Chapter 13

Store Layout and Design

Retailing, 6th Edition. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved.
Learning Objectives

1. List the elements of a store’s environment and define

its two primary objectives.
2. Discuss the steps involved in planning the store.
3. Describe how various types of fixtures, merchandise
presentation methods and techniques, and the
psychology of merchandise presentation are used to
increase the productivity of the sales floor.
4. Describe why store design is so important to a store’s
success.
5. Explain the role of visual communications in a retail
store.
Introduction to Store Layout Management

 Elements of the Store Environment

 Objectives of the Store Environment

LO 1
Introduction to Store Layout Management

 Store image:
Is the overall perception the consumer has of
the store’s environment.

LO 1
Introduction to Store Layout Management

 Space productivity:
Represents how effectively the retailer utilizes
its space and is usually measured by sales per
square foot of selling space or gross margin
dollars per square foot of selling space.

LO 1
Elements That Compose the Store Environment

Exhibit 13.1 LO 1
Introduction to Store Layout Management

 Shrinkage:
Represents merchandise that cannot be
accounted for due to theft, loss, or damage.

LO 1
Store Image
 L.L. Bean offers relaxed,
classic apparel styles to
its customers. To help
convey this image, L.L.
Bean’s catalog and
advertising reinforces
their image. For catalog
customers, the catalog is
the store environment.

LO 1
Store Image

 By incorporating a café as an integral part of

Barnes & Noble bookstores, a very relaxing
and casual ambiance is created.

LO 1
Store Planning

 Allocating Space
 Circulation
 Shrinkage Prevention

LO 2
Store Planning

 Floor plan:
Is a schematic that shows where merchandise
and customer service departments are
located, how customers circulate through the
store, and how much space is dedicated to
each department.

LO 2
These Warning Signs May Indicate a Space Problem

Exhibit 13.2 LO 2
Store Planning

 Microretailing:
Occurs when a chain store retailer operating
over a wide geographic area, usually
nationally, tailors its merchandise and services
in each store to the needs of the immediate
trading area.

LO 2
Store Planning

 Stack-outs:
Are pallets of merchandise set out on the floor
in front of the main shelves.

LO 2
Store Planning

 Allocating Space
 Back Room
 Offices and Other Functional Spaces
 Aisles, Service Areas, and Other Nonselling
Areas
 Floor Merchandise Space
 Wall Merchandise Space

LO 2
Store Planning

 Space Allocation Planning

 Improving Space Productivity in Existing Stores
 Space Allocations for a New Store

LO 2
Store Planning

 Space productivity index:

Is a ratio that compares the percentage of the
store’s total gross margin that a particular
merchandise category generates to its
percentage of total store selling space used.

LO 2
Merchandise Productivity Analysis

Exhibit 13.3 – Softlines Excerpt LO 2

Store Planning

 Circulation
 Free Flow
 Grid
 Loop
 Spine

LO 2
Store Planning

 Free-flow layout:
Is a type of store layout in which fixtures and
merchandise are grouped into free-flowing
patterns on the sales floor.

LO 2
Store Planning

 Grid layout:
Is a type of store layout in which counters and
fixtures are placed in long rows or “runs,”
usually at right angles, throughout the store.

LO 2
Free-Flow Layout

Exhibit 13.4 LO 2
Grid Layout

Exhibit 13.5 LO 2
Store Planning

 Loop layout:
Is a type of store layout in which a major
customer aisle begins at the entrance, loops
through the store – usually in the shape of a
circle, square, or rectangle – and then returns
the customer to the front of the store.

LO 2
Loop Layout

Exhibit 13.6 LO 2
Store Planning

 Spine layout:
Is a type of store layout in which a single main
aisle runs from the front to the back of the
store, transporting customers in both
directions, and where on either side of this
spine, merchandise departments using either
a free-flow or grid pattern branch off toward
the back side walls.

LO 2
Spine Layout

Exhibit 13.7 LO 2
Allocating Space

 Warehouse clubs are

able to take advantage
not only of the width and
depth of the store, but
also the height, by using
large “warehouse racks”
that carry reachable
inventory at lower levels
with large pallets or
cartons of excess
inventory at higher
levels.

