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Store Design and Layout

Need for store planning

Allocating Space
Types of space needed
-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.
Shrinkage Prevention
Improving Space Productivity in Existing Stores
Space Allocations for a New Store
Impact of physical environmental factors
on shopping behaviour

Physical environment

Store layout & design

Merchandise display
Music Customer Shopping
Senses Behaviour
Store Image: Customer’s perception of the store
and its attributes.

Atmospherics : a store's physical characteristics

that are used to develop a retail unit’s image and
draw customers.
Describes the physical elements in a store's design
that appeals to consumers and encourages them to
Classified in terms of exterior and interior
Importance of Atmospherics Planning
Enhances the image of the retail outlet.
Attracts new customers.
Creates a definite USP.
Facilitates easy movement inside the store.
Facilitates access to merchandise inside the store.
Ensures optimum utilization of retail space.
Facilitates better organization of the store and its
Reduces product search time for the customer.
Influences the service quality experience.
Components of retail atmospherics
Exterior atmospherics
Interior atmospherics
Store layout
Visual merchandising
External atmospherics
All aspects of the physical environment found outside
the store are external atmospherics.
Significantly affects store traffic and sales generated.
Store exterior includes store entrances, main board,
marquee, windows display and lighting, height and size
of the building, parking facilities, surroundings etc…...
Interior atmospherics
All aspects of physical environment found inside the
Affects sales, time spent in the store and
approach/avoidance behavior of the target segment.
The retail unit environment presents various stimuli
that are perceived by the customer's senses.
Each stimulus offers many options with regard to
shopping behaviour.
Store layout
Is the interior retail store arrangement of departments
or groupings of merchandise.
Store arrangement:
- pays adequate attention to the expected movement
of the customers visiting the store.
- space allotted to customers to shop.
- adequate facilities for merchandise display.
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.
Free-Flow Layout
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 Disadvantages
Low cost. Plain and uninteresting.
Customer familiarity. Limited browsing.
Merchandise exposure. Stimulation of rushed
Ease of cleaning. shopping behavior.
Simplified security. Limited creativity in
Possibility of self-service. décor.
Loop Layout/ Racetrack 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 or rectangle, and then
returns the customer to the front of the store.

Exposes customers to the greatest amount of

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.
Exterior Atmospherics Interior Atmospherics
Storefront Accessibility Flooring Wall
Marquee Entrances Dead area Trial room
Visibility Parking Lighting Aisles
Size of building Personnel Odour
Display windows Temperature Cleanliness
Adjoining Stores Fixtures

Store Layout Visual Merchandising

Floor space allocation for selling, Assortment\Theme
merchandise display, Racks and shelves
and customer traffic flow Payment Counters
Department location
Space/merchandise category
Visual Merchandising
The orderly, systematic, logical and intelligent way
of putting stock on the floor.
It involves SKU planning, store windows and floor
displays, signs, space design, fixtures and hardware,
and mannequins
Merchandise presentation planning
Shelving Stacking
Hanging Dumping
Psychology of merchandise presentation
Value /fashion image.
Angles and sightlines.
Vertical colour blocking.
Is a tool used by the retailer, which helps to
determine the location of merchandise within a
It is a diagram that visually communicate how
merchandise physically fit on to a store fixture or
window, to allow for proper visibility and price
point options.
List the exact number of square feet used for the
various products and the exact no. of products to be
displayed in a particular area.
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.