Unit - II: Merchandise Management Visual Merchandise

Unit - II
Merchandise Management
Visual Merchandise
Contents
• Introduction
• Definition
• Objective
Introduction
PLAY - VITAL ROLES ranging from small boutiques or large

fashion retail business.
To play these roles, visual merchandisers apply different

techniques, tips and ideas to attract window shoppers
Visual merchandiser established a relationship between the

merchandise and the customer
Introduction
ART OF VISUAL MERCHANDISING - evolved from a role

as store beautifier to one of sales support.
According to Iowa State University, it is the SECOND MOST

important factor affecting store success. (LOCATION - First)
Retailers rely on visual merchandising TO REINFORCE THEIR

STORE'S IMAGE, IMPROVE CUSTOMER SERVICE,
INCREASE SALES AND CREATE A PLEASANT
SHOPPING EXPERIENCE.
Visual merchandising demands constant attention TO SUSTAIN

SHOPPER INTEREST and REPEAT BUSINESS
Definition Visual Merchandising
PROCESS of DESIGNING
retail floor plans and attractive in-store displays
in order to catch the attention of buyers and boost
sales
OR
Visual merchandising is the practice in the retail

industry of developing floor plans and three-
dimensional displays in order to maximize sales.
Definition ….
Products or services are displayed to
Highlight their features
Few elements of visual merchandising are
LIGHTING,
COLOUR,
SHELVING,
SENSORY BRANDING,
SPACE,
DIGITAL DISPLAYS,
IN-STORE MERCHANDISING SUCH AS POSTERS,
STAND-OUTS, BRAND STANDS,WINDOWS
Objective
Few objectives
PROMOTE Visual merchandising helps to
promote merchandise.
ATTRACT Visual merchandising is a P
desire to attract customers A
LOCATING Make merchandise easily to L
locate in the retail shop
ASSORTMENT It helps to show A
merchandise assortment easily P
POSITIONING To get an exclusive
position for company or fashion brand
Principles of Successful Visual
Merchandise Plan
Several Factors – to consider in devising
successful merchandise plans.
Innovativeness
Assortment
Brands
Timing
Allocation
Forecasts
Merchandise Plan
Of these six factors, we will be discussed

two, namely,
INNOVATIVENESS
ASSORTMENT
Merchandise Plan
Innovative Retailers - 2
INNOVATIVENESS outcomes
Opportunity
Distinctiveness
(by being first in the market)
Risks
Possibly misreading customers and being stuck with large

inventories
Merchandise Plan
Success of innovativeness of a merchandise plan depends
on a number of factors
• Assessing each factor

• Preparing a detailed plan for merchandising
new goods and services
Only then, a firm can better capitalize on opportunities

and reduce risks
Innovativeness the Next Way
Innovative
approach to
coordinated
collections of
private branded
women’s
Wear and
accessories that
are sold in a
boutique-style
shopping
environment
Innovativeness
• Retailers should assess the growth potential for each
new good or service they carry
• How fast will a new item generate significant sales?
• What are the most sales (Rupees and units) to be
reached in a season or year?
• Over what period will an item continue selling?
• One tool to assess potential is the product life cycle

• It shows the expected behavior of a good or service
over its life
• The basic cycle comprises introduction, growth,
maturity, and decline stages
Innovation and Product Life Cycle
Innovativeness and PLC
Life Cycle Stage Nature
Introduction 1. The retailer should anticipate a
limited target market.
2. The good or service will probably
be supplied in one basic version.
3. The manufacturer (supplier) may
limit distribution to “finer” stores.
Yet, new convenience items such as
food and housewares products are
normally mass distributed.
4. Items initially distributed selectively
tend to have high prices
5. Mass-distributed products typically
involve low prices to foster faster
consumer acceptance.
6. Early promotion must be
explanatory, geared to informing
shoppers
7. At this stage, there are very few
As innovators buy a new product and recommend it to friends, sales
increase rapidly and the growth stage is entered.
Growth 1. The target market includes middle-
income consumers who are more
innovative than average.
2. The assortment expands, as do the
number of retailers carrying the
product.
3. Price discounting is not widely used,
but competing retailers offer a range
of prices and customer service.
4. Promotion is more persuasive and
aimed at acquainting shoppers with
availability and services.
5. There are more suppliers.

Maturity In maturity, sales reach their maximum,
the largest portion of the target market
is attracted,
and shoppers select from very
broad product offerings.
All
types of retailers (discount
to
upscale) carry the good or service in
some form. Prestige retailers stress
brand names and
customer
service, while others use active
price competition. Price is more often
cited in ads.
Innovativeness
• As innovators buy a new product and recommend it
to friends, sales increase rapidly and the growth stage
is entered.
• The target market includes middle-income
consumers who are more innovative than average.
• The assortment expands, as do the number of
retailers carrying the product.
Innovativeness
• Price discounting is not widely used, but competing
retailers offer a range of prices and customer
service.
• Promotion is more persuasive and aimed at
acquainting shoppers with availability and services.
• There are more
Definition Merchandise Management
Why – APAHC ?
Correctly identify their customers before they can determine
Analysis the needs and wants of their consumers
Because retailers must often purchase their merchandise six to

Planning 12 months in advance of the selling season. Predict – Economy,
employment & future trends (eg. Music, films etc.)
With the exception of service retailers, merchandise needs to

Acquisition be bought from others, either distributors or manufacturers.
Ensures that the merchandise is where it is needed and in the

Handling proper shape to be sold
Large investment in inventory is important to ensure an
Control adequate ﬁnancial return on the retailer’s merchandise
investment
Merchandise Management -
Objective
• Self Study
Merchandise Management –
Presentation and Demonstrating Merchandise
Presenting the Merchandise
 Housekeeping,
 Lighting,
 Music,
 Signage,
 Windows,
 Shelving and Displays
HLMSWS&D
Presenting the Merchandise ………..
Housekeeping – Keep clean and tidy
through a Daily and Weekly Schedule
 Vacuum Daily - Chase those dust bins away.
 Clean the lights,
 Dust the shelves,
 Polish the chrome,
 Get rid of the tape on the windows,
 Tidy up the back room
CLEANLINESS IS NEXT TO GODLINESS
Lighting –
 Proper lighting - increase retail sales by up to

