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CHAPTER 17
Store Layout, Design,
and Visual
Merchandising
Store
Design
Objective

 Implement Retailer’s
strategy
 Build Loyalty
 Increase Sales on Visits
 Control Cost
 Legal Considerations
Design Trade-Offs
stimulating impulse
purchases

making it easy to buy
products

making it easy to
find merchandise

providing an interesting
shopping experience is
determined by the
customer’s shopping needs

giving customers
adequate space in
which to shop

productively using this
scarce resource for
merchandise
Store
Design
Elements
• Layouts
• Signage and Graphics
• Feature Area
Grid Layout
• Grid layout has parallel aisles with
merchandise on shelves on both
side of the aisles
• Cash registers are located at the
entrances/exits of the stores
• Easy to locate merchandise
• Cost-efficient
• Most supermarkets and full-line
discount stores use the grid layout
Limitation
Does not encourage customers to
explore store
Racetrack Layout (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
• Used in department stores
Free-From Layout
• Fixtures and aisles
arranged asymmetrically
• Provides an intimate,
relaxing environment that
facilitates shopping and
browsing
Graphics can reinforce a store’s image
Category Signage
identifies types of
products and located near
the goods
Promotional Signage
relates to specific offers –
sometimes in windows
Point-of-sale Signage
near merchandise with
prices and product
information
Digital Signage
• More effective in attracting
the attention of customer
• helping customers recall
the messages displayed
• Provides appealing
atmosphere
• Overcomes time-tomessage hurdle
• Eliminates costs
Feature areas
• Areas within a store designed
to get the customers’ attention
• Feature areas
–
–
–
–
–
–
–
–

Windows
Entrances
Freestanding displays
End caps
Promotional aisles
Walls
Dressing rooms
Cash wraps (POP counters,
checkout areas)
The space within stores and
on the stores’ shelves are fixtures
is a scare resource
• The allocation of store space to
merchandise categories and brands
• The location of departments or
merchandise categories in the store
Space
Allocated to
Merchandise
Categories
• Productivity of allocated space
(sales per square foot, sales per
linear foot)
• Merchandise inventory turnover
• Impact on store sales
• Display needs for the merchandise
Impulse merchandise
near heavily trafficked areas
Demand merchandise
back left-hand corner of the store
Special merchandise
lightly trafficked areas (glass
pieces, women’s lingerie)
Category Adjacencies
cluster complimentary
merchandise next to each other

Location of
Merchandise
Categories
and Design
Elements
diagram that shows how and
where specific SKUs should be
placed on retail selves or
displays to increase customer
purchases

Mark&Spencer in UK uses a planogram system developed by
Marketmax to develop a layout that maximizes space productivity

Location of
Merchandise
within a
Category

Planogram
Location of
Merchandise
within a
Category

Learn the best place to merchandise
and test how customers react to new
products

Virtual-Store
Simulation
• Learn customers’ movements,
where they pause or move quickly,
or where there is congestion

Location of
Merchandise
within a
Category

• Evaluate the layout, merchandise
placement, promotion

Videotaping
Consumers
Visual Merchandising
Fixtures
A. Straight rack
B. Rounder (bulk
fixture, capacity
fixture)
C. Four-way fixture
(feature fixture)
D. Gondolas
Visual Merchandising
Presentation Techniques
•
•
•
•
•
•
•

Idea-Oriented Presentation
Item and size Presentation
Color Organization
Price Lining
Vertical Merchandising
Tonnage Merchandising
Frontal Presentation





Lighting
Color
Music
Scent

Store Atmosphere

Creating
an Appealing
Store Atmosphere
How Exciting Should a Store Be?
Depends on the Customer’s
Shopping Goals
– Task-completion:
• a simple atmosphere with
slow music, dimmer lighting,
and blue/green colors

– Fun:
• an exciting atmosphere with
fast music, bright lighting, and
red/yellow colors
• Simplicity Matters
• Getting Around – Easy
Navigation
• Let Them See It
• Blend the Web Site with
the Store
• Prioritize
Web Site Design
• Type of Layout
– When shopping on the Web, customer are interested
in speed, convenience, ease of navigation, not
necessarily fancy graphics

