Advanced MerchandisingLesson 12

Objectives• Describe the characteristics of good store layout and its impact on sales

• Give real-world examples of the four main types of store layout – grid, loop, free flow, and spine

• Explain the importance of a well designed store entrance

• Computer sales per square foot of space and linear foot of shelving

• Calculate short- and long- term payments on leased vs. purchased store fixtures

• Evaluate the pros and cons of new equipment, and impact on sales, by analyzing financial statements

• Plan an effective store layout to meet sales goals

Why is Store Layout Important?

•Store Layout:▫Arrangement of store fixtures, equipment,

and merchandise Major influence on sales and important to

image and appearance of the store Cash registers

Measuring Productivity

•Most retailers use sales per square foot•Some use sales per linear foot

25 ft

20 ft

Creating a Store Layout

1. Encourage customers to move around the store.

▫ Tend to view more merchandise2. Provide a space that is sufficient for

customers to shop in and that is useful for maximum productivity

▫ Not to cluttered

Types of Store Layouts

•Grid:▫Characterized by long rows of shelving

with aisles between the rows Hold large amount of merchandise

Grocery or drug stores

•Loop:▫Designed to lead customers from the front

of the store, through the store, and back to the front See the most merchandise

Department Stores

•Free Flow:▫Merchandise on fixtures that are arranged

in asymmetrical or free flowing patterns on the sales floor Casual layout that encourages customers to

browse as they travel through the store Specialty stores

•Spine:▫Features a center aisle that extends from

the front of the store to the back Some drug stores

Fixtures – Purchase or Lease?

•Purchasing:▫Become the property of the store

Can get a tax deduction, but they loose there value

•Leasing:▫Rent for a period of time

The Importance of a Good Entrance

•Provides the first view customers have of a store▫Sets the tone and provides a good first

impression

MATH CONCEPTS

•Sales Per Square Foot Of Selling Space:▫Total Net Sales / Total Square Feet of

Selling Space

•Sales Per Linear Foot of Shelving:▫Total Net Sales / Total Linear Feet of

Shelving