store layout
TRANSCRIPT
Departmentalization
Space allocation
Layout Design
Rajnish Kumar
Departmentalization
Why it is required
How it is done
What is the best way ??
A look at the Market ….
CategoryMkt size
'06% share
'06 growth rate Mkt size
'10% share
'10 growth rate Mkt size
'15% share
'15
US $bn btw 2005-
2010 US $bn btw 2015-
2010 US $bn
Food beverage & tobacco 195 65% 7% 256 60% 6% 342 54%
Personal care 15 5% 11% 23 5% 9% 35 5%
Apparel 21 7% 11% 33 8% 9% 50 8%
Footwear 5 2% 11% 7 2% 9% 11 2%
Furnishings 4 1% 15% 7 2% 12% 12 2%
Consumer durables & IT 14 5% 15% 24 6% 12% 43 7%
Furniture 9 3% 15% 16 4% 12% 28 4%
Jewelery & watches 15 5% 12% 24 6% 9% 37 6%
Medical & health services 8 3% 12% 12 3% 12% 21 3%
Recreation 2 1% 1% 3 1% 15% 7 1%
Others 12 4% 18% 23 5% 16% 53 8%
Total 300 428 639
1991 2008
1.Food & Grocery
2.Clothing
3.Footwear
4.Consumer durables
5.Home Linen
6.Movies & theatre
7.Eating out
1.Food & Grocery
2.Clothing
3.Footwear
4.Consumer durables
5.Expenditure on DVDs & VCDs
6.Home Linen
7.Home accessories
8.Accessories
9.Gifts
10.Take away/ pre-cooked/RTE meals
11.Movies & theatre
12.Eating out
13.Entertainment parks
14.Mobile phones & service
15.Household help
16.Travel packages
17.Club membership
18.Computer peripheral & Internet usage
How has it changedImpact on consumer spending/shopping behavior: In 1991 there were just 7 categories accounting for 80% of consumer spending. These have expanded to 18 in 2008 and the list is expanding !
Customer : Demographics:
SEC A/B/C of Tier-II towns Mostly families from town, business/service
class Age: 25-40 years, males/females
Psychographics:
Progressive/exposed to current trends Shopping is an experience v/s. shopping as a
chore Is a discerning shopper – seeks good quality
products and wants to stretch his wallet Wants to emulate friends in Metros Takes his Indian’ness seriously and has strong
peer pressure
Category Role
Category Role Retailer View Customer View Example
Traffic Builder Lower Margin
High Frequency
Saving
Top Ups/Convenience
Fruits and Vegetables
Eggs
FMCG
Cash Cow High Margin
Destination
Aspiration
High cost of acquisition from alternate source
Toys and Games
Home Linen
Branded Luggage
Perception builder Medium Margin
High Fashion
Value Pricing
Lifestyle
Apparel
Merchandise Mix
Apparel - 20 % Footwear - 10 % Toys - 5 % Soft Home - 10 % Hard Home - 20 % CD - 15 % FMCG - 30 %
** On the basis of sales Turnover
All Store
FMCG Hard lines Soft lines
GroceryPersonal
careCD
For The Home
ApparelHome Linen
Departments
Space Allocation
Who does it and how is it done
Evaluation
9
Trivia – 50% of Women get their ideas for clothes from store displays or window Shopping
Store Planner’s Responsibility
Department Locations
Entrance
Which Floor
Position on the floor
Store traffic flow
Near Elevator / Escalator
Men’s/Women’s Category
Demand / Destination Areas
Impulse Products
Physical Characteristics of Merchandise
Space Allocation
10
Department adjacencies
Avoid Butt Brush
Factors for Merchandise displayWhat MerchandiseHow Much Merchandise?How Much Space?Where to Place?Total Expected Sales within dept
Evaluation Sales Per Square Foot Sales Per Linear Foot
Space Allocation
Department Area Allocated (Square Feet)
Apparel
Men's wear 1500
Tailor for alterations 100
Trial Rooms(2) 100
Women's wear 500
Trial Rooms(2) 100
Kid's wear 1000
Footwear 800
Toys 400
Soft Home 500
Hard Home
Stainless Steel Utensils 100
Plastic household items 100
Melamine 100
Non-stick 100
Thermo ware 100
Crockery/ Glassware 200
Luggage 100
Furniture 400
Mobiles 100
Watches 100
Bakery/ Cafeteria 200
Total 6600
**In case the floor area is lesser the space will be allocated either proportionately or based on the market potential
Space Allocation Plan 1 ST Floor - 6600 Sq Ft.
12
Plano gram of Hard Lines Department
13
Evaluation – Space productivity Index
Subcategories with Low SPI need to be evaluated
14
Store Layout
• The way in which the Fixtures and furniture is arranged within a store• It controls the movement and flow of traffic within the Store• It also plays a major role in determining ‘shopping experience’•Is important for the image of the store
15
Store Layout - Types
Grid
Race Track
Free Flow
Spine
Herringbone
16
Store Layout - Types
Grid
17
Food World, Food Bazaar, Reliance Fresh, Etc.
Grocery Stores
Long Gondolas
More Shelves
Repetitive Pattern
Lesser Aisle Space
Customer Familiarity
More Cost Effective
Higher Space productivity
Why Grid Layout
Disadvantages – Poor Product Exposure , Rushed Shopping behavior & Poor aesthetics
18
Store Layout - Types
Race Track / Loop Layout
19
Lifestyle, Shopper’s Stop, Central, Etc Main Aisle loops through the store View of multiple departments Access to multiple departments Exposes more merchandise Most important departments on the rear of the Store Department Flooring, Lighting & Ambience change Encourages
Exploring new merchandise Impulse Buying
Why Race Track / Loop Layout
Disadvantages – Takes time to shop and move around.Offers little familiarity
20
Store Layout - Types
Free Flow/ Free Form Layout
Why Free Flow
West Side, Wills Lifestyle, Etc. Fixtures & Aisles asymmetric Boutique Layout Specialty Stores or Within Departments of large stores Expensive fixtures
DisadvantageWastage of SpaceNo control of flow of traffic
22
Store Layout - TypesSpine Layout
Tanishq, Titan Eye Plus , Raymond’s, Etc. Single Main Aisle runs from front to rear Both directions
23
Store Layout - Types
Herringbone Layout
Croma Apt for Consumer Durables & Hardlines Single Main Aisle runs from front to rear