RESEARCH PROJECT ON STORE

LAYOUT

(BR103) IN-STORE MERCHANDISING OPERATION

SUBMITTED TO: -
DR PARUL MAHAJAN

SUBMITTED BY: -
-YASHIKA (1915981042)

-KAJAL (1915981021)

-ABHINAV (1915981002)

-STUTI (1915981040)

-KARTAVAY (1915981022)

-PARTH (1915981027)

-SHAURYA (1915981035)

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Content
1.Introduction…………………………………………………………3

2.Literature Review…………………………………………………...6

3.Need and objectives of study……………………………………….14

4.Research Methodology…………………………………………….15

5.Analysis and Discussion……………………………………………16

6.Findings and Suggestion……………………………………………23

7.Conclusion………………………………………………………….24

8.References………………………………………………………….25

9.Appendices………………………………………………………….26

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INTRODUCTION
Store layout design contributes to the uniqueness of a store. The exterior and interior of a
store convey several messages about the store to the consumers. Managing space is the first
and foremost concern of almost every retailer, when it comes to designing the store's interior.
There are two areas in which the entire space of the outlet can be divided into. One is selling
area and another is non-selling area. Selling area is the area where the merchandise of the
retail outlet can be showcased with the help of fixtures like racks, tables and others. Non-
selling area is the area which is left for customer movement inside the store. A good store
layout design must find a balance between these two areas. Space is always an expensive and
scarce resource. Retailers always try to maximize the return on sales per square foot.
Planning a layout for the store's interior is the first step in designing the store's interior. A
successful store should keep a consumer interested and finally convert the window shopper
into the actual customer.

From the customers’ point of view, they would like the shopping process to be easy
and satisfying. They prefer a pleasant shopping environment where the aisles are wide, the
view of the merchandise is clear, the merchandise is easy to find and that there are sufficient
items such that customers won’t experience stock-outs. The retailer should have effective
merchandising and displays in order to increase the satisfaction of customers.

Layout design specifies the relative location of departments in a retail

store. Most of the previous research on retail management is from a strategy point of view,
including situation analysis, targeting customers, choosing a store location, managing a retail
business, developing customer service, and planning for the future. However, the design of
the store layout and the detailed facility layout haven’t received much attention.

There are a couple of universal truths when it comes to store design.

The first 15 feet inside of the entrance is known as decompression zone and most retailers
don’t put anything significant in that space because leaving this space open gives shoppers a
chance to get their bearings when they first walk in. the other truth is that most people go to
the right when they enter a store, so the space to the right is considered to be premium.

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 One of the biggest concerns for every store retailer is the store layout.
A well-designed store layout can contribute to a positive shopping atmosphere, which results
in the kind of shopping behaviour a retailer wants to achieve. This study aims to point out the
most important effects both store layout and shelf design have on consumer behaviour. In this
paper currently available scientific knowledge on store design and shelf design are presented.
It is well-known that store layout designs can have positive effects on both consumer
behaviour and consumers’ overall store perception.
https://edepot.wur.nl/369091#page=2

A store's layout is one of the key strategies in its success. Therefore, a lot of time, effort
and manpower goes into offering the key features of a good store layout. Retailers use
layout to influence customers' behaviour by designing the store's flow, merchandise
placement and ambiance. Layouts also help retailers understand how much revenue per
square foot they are making; using this information, they can properly assess the strengths
and weaknesses in their merchandising mix.

Overall store layout: -

In current retailing, there are three common conventional layout types that stores nowadays
use; freeform, grid and racetrack layout. For retailers, the type of layout chosen is of great
importance regarding the image the store has on consumers. Store image is an important
factor affecting the in-store consumer behaviour. Furthermore, the internal traffic patterns
and operational efficiency of the store are strongly dependent on a well-designed store layout.
But most importantly, an efficient store layout design both contributes to product sales and
store profitability. In this section on aisle design, all currently known retailing store layout
forms will be discussed separately. To start, all three layout design structures that are
mentioned above (freeform, grid and racetrack) will be introduced by a short definition.

(1) Grid: this layout contains long pathways which are placed parallel to each other.
Retailers are in favour of this layout style because the rectangular arrangement of
the shelves fits well in the shopping behaviour of consumers, and it facilitates an
efficient and fast shopping experience.