LO 2
The Disney Store’s Effective Use
of the Free-Flow Design
 Approximately 250 million
consumers visit Disney’s
entertainment retail outlets each
year. New store designs
showcase merchandise in an
engaging and contemporary
fashion, keeping pace with
evolving retail trends.
Technological elements - including
a front-of-store media wall that
engages guests with Disney
programming, and interactive
kiosks-setting the stage for the
Disney Store in the 21st century.

LO 2
Floor Plan: Clarence Sander’s Piggly Wiggly

LO 2
Floor Plan: Kohl’s

LO 2
HBA Space Allocation by Mass Merchandisers
Total U.S. and by geographic region
Selected HBA categories
Average linear feet per store handling
Total U.S. Eastern Central Southern Pacific
Creme rinse/conditioner 58.2 45.0 59.0 59.6 86.7
Deodorant 107.6 82.9 103.4 130.0 93.5
Face cream/lotion 21.9 18.2 20.7 24.8 24.9
Hand/body lotion 44.1 27.2 44.0 54.5 43.4
Hair colorings 57.7 52.6 51.4 66.2 61.1
Hair spray-women’s 69.2 39.8 55.5 102.5 59.0
Men’s toiletries 28.5 11.3 23.3 44.2 28.5
Oral antiseptics/rinses 55.3 36.6 49.4 76.0 39.5
Shampoo 82.3 63.5 80.5 95.8 81.3

Source: Neilsen Marketing Research LO 2

HBA Space Allocation by Mass Merchandisers
Total U.S. and by geographic region
Selected HBA categories
Average linear feet per store handling...
Total U.S. Eastern Central Southern Pacific

Shaving creams 24.7 24.4 24.3 24.5 27.8

Suntan Lotion 45.7 37.0 38.0 59.9 41.4
Toothpaste 71.5 58.9 60.3 87.0 87.6
Acne remedies 31.3 16.3 29.7 39.7 42.6
Antacids 31.3 16.3 29.7 39.7 42.6
Cold remedies-adult 34.3 25.5 30.3 41.8 42.9
Cough syrup/tablets 13.0 9.9 11.9 15.2 16.7
Nasal spray/drops 7.1 4.0 6.6 9.6 6.0

Source: Neilsen Marketing Research LO 2

 HBA Space Allocation by Mass Merchandisers
Total U.S. and by geographic region
Selected HBA categories
Average linear feet per store handling...
Total U.S. Eastern Central Southern Pacific
Headache/pain remedies 49.6 30.5 47.8 61.1 59.8
Vitamins 64.5 34.0 57.6 90.2 71.0
Contact lens solution 53.4 33.5 47.4 70.3 59.2
Diet aids 23.2 14.3 25.2 26.0 28.4
Pregnancy test kits 5.0 2.4 4.2 6.6 8.6
Laxatives 24.8 10.6 21.3 35.7 32.6
Contraceptives-male 11.8 7.2 9.9 12.8 26.8
Sanitary napkins 91.2 77.8 93.7 100.8 73.6
Tampons 26.3 24.8 26.4 26.0 31.4

Source: Neilsen Marketing Research LO 2

Planning Fixtures and Merchandise Presentation

 Fixture Types
 Merchandise Presentation Planning
 Selecting Fixtures and Merchandise
Presentation Methods
 Visual Merchandising

LO 3
Planning Fixtures and Merchandise Presentation

 On-shelf merchandising:
Is the display of merchandise on counters,
racks, shelves, and fixtures throughout the
store.

LO 3
Planning Fixtures and Merchandise Presentation

 Fixture Types
 Hardlines Fixtures
 Softlines Fixtures
 Wall Fixtures

LO 3
Planning Fixtures and Merchandise Presentation

 Bulk or capacity fixture:

Is a display fixture that is intended to hold the
bulk of merchandise without looking as heavy
as a long, straight rack of merchandise.

LO 3
Planning Fixtures and Merchandise Presentation

 Feature fixture:
Is a display that draws special attention to
selected features (e.g., color, shape, or style)
of merchandise.

