RETAIL MANAGEMENT -III

By
Dr.Sudarsan.M,Ph.D.
 Store Design
• Retail today is much more than pure merchandise. In the Competitive
world , retail is fast emerging as theatre. It is about building a story, and
building a multi –dimensional shopping experience for the customer
repleted (provided) with sights, sounds ,colours, textures and
environments which will leave a lasting impression on the minds of the
customer
• The basic principle of store design require the image being created is in
tune with merchandise, the advertising and the service offered by the
store.
• All this has to be presented in an attractive manner and the same time
it has to be profitable for the retailer.
 The Concept Of Store Design
• In the world aware of the consumer, Who is particular and discerning
(showing good judgement) not only in terms of what he wants, but also
from where they would like to purchase it, The expectations of retail
store have changed.
• Consumers no longer go to a store to mere by a product or avail the
service. Shopping, an intensively personal activity about experience.
Consequently, retail has moved the area of experience.
• This is particularly more relevant and visible in case of retailers who
operate within the high end segment and cater to luxury fashion brands
For examples :
International retailer Prada focuses on creating beautiful places that
enable to show off the brand.
 The Concept Of Store Design
Two Coffee retail chains operating in the country Barista and Café Coffee
day. Both primarily sell the same product , however the type of customer
visiting each store will be different.
Barista focuses heavily on the experience that is created in the store, and
will, as a consequence , have a different clientele which would be
comfortable in the store.
Café coffee day on the other hand focuses more on the youth. The entire
store experience here is different; Consequently the customer set is
different.
Thus, while the product remain the same, it is related differently to
different target audiences and with a different consumer experience.
 The Concept Of Store Design
• The term “design” has been variously defined as a plan or scheme used
to denote the end result, particularly the appearance of a design
process, and has relevance to both physical products as well as systems,
services and other non-tangible dimensions.
• Design has also be used to denote the outward appearance or physical
arrangements of objects involving shapes, layouts, colours, textures and
patterns and is in some way related to the sensory dimensions to the
world.
• Design has been described as an essentially creative response to an
actual or perceived problem, whereby the process of designing
represented as the attempt to provide a solution or response to the
problem, need or issue through the creation of that which is new or the
creative modification of that which is already exists.
 The Concept Of Store Design
• The application, integration and management design within retailing has
been largely confined (cramped) to the observations of retail designers
addressed to other designers.
• Retail store design acts on the conscious and sub conscious level, and has an
effect on the consumer's perceptions of a brand or retailer as the quality of
the goods themselves.
• The concept of retail store design or ‘retail design’ covers all aspect of a
store: ranging from store frontage, fascia ( flat surface above the shop
window) and signage, to the internal elements of furniture, merchandising
,display , lighting , graphics, point of sale and decoration.
• A new phenomenon which as emerged over the last decade, is the concept
of flagship store. Rasshied Din terms flagship stores , as a larger than life
statement about their companies and their brands.
• This is the most dramatic statement that a retailer can make: space will be
used to impress , and furniture and fittings will be the highest of quality. Such
stores will generally located in prime retail sites across the world.
 The Principles Store Design
1. The first principle of store design is Totality. The entire store has to be
conceived as one unit which draws upon the retailer’s reason for
existence,i.e his vision and mission statement. Who does the retailer
seek to be and which is the target audience that he seeks to tap. At
the same time the type of merchandise to be retailed in the store and
its price points have to be kept in mind. The entire store right from
the store entrance to the type of fixtures used to display the
merchandise has to come across as on entity - this is the principle of
totality.
2. The second Principle is of Focus, wherein while aspiring to create
beautiful places for the consumer to shop in the retailer should not
forget that the primary focus within the store has to be product or
merchandise. While in a store a customer should feel comfortable, he
should not be awed (wondered) by the ambience of the store.
Achieving sales is the primary step towards being sustainable in the
long run.
 The Principles Store Design
3. The third principle is of Ease of shopping. The store has been created
for the customer, it has to be easy for him to navigate, easy to access and
most importantly simple to understand. No one wants to visit a store
where shopping is cumbersome ( unmanageable) and tedious (tiresome)
4. The last principle is Change and Flexibility. Store designs increasingly
have to be adaptable to the environment that they are part of. The fast
moving world of the consumer means that the retailers have to think
more and more about how the design of the stores will cope up with the
short term and long term future demands of their business, and he
wants of their consumers. Change and flexibility have to be considered
from the point of ever changing consumer needs and the store design
has to be adoptable to that change.
 Elements of Store Design
• The Store design and layout tells the customer what the store is all
about. It is very strong tool in the hands of the retailer for
communicating and creating the image of the store in the mind of the
customers.
• It is the creation of this image that is the strong point of marketing
efforts.
• The importance of store design needs to be understood from the
perspective of the retailer and from the perspective of the consumer.
 Consumer perspective on store
 Simple to navigate
Sense of security or assurance
Sense of relationship
Sense of pleasure
 Elements of Store Design
 Merchandise perspective on store
 Sales personnel
Location
Pricing
• All work towards creating an image, it is the physical attributes of a
store which affect the customer’s sensory perceptions, and makes him
relate to the store in a particular manner
• The environment, which is created in the retail store , is a combination
of the exterior look of the store, the store interiors, the atmosphere in
the store and the events, promotions and themes, which form a part of
retail store.
Elements of Store Environment