(2) Freeform: in contradiction to the grid form, the freeform layout is, as the
name already reveals, a layout form containing an unstructured arrangement of

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 aisles, shelves and displays. Another characteristic of this store layout is that
consumers tend to spend more shopping time in stores using this form.

(3) Racetrack: this store layout contains one central main aisle, leading the
consumer along the complete store. The function of that main aisle is to guide the
consumer through as much as possible store areas. The store is divided in several
departments, each with an own product category. Using a racetrack layout form
results in an unusual and interesting shopping experience.
Studying the effect of the amount of effort a consumer has to deliver to
find products they want to buy, Titus and Everett (1995) state that there are both a
possible positive as well negative aspects of the consumers’ in-store search
process. https://edepot.wur.nl/369091#page=6

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LITERATURE REVIEW

STORE LAYOUT AND ITS IMPACT ON CUSTOMER

PURCHASING BEHAVIOUR

-Tshepo Peter Tlapana

Objective: -

 The overall objective of this study is to investigate the impact of store layout on
consumer behaviour on his purchasing power.
 To find out if consumer is facing problem with different store settings while shopping.
 To investigate whether consumers are satisfied with the level of service they get.
 To make recommendation to improve store layout in independent convenience stores.

Methodology: -

 Data was collected by means of self-administered questionnaires given to the sample

population to ascertain consumer views about the impact of store layout and their
purchasing behaviour in convenience store.
 Questionnaires design.
 A questionnaire was constructed to do face to face method and improve the response
rate.

Findings: -

 To find out how much a consumer know about the product.

 How frequently consumers buy that product.
 Target market and level of satisfaction.

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Suggestion: -

 It is recommended that convenience store must improve their store space.

 They should change their store appearance and image.
 They should measure store traffic flow and crowd density.

ABHINAV – 1915981002

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 STORE LAYOUT FOR VIRTUAL RETAILING
-Ilyas Musudan

Objective-
 To provide retailer and manufacturer an overview on store layout.
 To study aisle design and shelf design.
 To have a brief idea about store density level.

Methodology-
 Data was collected by primary method, by giving questionnaires to customers.
 Questionnaires had alternative choices.

Findings-
 Customers reaction towards different layouts.
 Consumer behaviour.
 Customers perception about product.

Suggestions-
Research into store appearance has allowed retailers to create positioning and then
enabled them differentiating in terms of price and services they offer. Customers
preferences are the major priority of a retailer to understand about purchasing power
of consumer. It can increase customer attention towards store retailers.

PARTH - 1915981027

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 THE EFFECT OF STORE LAYOUT ON CONSUMER
BUYING BEHAVIOURAL PARAMETERS
-Sandra S. Liu*, Robert Melara

Objective-

 To prescribe requirements of a store layout.

 Help to study consumer behaviour.
 To understand the importance of the merchandise.

Methodology-
 Primary data was collected through survey.
 Questionnaires was prepared with different alternatives
choices
 Easy and simple questions were given and sampling methods were used.

Findings –
 Perceptions about store layout.
 Frequency of shopping.
 Gender of respondents

Suggestions-
Retailers acknowledge about the store layout and understand about what the consumer
wants exactly and enable strategy to differentiate their store from others.

KARTAVAY – 1915981022

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IMPACT OF STORE LAYOUT DESIGN ON CUSTOMER
SHOPPING EXPERIENCE

-V V Devi Prasad Kotni

Objective-

 Consumers shopping experience in store.

 Characteristics of retail outlets.
 Making the customers shop in outlet conveniently.

Methodology-
 Study based on primary data collected from 300 customers of different age.
 A questionnaire was designed focusing on demographic profile of customer, shopping
patterns and finally measuring the customer perceptions.

Findings –
 Customer perception on shopping experience.
 Store designed conveniently.
 Store flack able look.

Suggestions-
The current research topic is concerned only on impact of store layout design on
shopping experience, but impact on customer satisfaction, sales, customer retention
must also be found out.

STUTI – 1915981040

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 THE ROLE OF STORE LAYOUT AND VISUAL
MERCHANDISING IN FOOD RETAILING
-Kristina Petljak

Objective-
 To determine the importance of store layout.
 To make recommendation to improve store layout.
 To understand how to make quality of merchandise and general appearance.
 To prescribe purchasing behaviour of a customer.

