1. Store Layout, Design and Visual
Merchandising - Principles & Optimization

2. Store Design, Layout, Visual
Merchandising
• Opportunity for competitive advantage and
increased sales
• Store as a “good story” – a beginning, middle,
end
Entrance sets up the story – creates expectations,
contains promises, entices, hints, teases
o Inside the store is the middle of the story
o
 should start slow (uncluttered) to allow consumers to orient
themselves
 should lead customers on a journey of discovery, using layout,
lighting, visuals, other atmospherics
o
Checkout area is the store’s climactic ending

3. Five Major Store Design
Objectives
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•
•
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Consistent with retailer’s image, positioning, strategy
Positive influence on purchase behavior
Cost effective – space productivity
Sales-per-square-foot (most common, racetrack and boutique layout)
o Sales-per-linear-foot (e.g., supermarkets, drug stores, etc. with
long gondolas in grid layout)
o Sales-per-cubic-foot (e.g., wholesale clubs with multiple layers of
merchandise)
• Flexible

4. Tradeoffs in Store Design
• Ease of locating merchandise for
planned purchases
• Aesthetics, space to shop
comfortably
• Relaxed environment
• Exploration of store,
impulse purchases
• Productivity of
space
• Energy, excitement

5. Grid Layout

6. Grid Layout
• Linear design, checkerboard pattern.
• Vertical and horizontal aisles
o
May have one main aisle and many
secondary aisles.
• Efficient use of space
• Simple and predictable to navigate
• Focal points at aisle ends

7. Racetrack Layout
Major and minor loops with multiple entrances &
multiple sight lines, draws shopper around the
store, encourages exploration, impulse buying
Location of departments) men’s vs. women’s
impulse goods – near entrances, to the right, escalators, point-of-sale
demand/destination – upper floors, back corners; complementary – adjacent
Display areas) – bulk-of-stock + feature areas (walls, promotional areas, point- of-sale
areas, feature fixtures, windows)
Fixtures– feature fixtures – four-way, free-standing/mannequins, glass cases
+ gondolas, rounders & straight racks for bulk-of-stock & sale merchandise

8. Free-Form (Boutique) Layout
Storage, Receiving, Marking
Storage, Receiving, Marking
Tops
Accessories
ual Wear Stockings
Pants
+ Aesthetically
pleasing, relaxing,
asymmetrical, invites
browsing
- Less efficient, more
costly, more sales
assistance needed,
more theft
Checkout
Skirts and Dresses Hats and
Tops
Clearance
Items
Feature
Fixtures
•
Bulk-of-stock
Handbags- straight
racks,
gondolas,
rounders (very
flexible)
•
Feature –
glass cases,
4-way, freestanding,
custom-built
fixtures
Feature areas
Windows, walls,
feature fixtures,
point-of-sale

9. Free-Flow Layouts
• Opposite of grid layout.
• Ease of customer movement.
o
Must provide enough room between
fixtures.
• Fixtures arranged in interesting
formations
o
Encourages browsing.

10. Space Planning Considerations
• High traffic & highly visible areas
o
Entrances, escalators, check-out area, end aisles,
feature areas
• Profitability of merchandise
o
Private brand, higher margin categories
• Customer buying considerations
o
o
Impulse products near front
Demand/destination areas in back, off the beaten path
• Physical characteristics of product
o
Bulky vs. small/easily stolen
• Complementary products should be adjacent
• Sales rate
o
Display more units of fast-selling merchandise (tonnage
merchandising

11. Atmospherics attention,
Inform; draw
Signs
highlight merchandise,
dramatize, decorate
Lighting
Color
Warm versus cool
colors – attract/ hurry
vs. relax; value vs.
prestige
Store Atmosphere
Pop merchandise, set a
mood, downplay
unsightly areas, show
accurate color
Music
Scent
Most direct effect
on emotions and
memory
Easily changed - match
demographics, influence
shopping mood & crowd
control

12. Location of Merchandise Planograms (map – photos, drawings, computer
generated)
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vertical merchandising - eye movement - left to right & down
high margin merchandise - 15% below horizontal (51” - 53” & 56” 58”)
not alphabetical, “flank” new & private label with popular national
brands

13. Visual Merchandising is:
• Showing merchandise with the end purpose of making a
sale.
• Presenting an image of who/what the shopper can be when
using the merchandise displayed.
• Making the shopper a “stopper” and a walk-in rather than a
walk -by.
• Keeping the interior presentation the same as what is
promised on the outside/in the window.
• A combination of skills including creativity, order, artistic
knowledge and understanding of store design.

14. Design Elements
• Color
• Texture
• Line