section may link individual merchandise sections within
the departments.
Racetrack Layout

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Racetrack Layout

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FREE FORM LAYOUT
• Merchandise is arranged in an asymmetrical manner.
• It allows free movement and is often used in department stores to
encourage people to browse and shop.
• This type of a layout may not allow for maximum utilization of retail
space available.
• While there is no standardised manner in what needs to be a layout
for a particular type of store,a retailer may choose the same on the
basis of the target customer that he chooses to serve or the general
image and look that he wishes to create for the store.

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Free form layout

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Layout selection-Chief
considerations
• A good layout encourages different entry and exit points
• It encourages the customers to move around the complete store.
• Right balance between space used for displays and service areas.
• Needs of women, elderly and children should be taken into
consideration.
• If the target customer is below the age of 25,the look of the store will
be different as compared to a store that intends to offer men’s formal
wear.

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Visual Merchandising in retail stores
• Mc Goldrick suggests that visual merchandising is “one of the visible
elements of positioning strategy”.
• Visual merchandising can be termed as the orderly ,
systematic ,logical and intelligent way of putting stock on
the floor.

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Role of Visual Merchandising
• The primary purpose is to enable sales of the products/services sold
by the retailer
• To inform and educate the consumer about the product /services in
the store
• To enable ease of shopping for the consumer by informing about
colours , sizes ,prices, and the basic location of the product
• Creating and enhancing the store’s image

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Tools used for visual merchandising
• Colours and Textures
• Props and fixtures
• Placement of Fixtures
• Store Windows
• Lighting
• Mannequins

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Colours and Textures
• Colour increases brand recognition by upto 80 per cent.
• Colour improves readership as much as 40 percent.
• Colour accelerates learning from 55 to 78 percent.
• Colour advertisements are read up to 42 percent more than similar
ads in black and white.
• Colour can be upto 85% of the reason people decide to buy.

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Props and Fixtures
• Props and fixtures are essential elements used in creating a display of
the store.
The most commonly used fixtures include:
• Slatwall
• Grid wall
• Counter displays
• Racks(2 way rack,4 way rack,hang rail racks,round racks)
• Gondola

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Slatwall

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Gridwall display

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Counter Display

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Racks(Two way rack)

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Racks(4 way rack)

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Racks(Hang rail Racks)

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Round racks

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Gondola

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Shelf Displays

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Placement of fixtures
• Placement of Light Fixtures
• Exterior and interior lighting should be directed to avoid glare and reflection and
to maintain a consistent pattern and level of light.
• The type and placement of lighting should never cause the shadowing of building
elements that need to be seen.
• For example, one type of light can be used to light pathways and another type can
be used for parking lots.
• Avoid glare
• Glare and reflection, often caused by shiny or glossy surfaces, can cause visual
confusion. Check light fixtures from all angles at their proposed mounting height to
identify glare-producing surfaces, and then make any necessary adjustments to
the lighting or the surfaces.
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Placement of fixtures
• Place light sources to avoid creating problem shadows. Shadows, whether
caused by natural or artificial light, can hide important features and create
optical illusions. For instance, a shadow can appear to be the edge of a table
or part of a building, or it might hide an obstruction from view.
• Distribute light levels evenly at working and walking surfaces. Changes in
lighting levels from one space to the next (such as an elevator to a corridor)
should be proper.
• Include task lighting and spotlighting to augment the overall lighting system.
This is an economical way to provide extra light for certain areas without
having to light the entire space brightly. Task lighting benefits everyone and is
essential for people with vision loss who require extra light for detailed tasks
such as reading and writing.
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Store Windows
• Store window is an important part of the design of the store and the
visual representation of the store.
• Window displays can focus on a particular product,a range of
products or it can follow a theme.

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Window Display

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Window Display

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Lighting
• Ambient lighting
Ambient lighting refers to the store’s main lighting. The store should have enough light to feel comfortable in the store.
• Too dim and the store looks dingy, making it difficult to read product labels and making customers uncomfortable.
• On the other hand, if the lighting is too bright it is also uncomfortable for customers.
• How many lights, and how bright they are, will depend on the size of your space.
• A large, warehouse style space with high ceilings will require lots of powerful lights since they will be hung fairly high up
and need to illuminate a large area. A small store will require dimmer, less powerful lights in order to achieve the same
level of lighting.

• Task lighting
Task lighting refers to lights that are focused on areas of the store that require more light, such as the the changing rooms.
• Customers need more light in the changing room so they can accurately assess the fit and look of the items they are
trying on. Your cashiers need extra light so they can better see their tills and do their jobs more effectively.
• Task lighting is also useful for highlighting your store’s sign and the entrance area so that customers can clearly read
your store’s name and are welcomed into the store.

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Lighting
• Accent lighting
• Accent lighting is lighting that can be used to highlight specific areas in order to draw
customer attention to specific products and give customers the sense that these products are
important and noteworthy.
• Accent lighting is an excellent way to highlight seasonal products and to highlight specific
products on shelves or in display nooks.
• Accent lighting is also very effective in window displays since they visually emphasize your
products and help bring people into your store.