Store
theme

Store
image

Store
Atmosphere
 Exterior Store Design
• The exterior look of the store that draws customer to the store – it is
the first impression that a customer has of the store.
• Interesting windows display, an impressive building, and an inviting
entrance all work together to entice the customer to enter the store
• The exterior store design is a function of the location of the store site,
which is a combination of various factors like the site itself, facilities
like parking and the ease of access.
• The architecture of the building is a combination of the frontage and
exterior of the building, the display space and the health and safety
provisions provided.
• Health and safety standards may not really be a cause of the Indian
retailers, however they are an important factor internationally.
 Exterior Store Design
Parking
Frontage & Entrance Exit Display space

Building
Architecture Location

Access
Health & Safety
Store Design

Store ‘Theme’

Target Customers Merchandise Mix

 The Store Marquee
• The store marquee ( A canopy projecting over the entrance) and the
store frontage also play an important role in influencing the perception
of consumers about the store.

• The store marquee is the first mark of identification of the retailer or

the retail store.

• It helps the retailer identifying the store and attracting the consumers
and is an integral part of the building façade (Open space).
 Sony store in New York city
Disney store –Glendale CA Marquee

The metro department store and the super market Complex lifestyle Marquee mall
 The Storefront
• The storefront which influences the customer. A cluttered , dirty store
front will be one of the first factors, which will actually deter a
customer entering the retail store .
• Typically ,the kind of storefront is influenced by the type of location.
• Storefronts are typically straight fronts, Angled fronts or arcade fronts.
 Straight fronts
 The straight front typically ,runs parallel to the side walk.
 Angled Fronts or Arcade fronts
 An angled front is one which is at a slight angle of the traffic.
 Arcade fronts are usually spacious. They allow the window
merchandise closely.
Arcade fronts may be open in sweep or more complex, with an island
type windows.
Straight fronts

Arcade fronts
 The Storefront
• The storefront is an important element in store design. The store
exterior should be inviting for a customer to actually enter the store.

• It is ideal if the entrance has good lighting and is safe from the
customers point of view. It is not cluttered (untidy collection of things)
and has doors ,which are easy to open