Methodology-
 Data analysis was done by primary method (face to face) to improve the response.
 Data collection through survey.
 Have alternative choices and grammatical mistakes.

Findings-
 Shelf design
 Aisle design
 Product placement on shelf
 Frequency of shopping
 Customer satisfaction

Suggestions
 Retailer’s shoppers themselves have acknowledge importance of music as an
atmospheric variable.
 Retail managers have also need to understand customer attitude and make the external
appearance attractive if these were not attractive customer will not enter the store.

YASHIKA – 1915981042

pg. 11
 IMPACT OF RETAIL STORE DESIGN AND LAYOUT ON
CONSUMERS.

-ASHISH B CHATE
Objective
 To determine essential characteristics of layout of hyper store.
 To investigate that customers are satisfied with level of service, quality of
merchandise and general experience.
 To make recommendation to improve store layout.

Methodology-
 Primary data were collected through survey method.
 A close ended questionnaire, in which a number of alternative choices are provided
for respondents.
 Questionnaire was constructed deliberately short to suit the face to face method and to
improve the response rate.

Findings-
 Frequency of shopping.
 Adequacy in product assortment.
 Level of satisfaction about store ventilation.

Suggestions-
Retailers should seek to sell products that satisfy the buyers need to provide store
layouts that entice customer to move around the store to purchase more merchandise
then they may have planned originally. It can also increase rate of customer retention
which leads to increased profitability and store loyalty.

KAJAL – 1915981021

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THE IMPACT OF STORE LAYOUT ON BUYING PATTERNS

-By: Divaries Cosmas

Objective

 To influence the merchandising mix and layout of the store.

 To affects the firm’s overall strategy in long run.

Methodology

 It was a descriptive research which is a type of research that tries to explore the cause
of a particular phenomenon.
 Systematic sampling was used in the selection of the outlet.

Findings

 Income earned influence people perceptions, lifestyle and shopping trends and
generally affects store choice decisions.
 Driving customers prefers shopping environments with better parking possibilities
and better vehicle security measures as a result.

Suggestions

 Despite of location as an element there are various key factors to be consider before
finalizing.
 Store location and store performances analysis should also consider retail chains with
different marketing strategies.

Shaurya dub-1915981035

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 OBJECTIVE: -
 To determine essential characteristics of layout of hyper stores (big bazaar).
 To investigate whether consumers are satisfied with the level of appearance,
accessibility and quality of merchandise behavior at big bazaar.

NEEDS: -
By this investigation we came to know about impact of store layout on consumer purchasing
behavior. The more merchandise customers are exposed to that is presented in an orderly
manner, the more they tend to buy. layout strategy is one of the important decisions classified
into long term strategy in supply chain decisions.an effective and efficient store layout could
impact in tackle with competitors, and image building.

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METHODOLOGY: -
Primary data was collected through survey. A questionnaire was prepared with closed ended
questions in which respondents was asked to make choice of their own from the alternative
choices. The questions were designed in such manner that provides answers to the objective
of the study. The questionnaire consisted of questions developing from reviewing the relevant
literature on this research area. Questionnaire was constructed kept deliberately short to suit
face to face method to improve response rate. Respondents was staff members and students
of chitkara university. respondents were 50 and the questions were based on the appearance,
accessibility and quality of merchandise behavior at big bazaar.

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ANALYSIS AND DISCUSSION
On the basis of the survey taken by the prepared questionnaire, here is an analysis of the
survey.

1) Responses on visiting big bazaar

Fig.1.1

In our survey, when asked about whether person has visited a big bazaar
store or not, out of 53 respondents 3(5.7%) had never visited big bazaar while the
majority 50(94.3%) has visited big bazaar.

2) Respondents visits among various stores

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 In our survey, when asked about which store has the customer has visited, out
of 52 respondents 16 have visited big bazaar in Elante mall, 11 in Zirakpur, 9 in VR
Punjab, while 16 have visited any other big bazaar.

3) Likeliness towards big bazaar

42(84.6%) of the total respondents find the layout of big bazaar good and
attractive while the remaining 10 do not find the layout up to the mark.

