Retail Mgmt Ch 17

• Implement retailer's strategy
• Build loyalty
• Increase sales on visits
• Control cost
• Legal considerations - Americans with Disabilities Act
• Design trade-offs

• Meet needs of target market
• Build a sustainable competitive advantage
• Display the store's image
• Offer hedonic & utilitarian benefits

When a store design enables customers to locate and purchase products in an efficient and timely manner with minimum hassle

When a store's design offers customers an entertaining and enjoyable shopping experience

• Enhanced shopping experience leads to sales
• Control labor costs
• Curb inventory shrinkage

• 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)

• Layouts
• Signage and graphics
• Feature area

• 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)

• 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

• 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

• 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

• Areas within a store designed to get the customers' attention
• Entrances
• Freestanding displays
• Cash warps
• Promotional aisles
• Walls
• Windows
• Fitting rooms

• The allocation of store space to merchandise categories and brands
• The location of departments or merchandise categories in the store

• Productivity of allocated space (sales/sq foot, sales/linear foot)
• Merchandise inventory turnover
• Impact on store sales
• Display needs for the merchandise

• Highly trafficked areas (store entrances, near checkout)
• Highly visible areas (end aisle, displays)

• Products that are purchased by customers without prior plans
• Located near heavily trafficked areas

• Demand for product is created before customers get to their destination
• Back left-hand corner of the store

• Lightly trafficked areas
• Ex: glass pieces, women's lingerie

Cluster complimentary merchandise next to each other

A diagram that shows how and where specific SKUs should be placed on retail shelves or displays to increase customer purchases

• 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)

• Present merchandise based on a specific idea or the image of the store
• Encourage multiple complementary purchases
• Ex: furniture combined in room settings

• Color
• Lighting
• Music
• Scent
• Stimulate customers' perceptual and emotional responses, ultimately affecting their purchase behavior

• Inventory reduction caused by:
• Shoplifting by employees or customers
• Merchandise being misplaced or damaged
• Poor bookkeeping

• A measure of space productivity used when most merchandise is displayed on multiple shelves of long gondolas
• Common in grocery stores