Retailing Management Study Set 4

Business

Quiz 17 :
Store Layout, Design, and Visual Merchandising

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Quiz 17 :
Store Layout, Design, and Visual Merchandising

The design of the store is one of the important factors that influence the purchase behavior of an individual as the store design attract customers to visit the store and increases the probability of purchases from the store. Moreover, the store design increases customer's loyalty towards the store. Hence, managers should focus on store design. In designing the store, the managers should consider elements such as the layout of the store, graphics used in the store, and atmospheric elements such as lighting, color, music, and scents (flavors). 1. The layout of the store: The store should use a grid layout if it considers the needs of over 60 age group as grid layout will help the visitors to find the products easily and reduce their purchase time. The population of over 60 age group prefers utilitarian benefits offered by the store, so they prefer to find the products as soon as possible and finish the purchases quickly. Moreover, the stores should use ramps or elevators for easy movements. 2. Graphics and signage used in the store: The graphics and signage used in the store should be in big and bold letters. The population over 60 age group can interpret written signage better than the images, so the stores should use writing on signage. Moreover, the stores should use digital signage with proper color combinations to make the offers easy to read and interpret. 3. Lighting: As the population over 60 age group experiences some issues related to lights, the store should use the lights to focus on featured products, so the customers can easily identify the products. 4. Color: The population over 60 age groups like to see the product from all the aspects, so the stores should use cool colors such as white, blue, and green to view the products easily and experience a relaxing atmosphere. 5. Music: The store should use slow and soothing music that will help the customers to relax and shop.

Productivity refers to the ratio of output to the input and it measures how effectively a retailer is utilizing the available resources. Productivity can be measured using different inputs and outputs depending upon the interest of the retailer. Inputs are the resources used and outputs are the results of the decision taken by the retailers. Floor plan and space productivity refers to the output (sales/profit/revenue) received using the space of the store. To assess the productivity of floor plan and space, one can use sales per linear foot and net sales per square feet productivity measures. 1. Sales per linear foot: To measure the sales per linear foot, the input is taken as the total space used to sell the products. Total space includes the space used for display, fixtures, and shelves. The output is taken as net sales. This measure will help the consultant to determine the use of the space to generate sales. 2. Net sales per square foot of selling space: In this productivity ratio, the square feet of selling area (excluding the wall, display, and fixture area) are taken as input and net sales are taken as output. This will help the consultant to assess how efficiently the space of the store is utilized and how the store layout can be improved to improve productivity.

Store layout: A well-planned way to arrange the items of an organization to utilize the available space of the firm and maximize the sales is termed as store layout. The objectives of store layout ensure the store's prosperity, cost control, increased sales etc. There are three kinds of store layout and the impact of fixtures on the kinds of layout is as shown below: • Grid layout: This type of layout consists of space bar shaped blocks where different merchandise are placed. Parallel aisles were provided to move from one merchandise bar to another, hence, it would help to reduce shopping time. The cash counters are placed at the entrance or at the exit space of the shopping mall. This layout is cost efficient and space effective to effectively arrange merchandise. In this layout, high selves are enabled to increase the availability of more merchandize on the same floor. Here, the cost of fixtures is low as they are generally standard. • Racetrack layout: This is also termed as loop layout. A major aisle was looped around the store to make the merchandise accessible in multiple departments. Here, racetracks are present which will grab the attention of customers at different viewing angles rather than looking at one aisle in grid layout. This layout is suitable for unplanned purchases. In this layout, low fixtures are used which helps the customers to access the merchandise above the products that were displayed on racetrack. • Free-form layout: It can also be termed as boutique layout. In this layout, the aisles and fixtures are arranged in irregular pattern, hence the layout is more suitable for leisure shopping. This layout doesn't fetch more profit to the shipping mall as it doesn't draw traffic into the mall as did in grid and racetrack layout. Different type of stores uses different type of store layout depending on the nature of store, type of merchandise, quantity of inventory displayed, etc. The context can be explained considering, a very large store like a departmental store would prefer racetrack layout as it allows the customer to be pulled through all over the different departments of the store. Consider other store having less floor space and the merchandise is store specific, a free form layout would most likely be best. This gives relaxing shopping experience to customers.