• The storefront is a reflection of the personality of the store. The

manner which merchandise is displayed in show windows also has a lot
to do with enticing customers into the store.
 Interior Store Design
• Interior Store design is a function of the aesthetics (specific method in which
they communicate through the senses) with in the store, The merchandise
sold within and the space used for the same and the overall layout of the
store for selling the merchandise.
 Space planning
 Space planning helps a retailer determine the amount of space available for
selling and for storage.
 The location of various departments
 The location of various products within the department – the creation of
planograms ( Is a diagram that shows how and where specific retail products
should be placed on retail shelves)
The pros /cons of specific locations ,impulse products, destination areas,
seasonal products,prodcuts with specific merchandising needs, adjacent
departments (complementary goods)
The relationship of space to profitability
 Interior Store Design
• Space planning is not only an element of retail deign ,but is also an element
of merchandise management /category management. Since category /
merchandise managers are responsible for the overall profitability of the
merchandise , it is linked to the retail space allocated for the merchandise
within the store.
• When one walks into a department store , one rarely thinks about the reason
behind the location of various departments and placement of products.
• The retailer has to take into account of various factors while determining the
location of various departments. The first factor that is taken into
consideration is the amount of traffic generated by the department and the
potential sales.
• The items having high demand and a fair amount of traffic are not
necessarily placed near the entrance of the store. They are usually located in
low traffic areas, products like fragrances ,jewellery ,cosmetics , which are
largely impulse items may be placed near the entrance of the store
 Interior Store Design
• An analysis of the footfalls in the department, the sales potential of the
various departments and a basket analysis of what customers are likely
to buy. Ideally ,merchandise should be laid out in the manner that
customer would buy rather than the mere departments.
 For example, In the women’s wear section , handbags and footwear
and accessories may be placed in a co-ordinated manner along with
clothes.
• Many retailers adopt cross –mix merchandising , which enables a
customer to visualise how various products look together. Retailers
may also creates area within the store where all the products mixed
together.
 For example, In the home section , all the products that may be used
in the bathroom may be displayed together. This helps the customer
visualise how various products would look together and also
encourages purchases
 Interior Store Design
• Retailers very often resort to merchandising similar products together,
this enables the customer efficiently use their time while in the store.
Placing similar products together inside the store is called creating a
shop interior , anchor area or niche. This is sometimes called creating a
store within a store.
• These areas are the basic building blocks of the store and retailers most
commonly use this type of interior organisation.
• When you create an anchor area, merchandise is usually placed
together with similar product ,brand colour or texture.
• For instance , in the home section all lamps may be in one section,
while all the bedsheets,etc.will be in another
• This product grouping allows customer to quickly find what they are
looking for and to set the breadth of product offered with in any given
category.
 Interior Store Design
• An essential element of space planning ,especially in apparel stores , is
the trial rooms or fitting rooms which have to budgeted for. It needs to
be remembered that this is often ignored area of the store is where a
customer makes a decision on buying the product.
• Especially for apparel , While trial rooms need to have enough space for
the customer to have move around and look at the apparel that he /
she is trying on, they also need to be accessible and not at the ends of
the floor as is commonly noticed in India.
• Many online retailers have also introduced virtual trial rooms, where
customers can see themselves in different dresses without actually
wearing them.
 Interior Store Design
 Atmospherics & Aesthetics
• Atmospherics is the design of an environment with the help of visual
communications , lighting , colour , music and scent , to stimulate customer’s
perceptual and emotional responses and thereby influence their buying
behaviour.
• Philip Kotler first introduced the concept of atmospherics. Retailers in India
are fast learning the effects of various elements of atmospherics on
customers.
• Aesthetics , on one hand , takes into consideration factors like the actual size
of the store, colours,textures,etc used within the store to create a particular
look and feel of materials.
• Every material item possesses a texture. Visual texture is the result of light
refracted from any surface. Balance on the other hand , is the distribution of
weight in a display.
• Three types of balance exist :symmetrical, asymmetrical, and open
 Interior Store Design
• Store interiors are a function of the fixtures,flooring,ceiling , lighting and
signage’s used with in the store to create a look.
 Fixtures
 Fixtures are used for storing and displaying merchandise. They may be floor
fixtures or wall fixtures and are manufactured in various materials like wood ,
glass, steel and synthetic.
 Examples of fixtures include table , racks ,stands , shelves ,gondolas (free
standing fixtures) bins and other material. Which may be used to display
merchandise.
 Flooring and Ceilings
 Floorings, ceilings and the walls work together in creating an image. Ceilings
are important because they house air- conditioning and the lighting.
For example a high priced jewellery showroom may use carpets, while a
supermarket would use flooring which is easy to maintain.
 Interior Store Design
 Lighting
Lighting is a key factor to retail design. The lighting scheme to be
adopted for the store has done keeping in mind the kind of products
being sold in the store, and the target audience.
 Effective lighting is a key in the sale of merchandise and also helps
create a favourable first impression of the merchandise and its
surroundings.
 Graphics and Signages
 Graphics and signages inform about the customers about the
products,merchandise,price, special offers and also direct customers.
 Signages and graphics when used in the store window can compel
customers to enter the store.
It is common for many retailers to use posters , photo enlargements
and other graphics in windows.
 Interior Store Design
 Classification of Graphics
 Theme graphics :
These are graphics which are relate to a particular theme being followed
throughout retail.
 Campaign graphics :
Campaign graphics are graphics related to the current advertising
campaign.
Promotional graphics :
These are graphics that pertain to the promotional campaign being
carried out to the store. This may be reference to a particular
department.
Theme Graphics
Campaign Graphics

Promotional Graphics
 Interior Store Design
 Classification of Signages
 Merchandise related:
Signages related to merchandise inform the customers of the location ,type, prices or
features of merchandise within the store
 Directional signs :
Directional signs are needed in the store to direct customers towards the cash
counters, gift wrapping areas ,customer service areas ,washrooms and the location of
lifts and staircases and trial rooms are example of the same
 Instructional signs :
Examples of instructional signs include informing persons entering the store that the
store is under electronic surveliance, instructions about the malfunctioning of a lift,
caution.
 Courtesy signs
Examples include sign like “ Thank you , Visit again “
 Store directory
A store directory informs the customers about the location of the various section of
the store
Merchandise
Directional Signs
Related Instructional Signs