20%.
 1st Step: Ensuring No burnt out lights.
 2nd Step: Use the Best Bulbs, tubes possible.
Cheaper bulbs can cause merchandise to look grey
and shabby.
 Lighting –
 3rd Step: Make use of spot lights,
Preferably halogen to highlight key selling areas.
 4th Step: Make the front of your store glow with good
light.
You need to be noticed and a bright store front is more
attractive and appealing.
Attracts maximum attention and highlights items

for display
Music –
 The importance of music cannot be
ignored
Be it food retailing, grocery or luxury
retailing
 Careful to play the kind of music that
Reflects the products you sell
Type of clientele that you hope to attract
Music –
 Avoid FM radios
Commercials can kill the purchasing mood
Even advertise a competitor
 A good quality Sound System needed
Ensure appropriate
Continuous music with various options
Music these days is an essential element to a store

Signage –
 Costs little–with innumerable benefits.
 Nearly 70 % - all the retail sales are
generated at the point of purchase by
 Signage,
 Displays and
 Events within the store.
 Signage by Professionals
 To differentiate yourself from the competitor
 Represent the right image among customers
Signage – Following are a few ideas for signs

(i) Create a consistent look. Colour, size, type
style, and layout should be consistent.
(ii) Make your signs short and sweet. You have
only few seconds to tell the customer what you
want them to hear.
(iii) It should be clear and understandable.
Signage – Following are a few ideas for signs

(iv) Only post positive signs about your policies.
If it’s negative, either change it or don’t post it.
(v) Use unique feature / benefit / price signs.
 Windows –
 Window in each store is not only desirable but is of
utmost importance.
 Being a retailer - windows as an idyllic way to attract
new and existing customers.
 Use them for: sales promotions, image building,
seasonal changes, new arrivals, latest trends and to
showcase high demand items.
 Window displays should be changed frequently so as
to avoid becoming stale and easy to ignore.
They should be changed at a minimum of once per
month.
 Shelving and Displays –

 High margin and profit items
 Get the best space.
 Research shows that eye level
Just slightly below is the best shelves to sell from.
SHELVING AND DISPLAYS –

 Apart from Individual creativity
 Few effective guidelines for displays:
(i) Regular Change: Change displays on regular basis.
(ii) Best Selling Focus: Focus on best selling items.
(iii) Impulsive Items Focus: Focus on impulse items (Items people

buy on the spur of the moment).
(iv) Story/Theme Displays: Good displays tell a story or have a

theme.
 Few effective guidelines for displays:

(v) Advertising Into Displays: Integrate your advertising into
your displays.
(vi) Keep Simple: Keep displays simple. Avoid putting in too
many items.
(vii) Togetherness: Show complementary / coordinating items
together.
(viii) Portray:Try portraying your goods in use.
(ix) Motion: Use motion if possible to attract attention.
(x) Lighting: Use proper lighting and props.

Demonstrating Merchandise
 In India
 No particular type of demonstration layout
 Is adopted for a particular type of retailing,
 Stores are not of same size.
 Some - very small
 Some - very huge and not desirable,
 A well-planned retail store layout
 Allows a retailer to MAXIMIZE THE SALES FOR
EACH SQUARE FOOT of the allocated selling space
within the store.
 Appropriate layout makes customers shopping
experience MEMORABLE AND CONVENIENT
Demonstrating Merchandise
 Store Layouts show
 The size and location of each section,
 Any permanent arrangement,
 Fixture locations and
 Customer traffic patterns.
 Each floor plan and store layout will depend on
 The type of products sold,
 The building location and
 How much the business can afford to put into the overall
store design.
The key benefit of store layout planning is that it results in optimum
utilization of all available resources
 In India –
 five basic types of layouts - normally practice
1. Straight Floor Plan

S
2. Diagonal Floor Plan D
3. Angular Floor Plan A
4. Geometric Floor Plan G
5. Mixed Floor Plan M
Straight Floor Plan
 1. Straight Floor Plan
Very common and oldest layout in practice
Arrangement easy to understand & less expensive
Suitable for any type of retail store

Main benefit - makes use of the walls and fixtures to create small
spaces within the retail store
One of the most economical store designs so far
The maintenance cost is negligible and even appreciated by floor staff

Diagonal Floor Design
 2. Diagonal Floor Plan
It is also one of the most popular layouts
Excellent store layout for self-service types of retail stores
Offers tremendous visibility for supervisors, cashiers and customers
Proper movement and traffic flow to the retail store resulting in

enhanced sales
Angular Floor Plan
 3.Angular Floor Plan
Comparatively expensive – so rarely used
Best suitable for high-end specialty stores - things are costly

and not for common use
Curves and angles of fixtures and walls - for a more expensive store
design
Usually seen in jewellery/diamond stores

Geometric Floor Plan
 4. Geometric Floor Plan
Uses RACKS AND FIXTURES to create an interesting and out-of-the-

ordinary type of store design with in a small budget
Recommended for CLOTHING AND APPAREL stores
Proper arrangement of display Possible - customers DON’T FIND ANY

DIFFICULTY while moving around the displayed goods
From economic perspective – does NOT INVOLVE ANY EXTRA HIGH
COST
Mixed Floor Plan
 5. Mixed Floor Plan
Combination of TWO OR MORE LAYOUTS
A store is engaged in MULTI-VARIED RETAILING – a

particular type of layout plan is not suitable
4 Convenience - stores use the COMBINATION OF TWO OR MORE

LAYOUTS
Mixed floor plan - STRAIGHT, DIAGONAL AND ANGULAR FLOOR
PLANS to create the most practical store design
Moves traffic - towards the WALLS AND BACK of the store

Creating Good Looking Retail Store Displays
 Indian Retail Expanding at a speedy pace

 Driven by changing lifestyles,
 Increased per capita Income and
 Favourable demographic patterns
 Indian Retail Industry –
 Immense potential as India –
 Second largest population with affluent middle class and
 Rapid urbanisation.
The Indian retail industry has emerged as one of the MOST DYNAMIC
AND FAST-PACED INDUSTRIES
Due to the ENTRY OF SEVERAL NEW PLAYERS.
Accounts for OVER 10 PER CENT of the country’s Gross Domestic

Product (GDP)
Around 8 per cent of the employment
India is the WORLD’S FIFTH-LARGEST GLOBAL DESTINATION in

the retail space
- Market Size
India’s retail market - increase by 60 % i.e. US$
1.1 trillion by 2020,
Rising incomes , lifestyle changes by middle class
and increased digital connectivity
Indian retail market is divided into
“Organised Retail Market” - valued at $60

billion - only 9 per cent of the total sector
“Unorganised Retail Market constitutes
the rest 91 per cent of the sector
 Mall space, from a meagre 40 MILLION SQUARE

