Lecture 10 Flashcards
Grid layout
Used in grocery stores / drug store
Has parallel aisles with merchandise on both sides.
- It forces customers to move throughout the entire store
- Can easily locate products easily
- Cost-efficient as fixtures are standardized
Racetrack layout
Loop layout for departmental stores
- Aisle loops through store, guiding traffic through departments
- Encourages impulse purchases
Freeform layout
Boutiques / specialty stores
- Fixtures and aisles are arranges asymmetrically
- Intimate, relaxed environment
- No defined traffic pattern & personal selling is very important
However layout reduces amount of merchandise displayed
A good layout
- entice customers to move around store
- balance customer space and floor productivity
- have unobstructed views
- provide customer space
Store design elements
- Freestanding displays
- Mannequins
- End caps
- Promotional Aisle
- Wall space
- Point of purchase displays
- Dressing rooms
Considerations when planning space
- Balance of customer space and floor productivity
- profitability of product
- physical characteristics of product
- buying behaviour consideration
- complementary products places together
Space management
- Space allocated to merchandise categories & brand
- Location of merchandise
- Determining store size
Space productivity calculation
Gross margin return on space
= gross margin / area in sq feet
Net sales on space
= Net sales / area in sq feet
Beacons
Detects customers and a unique code will be received.
Customers receive targeted offers when they walk past a display and it shows them more information on the product and promotional discount.
It can pinpoint where customer is and sends it.
Brick and motar stores of the future
- important for delivery
- Data point important to find out shopping journey
- Transaction data to loyalty scheme
- Beacons
- Store as showroom
- Marketing tool / branding
- Store support online store