Courtesy signs Store Directory

 Interior Store Design
 The Layout
 The last element which is integral look of the store is the store layout.
 The layout of the store is the manner which merchandise or products
have been arranged in a retail store.
 It helps movement of the customer within the store , An ideal layout
strikes the balance between the merchandise displayed and the
productivity.
 The entrance area of the store is often referred to as the
“decompression zone” or the “transition zone”
Typically , store layout may be classified into :
 Grid
 Race track and
 Free form
 Interior Store Design
 The Circulation Plan
 Every retailer would want a customer entering his store to circulate
through the entire store.
 Most retailers adopt the policy strategically placed demand
/destination products and impulse products at various point of the
store.
 This encourage people to move and browse around the store ,taking
into products or items which have been stocked.
 Many a times , a retail store may also have a separate entrance and
exit. Such an arrangement necessarily requires the customer to cover
certain length of the store, before existing the store
Elements of store design
Space
planning

Interior
Aesthetics store Atmospherics
design

Layout
 Visual Merchandising
• Contemporary (living or occurring) methods of displaying products are believed to
emerge in the late 18th century. Earlier small store would typically show/display the
merchandise only when the customer ask for a product.
• The evolution of art of merchandising is believed to have taken place in 19 th century
which saw the developments of arcades across Europe.
• The Grand Expositions, which began in London in 1851 with Crystal Palace
Exposition were originally meant to present and demonstrate new technology.
• The retailers learned that they would be more successful ,if they displayed the
merchandise openly and strategic manner to the public.
• They also observed that it was better to not place objects directly on the floor ,but
rather on platform or pedestals –raising the merchandise closer to eye level.
• This emphasis on deliberately displaying merchandise in a manner would be
pleasing for the consumer was an important innovation in the development of
visual merchandising.
• Displays are often themed, creating an atmosphere of a distant and exotic land.
 Visual Merchandising
• Visual merchandising technically can be defined as the art of
persuasion through presentation , which puts the merchandise in focus.
• It educates the customer, creates desire and finally augments the
selling process. Thus the role of VM plays can be listed as :
1. The primary purpose is to enable the products / services sold by the
retailer.
2. To inform and educate the consumer about the product / services in
the store
3. To enable ease of shopping for the consumer by informing about
colours, sizes, prices and the basic location of the product.
4. Creating and enhancing the store image
 Visual Merchandising
• Visual merchandising is governed by the common principles of design,
balance , emphasis ,proportion, rhythm and harmony.
• It works on attracting the attention of the customer , creating an interest for
the product /service and creating desire to own the product and then initiate
the decision to make the purchase.
• The role of visual merchandiser largely depends on the type of retail
organisation and the importance accorded to the role of visual
merchandising.
• Visual merchandisers must be aware of the store’s layout in intimate detail.
• Some organisations have two levels of visual merchandising positions: One is
responsible for the overall look and colour flow of displays, and the other is
responsible for maintain window and other displays on day-to-day basis.
• Displays are usually planned for 2 to 4 weeks in advance to coordinate with
special promotions and advertising campaigns. If a visual merchandiser is
working exclusively for a large organisation or chain , signage and prop
packages are generally provided.
 Tools used for Visual Merchandising
1. Colours and Textures
2. Props and Fixtures
3. Windows
4. Lighting
5. Mannequins
 Tools used for Visual Merchandising
Colours and Textures
• Colours increases brand recognition by up to 80%. Colours improves
readership as much as 40%. Colour accelerates learning from 55 to 78%
Colour increases comprehension by 73%. Colour ads are read up to 42%
more than similar ads in black and white. Colour can be up to 85%the reason
people decide to buy. ( source The profit colour ,www.colormarketing .org)
• In 1920’s Itten , who is affiliated with the German Bauhaus movement,
developed the colour star that included 12 colours, which include 3 primary
colours, 3 secondary colours and 6 tertiary colours.
• Texture deals with the look and feel of materials. Visual texture is the result
of light refracted from any surface. Tactile texture can be rough ,smooth,
thick, thin, sandy ,soft, hard, warty, coarse, fine ,regular or irregular.
• The combination of visual and tactile texture provides a definite
interpretation of all items and materials encountered.
 Tools used for Visual Merchandising
Props and Fixtures
• Props and fixtures are essential elements used in creating a display in the
store. The most commonly used fixtures include :
 Slatwall
 Grid wall
 Counter displays which can be – Counter –top acrylic displays, counter –top
chrome displays tops, counter- top easels and counter –top literature holder.
 Racks, 2 way rack ( T-stand), 4 way rack, casters, hang rail racks, round racks
 Gondola and End caps.
• As fixtures covers major area of the store , they need to be used correctly in
keeping with the target audience for the retail store.
• Fixtures are usually made of wood , metal or fibreboard
 Tools used for Visual Merchandising
 Store Windows
• The store window is often the one attracts a customer into the shop
and hence is an essential part not only in the design of the store but
also in terms of what the store presents visually to the customer.
• Window displays can focus on a particular product , a range of products
or can follow a theme. Very often this theme is then replicated through
the store.
 Lighting
• The significance of lighting is often overlooked in a retail store, Aptly
highlighting merchandise with the use of lights that go with it, can
convert passer-by into a potential customer.
• There are a lot of options available today for lighting up as store
including dimmers, down lights, fluroscent fixtures, track lights and
directional lights.
 Tools used for Visual Merchandising
 Mannequins
• The word Mannequin comes from the Dutch word Manneken, literally
meaning “ little man". Mannequin is the French form.
• Mannequins are typically used in retail store environment to the display
the merchandise.
• There are many types of mannequins available, the most common type
is the life- size mannequin. These mannequins are the same size as a
real person and have arms, legs, hands feet and a head.
• Most of them can be posed in different positions to give them a more
lifelike look.
• Mannequins can look like males, females or children. Other
mannequins consist of only torso on a stand.
• The use of mannequins depends in the nature of merchandise.
 The Planogram
• A planogram is a tool used by the retailer that helps determine the
location of merchandise within the department.
• It is a diagram that visually communicates how merchandise and props
(is an item that sits in your window or store. It is not for sale but assists
the sale of other products) physically fit on to a store fixture or window
to allow for proper visibility and price point options.
• A planogram is created after taking into account factors like product
sales , the movement of product within the product category and the
space required for various products.
• They usually list the exact number of square feet used for various
products and the exact number of products to be displayed on a
particular area
 The Planogram
• For a retailer who has a number of stores spread over various
locations, a planogram is a good way of communicating how displays
are done.
• This allows consistency in presentation across locations. When
products are presented in the same manner across locations, the
customer feels familiar and comfortable in each location.
• This helps to build brand loyalty and customer trust.
Retail store Planogram