FEET IN 2007
 is expected to touch an ESTIMATED 200 MILLION
SQUARE FEET BY END-2020.
 Huge potential - need to spend a lot of money
 On R&D part to find out
 What display methods for Indian consumers are best
and time saving.
 Usually, most of the Indian customers –
 Spend most of their time in retail store
 On enquiring and searching the goods they need
 For Example,
1. Sometimes daily used items are placed behind
the seasonal items.
2. Sometime big packed goods cover the small
sized goods of frequent use.
 Every inch size of the store space - precious
 Reserve some Space for Core Retail supportive
activities
 Apart from displaying the goods
Some appropriate space - left for supportive

functions Like
OFFICE OPERATIONS
STORE
DISPATCH CELL
OFFICE OPERATION
These functions must be allotted space

too,
 because without these,
 it becomes difficult to run the store in an
effective manner.
Effort should be made
 to allot more and more space
 to those activities that result into sales
STORE
Besides this, whenever store buys any

merchandise,
 PROPER LABELLING AND OTHER
FORMALITIES should be done
 TRANSFER IT on the proper shelves for the
purpose of display.
DISPATCH CELL
Dispatch cell plays a crucial role

 The SPACE FOR PACKAGING AND
STORING THE SURPLUS GOODS –
LARGE
 Those goods that has to be delivered at
customers’ home address should be
PACKAGED TO APPROPRIATE SIZE.
- Some specifications for
THE OFFICE AREA
THE SALES FLOOR
OTHER
CONSIDERATIONS/MISCELLINEOUS
- Some specifications
THE OFFICE AREA
Select your OFFICE AREA SPACE between the STORE’S

BACK ROOM AND THE SALES FLOOR
Don’t - BUSINESS OPERATIONS BEHIND THE WALL
IT IS ESSENTIAL THAT OFFICE IN RETAIL STORE SHOULD BE AT THAT

PLACE WHERE CLEAR VIEW OF THE STORE IS VISIBLE FROM YOUR
WORKING DESK
Take all NECESSARY PURCHASE OR SALARY RECORD TO YOUR

OFFICE before the customers start coming to your store
THE SALES FLOOR
Sales floor is a place where THINGS ARE DISPLAYED and
CUSTOMERS COME to buy these things
VERY IMPORTANT Whole future of store it is the sales floor

part of retail store depends on the which gives earning to
EARNINGS the store
All the items are displayed on various shelves and racks - MAXIMUM
ATTENTION to the sales floor & the arrangements of fixtures,
shelves and racks etc. is made according to CUSTOMERS’
CONVENIENCE.
THE SALES FLOOR
Fixtures normally should be fixed and be arranged at proper gap to
avoid any congestion..
How many racks of which size are required?
How many sales counters and showcases will be

enough to display all the items?
Where lighting is must and where windows will be

created?
THE SALES FLOOR
For ease and safety, make sure that all aisles have been allotted
proper and enough space for
THE MOVEMENT OF GOODS, WHEELCHAIRS AND SAFETY

EQUIPMENT’S.
The height of the ceiling Sitting arrangement . Don’t keep hanging
should accommodate tall (if any) must be solid displays over the
statured persons enough to used by passage ways
overweight persons
Arrange fixtures and shelves that maximize the store’s visibility

OTHER
CONSIDERATIONS
Always keep your washrooms clean and hygienic – if no
such facility is there for public use
If your budget allows, have a water cooler in your store that
have both cold and hot water outlets with the disposable
cups
In the winter, you can offer tea or coffee to your customers by way of
installing instant machine. It can increase the possibility of more sales.
Further, don’t make much arrangement for sitting in the store.
Otherwise it attracts sit around. Sit around basically is a class of people
who apparently have nothing better to do than sit around and gossip.
They are not customers; they do not help your business; and you must
discourage them from taking up residence in your shop
OTHER
CONSIDERATIONS
Don’t let friends or family members hang around either.You are a

merchant.You have work to do.Their distractions will only cost you
money. Even when you don’t have a store full of customers, you need to
perform routine upkeep such as dusting, straightening, marking prices,
replacing worn signs and creating new displays.
OTHER
CONSIDERATIONS
The proper arrangement of fixtures and display is the matter of trial and
error.You try your best to provide excellent floor space but when store
becomes operational then several small or major mistakes with regard
to arrangement become visible that should be rectified immediately to
avoid further loss.
OTHER
CONSIDERATIONS
During installation of fixtures and shelves, it is better to hire some

experienced guys that are actively engaged in these installation activities.
The layout should be flexible enough to accommodate future
requirements and changes if need arises.
• To Continue…………………….
Strategy for Creating Attractive Retail Display
No hurry ! Hurrying can spoil your whole business.
Target Accomplishment: What exactly store wants to accomplish.
Total Budget: What is your total budget?

What percentage is capable enough to
How much for R. Display?
spend on retail display?
Theme: Is display based on some theme?
If yes, where is the theme and whose responsibility is to implement that

theme.
Look of How this theme will look?

the
Theme: It is better to put your theme on a paper
and have a feel of that before
implementing it.
Fixtures, windows and Make proper arrangements for

Shelves: keeping your fixtures, windows and
shelves clean and well arranged.
Can be done either before or after
the opening hours meant for
customers.
Strategies that help retailers to create attractive displays that grab
customers’ interest and curiosity
1. Keep it Simple
2. Make Merchandise the Focal Point
3. Be Creative while Planning Product Display Design
4. Have Fun with Mannequins (Dummies)
5. Stock up on Featured Products
6. Creating Balance During Display
7. Draw Attention to Products with Good Lighting
8. Use Backdrops
Strategies that help retailers to create attractive displays that grab
customers’ interest and curiosity
1. Keep it Simple
Display - integral part of the service quality experience for the

customer and visitor to the retail store
Physical surroundings, in service settings
Such as retail shelves, are vital cues to service quality

expectations.
Therefore, try your level best to keep your displays as simple
as possible.
1. Keep it Simple …..
Choice of fixtures, shelves, decor, and signage can affect

consumer perception about your store.
Signs indicate the services offered by the retail store and

normally hang above or behind the service counters.
This is helpful for both first time visitors & regular

customers too.
1. Keep it Simple …..
Planning for displayed items - simple and trouble-free.
But in Indian retail stores, it has been observed that most of the
retailers have different arrangements for each row or shelf.
Hence, it is the demand of the time that makes your display unique
but as simple as possible.
2. Make Merchandise the Focal Point
No Outshining/Pinpoint focusing needed
Not unlike a soft drink commercial in which everyone memorizes the

commercial but forgets the product, don’t let window dressing to
outshine your products
A CREATIVE OR A TIRESOME one can both have the similar problem

of lack of attention
Therefore, make the merchandise the main focal point of your sales
floor.
2. Make Merchandise the Focal Point………………
Being a retail manager and responsible for product display, three points
need to be considered:
(i) Where do you want your customers to concentrate?
(ii) Is this a single theme or multiple one?
(iii) Where will the wandered customers concentrate more?
Look from Customers’ eyes.
What will be the reaction of a customer when he sees the display
What will be his first action?
Possibly a new item may attract him with free gifts placed with it
3. Be Creative while Planning Product Display Design
If your probable customers

DRIVE rather than WALK
when they visit to your store,
you should understand that
there is something wrong with
your display method.
SOME PROBLEM IS THERE !
If steps are not taken to rectify it, it can throw you out of the
competition.
Therefore, plan and draw customers into the store with
INNOVATIVE,ATTRACTIVE,AND COMPELLING DISPLAYS
Be creative but practical while placing the items for display.

