Retail Mgmt Ch 17

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  1. Store design objectives
    • Implement retailer's strategy
    • Build loyalty
    • Increase sales on visits
    • Control cost
    • Legal considerations - Americans with Disabilities Act
    • Design trade-offs
  2. 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
  3. Utilitarian benefits
    When a store design enables customers to locate and purchase products in an efficient and timely manner with minimum hassle
  4. Hedonic benefits
    When a store's design offers customers an entertaining and enjoyable shopping experience
  5. Controlling cost: store design influences
    • Enhanced shopping experience leads to sales
    • Control labor costs
    • Curb inventory shrinkage
  6. 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)
  7. Store design elements
    • Layouts
    • Signage and graphics
    • Feature area
  8. 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)
  9. 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
  10. 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
  11. 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
  12. Feature areas
    • Areas within a store designed to get the customers' attention
    • Entrances
    • Freestanding displays
    • Cash warps
    • Promotional aisles
    • Walls
    • Windows
    • Fitting rooms
  13. Space management
    • The allocation of store space to merchandise categories and brands
    • The location of departments or merchandise categories in the store
  14. Space planning
    • Productivity of allocated space (sales/sq foot, sales/linear foot)
    • Merchandise inventory turnover
    • Impact on store sales
    • Display needs for the merchandise
  15. Prime locations for merchandise
    • Highly trafficked areas (store entrances, near checkout)
    • Highly visible areas (end aisle, displays)
  16. Impulse merchandise
    • Products that are purchased by customers without prior plans
    • Located near heavily trafficked areas
  17. Demand/destination merchandise (location)
    • Demand for product is created before customers get to their destination
    • Back left-hand corner of the store
  18. Special merchandise (location)
    • Lightly trafficked areas
    • Ex: glass pieces, women's lingerie
  19. Adjacencies (location)
    Cluster complimentary merchandise next to each other
  20. Planogram
    A diagram that shows how and where specific SKUs should be placed on retail shelves or displays to increase customer purchases
  21. 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)
  22. 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
  23. Store atmosphere
    • Color
    • Lighting
    • Music
    • Scent
    • Stimulate customers' perceptual and emotional responses, ultimately affecting their purchase behavior
  24. Shrinkage
    • Inventory reduction caused by:
    • Shoplifting by employees or customers
    • Merchandise being misplaced or damaged
    • Poor bookkeeping
  25. 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
Card Set:
Retail Mgmt Ch 17
2012-05-19 01:52:31
Store Layout Design Visual Merchandising

FIT Retail Management Final
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