Store design and store layout - Design Decision Relevant Knowledge Designing a store layout includes deciding the best methods of presenting goods to

Store design and store layout - Design Decision Relevant...

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Design Decision Relevant Knowledge Designing a store layout includes deciding the best methods of presenting goods to the customer. Goods are presented either on shelving units, hanging from something, on pegboard, stacked or placed on dump tables. The methods determined are designed to optimize sales volumes. Some objectives for a store design are to 1. Implement the retailer's strategy, 2. Influence customer buying behavior, 3. Provide flexibility, 4. Control design and maintenance costs, and 5. Meet legal requirements. Typically, a store design cannot achieve all of these objectives, so managers make trade-offs among objectives, such as providing convenience versus encouraging exploration. The basic elements in a design that guide customers through the store are the layout, signage, and feature areas. A good store layout helps customers to find and purchase merchandise. Several types of layouts commonly used by retailers are the grid, race track, and free-form. The grid design is best for stores in which customers are expected to explore the entire store, such as grocery stores and drugstores. Racetrack designs are more common in large upscale stores like department stores. Free-form designs are usually found in small specialty stores and within large stores' departments. Signage and graphics help customers locate specific products and departments, provide product information, and suggest items or special purchases. In addition, graphics, such as photo panels, can enhance the store environment and the store's image. Digital signage has several advantages over traditional printed signage, but the initial fixed costs have made the adoption of this technology slow. Feature areas are areas within a store designed to get the customer's attention. They include freestanding displays, end caps, promotional aisles or areas, windows, cash wraps or point-of-sale areas, and walls. Space management involves two decisions: (1) the allocation of store space to merchandise categories and brands, and (2) the location of departments or merchandise categories in the store. Some factors that retailers consider when deciding how much floor or shelf space to allocate to merchandise categories and brands are (1) the productivity of the allocated space, (2) the
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7 merchandise's inventory turnover, (3) impact on store sales, and (4) the display needs for the merchandise. When evaluating the productivity of retail space, retailers generally use sales per square foot or sales per linear foot. The location of merchandise categories also plays a role in how customers navigate through the store. By strategically placing impulse and demand/destination merchandise throughout the store, retailers can increase the chances that customers will shop the entire store and that their attention will be focused on the merchandise that the retailer is most interested in selling. In locating merchandise categories, retailers need to consider typical consumer shopping patterns.
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  • Spring '14
  • retail store

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