4. Have Fun with Mannequins (Dummies):
Broad use of mannequins

– All retail stores – Ranging
from Local garments shop or
the modern floor of a retail
store
Mannequins are primarily used
in retail stores to display
clothing.
Normally placed in the front windows of stores in the mall to show off
the store’s latest fashions and are perfect for saving space while
modeling shirts and blouses.
REAL FEEL - Main benefits of using mannequins - Customers get a

good idea what the clothes will look like on a real person when they
see them on a display mannequin.
5. Stock up on Featured Products:
Items placed in the window at

varying heights and depths
catch shoppers’ attention and
make the overall display
attractive and captivating to
Customer’s eyes.
Display items with full stocks -
display only those items for
drawing customers’ attention
for which they have enough
stock of varied quality and
quantity.
DON’T - Don’t draw customers in to buy merchandise that you don’t
have enough of. It can have negative impact rather than increasing
sales.
6. Creating Balance During Display:
India – a multi-ethnic multi-cultural
society. One COLOR – “Lucky” for one
community while its “Unlucky” for others.
Therefore, selection of wrong color can be
dangerous not only for stores but can fuel
religious clashes resulting in spoiling law
and order conditions. Therefore, use of
color in any locality is of utmost
importance.
Besides dark colors look heavier, light color represents light item. Proper
balancing needed while displaying the merchandise, light colors items
should always be placed over the dark colors items so that top should not
reflect heavy items.
Arranging dark colors items that look heavy also should not be placed at
one place. It looks awkward. If you place light color items at one place
then place one or two dark color items that look heavy on its other side
to create the balance.
Objectives
 Encourage entrepreneurship in rural areas.
 Cater to the needs of the backward areas –
Not covered by other Govt. programmes
 Develop underdeveloped regions and
thereby strive to remove economic disparity
between regions.
Functions
Providing banking facilities to rural and semi-urban
areas
 Like Accepting Deposits,
 Granting Loans and advances to Artisans etc.
Executing government operations like
 Disbursement of wages of MGNREGA workers,
distribution of pensions etc.
Providing Para-Banking facilities like
 Locker facilities,
Debit and
Credit cards.
The End
Their Constitution
RRBs are sponsored banks
Sponsored by Scheduled
Commercial Banks
Subscription to its share
capital
Provision of such managerial & financial
assistance (mutually agreed upon
Recruitment and training of personnel
(Initial period of functioning)
Central Govt. provide necessary directions – formulation of
policies from time to time
Their Constitution
Authorized Capital – Rs. 500 Cr. (raised in 2013 from
Rs. 5 Cr.)
Break-up of holdings in RRBs
Central Govt. 50%
Sponsor Bank 35%
State Govt. 15%
RRBs – Managed by Chairman, 3 Directors nominated by Central Govt., >=2 by State

Board of Directors Govt., >=3 by Sponsoring Bank
Working Governance Structure
• Role of RBI
▫ As per the provisions of the RRB Act, 1976, RBI
represents the GOI on the boards of RRBs.
▫ It has the authority to prescribe guidelines on
prudential standards and to impose punitive measures
in case of violation of statutory provision/prudential
regulations that include
 The powers for issuing directions,
 levy of penalties,
 Prohibition of deposits,
 Delicensing/descheduling etc.
• Role of NABARD
▫ Assists the Central Government in relation to all its
functions pertaining to RRBs
▫ It provides policy inputs and has representation on the
Board of Directors on behalf of GOI.
▫ NABARD provides concessional refinance support to
augment the resource base of RRBs for lending to the
desired sectors as also to enhance liquidity.
• Role of GOI
▫ The Regional Rural Banks Act has vested wide powers
with the Government of India (GOI) in relation to
RRBs
▫ GOI holds 50 per cent of the paid up share capital of
an RRB
▫ GOI nominates two directors (non-official directors)
on the Board of an RRB.
▫ The establishment of any RRB, location of its Head office, etc. are
decided by the GOI in consultation with the sponsor bank and the
State Government concerned.
• Role of Sponsor Bank

▫ Primarily responsible for sponsoring the RRBs and
guiding them during the initial days
▫ RRB 35 per cent of the share capitals of an RRB are
subscribed by the sponsor bank.
▫ The Sponsor bank can nominate two official directors
on the Board of its sponsor RRB
▫ Aids and assists its RRB in reorienting and training of
personnel during the initial years of functioning
• Role of State Govt.
▫ State Government plays a vital role in respect of RRB
operating in the State concerned
▫ State Government has a stake in the equity of RRBs to
the extent of 15 per cent
▫ RRB State Government is entitled to nominate two of
its officers as directors on the Board of an RRB
▫ Building up of infrastructural facilities such as all-
weather roads, acquiring of suitable premises for
location of branches
▫ Providing security
Working Hierarchical Structure
Further Discussion
Definition
Acts Dealing with Co-operative societies for Banking
• The distinction between a primary credit society
and a cooperative credit society is with reference to
their nature of business.
• The primary object or principal business of a
primary credit society is the transaction of banking
business.
• When its paid up capital and reserves attain the level
of Rs.1 lakh, a primary credit society automatically
becomes a primary cooperative bank.
Definition
Acts Dealing with Co-operative societies for Banking
• However, even after a primary credit society
becomes a cooperative bank, it has to apply to RBI
for a licence to carry on banking business.
• But it can carry on banking business until it is
granted a licence or notified that a licence cannot be
granted to it
Their Constitution
Three Tier of Cooperative Credit Structure
SCBs Apex Tier
CCBs Middle Tier
PCBs Lower Tier