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Lighting

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Mannequins
• The artificial models used by the retailers to display their merchandise (can be anything)
are called as mannequins.
• The word comes from the french word “manneken”which means little man.
• The mannequins help the customers to know about the latest trend the store offers
without sometimes even bothering the sales representative.
• It is the attractive mannequin which pulls the customer into the store.
Purpose of Mannequins
• Mannequins are used to highlight the unique collections of the store.
• Mannequins display the latest trends in fashion and influence the customers to buy the
particular merchandise.
• Mannequins attract the customers into the store and thus increase the revenue and profit.
• Mannequins are also responsible for up selling at the retail store.
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Mannequins

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The Planogram
• A planogram is a diagram that shows how and where specific retail products should be placed on retail
shelves or displays in order to increase customer purchases.
• Planogramming is a skill used in merchandising and retail space planning.
• A person with this skill is be referred to as a planogrammer. Planograms themselves are also referred
to as POGs.
• By analyzing past and current sales patterns, a planogrammer can make successful recommendations
about the number of "facings" a certain product should have on a retail display.
• The diagram will document how high or low on a shelf the product should display, as well as which
products should surround it. The resulting planogram is printed out as a visual to be followed by the
part-time help that is often hired to restock retail shelves and displays.
• This gives executive management of a retail store or chain more control over how products are
displayed and allows them to track and improve on the success of their planograms.
• Planogram components are often included in large space planning and retail space management
software applications. Sophisticated applications use other information about the product, such as the
amount of inventory left for the product, to build the diagram.
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The Planogram

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Signage and communication in
retail store
• 1. Choose the Font Wisely
• The primary objective of your signage, however, is to attract the attention of customers and communicate
a specific message.
• This can be difficult when there are multiple colors and elaborate “handwriting” fonts for the eye to
negotiate.
• The font you choose for signage should be capable of attracting attention and delivering a clear message
in a second. If your customers can’t read your signs easily, their attention will quickly move on to the next
point of interest.
• 2. Keep the Message Concise
• The increasing use of instant messaging services is changing the way we communicate with one another.
• We’re being conditioned to rely on fewer and fewer words and sentences to get our points across — and
that same principle should be applied to the messages on your signage.
• Keep things as simple and concise as possible, as the clarity of your message is crucial when
communicating to customers in a retail environment.

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Signage and communication in
retail store
3. Focus on the Benefits
• Customers generally aren’t bothered about how things work when it comes to making purchasing decisions;
they’re more concerned with the benefits involved.
• To persuade your customers to buy a specific product or sign up to an offer, make sure your messages focus
almost solely on benefits. Think: “What’s in it for the customer?”
4. Choose the Right Sign for the Right Location
• Before you design any of your signs, you should walk through your entire retail area while thinking like a
customer.
• Are your eyes drawn to specific areas?
• Do you expect to see signage in certain places?
• Are there places where the placement of signage seems logical.
• Once you’ve decided on where to place your in-store communications, you need to decide what type of
signage is most appropriate.

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Signage and communication in
retail store
5. Test the Efficacy of Your Signage Continuously
There are several ways to test how well your signage is performing.
• Create a customer questionnaire that includes questions on the various marketing
messages within your store.
• Get the target a wide variety of customers to gauge their overall impression.
• Alternatively, monitor the conversion rates associated with different signage and
communications.
• If you’re selling a specific product at a discount, this should be relatively easy to do.
• Try out a few messages, layouts and locations for your signage, and find out which
combination delivers the best results.
• By keeping your signage relatively simple, concise and benefits-focused, you should be
able to communicate offers with your customers effectively.
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Signage and Communication in
retail

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Common Errors in creating the
Display
• Clutter
• Lack of an underlying theme
• Too many props
• Dirty floors
• Poor Lighting

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ASSESSMENT PATTERN
Theory

Components Continuous Internal Assessment (CAE) Semester End Examination (SEE)

Marks 40 60

Total Marks 100

Sr. No. Type of Assessment Weightage of actual conduct

1 Assignment 10 per assignment

2 Exam 20 per MST

3 Quiz/Test 4 each quiz

4 Surprise Test 12 each test

5 Attendance and class performance 2

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APPLICATIONS
• Concept of Retail Management

• Concept and importance of retail layouts and retail design

• Importance and scope of retailing

• Understanding of various formats of retail management

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 References
1. Levy and Weitz, Retailing Management, 6th Edition Tata McGraw Hill
2. Bajaj, Tuli, Srivastava “Retail Management” 2nd Edition Oxford University Press
3. Gibson “Retail Management “4th Edition Jaico Publication House
4. Dunne Patrick M, Lusch Robert F, Griffith David A, Retailing, (5th Ed.), Thomson
South Western.
5. https://www.creativedisplaysnow.com/types-retail-store-layouts/#what-is-retail-
layout
6.https://www.indeed.com/career-advice/finding-a-job/what-is-visual-
merchandising

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THANK YOU