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Store design objectives
- Implement retailer's strategy
- Build loyalty
- Increase sales on visits
- Control cost
- Legal considerations - Americans with Disabilities Act
- Design trade-offs
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In order to implement the retailer's strategy, a store's design must...
- Meet needs of target market
- Build a sustainable competitive advantage
- Display the store's image
- Offer hedonic & utilitarian benefits
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Utilitarian benefits
When a store design enables customers to locate and purchase products in an efficient and timely manner with minimum hassle
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Hedonic benefits
When a store's design offers customers an entertaining and enjoyable shopping experience
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Controlling cost: store design influences
- Enhanced shopping experience leads to sales
- Control labor costs
- Curb inventory shrinkage
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Legal considerations for store design
- Stores must allow disabled people "reasonable access" to merchandise and services (cashwrap, bathroom, wider pathways) built before 1993
- Full access for stores built after 1993
- Protected by Americans with Disabilities Act (ADA)
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Store design elements
- Layouts
- Signage and graphics
- Feature area
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Types of store layouts
- Grid: easy to navigate, up & down aisles (drugstores, supermarkets)
- Racetrack: registers located throughout (dept stores)
- Free form: everything is movable and changes (boutique layout, specialty stores)
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Use of signage and graphics
- Location: identifies location of merch, guides customers
- Category signage: identifies types of products
- Promotional signage: relates to specific offers
- Point of sale: near merchandise with price and product info
- Lifestyle images: creates moods that encourage customers to shop
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Effective use of signage
- Coordinate signage to store's image
- Use appropriate typefaces on signs
- Inform customers
- Use them as props
- Keep them fresh
- Limit the text on signs
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Digital signage
- Visual content delivered digitally through a centrally managed and controlled network and displayed on a screen
- Superior in attracting attention
- Enhances store environment
- Provides appealing atmosphere
- Overcomes time-to-message hurdle
- Messages can target demographics
- Eliminates costs with printing, distribution, and installing traditional signage
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Feature areas
- Areas within a store designed to get the customers' attention
- Entrances
- Freestanding displays
- Cash warps
- Promotional aisles
- Walls
- Windows
- Fitting rooms
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Space management
- The allocation of store space to merchandise categories and brands
- The location of departments or merchandise categories in the store
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Space planning
- Productivity of allocated space (sales/sq foot, sales/linear foot)
- Merchandise inventory turnover
- Impact on store sales
- Display needs for the merchandise
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Prime locations for merchandise
- Highly trafficked areas (store entrances, near checkout)
- Highly visible areas (end aisle, displays)
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Impulse merchandise
- Products that are purchased by customers without prior plans
- Located near heavily trafficked areas
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Demand/destination merchandise (location)
- Demand for product is created before customers get to their destination
- Back left-hand corner of the store
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Special merchandise (location)
- Lightly trafficked areas
- Ex: glass pieces, women's lingerie
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Adjacencies (location)
Cluster complimentary merchandise next to each other
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Planogram
A diagram that shows how and where specific SKUs should be placed on retail shelves or displays to increase customer purchases
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Merchandise Presentation Techniques
- Idea-oriented presentation
- Style/item presentation
- Color organization
- Price lining
- Vertical merchandising
- Tonnage merchandising (large quantities together)
- Frontal presentation (as much of the product as possible to catch the customer's eye)
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Idea-orientation presentation
- Present merchandise based on a specific idea or the image of the store
- Encourage multiple complementary purchases
- Ex: furniture combined in room settings
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Store atmosphere
- Color
- Lighting
- Music
- Scent
- Stimulate customers' perceptual and emotional responses, ultimately affecting their purchase behavior
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Shrinkage
- Inventory reduction caused by:
- Shoplifting by employees or customers
- Merchandise being misplaced or damaged
- Poor bookkeeping
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Sales per linear foot
- A measure of space productivity used when most merchandise is displayed on multiple shelves of long gondolas
- Common in grocery stores
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