Their Constitution
• STATE COOPERATIVE BANKS
▫ Organised at a state level.
▫ Apex of the three-tier co-operative credit structure.
▫ There were 28 SCBs, 14 of which were scheduled
banks.
▫ It is only through them that the RBI provides credit to
co-operatives.
▫ RBI generally provides loans to SCB on interest rate,
one or two per cent lower than Bank Rate.
▫ They operate as 'balancing centres' for central
cooperative banks (CCBs).
Their Constitution
• STATE COOPERATIVE BANKS
▫ They raise funds on their own to make them available
to the CCBs and through them or directly to primary
societies in such districts where CCBs are not in
operation.
Their Constitution
• CENTRAL CO-OPERATIVE BANKS
▫ It can be divided into two parts:
▫ Co-operative Banking Union: Members are only Co-
operative societies.
▫ Mixed control Co-operative Bank: Members are co-
operative societies and individuals.
▫ These are the middle level in the three-tier structure.
▫ Operate at district level.
Their Constitution
• CENTRAL CO-OPERATIVE BANKS
▫ Main function is to lend money to affiliated primary
societies. The duration of loans vary from 1 year to 3
years.
▫ Their working capital derives from deposits,
borrowings and other liabilities and owned funds.
Their Constitution
• PRIMARY CO-OPERATIVE BANKS (PCBS)
▫ They are non-agricultural credit societies.
▫ Two types:
 Urban co-operative banks
 Salary earners' societies
▫ Development of PCBs is looked after by the RBI
▫ Operate only in urban and semi-urban areas.
▫ Working capital drawn largely from public deposits and
to a smaller extent from owned funds and borrowings.
•
Their Constitution
• PRIMARY CO-OPERATIVE BANKS (PCBS)
▫ RBI and IDBI offer them concessional refinance facility
on a selected basis.
▫ Provide housing finance and loans and advances for
various other pus poses such as petty trade and
industry.
Their Constitution
• Co-operative Society
Register Co-operative Society
Apex Body (Eg. MSCB)
Register (for various activities)

Paid-up Capital from
Can be SCS, CCS, PCS Share-holders
Co-opt Bank – Rs. X (say)

Scheduled Bank – Rs. Y (Say)
RBI License Nationalised Bank – Rs. Z (Say)
Their Constitution
• Co-operative Society (Running Banking)
Say XYZ Co-op. Bank

Two Owners (Regulated & Govern by)
Registrar Co-operative Society RBI

(RCS)
RBI License
Their Constitution
• Co-operative Society (Running Banking)
Say XYZ Co-op. Bank
Two Owners (Regulators)
Election & GBM (Every 3 yrs)
President & Directors RCS, Finance, other Govt.

Representative included
Their Constitution
Types of Co-operative Banks
• Co-operative banks are small-sized units which
operate both in urban and non-urban centres
• Finance small borrowers in industrial and trade
sectors besides professional and salary classes.
• Regulated by the Reserve Bank of India,
▫ They are governed by the Banking Regulations Act
1949 and
▫ Banking laws (co-operative societies) act, 1965
Co-operative banking structure in India is divided into 5 components
Their Constitution
Primary Co-op. Credit Society
• An association of borrowers and non-borrowers

residing in a particular locality.
• The funds of the society are derived from
▫ The share capital and deposits of members and
▫ Loans from central co-operative banks.The
• The borrowing powers of the members as well as of the
society are fixed.
• The loans are given to members for the purchase of
▫ cattle, fodder, fertilizers, pesticides, etc.
Their Constitution
Central Co-op. Banks
• Federations of primary credit societies in a district and are of

two types-
▫ those having a membership of primary societies only and
▫ those having a membership of societies as well as individuals.
• Funds from share capital, deposits, loans and overdrafts from
state co-operative banks and joint stocks.
• Finance to member societies within the limits of the
borrowing capacity of societies
• Can conduct all the business of a joint stock bank
A joint stock bank combines features of a general partnership, in which owners of a company split profits
and liabilities, and a publicly-traded company, which issues stock that shareholders are able to buy and
sell on an exchange. A joint-stock bank is not owned by a government
Their Constitution
State Co-op. Banks
• Federation of central co-operative bank

• Acts as a watchdog of the co-operative banking structure in
the state.
• Funds are obtained from share capital, deposits, loans
and overdrafts from the Reserve Bank of India.
• The state cooperative banks lend money to
▫ central co-operative banks and
▫ primary societies and
▫ Not directly to the farmers.
Their Constitution
Land Dev. (Co-op.) Banks
• Organized in 3 tiers namely; state, central, and primary level

• Meet long term credit requirements of the farmers for developmental
purposes
• state land development banks oversee,
▫ the primary land development banks situated in the districts and
▫ tehsil areas in the state.
• National Bank for Agriculture and Rural development (NABARD) recently taken over
supervision of LDBs.
• Funds - debentures subscribed by both central and state government.
• These banks do not accept deposits from the general public
A tehsil (also known as a mandal, taluk, taluq or taluka) is an administrative division of some countries of South
Asia. It is an area of land with a city or town that serves as its administrative centre, with possible additional
towns, and usually a number of villages.
Their Constitution
Urban Co-op. Banks
• Primary co-operative banks located in urban and semi-urban areas

• Till 1996, lend money only for non-agricultural purposes but their scope of
operations has widened considerably.
• Funding from - deposits from
▫ members and non-members and
central co-
▫ in case of need, they get finance from either the district
operative bank to which they are affiliated or from the apex co-
operative bank
▫ if they work in big cities where the apex bank has its Head Office.
Credit to small scale industrialists, salaried employees, and other urban

and semi-urban residents
Functions
of Co-operative Banks
Functions
• Extend all types of credit facilities to
▫ Customers in cash and kind,
▫ Advance consumption loans,
▫ Extend banking facilities in rural areas,
▫ mobilize deposits,
▫ supervise the use of loans etc.
Functions
Broadly caters to different needs of Rural and Urban Customers
Rural Cutomers
• Co-operative banks in India finance rural areas under:

• Farming
• Cattle
• Milk
• Hatchery
• Personal finance
Functions
Broadly caters to different needs of Rural and Urban Customers
Urban Customers
• Co-operative banks in India finance urban areas under:

