Chapter 4

Store Planning,
Design & Layout
Faiza
1

Location Planning
Location Mapping:
Location is mapped so that the extent of each stores
reach to the customers is well defined.

Location Parameters:
Defining the store locations identification parameters to
evaluate if the desired attributes are available.

Site Selection

Target Market
Area
Population characteristics (consumer base / flow)
Economic base characteristics
Competition and level of saturation (nature of nearby
stores)
Demand & supply situation
Type of Building / Store requirement
Affordability
Ownership / Lease
Faade requirements
Size requirements
Facilities (parking, electricity, transportation access)
Other costs
Length of agreement
Legal restrictions
Traffic scenario
3

Store Design & The Retailing

Image Mix
1.
2.
3.
4.
5.
6.

Employee type and density

Merchandise type and density
Fixture type and density
Sound type and density
Odor type and density
Visual type and density

Managing Space Mix

15%

25%
60%

Selling

Circulation

Back Area

Managing Space Mix

If store has an extra area, it is given to

concessionaires (ATM, Kiosks)
Consumer perception analysis is done before
allocation.
Product category length, width and depth are
considered
Quantity of Staple (core merchandise, constitute
55%, like shirts and trousers in dept. stores),
Convenience (constitute 30%, basic white Tshirts, socks) and Impulse merchandise
(constitute 15%, hair accessories in a fashion
store) determines the space allocation.
6

Effective Retail Space

Management

Store Image is the overall perception the customer

has of the stores environment.
Space Productivity represents how effectively the
retailer utilizes its space and is usually measured by
sales per square foot of selling space or gross
margin dollars per square foot of selling space.
Store Environment

Elements That Compose the Store

Environment
Visual Communications
Retail Identity
Graphics
POS Signage

Store Planning
Space Allocation
Layout
Circulation
Store Image
And
Productivity

Store Design
Exterior Design
Ambiance
Lighting

Merchandising
Fixture Selection
Merchandise Presentation
Visual Merchandising
8

Effective Retail Space

Management

Managing store faade

Advantages:
Enables smooth and efficient customer flow
Facilitates customer reach and access to the
merchandise
Makes shopping comfortable and pleasant
Aesthetics of a well-planed floor are a visual
feast
Facilitates selling effectively and retaining the
customers.
9

Store Layout: The Circulation Plan

1. Free flow circulation: where the merchandise and fixtures
are grouped in clusters as in boutiques
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
10

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 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.

11

Store Layout: The Circulation Plan

2. Grid circulation: where aisles and fixtures are at right angles to each
other like in supermarkets
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

12

Store Layout: The Circulation Plan

3. Race track circulation: used in larger & wider store, where
customer is made to circle around the floor and get back to the
beginning, usually the lift or the staircase lobby, to move to the
next level of the store

13

Store Layout: The Circulation Plan

4. Herringbone circulation: used for a narrow store
where the highway is a single two-way one having
side roads leading to the walls from it
5. The Spine: is a Herringbone structure excluding side
roads

14

Floor Space Management

Parameters to judge space performance

Sales per square foot / top line plan (sales)

Margins per square foot / bottom line plan (gross margin
returns on footage)
Stock-holding per square foot / bottom line tool (gross
margin returns on inventory)
It can be for any SKU, Department, Division, Category,
Sub-category, A Brand, Any specific style / size option

15

Floor Space Management

Space Audit: Non-treaded space and Black holes
Hot spot analysis:
Hot spots have highest off-take of merchandise
Warm & Cold spots face lower merchandise sales
Non-treaded space is where there is no customer traffic
Less treaded space is where there is less customer traffic

Efficiency of Selling to Non-selling space

16

Floor Space Management

Ground rules for successful Space & Layout
Management

Floor space planning and management for customers

convenience
Browsing should be facilitated as it leads to buying
Optimize trading area without compromising on non-trading
area. Ensure customer spend longer time there
Right floor space management
Appeal to all the five senses

17