L7

Question 1

Roles of brick-and-mortar stores

Answer 1

1. convenience when customers want the product immediately
2. discover new products
3. opportunity to try and experience products
4. store display product assortments can help customers narrow down choices
5. cross sell when products are displayed and promoted together

Question 2

a good layout should

Answer 2

• entice customers to move around the store
• balance between customer space and productivity
• have unobstructed views
• provide customer space

Question 3

commonly used store layouts

Answer 3

Grid :
- forces customers to move throughout the entore store
- can easily locate the products easily
- cost efficient as fixtures are standardised

Racetrack :
- also called loop layout
- makor aisles guides traffic through different department
- encourages unplanned purchasing

free form layout :
- boutique layout
- fixures and isles arranged asymmetrically intimate, relaxed environ,ent
- found in specialty stores

Question 4

considerations for space planning (BPPCC)

Answer 4

1. balance of customer space and floor productivity
2. profitability of merchandise
3. physical characteristics of merchandise should be taken into consideration
4. consumer buying behaviour considerations
5. complementary products should be placed adjacent to each other

Question 5

space management

Answer 5

1. space allocated to merchandise categories and brands ( allocate space to product based on the products profitability)

• space productivity : sales per sq foot calc
• GMROS (gross margin return on space) : gross margin/ selling area in square feet
• net sales return on space (NSROS) = net sales/ selling area in square feet
• inventory turnover
• display considerations
• leased concessions

Question 6

space management : space allocated to merchandise categories and brands

• space productivity : inventory turnover

Answer 6

• inventory turnover and gross margin contribute to GMROI
• more space should be allocated to merchandise with higher inventory

Question 7

space management : space allocated to merchandise categories and brands

display considerations

Answer 7

The physical limitations of the store and its fixtures affects space allocation

Question 8

space management : space allocated to merchandise categories and brands

leased concession

Answer 8

a concession is essentially a miniature store operated by the brand located within a larger store

benefits of leased concession
- control over product pricing
- brands are free ti hire deciated sales associate dthat may be better trained

Question 9

space management :

location of merchandise categories

Answer 9

1. destination merchandise
2. strike zone
3. impulse merchandise
4. demand and promotional merchandise
5. special merchandise

Question 10

what is a planogram

Answer 10

• a visual merchandising tool that displays the placement of products on shelves that maximises sales and enhance shopping experience

Question 11

objectives of planogram

Answer 11

1. efficient use of space
2. product placement based on human behaviour
3. consistency across outlets
4. visual appeal