• Self-employment
• Industries
• Small scale units
• Home finance
• Consumer finance
• Personal finance
Functions
Functional difference between a Commercial Bank and Co. op. Bank
• Co-operative banks also perform the basic banking functions of banking

but they differ from commercial banks in the following respects
▫ Commercial banks are joint-stock companies under the companies’ act of
1956, or public sector bank under a separate act of a parliament
whereas co-operative banks were established under the co-operative
societies acts of different states
▫ Commercial bank structure is branch banking structure whereas Co-
operative banks have a three tier setup, with State Co-operative Bank
at Apex level, Central / District Co-operative Bank at district level, and
Primary Co-operative Societies at rural level.
Functions
Functional difference between a Commercial Bank and Co. op. Bank
▫ Only some of the sections of Banking Regulation Act

of 1949 (fully applicable to commercial banks), are
applicable to co-operative banks, resulting only in
partial control by RBI of co-operative banks and
▫ Co-operative banks function on the principle of
cooperation and not entirely on commercial
parameters.
Common features
• Co-operative banks organizational rules can vary –
Different Legislations
• But, these banks share common features
▫ Customer-owned entities:
 The needs of the customers meet the needs of the
owners (Members both customers & owners).
 Motive – not to maximize profit.
 Some co-operative banks only operate with their
members but most of them also admit non-member
clients to benefit from their banking and financial
services.
Common features
▫ Democratic member control:
 Owned and controlled by their members, who
democratically elect the board of directors.
 Members usually have equal voting rights, according to
the co-operative principle of “one person, one vote”.
Common features
▫ Profit allocation:
 A significant part of the yearly profit, benefits or surplus
is usually allocated to constitute reserves.
 A part of this profit can also be distributed to the co-
operative members, with legal or statutory limitations in
most cases –
 either through a patronage dividend, or
 through an interest or a dividend
Working
• Managed on
▫ The Principles of Co-operation

▫ Self-help and
▫ Mutual help
• Functions on
▫ No Profit No Loss
Working
Co-operative Banking Structure
SCBs – State Co-
RBI operative Banks
SLDBs – State
Land Dev. Banks
CCBs – Central
NABARD Co-operative
Banks
CLDBs – Central
Land Dev. Banks
UCBs PACSs - Primary
SCBs SLDBs Agricultural
(PCBs) Credit Societies
PLDBs - Primary
Land Dev.
CCBs CLDBs
Societies
PACBs
Branches of
PLDBs
SLDBs
Working
Working Level Structure
Evolution
of co-operative societies & banks
• SOCIETIES
• Co-operative - Europe in the 19th century, primarily
in Britain and France.
• ‘The Shore Porters Society’ claims to be one of the
world's first co-operatives.
• The first documented consumer co-operative was
founded in 1769 (Fenwick Weavers' Society)
Evolution
• Subsequently, this movement spread to
Germany and other European countries.
• The co-operative movement in India is century old.
• Purpose - to encourage and promote thrift and
mutual help for the development of persons
of SMALL MEANS such as
▫ Agriculturists,
▫ Artisans and
▫ other segments of the society
Evolution
• Efforts in releasing the exploited classes out of the
clutches of the money lenders.
• During British rule, recommendations of Sir
Frederick Nicholson (1899) and Sir Edward
Law (1901),
▫ the Co-operative Credit Societies Act was passed in
1904,
▫ paving the way for the establishment of co-operative
credit societies in rural and urban areas.
Evolution
• The first urban co-operative credit society was
registered in October 1904 at Kanjeepuram
(TN).
• In October and December 1905, Betegiri Co-
operative Credit Society in Dharwar District
and the Bangalore city co-operative credit
society (Karnataka).
Evolution
• The introduction of the Co-operative Credit
Societies Act 1904 - institutionalization of co-
operative Banking in India.
• Amended in 1912 to facilitate the establishment of
central co-operative banks at the district level,
▫ thereby giving it a THREE TIER FEDERAL
CHARACTER.
• This Act paved the way for the organisation of central co-operative banks
throughout the country.
• But the provisions of 1912 Act were inadequate to meet the requirements of
those states where co-operative movement had made considerable progress .

Evolution
• Bombay, the pioneers in this regard passed a new
Act,
▫ viz., the Bombay Co-operative Societies Act,
1925 for serving the many sided development of the
state.
• Later on, Madras, Bihar and Bengal
▫ passed their own Acts in 1932, 1935 and 1940
respectively.
Evolution
• After Independence (1947), the state patronage
to the co-operative movement continued
• New India accepted the concept of planned
economy and co-operative organizations were
assigned an important role.
Evolution
• The policy of the Government towards the co-
operative movement - guided by the
recommendations of the Saraiya Committee
▫ important role to play as the most suitable medium for
the democratization of economic planning.
• New India accepted the concept of planned
economy and co-operative organizations were
assigned an important role.
Evolution
• Since 1950s, the co-operatives in India have made
remarkable progress in the various segments of
Indian economy
• Co-operative movement has entered several sectors
like
▫ credit, banking,
▫ production, processing,
▫ distribution/marketing,
▫ housing, warehousing, irrigation, transport,
▫ textiles and even industries
Evolution
• Dairy and sugar co-operatives have made
India a major nation in the world.
• Today, India can claim to have the largest

network of co-operatives in the world
▫ numbering more than half a million, with a
membership of more than 200 million
Evolution
• Various provisions incorporated in 5 Year
Plans
▫ First Plan also recommended for training of
personnel's and setting up of Co-operative Marketing
Societies.
▫ The Second Plan laid down proposals for extending co
operative activity into various fields. It gave special
emphasis on the warehousing co operatives at the
State and Central level.
Evolution
Plans
▫ The Third Plan brought still new areas under Co
operative societies.
 The co operative society for sugarcane, cotton, spinning,
milk supply was proposed.
 Some concrete steps were taken to train the personnel's.
The co operative training College at Pune and many
regional centers were established to train the workers.
Evolution
Plans
▫ The Fourth Plan emphasised for consolidation of co
operative system. The new programme for high yielding
crops was started. Different credit societies were
organised to serve these programmes.
▫ The Fifth Plan made special provisions for improvement of Central
Banks and no viable primary agricultural societies, re organising
marketing as well as consumer societies. It also recommended for
establishment of Farmer’s Service Societies.
Evolution
• Various provisions incorporated in 5Year Plans
▫ The Sixth Plan laid down a point programme for co-
operative societies
 It aimed at transforming the primary village societies to multipurpose
societies:
 To reconstruct the policies and of co-operative so that it
can bring about economic development of people
 To extend co-operative activities to the fields of food
processing, poultry farming, dairy farming, fishery and many
other related fields
 To give necessary training and guidance for developing
skilled efficient personnel's.
Evolution
• The Seventh Plan has also given more importance on
the growth and expansion of co operative societies
to ensure public participation to achieve its main
objective i.e. the movement towards social justice
has to be faster and there must be a sharper focus
on employment and poverty alleviation
 role.
Evolution
 role.
Evolution
 role.
Evolution
▫ The Seventh Plan has also given more importance
 on the growth and expansion of co operative societies

 to ensure public participation to achieve its main objective
▫ i.e. the movement towards social justice has to be faster and
there must be a sharper focus on employment and poverty
alleviation
Evolution
• The co-operative banks in India have a history of almost 100
years.
• The co-operative movement was originated in the west, but
the important that such bank have assumed in India is rarely
paralleled anywhere else in the world.
• Co-operative banks in India are registered under the Co-
operative Societies Act.
• The co-operative banks are also regulated by the Reserve
Bank of India (RBI) and governed by Banking Regulations Act
1949 and Banking Laws (Co-operative Societies) Act, 1955.
Evolution
• The co-operative banks in India are well established financial
service organization.
• The first legislation on cooperation was passed in 1904.
• In 1914, the Maclagen Committee envisaged a three tier
structure of co-operative banking,
▫ viz., Primary Agricultural Credit Services (PACs) at the grass root
level,
▫ Central Co-operative Banks at the district level and
▫ State Co-operative Banks at State level or Apex level.
Evolution
• The first urban co-operative bank in India was formed nearly
100 years back in Baroda.
• The co-operative banks arrived in India in the beginning of