LO 3
Four-Way Feature Rack and Round Rack

Exhibit 13.8 LO 3
Planning Fixtures and Merchandise Presentation

 Merchandise Presentation Planning;

Six Methods
1. Shelving
2. Hanging
3. Pegging
4. Folding
5. Stacking
6. Dumping

LO 3
Planning Fixtures and Merchandise Presentation

 Merchandise Presentation Planning;

Key Psychological Factors to Consider
1. Value/fashion image
2. Angles and sightlines
3. Vertical color blocking

LO 3
45-Degree Customer Sightline

Exhibit 13.9 LO 3
Vertical Color Blocking

Exhibit 13.10 LO 3
Planning Fixtures and Merchandise Presentation

 Visual merchandising:
Is the artistic display of merchandise and
theatrical props used as scene-setting
decoration in the store.

LO 3
Visual Merchandising

 Lead them to
temptation.
Department-store
design incorporates a
gauntlet of goodies to
stimulate impulse
buys. Cosmetics, a
store’s most profitable
department, should
always be at the main
entrance to the store.

LO 3
Visual Merchandising
 Here’s sampling of the
techniques stores use to
generate those sales:
Get’m coming and going.
Escalators are a focal
point of many stores. That
makes them ideal
locations for promotional
signs and for impulse
items like perfume.

LO 3
Visual Merchandising

 Its all in the display. When an item, such as a

watch or a scarf, is displayed in a glass case,
it implies luxury. An item in a glass case with a
lot of space around it implies real luxury.

LO 3
Visual Merchandising

 Color is king. Retailers believe consumers are

more apt to buy clothes that appear in full size
and color assortments.

LO 3
Visual Merchandising
 Suggestion positioning.
Once the customer has
already purchased one item,
it’s easier to sell an additional
item. Thus apparel retailers
strategically place impulse
buys like hair bows and
costume jewelry by the
cashier the same way
supermarket checkouts
display candy and
magazines.

LO 3
Store Design

 Storefront Design
 Interior Design
 Lighting Design
 Sounds and Smells: Total Sensory Marketing

LO 4
Lighting Design

 Crate & Barrel makes effective use of lighting

to highlight and feature merchandise on
display.

LO 4
Total Sensory Marketing

 Crabtree & Evelyn

makes effective use
of fragrances and
odors to generate
smells that reinforce
its store ambiance.

LO 4
Visual Communications

 Name, Logo, and Retail Identity

 Institutional Signage
 Directional Departmental, and Category
Signage
 Point-of-Sale (POS) Signage
 Lifestyle Graphics

LO 5
Visual Communications

 Directional and departmental signage:

Are large signs that are usually placed fairly
high, so they can be seen throughout the
store.

LO 5
Visual Communications

 Category signage:
Are smaller than directional and departmental
signage and are intended to be seen from a
shorter distance; they are located on or close
to the fixture itself where the merchandise is
displayed.

LO 5
Visual Communications

 Point-of-sale signage:
Is relatively small signage that is placed very
close to the merchandise and is intended to
give details about specific items.

LO 5
Departmental Signage
 Departmental signage
serve as the highest
level of organization in
an overall signage
program. These signs
are usually large and
placed fairly high to
they can be seen
throughout the store.

LO 5
Category Signage

 Category signage helps

consumers negotiate
throughout the store to
find the product
categories they are
looking for. The size of
category signage varies
widely from a lettering
that is a few feet in height
to merely inches.

LO 5
Point-of-Sale (POS) Signage

 POS signage for clearance and sale items

tend to be in red to draw a consumer’s
attention.

LO 5
Lifestyle Graphics

 The Limited uses

lifestyle graphics to
convey the image of
the product to the
consumer. Here the
Limited conveys the
casual nature of one
apparel line.

LO 5
Additional Slides
Store Planning

Allocating
Space

Circulation

Shrinkage
Prevention

LO 2
Planning Fixtures and Merchandise Presentation

Merchandise
Fixture
presentation
types
planning

Selecting fixtures Visual

and merchandise merchandising
presentation
methods

LO 3
Store Design

Storefront Interior
Design Design

Lighting Sounds and

Design Smells

LO 3