4) Reason for likeliness

The maximum, 47.8% (22) of the respondents like big bazaar because
they find searching for a product convenient, 10.9% (5) find its décor appealing, 34.8%
(16) love its wide product range and the remaining find it spacious to move around.

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5) Without a store layout, will it be easy to find products

Out of 53 respondents 33(62.3%) agrees that it is easy to find

products in big bazaar’s layout and the remaining 20(37.7%) disagrees on this.

6) Likeliness towards other store than big bazaar.

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 Out of 53 respondents 42(79.2%) like the layout stores other than big
bazaar and 11(20.8%) like the layout of big bazaar

7) Likeliness toward any other store layout.

14 out of 53 respondents prefer reliance stores more than big bazaar, while 8
and 6 for Vishal megamart and Vmart respectively.

8) Respondent’s frequency of visiting big bazaar

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 23 out of 52 respondents visit big bazaar once in a month, 13
visit big bazaar once in a blue moon and 8 visits big bazaar once in a week and
fortnightly.

9) Respondent’s views on store layout

Out of 53 respondents 37 prefer attractive layout and 16 prefer

simple layout.

10) Lightning choice of respondents on big bazaar

Out of 53 respondents 19 prefer bright lightning, 15 prefer normal and

remaining 19 prefer decorative lightning.

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11) Respondents satisfaction towards products of big bazaar.

43 respondents are satisfied with the products of big bazaar and

remaining 9 are not satisfied with the products of big bazaar.

12) Reason for attraction towards big bazaar

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 23 respondents find product variety of big bazaar attractive, 12 thinks about
discount, 9 think about quality of the product and 3 have other reasons.

13) Respondent’s satisfaction from employees.

32(60.4%) of the respondents were completely satisfied with

employees, 4(7.5%) are not satisfied and remaining 17(32.1%) are not sure.

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FINDINGS
 Got to know that people more often visit the big bazaar of Elante Mall.
 Most of the people like the layout of Big Bazaar.
 People like big bazaar because of its spacious environment which makes
searching for the product more convenient.
 Most of the people agree with the fact that it is not easy to find products
without store layout.
 Majority thinks that Reliance has a better layout and service as compared
to big bazaar and some feel the same for Vishal Mega Mart and V-Mart.

SUGGESTION
 People think that the lighting in the store should be more decorative and
brighter rather than the normal ones.
 Should increase the customer service.

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  Freshens and displays should be changed regularly.
 As big bazaar uses rat trap layout, they should use mixed and free flow
like RELIANCE as people prefer it more.
 Should focus a bit more on branded products.

REFERENCE & BIBLIOGRAPHY

 https://www.signs.com/blog/store-layout-and-customer-flow-does-it-
matter-for-smbs/
 https://www.researchgate.net/publication/
330760064_Impact_of_Store_Layout_Design_on_Customer_Shopping_
Experience_A_Study_of_FMCG_Retail_Outlets_in_Hyderabad_India
 https://www.google.com/url?sa=t&source=web&rct=j&url=https://
pdfs.semanticscholar.org/3c1e/
ffa5924e1431286664251468224385239add.pdf&ved=2ahUKEwih6PzK1
NDlAhWDbX0KHa5CDuwQFjAVegQIAxAC&usg=AOvVaw2EUDFp6
MidrWdbaEivjqIu

pg. 24
  https://www.ijstr.org/final-print/aug2014/Retail-Shoppability-The-
Impact-Of-Store-Atmospherics-Store-Layout-On-Consumer-Buying-
Patterns.pdf
 https://www.slideshare.net/AshishChate/impact-of-retail-store-design-
and-layout-on-consumer-1
 https://www.researchgate.net/publication/318459775

CONCLUSION
This research helps us to understand about the impact of customer behaviour on store layout.
It can also increase rate of consumer retention which leads to increased profitability and store
loyalty. This chapter provided a brief background of a store layout, the goals and objectives
of a study rationalise of a study research, methodology, and overview of a study. The chapter
reviewed literature on store appearance and crowd density. The review shows the customers
are faced with many complex situations while shopping. This chapter discussed the
methodology adopting during study. For the study to be reliable and valid information
gathered must be related to the objective of a study. There is no doubt that whatever answer
was given by respondents helps us to enhance store layout.

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APPENDICES: -

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