20Century as an official effort to create a new type of
institution based on the
▫ principles of co-operative organization and
▫ management, suitable for problems peculiar to Indian conditions.
Evolution
• These banks were conceived as substitutes for money
lenders, to provide timely and adequate short-term
and long-term institutional credit at reasonable rates
of interest.
• In the formative stage, Co-operative banks were urban co-
operative societies run on community basis and their lending
activities were restricted to meeting credit requirements of
their members.
• The concept of Urban Co-operative Bank was first spelt out
by Mehta Bhansali Committee in 1939 which defined on
Urban Co-operative Bank.
Evolution
• Provisions of Section 5 (CCV) of Banking Regulations Act,
1949 (as applicable to Co-operative Societies)
▫ defined an Urban Co-operative Bank as a Primary Co-operative
Bank other than a Primary Co-operative Society was made applicable
in 1966.
Their Constitution
• Scheduled Banks
▫ Registered in the 2nd Schedule of RBI
▫ Conditions
 Must be in banking business
 Either a company (Section 3 of ICA, 1956)
 or a corporation or a company (incorporated by or
under any law in force in any place outside India
 or an Institution notified by Central Govt.
 Paid up capital and reserve – Rs. 5 Lakhs
 Fulfil RBI condition – its affairs are not conducted in a
manner detrimental to the interests of its depositors.
Their Constitution
• Scheduled Banks
▫ Minimum capital requirements for setting up Private
Sector Banks
 Initially – 100 Crore
 Gradually Increase to – 200
 Present – Rs. 300 Crore Net worth of at least for all
banks
Their Constitution
• Indian Schedule Commercial Banks
▫ Registered under 2nd Schedule + Reg. Offices in India
▫ Two Types
 Public Sector Commercial Banks (SBI + Subsidiaries & 20
Nationalised Banks)
 Private Sector Commercial Banks (All banks left out of
the above group)
Their Constitution
• Indian Non Schedule Commercial Banks
▫ Not included/Registered under 2nd Schedule of RBI
▫ Four Types
 Depending on their Paid-up Capital & Reserves
 In Excess of Rs. 5 Lakh;
 Between Rs. 1 Lakh – Rs. 5 Lakh;
 Between Rs. 50K – Rs. 1 Lakh;
 Below Rs. 50K.
Functions
• Primary functions
▫ Accepting Deposits
▫ Advancing Loans
▫ Credit Creation
- the unique power of the banks to multiply loans and
advances, and hence deposits
- i.e. the amount of money in circulation(being passed from
one person to another) increases.
Functions
• Secondary Functions
▫ Agency Function – Collecting Cheques, income &
Paying Rents
▫ General Utility Function – Locker, traveler’s cheque &
Foreign Exchange Facilities
▫ Other Facilities – Electronic Banking, Mobile Banking,
Apps etc.
Working
• Some major Principles
▫ Profitability - Balance the principle of profit maximisation
with certain other principles like obligations in social
welfare/social justice and regional balance in development.
▫ Liquidity – Maintaining adequate liquidity faces much
greater liabilities; payment on demand.
▫ Safety – Ensure all hard earned money/deposits of
customers are safe.
▫ Social Welfare (Justice) – All commercial banks have certain
obligations towards the society. CSRs etc.
Working
• A full commercial bank runs like a conglomerate of at least
three divisions.
• Say, consumer, institutional banking and treasury
▫ under the watch of the all powerful control units in legal,
compliance, audit, and risk (which may have a dozen sub-units).
• And within these divisions there can be many departments
and sub-departments
• Look at consumer and institutional banking,
▫ Essentially the retail and commercial elements of the bank.
Further spilt into two parts, they are a front office and a back
office which involves Transaction Lifecycle Management (TLM)
and reconciliation.
Working
• Treasury - complicated, processing of complex financial
products, liquidity management and management of the banks
own assets.
• Tech & Ops
Working
Evolution
• Over the past 60 years since independence BS – Five Distinct
Phases.
▫ 1. Evolution Phase (Prior to 1950)
▫ 2. Foundation Phase (1948-1967)
▫ 3. Expansion Phase (1968-1984)
▫ 4. Consolidation Phase (1985-1990)
▫ 5. Reformatory Phase (1991 – 2000)
▫ 6. Mergers and Acquisitions Phase (2001 and Onwards)
Evolution
Evolution Phase (Prior to 1948)
• Enactment of RBI Act 1935 – Birth of Scheduled banks
• Prominent Scheduled Banks –
▫ Period (1800-1900)
▫ Allahabad Bank (1865 –European Mngmt);
▫ Oudh Commercial Bank (1881 – First Indian Ownership &
Mngmt.);
▫ Ajodhya Bank (1884),
▫ PNB (1894);
▫ Nedungadi Bank (1899)
Evolution
▫ Peroid (1901-1914)
▫ 14 New Banks established
▫ Prominent banks – BoB, Canara Bank (1906); Indian Bank
(1907), BoI (1908), Central Bank of India (1911)
▫ Crises of 1913 (WWI) and 1929 (The Great
Depression)
▫ After Independence (Few Banks established)
▫ 1921 – Imperial Bank (Amalgamation of Presidency
Banks)
 To help industries and banking facilities to grow in all parts
of the country.
 Role of Central Bank of the Country and Regulatory
Authority for the banks; Not fully Commercial in Nature.
Evolution
▫ Overall Role of CB during this phase
▫ Remained confined to serving community’s savings + Credit to
only certain selected and limited segments of the economy.
▫ Operations influenced primarily by Commercial principle and
not developmental factor.
▫ Regulation – only being introduced and unhealthy practices
dominated banking scene.
▫ Failure of banks common – as governance in privately owned
joint stock bank were very poor.
Evolution
▫ No. of banks in the Evolution phase
Sl. No. Established during No. of Banks
1 19th Century 2
2 Pre-WWI 14
3 Inter-War Period 21
4 WWII 3
5 Post WWII 18
Total 58
Evolution
Foundation Phase (1948 - 1967)
• Strong focus on security rather than on purpose.
• Laying foundation for a sound banking system in the country
(This Phase).
• Witnessed the development of the necessary legislative
framework for facilitating re-organisation and consolidation of
the banking system in the country.
▫ Banking Regulation Act (1949) – to conduct and control
operation of the commercial banks in India
▫ Transformation of Imperial Banks into SBI (1st July, 1955) –
redefinition of its role in Indian Economy
▫ Strengthening of Co-operative credit structure and setting up of
institutional framework for providing long-term finance to
agriculture and industry. .
▫ So, opened its door to wider groups of customers.
Evolution
Foundation Phase (1948 - 1967)
• No. of Commercial Banks during 1951 – 68
Particulars December December December

