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Learning Objectives
List the elements of a stores environment and define
its two primary objectives.
Discuss the steps involved in planning the store. Describe how various types of fixtures, merchandise
presentation methods and techniques, and the psychology of merchandise presentation are used to increase the productivity of the sales floor.
Store Image
LO 1
Store Image
LO 1
By incorporating a caf
as an integral part of Barnes & Noble bookstores, a very relaxing and casual ambiance is created.
Retailing Truism
LO 1
Get customers into the store (market image). Convert them into customers buying merchandise
once inside the store (space productivity).
Shrinkage
Represents merchandise that cannot be accounted for due to theft, loss, or damage.
Store Planning
LO 2
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Store Planning
LO 2
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Allocating Space
LO 2
Types of space needed: Back room Office and other functional spaces Aisles, services areas, and other nonselling areas of
the main sales floor
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Allocating Space
LO 2
Warehouse clubs are able to take advantage not only of the width and depth of the store, but also the height, by using large warehouse racks that carry reachable inventory at lower levels with large pallets or cartons of excess inventory at higher levels.
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LO 2
Pacific
Creme rinse/conditioner Deodorant Face cream/lotion Hand/body lotion Hair colorings Hair spray-womens Mens toiletries Oral antiseptics/rinses Shampoo
Source: Neilsen Marketing Research
LO 2
Pacific
Shaving creams Suntan Lotion Toothpaste Acne remedies Antacids Cold remedies-adult Cough syrup/tablets Nasal spray/drops
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LO 2
Pacific
Headache/pain remedies Vitamins Contact lens solution Diet aids Pregnancy test kits Laxatives Contraceptives-male Sanitary napkins Tampons
Source: Neilsen Marketing Research
Improving Space Productivity in Existing Stores Space Productivity Index is a ratio that compares the
percentage of the stores total gross margin that a particular merchandise category generates to its percentage of total store selling space used.
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Circulation
LO 2 Free-Flow Layout is a type of store layout in which fixtures and merchandise are grouped into free-flowing patterns on the sales floor. Advantages Disadvantages Allowance for browsing Loitering encouraged and wandering freely Possible confusion Increased impulse Waste of floor space purchases Cost Visual appeal Difficulty of cleaning Flexibility
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Approximately 250 million consumers visit Disneys entertainment retail outlets each year. New store designs showcase merchandise in an engaging and contemporary fashion, keeping pace with evolving retail trends. Technological elements including a front-of-store media wall that engages guests with Disney programming, and interactive kiosks-setting the stage for the Disney Store in the 21st century.
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Circulation
LO 2 Grid Layout is a type of store layout in which counters and fixtures are placed in long rows or runs, usually at right angles, throughout the store. Disadvantages Advantages Low cost Plain and uninteresting Customer familiarity Limited browsing Merchandise exposure Stimulation of rushed shopping Ease of cleaning behavior Simplified security Limited creativity in decor Possibility of self-service
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Circulation
LO 2
Loop Layout is a type of store layout in which a major customer aisle begins at the entrance, loops through the store, usually in the shape of a circle, square, ar rectangle, and then returns the customer the front of the store.
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Circulation
LO 2
Spine Layout is a type of store layout in which a single main aisle runs from the front to the back of the store, transporting customers in both directions, and where on either side of this spine, merchandise departments using either a free-flow or grid pattern branch off toward the back aisle walls.
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Shrinkage Prevention
LO 2
One of the most important considerations when planning the layout is visibility of the merchandise.
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On-Shelf Merchandising Is the display of merchandise on counters, racks, shelves, and fixtures throughout the store.
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Fixture Types Merchandise Presentation Planning Selecting Fixtures and Merchandise Presentation
Methods
Visual Merchandising
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Fixture Types
LO 3
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Fixture Types
LO 3
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Visual Merchandising
LO 3
Visual Merchandising
Is the artistic display of merchandise and theatrical props used as scene-setting decoration in the store.
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Visual Merchandising
LO 3
techniques stores use to generate those sales: Getm coming and going. Escalators are a focal point of many stores. That makes them ideal locations for promotional signs and for impulse items like perfume.
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Visual Merchandising
LO 3
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Visual Merchandising
LO 3
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Visual Merchandising
LO 3
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Visual Merchandising
LO 3
Suggestion positioning.
Once the customer has already purchased one item, its easier to sell an additional item. Thus apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines.
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Question to Ponder
How do fixtures and merchandise presentation interact
to influence consumers in different types of retailers?
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Store Design
LO 4
Ambience
Is the overall feeling or mood projected by a store through its aesthetic appeal to human senses.
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Store Design
LO 4
Storefront Design Interior Design Lighting Design Sounds and Smells: Total Sensory Marketing
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Lighting Design
LO 4
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Visual Communications
LO 5
Name, Logo, and Retail Identity Institutional Signage Directional, Departmental, and Category Signage Point-of-Sale (POS) Signage Lifestyle Graphics
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Departmental Signage
LO 5
Departmental signage serve as the highest level of organization in an overall signage program. These signs are usually large and placed fairly high to they can be seen throughout the store.
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Category Signage
LO 5
Category signage helps consumers negotiate throughout the store to find the product categories they are looking for. The size of category signage varies widely from a lettering that is a few feet in height to merely inches.
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Point-of-Sale Signage
Is relatively small signage that is placed very close to the merchandise and is intended to give details about specific items.
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Lifestyle Graphics
LO 5
The Limited uses lifestyle graphics to convey the image of the product to the consumer. Here the Limited conveys the casual nature of one apparel line.
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