Transcript Advanced Merchandising PowerPoint

Advanced Merchandising
Lesson 12
Objectives
• Describe the characteristics of good store layout and
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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
20 ft
25 ft
Creating a Store Layout
1. Encourage customers to move around the store.
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Tend to view more merchandise
2. Provide a space that is sufficient for customers
to shop in and that is useful for maximum
productivity
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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