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Retail Store Layout and Design

Store Planning

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Planning It is the method of selecting the right location and an appropriate site for the store with the catchment definition for each store Types of Locations
High street location Destination/Freestanding Location Shopping centre or Mall Location

Site Selection
Details of Site selection sheet

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Refers to the type of building the retailer needs and its affordability and decide whether to lease, own, rent or a JV with the landlord.

Address of the property Details of adjacent occupants Can site be used commercially Name and address of the title holder Is the site free for encumbrance ? Are all relevant taxes paid and currently up to date Is the site free of any civil suit ? When was the building constructed ? Total number of floors Other prominent facilities nearby Details of facilities space / parking space Financial details

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Factors to consider while designing

Employee Type and Density Merchandise Type and Density Fixture Type and Density Sound Type and Density Odor Type and Density Visual Type and Factors

Fixtures

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Mid Floor Free standing island Gondola Tables Furniture Vendor Specials Specialist cardboards Hanging Rails Capacity, Single, Circular Fixed Shelves

Store Planning
Allocating Space Circulation Shrinkage Prevention

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Store Planning

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Floor Plan is a schematic that shows where

merchandise and customer service departments are located, how customers circulate through the store, and how much space is dedicated to each department.

Stack-Outs are pallets of merchandise set out

on the floor in front of the main shelves.

Allocating Space
Types of space needed:

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1. 2. 3. 4. 5.

Back room Office and other functional spaces Aisles, services areas, and other non selling areas of the main sales floor Wall merchandise space Floor merchandise space

Allocating Space
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

Space Allocation Planning

Improving Space Productivity in Existing Stores

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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.

Space Allocations for a New Store

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Merchandise Productivity Analysis

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Merchandise Productivity Analysis

Circulation

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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 Allowance for browsing and wandering freely Increased impulse purchases Visual appeal Flexibility
Disadvantages Loitering encouraged Possible confusion Waste of floor space Cost Difficulty of cleaning

Free Flow

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The Disney Stores Effective Use of the Free-Flow Design

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 frontof-store media wall that engages guests with Disney programming, and interactive kiosks-setting the stage for the Disney Store in the 21st century.

Circulation

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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.
Advantages Low cost Customer familiarity Merchandise exposure Ease of cleaning Simplified security Possibility of self-service

Disadvantages Plain and uninteresting Limited browsing Stimulation of rushed shopping behavior Limited creativity in decor

Grid Layout

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Circulation

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Loop/Race track 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, rectangle, and then returns the customer the front of the store. Advantages Exposes customers to the greatest amount of merchandise

Loop/Race track Layout

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Spine Layout

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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.

Spine Layout

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General Rules
Convenience of the customer comes first

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Provide free access to customer Higher browsing leads to higher buy Optimize space management Ensure audits after every change has been made Try to appeal through all five senses of the customer

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