• Checkout
– Make the process clear and appear simple
– Enclose the checkout process
– Make the process navigable without loss of
information
– Reinforce trust in the checkout process

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Store layout

  • 1. CHAPTER 17 Store Layout, Design, and Visual Merchandising
  • 2. Store Design Objective  Implement Retailer’s strategy  Build Loyalty  Increase Sales on Visits  Control Cost  Legal Considerations
  • 3. Design Trade-Offs stimulating impulse purchases making it easy to buy products making it easy to find merchandise providing an interesting shopping experience is determined by the customer’s shopping needs giving customers adequate space in which to shop productively using this scarce resource for merchandise
  • 4. Store Design Elements • Layouts • Signage and Graphics • Feature Area
  • 5. Grid Layout • Grid layout has parallel aisles with merchandise on shelves on both side of the aisles • Cash registers are located at the entrances/exits of the stores • Easy to locate merchandise • Cost-efficient • Most supermarkets and full-line discount stores use the grid layout Limitation Does not encourage customers to explore store
  • 6. Racetrack Layout (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 • Used in department stores
  • 7. Free-From Layout • Fixtures and aisles arranged asymmetrically • Provides an intimate, relaxing environment that facilitates shopping and browsing
  • 8. Graphics can reinforce a store’s image
  • 9. Category Signage identifies types of products and located near the goods Promotional Signage relates to specific offers – sometimes in windows Point-of-sale Signage near merchandise with prices and product information
  • 10. Digital Signage • More effective in attracting the attention of customer • helping customers recall the messages displayed • Provides appealing atmosphere • Overcomes time-tomessage hurdle • Eliminates costs
  • 11. Feature areas • Areas within a store designed to get the customers’ attention • Feature areas – – – – – – – – Windows Entrances Freestanding displays End caps Promotional aisles Walls Dressing rooms Cash wraps (POP counters, checkout areas)
  • 12. The space within stores and on the stores’ shelves are fixtures is a scare resource • The allocation of store space to merchandise categories and brands • The location of departments or merchandise categories in the store
  • 13. Space Allocated to Merchandise Categories • Productivity of allocated space (sales per square foot, sales per linear foot) • Merchandise inventory turnover • Impact on store sales • Display needs for the merchandise
  • 14. Impulse merchandise near heavily trafficked areas Demand merchandise back left-hand corner of the store Special merchandise lightly trafficked areas (glass pieces, women’s lingerie) Category Adjacencies cluster complimentary merchandise next to each other Location of Merchandise Categories and Design Elements
  • 15. diagram that shows how and where specific SKUs should be placed on retail selves or displays to increase customer purchases Mark&Spencer in UK uses a planogram system developed by Marketmax to develop a layout that maximizes space productivity Location of Merchandise within a Category Planogram
  • 16. Location of Merchandise within a Category Learn the best place to merchandise and test how customers react to new products Virtual-Store Simulation
  • 17. • Learn customers’ movements, where they pause or move quickly, or where there is congestion Location of Merchandise within a Category • Evaluate the layout, merchandise placement, promotion Videotaping Consumers
  • 18. Visual Merchandising Fixtures A. Straight rack B. Rounder (bulk fixture, capacity fixture) C. Four-way fixture (feature fixture) D. Gondolas
  • 19. Visual Merchandising Presentation Techniques • • • • • • • Idea-Oriented Presentation Item and size Presentation Color Organization Price Lining Vertical Merchandising Tonnage Merchandising Frontal Presentation
  • 21. How Exciting Should a Store Be? Depends on the Customer’s Shopping Goals – Task-completion: • a simple atmosphere with slow music, dimmer lighting, and blue/green colors – Fun: • an exciting atmosphere with fast music, bright lighting, and red/yellow colors
  • 22. • Simplicity Matters • Getting Around – Easy Navigation • Let Them See It • Blend the Web Site with the Store • Prioritize
  • 23. Web Site Design • Type of Layout – When shopping on the Web, customer are interested in speed, convenience, ease of navigation, not necessarily fancy graphics • Checkout – Make the process clear and appear simple – Enclose the checkout process – Make the process navigable without loss of information – Reinforce trust in the checkout process