Soft Drinks
planogram
 Methods of Display
• Retailers while displaying their products may adopt various methods :
1. Colour Dominance: This is the simplest and the most direct method
of presenting merchandise . In such a display , merchandise is
primarily displayed by colour. Within the colour display, the products
may be displayed by size and style.
2. Co-ordinated Presentation: Many a times , it is effective to present
merchandise in a co-ordinated manner, presentation by co –
ordination may be done for garments and can also done for home
fashions, bed & bath lines and even kitchen requisites.
3. Presentation by price: In such a display , the inexpensive, bargain or
sale merchandise is displayed first. The volume of the product and
the saving dominant.
 Methods of Display
• Merchandise can be displayed shelves – horizontally and vertically.
Vertical merchandise is believed to encourage purchase as the products
are displayed in the line of vision.
• As mentioned above , colour can also be used to attract attention and
the vertical use of the colour is called colour Ribboning, and is always a
better choice of Colour Blocking , Horizontal use of colour.
• While displaying similar items in various sizes , it is advisable to place
the small size of the product on the left, and the larger size on the right.
As most customers are right handed they tend to unconsciously reach
for the item closest to their right hand.
• Visual curve of merchandising involves the use of slanted shelves to
increase the customer’s strike zone and the amount of product the
customers sees in just one glance.
 Common Errors in Creating the Display
• Clutter : Too much of merchandise in one place always created a
cluttered look and may actually turn a person away from the
merchandise rather than attract them.
• Lack of underlying Theme: The display created is often not linked to
the message of the retailer wants to convey the customer. The
customer should be able to understand the concept presented looking
at the display in few seconds.
• Too Many Props: There is no specific rule that stipulates the number of
props appearing in a display. However , the error of over propping a
display can be serious than using few props. The type and number of
props are dependent on merchandise.
• Dirty floors : Unclean floors reflect the attitude on the part of the store
management and implies a basic disregard for the customer.
• Poor Lighting: The over use and under use of lighting.