1951 1956 1968
Scheduled Banks 92 89 71
Non-Scheduled Banks 474 334 210
Total 566 423 281
• Perceptible change – consolidation and strengthening of the banking

structure and the organisational drive by RBI (Enactment of Banking
Regulation Act, 1949);
• With a view to improve the quality of banking services and widening the
geographical and functional spread of their activity.
• This process continued till 1060s.
Evolution
Expansion Phase (1968-1984)
• Witness socialisation of banking (During this phase) – viewed
commercial banks as agents of social change.
• Most banks failed to cater to these segments except SBI and
its seven associate banks.
• Nationalised – 14 (1969) & 6 (1980) – to control the heights
of the economy in conformity with national policy and
objectives.
• Birth & Growth of – Direct lending by banks
• Saw Commercial banking spreading to far and wide areas in
the country – implementing a no. of poverty alleviation and
employment generating schemes.
Evolution
• Dominance of Social Banking
• Birth of Regional Rural Banks (RRBs – 1975), NABARD
(1982) – priority sector lending.
• 281 in 1968 to 268 in 1984, Scheduled Banks – 71 to 264
from 1968 to 1984; Non Scheduled Banks – 210 to 4.
Increased in Scheduled Banks due to RRBs.
• Most banks failed to cater to these segments except SBI and
its seven associate banks.
• Nationalised – 14 (1969) & 6 (1980) – to control the heights
of the economy in confirmity with national policy and
objectives.
• Birth & Growth of – Direct lending by banks
Evolution
• Many branches opened; 3/4th – in rural and semi-
urban areas.
• Reach, employment generation etc encreased.
• Downside – Inefficiency, lower profitability and
performance, quality of service degraded.
Evolution
Consolidation Phase (1985 – 1990)
• To overcome the above weaknesses, slight relaxation in the
regulatory framework
• Attention given on improving housekeeping, customer service,
credit mnagement, staff productitivity and profitabitliy of
branches.
• Rationalisation of the rates of banking deposits and lending.
• Reduction of structural constraints.
Evolution
Reformatory Phase (1991 - 2000)
• Major regulatory constraints – inhibit the efficiency of interest
rate mechanism which adversely affected the viability and
profitability of banks.
• Reformation of the banking sector during this phase saw the
seed for evolution of highly efficient banking patterns in India.
▫ Eg. Formation of Narasimhan Committee I and II etc.
Evolution
Mergers & Acquisition Phase
(2001 and Onwards)
• Stabilization of the banking sector is taking place
• Smaller banks are merging with bigger banks and Bigger banks
acquiring smaller banks.
• And the process is still continuing.
The End

Unit - II: Merchandise Management Visual Merchandise

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Unit - II: Merchandise Management Visual Merchandise

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Unit - II

PLAY - VITAL ROLES ranging from small boutiques or large

To play these roles, visual merchandisers apply different

Visual merchandiser established a relationship between the

ART OF VISUAL MERCHANDISING - evolved from a role

According to Iowa State University, it is the SECOND MOST

Retailers rely on visual merchandising TO REINFORCE THEIR

Visual merchandising demands constant attention TO SUSTAIN

Visual merchandising is the practice in the retail

Of these six factors, we will be discussed

Possibly misreading customers and being stuck with large

• Assessing each factor

Only then, a firm can better capitalize on opportunities

• One tool to assess potential is the product life cycle

Life Cycle Stage Nature

Because retailers must often purchase their merchandise six to

With the exception of service retailers, merchandise needs to

Ensures that the merchandise is where it is needed and in the

 Proper lighting - increase retail sales by up to

Attracts maximum attention and highlights items

Music these days is an essential element to a store

Signage – Following are a few ideas for signs

Signage – Following are a few ideas for signs

 Shelving and Displays –

SHELVING AND DISPLAYS –

(ii) Best Selling Focus: Focus on best selling items.

(iii) Impulsive Items Focus: Focus on impulse items (Items people

(iv) Story/Theme Displays: Good displays tell a story or have a

 Few effective guidelines for displays:

(viii) Portray:Try portraying your goods in use.

(ix) Motion: Use motion if possible to attract attention.

(x) Lighting: Use proper lighting and props.

1. Straight Floor Plan

Arrangement easy to understand & less expensive

Suitable for any type of retail store

The maintenance cost is negligible and even appreciated by floor staff

It is also one of the most popular layouts

Excellent store layout for self-service types of retail stores

Offers tremendous visibility for supervisors, cashiers and customers

Proper movement and traffic flow to the retail store resulting in

Comparatively expensive – so rarely used

Best suitable for high-end specialty stores - things are costly

Usually seen in jewellery/diamond stores

Uses RACKS AND FIXTURES to create an interesting and out-of-the-

Recommended for CLOTHING AND APPAREL stores

Proper arrangement of display Possible - customers DON’T FIND ANY

Combination of TWO OR MORE LAYOUTS

A store is engaged in MULTI-VARIED RETAILING – a

4 Convenience - stores use the COMBINATION OF TWO OR MORE

Moves traffic - towards the WALLS AND BACK of the store

 Indian Retail Expanding at a speedy pace

Due to the ENTRY OF SEVERAL NEW PLAYERS.

Accounts for OVER 10 PER CENT of the country’s Gross Domestic

Around 8 per cent of the employment

India is the WORLD’S FIFTH-LARGEST GLOBAL DESTINATION in

Indian retail market is divided into

“Organised Retail Market” - valued at $60

 Mall space, from a meagre 40 MILLION SQUARE

Some appropriate space - left for supportive

These functions must be allotted space

Besides this, whenever store buys any

Dispatch cell plays a crucial role