Page 72 - DMGT552_VISUAL_MERCHANDISING

Unit 4: Store Exteriors and Interiors

Consideration of the financial implications of allocating amounts of space must be conducted Notes
within the framework of an outlet plan that is geared to making the shopping experience of the
customer a satisfactory one. Too much emphasis on the retailer’s financial objectives could
result in a store being laid out illogically and make products difficult to find. Long-term
profitability is dependent on customer satisfaction and loyalty, and so space planning must
incorporate factors other than individual product sales and profitability. Aspects such as seasonal
goods, the physical size and weight of the product, the type of fixturing required and the need to
display complementary goods in close proximity should all have a bearing on the overall plan.
The complexity of space-allocation decisions has encouraged the use of computer-based systems
as a retail management aid. Modern space-allocation systems are able to synthesise a plethora of
quantitative and qualitative data such as product costs, sales forecasts, product sizes,
complementary purchasing potential, fixturing details and so on. The output of these systems is
a space-allocation plan or planogram that shows exactly how the products should be displayed
on the fixturing, including the number of facings of each product that the customer should see.
Although space-allocation systems have resulted in retailers using space in a much more
productive way, they do have limitations. Most large multiple retailers have a portfolio of
stores that differ in size and shape, and so unless that retailer has access to individual store input
data and the system is capable of producing customised plans for each store, the planogram will
have to be subject to a certain degree of interpretation at store level. Many retailers have tackled
this problem by grading their stores by size and producing a set of plans for the different store
grades. However, grading by size is a very crude method of assessing different stores. Recent
advances in micro-marketing have shown that the profile of a store’s catchment area gives a
better indication of the type and amount of merchandise required than the size of the outlet
(Ziliani, 2000). As retail management-information systems become increasingly sophisticated,
this type of store performance analysis and customer-profile customisation will become more
widespread. Space allocation systems are expensive, and may be beyond the means of the
smaller retail organisation.
Colour Planning: The success of a retail store can be heavily influenced by the chosen colour
scheme, its layout design and atmosphere created by the retailers. All three of these are equally
important elements when planning the opening of a new store or the remodelling of an existing
store.
Let’s begin with choice of colour scheme for the store. It is a good idea to research what each
colours associate mentally to most shoppers. An example of how well this works are Walmart,
known for blue accents and main colour and Target, whose main colour and accents throughout
the store are red. Blue is associated with feelings of serenity and trustworthiness. Red, on the
other hand, is representative of power and warmth. Because of the choices made early on in the
beginning years of these two well known chains, most shoppers identify the blue with Walmart
as well as the red with the Target chain. This has created a feeling of familiarity for the shoppers.
Next, layout designs are most often set by the corporate headquarters so all stores in a retail
chain have similarity. This is done to help shoppers navigate each store and be able to find what
they are looking for. Usually, each retail store is given a Merchandise Flow Chart and Plannogram
notebook to be used at the set up for the grand opening along with display fixtures, shelving and
signage. New flow charts and plannograms are periodically (due to seasonal changes or special
holidays) mailed updates to each store that must be carried out in a timely manner. Merchandising
plays a big part in how well sales are in any given department. Sometimes featuring merchandise
on a focal wall or end-cap showing ways items can be used to inspire impulse purchases.
The third element, atmosphere is set by both the associates hired to serve the customers and the
customers themselves. How these two groups interact creates the feel of the store. Each retail
store in a chain will have a different atmosphere. Factors that play integral parts are the median

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